Audit report, Schley County Board of Education, Ellaville, Georgia, year ended June 30, 1995

GA A~oo . RI E20
$3 i~q/4-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT SCHLEY COUNTY BOARD OF EDUCATION
ELLAVILLE, GEORGIA YEAR ENDED JUNE 30, 1995

SCHLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 CASH AND CASH EQUIVALENTS

27

3 INVESTMENTS

28

4 ACCOUNTS RECEIVABLE

29

5 DEBT SERVICE REQUIREMENTS TO MATURITY

30

SCHEDULE OF REVENUE

6

STATE

31

7

LOCAL AND OTHER

32

SCHLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

33

9

LOTTERY PROGRAMS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

35

11

BY PROGRAM

36

12 SCHEDULE OF COMPENSATION OF BOARD MEMBERS

38

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

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 8, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Schley 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 Schley County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
95ARL-13*

* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Schley County Board of Education as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 8, 1996, on our consideration of the Board's internal control structure and a report dated March 8, 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 Schley County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Schley County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
ff-.eL~
Claude L. Vickers State Auditor
CLV:cm 95ARL-13*

SCHLEY COUNTY BOARD OF EDUCATION - 1-

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 125,584.18 $

99,145.14 $

61,193.96 $

1,553,783.12

137,174.88

27,520.00

DEBT SERVICE
FUND
56,753.39

1,891.24 913.53

Total Assets

$ 262,759.06 $ 129,469.91 $ 1,614,9n.os s

56,753.39

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balance Payable Contracts Payable Retainages Payable General Obligation Bonds Payable

$

50,511.65 $

161,994.52

Total Liabilities

$ 212,506.17 $

FUND EQUITY

Fund Balances

Reserved

For Bus Replacement Funds

$

For Debt Service

For Expired Grant Balances/Questioned Costs

For Inventories

Food

Donated Commodities

Purchased Food

For Purposes of Bond Issue

For State Capital Outlay Projects

17,079.54 27,165.18 $

Unreserved Undesignated

$

44,244.72 $

6008.17

Total Fund Equity

$

50,252.89 $

31,338.85 28,294.96
717.95 $
60 351.76 $

8,991.28' 9,342.00
18,333.28

$ 684.78

1,891.24 913.53 $
3,489.55 $ 65,628.60 69118.15 $

838,586.79 758,057.01 1,596,643.80 $
1,596,643.80 $

56,753.39
56,753.39 56,753.39

Total Liabilities and Fund Equity

$ 262,759.06 $ 129,469.91 $ 1,614,9n.os s

56,753.39

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

EXHIBIT"A"

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
{Memorandum Onlll JUNE 3011995 JUNE 3011994

$

342,676.67 $

375,009.54

1,553,783.12

1,853,761.24

164,694.88

190,253.64

1,891.24 913.53

2,938.95 836.99

$

56,753.39

56,753.39

54,721.85

11888,246.61

118881246.61

1,940,278.15

$

1,945,000.00 $ 4,008,959.44 $ 4,417,800.36

$

4,286.95

$

81,850.50

110,378.79

190,289.48

182,916.31

717.95

1,175.97

8,991.28

9,342.00

$

1 ,9451000.00

1,945,000.00

11995,000.00

$

11945,000.00 $ 21236, 191.21 $ 21293,758.02

$

17,079.54 $

52,228.54

56,753.39

54,721.85

27,849.96

18,448.99

1,891.24 913.53
838,586.79
7581057.01

2,938.95 836.99
796,369.84
11059,296.00

$ 1,701,131.46 $ 1,984,841.16

71 636.TT

139,201.18

$ 1,TT2,768.23 $ 2.124,042.34

$

1,945,000.00 $ 4,008,959.44 $ 4,417,800.36

-3-

SCHLEY COUNTY BOARD OF EDUCATION COMBINED STATEMEITT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMEITTAL FUND TYPES YEAR ENDED JUNE 30 1995

EXHIBIT"B"

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
capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues Oller (under) Expenditures
OTHR FINANCING SOURCES (USES)
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Discount on Bonds Sold Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources Oller (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS {Memorandum On~
YEAR ENDED JUNE 301 1995 JUNE 30, 1994

$ 1,452,989.00 $ 556,962.51
$ 2,009,951.51 $

304,534.76 326,002.10
50397.25 $
680,934.11 $

$ 95,622.66 $ 150,324.03 95,622.66 $ 150,324.03 $

1,757,523.76 $ 326,002.10 853 306.45
2,936,832.31 $

1,306,164.79 369,844.00 612 405.90
2,288,414.69

$ 1,300,152.42 $
73,833.81 10,175.77 42,473.00 121,598.39 113,137.65 27,994.25 148,133.31 250,097.53 10,602.42
1,903.70 19,309.45
$ 2 119 411.70 $
$ -109 460.19 $

382,539.49

$

55,984.00 7,596.17 4,410.95
13,611.77

1,200.57

719.66

949.13 197,774.62
$

354,644.70

$ 50,000.00 97,277.50 1 014.99

664 786.36 $ 354 644.70 $ 148,292.49 $

16 147.75 $ -259,022.04 $

2 031.54 $

1,682,691.91 $
129,817.81 17,771.94 46,883.95
135,210.16 113,137.65
29,194.82 148,133.31 250,817.19
10,602.42 949.13
199,678.32 373,954.15
50,000.00 97,277.50
1 014.99
3,287,135.25 $
-350 302.94 $

1,269,575.98
48,771.02 12,123.48 71,804.58 146,056.86 95,403.83 73,071.71 125,346.29 154,032.10 12,510.58
497.26 198,922.27
46,242.25
24,319.40
2 278 677.61
9 737.08

$

$

-Q79.02

$

-Q79.02 $

679.02 679.02

$

5,944.74

1,995,000.00

-19,950.00

$

679.02

6,191.59

-Q79.02

-Q 191.59

$

0.00 $ 1,980,994.74

$ -110,139.21 $ 160,392.10

16,826.77 $ -259,022.04 $ 53,262.55 1,855,665.84

2,031.54 $ 54,721.85

-350,302.94 $ 2,124,042.34

1,990,731.82 133,640.11

-1,047.71 76.54

-1,047.71 76.54

93.29 -422.88

FUND BALANCE JUNE 30

$

50,252.89 $

6Q 118.15 $ 1,596,643.80 $ 56?53.39 $ 1,772,768.23 $ 2,1241042.34

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

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

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1994
Adjustments Prior Year (Net)

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,769,828.00 $ 1,452,989.00

501,710.00

556,962.51

$ 2,271,538.00 $ 2,009,951.51

$ 1,610,816.32 $ 1,300,152.42

151,571.85 18,468.00 45,233.00
124,144.00 111,605.00 34,332.57 163,356.00 304,143.66
6,000.00 3,840.00 3,434.60 19,000.00

73,833.81 10,175.n 42,473.00 121,598.39 113,137.65 27,994.25 148,133.31 250,097.53 10,602.42
1,903.70 19,309.45

$ 2,595,945.00 $ 2,119,411.70

$ -324,407.00 $ -109,460.19

$

-679.02

$

-679.02

$ -324,407.00 $ 208,788.15

-110,139.21 160,392.10

32.70

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 13,000.00 $ 304,534.76

326,588.00

326,002.10

76,500.00

50,397.25

$ 416,088.00 $ 680,934.11

$ 156,509.67 $ 382,539.49

7,800.00 3,990.00 12,353.00

55,984.00 7,596.17 4,410.95
13,611.n

1,200.57

719.66

2,050.00 205,690.58

949.13 197,TT4.62

$ 388,393.25 $ 664,786.36 $ 27,694.75 $ 16,147.75

$

679.02

$

679.02

$ 27,694.75 $ 1s,s2S.n

51,929.17

49,486.61

340.49

FUND BALANCE JUNE 30, 1995

$ -115,586.15 $ 50,252.89

$ 79,964.41 $ 66,313.38

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

SCHLEY COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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

- 7-

SCHLEY COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

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 ofa 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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.

- 8-

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt-Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Schley County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

- 9-

SCHLEY COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SilldMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

Excess ofRevenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, 1994
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)

Special Revenue
Fund
$ 16,826.77 53,262.55
-2,938.95 -836.99
$ 66,313.38

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located
within this State.

- 10 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation ofthe 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 Schley 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 20, 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 Schley 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.
- 11 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\IBNTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

School Operations School Bonds

10.87 mills 3.28 mills

14.15 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

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

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements 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.

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

- 12 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee 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 ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 13 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, 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 $600,461.01. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Risk Category
1 2 3
Total

Bank Balance
$ 156,753.39 0.00
443,707.62
$ 600,461.01

CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount of the Board's total investments was $1,553,783.12 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscai Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe 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

- 14 -

SCHLEY COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

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

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

Note 5: GENERAL LONG-TERM DEBT

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

Balance July 1, 1994 Deductions Balance June 30, 1995

General Obligation
Bonds
$ 1,995,000.00
50,000.00
$ 1.945.000.00

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
19% 1997 1998 1999 2000 2001 and thereafter
Total Principal and Interest

General Obligation
Bonds
$ 145,777.50 149,152.50 152,227.50 155,007.50 157,472.50
2,388,452.50
$ 3.148.090.00

- 15 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: 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

Unearned Executed Contracts

Funding Available From State

95/94S-723-052

$ 48,590.00 $ 1,338,304.00

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

Note 7: CONTINGENT LIABILITIES

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years 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 ofthe 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 IO years of service) and compensation up to the time of disability or death.

- 16 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting 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 $1,367,798.12; total payroll was $1,577,134.46.

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 $229,755.24 of which $161,537.03 was made by the Board and $68,218.21 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.

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

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

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfundedpension benefit obligation

$ 1,058.958.000.00

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

- 17 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
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 $161,537.03 was actuarially determined and represented .0285% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 21 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 of the Board made during fiscal year 1995 amounted to $720.00. 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.

- 18 -

SCHLEY COUNTY BOARD OF EDUCATION

EXI-llBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 9: SURETY BONDS
The School Superintendent, Mr. William C. Johnson, is bonded in the amount of$8,000.00 with the Selective Insurance Company ofAmerica, Branchville, New Jersey, their Bond No. B77400, on which premium is paid through January 1, 1997.

- 19 -

SCH!..!;;Y COUNTY BOARD OF !;;DUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE 11-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2 MATHEMATICS

DEPRIVED

BLOCK GRANT. AND SCIENCE

CHILDREN

FLOW THROUGH EDUCATION

$ 71,51024 $

1,689.48 $

20,280.13 $

0.00 $

0.00

2,520.00

25,000.00

1,891.24 913.53

Total Assets

$ 76,835.01 $ 26,689.48 $

20,280.13 $

0.00 $

0.00

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

$

303.50 $ 26,058.38 $

8,044.46

$

8,347.96 $ 26,058.38 $

3,553.97 16,726.16
20,280.13

$

53.68 $

1,891.24 913.53

$

2,858.45 $

65,628.60

$ 68,487.05 $

631.10
631.10 0.00 $
631.10 $

0.00 $ 0.00 $

$ 76,835.01 $ 26,689.48 $

20,280.13 $

0.00 $ 0.00 $
0.00 $

0.00 0.00
0.00

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

INDIVIDUALS WITH

OISABILmES EDUCATION ACT

TITLE VI, B

FLOW

SPECIAL

THROUGH

PROJECTS

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

2,768.94 $

2,896.35 $

99,145.14 $

75,241.20

27,520.00

50,436.21

1,891.24 913.53

2,938.95 836.99

$

2,768.94 $

2,896.35 $ 129,469.91 $ 129,453.35

$

651.94 $

s n1.os

$ 31,338.85

15,285.00 23,303.49

2,117.00

1,407.34

28,294.96

36,426.34

717.95

717.95

1,175.97

$

2,768.94 $

2,896.35 $

60,351.76 $

76,190.80

$

684.78

1,891.24 $ 913.53

2,938.95 836.99

$

3,489.55$

3,775.94

$

0.00 $

0.00

65,628.60

49,486.61

$

0.00 $

0.00 $

69,118.15 $

53,262.55

$

2,768.94 $

2,896.35 $ 129,469.91 $ 129,453.35

- 21 -

SCHLEY 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 PupilServices Improvement of Instructional Services Educational Media Services General Administration Business Administration Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE 11

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT AND SCIENCE

CHILDREN

FLOW THROUGH EDUCATION

$ 12,498.00 $ 292,036.76

149,994.44

$

50,397.25

$ 212,889.69 $ 292,036.76 $

137,697.61 $ 137,697.61 $

4,005.00 $ 4,005.00 $

7,000.00 7,000.00

$ 229,211.17 $

55,984.00

$ 196,694.02

403.06 2,513.60 1,200.57
719.66 362.94 1,080.60

$ 196,694.02 $ 291,475.60 $

$ 16,195.67 $

561.16 $

126,056.89
$ 11,054.53
586.19 137,697.61 $
0.00 $

$ 16,195.67 $ 53,262.55
-1,047.71 76.54

69.94
631.10 $ 0.00

0.00 $ 0.00

$ 68.487.05 $

631.10 $

0.00 $

$ 4,007.89
10.02

7,596.17

4,017.91 $ _ _ _7~,596_._17_

-12.91 $

-596.17

12.91
0.00 $ 0.00

596.17
0.00 0.00

o.oo s ____o._oo_

See notes to the general purpose financial statements.

-22

EXHIBIT"P

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

SPECIAL

THROUGH

PROJECTS

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

19,023.00 $

$

19,023.00 $

$ 8,282.05
8,282.05 $

304,534.76 $ 326,002.10
50,397.25
680,934.11 $

44,490.90 369,844.00
42,388.54
456,n3.44

$

18,989.38 $

33.62

$

19,023.00 $

$

0.00 $

8,282.05 $
8,282.05 $ 0.00 $

382,539.49 $
55,984.00 7,596.17 4,410.95
13,611.77 1,200.57 719.66 949.13
197,774.62
664,786.36 $
16,147.75 $

184,166.54
6,993.00 30,100.70 35,987.47
497.26 196,567.77 454,312.74
2,410.70

$

0.00 $

0.00

0.00 $ 0.00

679.02
16,826.77 $ 53,262.55
-1,047.71 76.54

0.04
2,410.74 51,181.40
93.29 -422.88

$

0.00 $

0.00 $

69,118.15 $

53,262.55

- 23-

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments
Accounts Receivable
Total Assets

1993 BOND ISSUE
FUND

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 95/94S-723-052

TOTALS

JUNE 301 1995

JUNE 301 1994

$

61,193.96 $

61,193.96

$ 838,586.79

715,196.33

1,553,783.12 $ 1,853,761.24

6,191.55

$ 838,586.79 $

ns,390.29 $ 1,614,9TT.08 $ 1,859,952.79

LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

$

4,286.95

$

8,991.28 $

8,991.28

9,342.00

9,342.00

$

18,333.28 $

18,333.28 $

4,286.95

$ 838,586.79 $
$ 838,586.79 $
0.00 $ 838,586.79 $

$ 758,057.01
758,057.01 $

838,586.79 $ 758,057.01
1,596,643.80 $

796,369.84 1,059,296.00
1,855,665.84

0.00 758,057.01 $

0.00 1,596,643.80 $

0.00 1,855,665.84

$ 838,586.79 $

ns,390.29 $ 1,614,9TT.08 $ 1,859,952.79

See notes to the general purpose financial statements.

-24-

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

EXHIBIT"H"

1993 BOND ISSUE
REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION PROJECT 95/94S-723-052

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

REVENUES

Local and other Funds

$

421216.95 $

53405.71 $

95,622.66 $

36,258.07

EXPENDITURES

Current Support Services Business Administration Bond Issuance Cost
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$

45,131.56

$

0.00 $

196,747.45 $

196,747.45

150,967.25

150,967.25

38,152.25

6,930.00

6,930.00

Total Expenditures

$

0.00 $

354,644.70 $

354644.70 $

83,283.81

Excess of Revenues over (under) Expenditures

$

42,216.95 $

-301,238.99 $

-259,022.04 $

-47,025.74

OTHER FINANCING SOURCES (USES)

Proceeds from General Obligation Bonds Par Value Discount on Bonds Sold
Operating Transfers In Operating Transfers Out

$ 1,928,833.13 -19,950.00
1,059,296.00 -1,065,487.55

Total other Financing Sources (Uses)

$ 1,902,691.58

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

42,216.95 $

-301 ,238.99 $

-259,022.04 $ 1,855,665.84

FUND BALANCE JULY 1

796,369.84

1,059,296.00

1,855,665.84

0.00

FUND BALANCE JUNE 30

$ 838,586.79 $

758,057.01 $ 1,596,643.80 $ 1,855,665.84

See notes to the general purpose financial statements.

- 25-

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

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994 Grant 1995 Grant National School Lunch Program 1995 Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U. s. Department of
Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Regular 1994 Carry-Over 1995 Regular Chapter2 Block Grant - Flow Through 1994 Regular 1995 Regular Title II
- Eisenhower Mathematics and Science
Education 1994 Regular 1995 Regular
Individuals with Disabilities Education Act TltleVl,B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular Special Projects 1995 Regular
Total U.S. Department of Education

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.553 $
10.555 10.550
$

$ 45,m.37
92,575.84 111641.23
1491994.44 $

1,418.31 45.m.37 $
91,473.84 N/A
1381669.52 $

45.m.37
92,575.84 $ 111641.23
1491994.44 $

(2)
185,052.79 (3) 111641.23
1961694.02

84.010 84.010 $ 84.010

$ 4,063.00 146,471.00

84.151 84.151

4,005.00

15,589.19 137,697.61 $

137,697.61 $

137,697.61

-1,153.16 4,005.00

4,005.00

4,017.91 (3)

84.164 84.164

7,000.00

5,300.00 7,000.00

7,000.00

7,596.17 (3)

84.027 84.027 84.027
84.027
$

1,557.00 17,820.00
91000.00
1891916.00 $

2,143.00 1,257.00 17,766.00
91000.00
198,604.64 $

1,257.00 17,766.00
81282.05
1761007.66 $

1,257.00 17,766.00
81282.05
1761616.74

Total Federal Financial Assistance

$ 3391910.44 $

3371274.16 $ 3261002.10 $

3731310.76

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

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

See notes to the general purpose financial statements.

- 26 -

SCHLEY COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995
INTEREST BEARING ACCOUNTS
Bank of Ellaville, Ellaville, Georgia
Money Market Account (3.25%) N.O.W. Accounts (2.75%) Passbook Savings Account (4.00%)

SCHEDULE "2"
$ 56,753.39 285,770.12 153.16
$ 342,676.67

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

SCHLEY COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995
INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (6.032%)

SCHEDULE "3" $ 1,553,783.12

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

SCHLEY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "4"

Education, Georgia Department of Quality Basic Education Deferred Summer Salaries FY 1995 Food Services National School Lunch Program Lottery Programs Instructional Technology Technology Installation
Schley County Senior Citizens Reimbursement for Meals
Various Sources Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

137,172.00

$

2.88

$ 137,172.00

1,102.00

1,102.00

15,000.00 10,000.00

15,000.00 10,000.00

1,416.00

1,416.00

2.00

4.88

$

137,174.88 $

27,520.00 $ 164,694.88

See notes to the general purpose financial statements.

- 29 -

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

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

SCHEDULE "5"

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$ 145,777.50 $ 149,152.50 152,227.50 155,007.50 157,472.50

95,777.50 $ 94,152.50 92,227.50 90,007.50 87,472.50

50,000.00 55,000.00 60,000.00 65,000.00 70,000.00

159,602.50 161,415.00 162,895.00 169,027.50 169,562.50

84,602.50 81,415.00 77,895.00 74,027.50 69,562.50

75,000.00 80,000.00 85,000.00 95,000.00 100,000.00

169,762.50 169,565.00 169,010.00 173,087.50 176,525.00

64,762.50 59,565.00 54,010.00 48,087.50 41,525.00

105,000.00 110,000.00 115,000.00 125,000.00 135,000.00

174,100.00 176,400.00 178,150.00 179,350.00

34,100.00 26,400.00 18,150.00
9,350.00

140,000.00 150,000.00 160,000.00 170,000.00

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

$ 3,148,090.00 $ 1,203,090.00 $==1=,9=4=5=,o=o=o.=oo=

1993 ISSUE

$

1,995,000.00

50,000.00

Bonds Payable at June 30, 1995
MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date
See notes to the general purpose financial statements. - 30 -

$ ==1='=94=5=,o==o=o.=oo=
MAR 1 -SEPT 1 MAR 1

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

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant School Counselors Grades 4-5 Superintendent Base Salary Local Fair Share Deferred Summer Salaries - FY 94 Deferred Summer Salaries - FY 95 Educational Equalization Funding Grant Food Services Lottery Programs Distant Leaming Instructional Technology Pre-Kindergarten Program Technology Installation

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

775,670.00

108,095.00

26,661.00

37,520.00

10,262.00

220,940.00

$ 775,670.00 108,095.00 26,661.00 37,520.00 10,262.00 220,940.00

168,281.00 45,868.00 52,245.00 19,971.00 24,969.00
-188,774.00 -133,623.00 137,172.00 147,732.00
$

12,498.00

168,281.00 45,868.00 52,245.00 19,971.00 24,969.00 -188,774.00 -133,623.00 137,172.00 147,732.00 12,498.00

1,491.00 17,040.10 263,505.66 10,000.00

1,491.00 17,040.10 263,505.66 10,000.00

$ 1,452,989.00 $ 304,534.76 $ 1,757,523.76

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

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

SCHEDULE "7"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other Indirect Cost Special Revenue Fund Interest Earned Sales Adult Meals Breakfast Contracted Meals Lunches . Supplemental Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 536,874.15
2,480.45 1,264.44

$ 149,039.41 $ 149,039.41
536,874.15 2,480.45 1,264.44

2,766.14
6,300.18 $

1,537.59 $ 95,622.66

7,277.15

13,239.70 1,353.50 6,702.00
26,629.06 935.40

1,284.62

2,766.14 104,745.05
13,239.70 1,353.50 6,702.00
26,629.06 935.40
7,277.15

$ 556,962.51 $ 50,397.25 $ 95,622.66 $ 150,324.03 $ 853,306.45

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

SCHLEY 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 of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Insurance Communications Tuition Commodity Hauling Shared Services other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs other Expenditures
Nonoperating Costs Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 1,229,947.07 $
278,628.76 1,870.51 4,217.91 3,550.00 9,050.36
63,024.00 17,578.00
7,596.02 165,300.00
10,602.42 2,400.15
41,608.72 52,456.46
17,858.88 4,008.00
1,062.99

347,187.39 $
75,025.01 2,053.28 3,157.78
2,904.67
768.19
732.70
362.94 71,690.86
1,728.40 120,083.00
4,052.65 382.00
2,766.14 898.35

1,577,134.46 353,653.77 3,923.79 7,375.69 3,550.00 9,050.36 65,928.67 17,578.00 8,364.21 165,300.00 732.70 10,602.42 2,763.09 113,299.58 54,184.86 120,083.00 21,911.53 4,390.00 2,766.14 1,961.34

19,309.45 189,342.00

30,993.00

19,309.45 220,335.00

Total Expenditures

$ 2,119,411.70 $ 664,786.36 $ 2,784,198.06

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

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

SCHEDULE "9"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees
Communications Supplies Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs
Equipment

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN TECHNOLOGY

PROGRAM

INSTALLATION

$

1,169.94 $

$ 1,800.00

15,000.00

170,336.17 35,640.85
1,952.06 510.85
47,546.93 935.86 42.00 122.00 425.94
5,993.00 $

$ 10,000.00

TOTAL
170,336.17 35,640.85 1,952.06 510.85 50,516.87 935.86 42.00 122.00 425.94
30,993.00

Total Expenditures

$

1,169.94 $

16,800.00 $

263,505.66 $

10,000.00 $

291,475.60

See notes to the general purpose financial statements.

- 34 -

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

SCHEDULE "1 O"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$

947,946.00 $

24,761.00

$

998,040.24

143,523.92 $ _ _ _13;.,,;8..:..;,6'--9_3.;,,;;,,0,;_1

$ 1,141,564.16

-5,075.99 $ 1,136,488.17

Amount of Underexpenditure for Total Allotment

$

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

0.00 $

0.00

=======

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

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

GENERAL AND CAREER !:;DUCATION PROGRAMS Kindergarten (") Grades 1-3 (") Sub-Total - K-3 Grades 4 - 5 (") Grades6-8(") Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category Ill(") Sub-Total - Regular Categoiy V (Gifted) (") Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C)
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS
Cost or Instruction
Professional Development
Total Staff Development (") Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order lo comply with program guideliries.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

123,197.00

$

110,877.30 $

315,415.00

283,873.50

$

438,612.00 90 $

394,750.80 $

160,698.00 90

144,628.20

176,360.00 90

158,n .OO

$

775,670.00

$

698,103.00 $

0.00 0.00 0.00 0.00 0.00 0.00

$

105,138.00

$

94,624.20 $

$

105,138.00 90 $

94,624.20 $

2,957.00 90

2,661.30

$

108,095.00

$

97,285.50 $

$

26,661.00 90 $

23,994.90 $

$

910,426.00

$

819,383.40 $

0.00
0.00 0.00 0.00 0.00 0.00

$

30,438.00 90 $

27,394.20 $

7,082.00 90

6,373.80

$

37,520.00

$

33,768.00 $

0.00 0.00
0.00

$

947,946.00

$

853,151.40 $

0.00

$

2,421.00

7,841.00

$

2,421.00 $

7,841.00

$

10,262.00 100 $

10,262.00 $

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

0.00 0.00
0.00

See notes to the general purpose financial statements.

- 36 -

SCHEDULE "11"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

110,STT.30 $

141,412.87 $

34,298.56 $

175,711.43

283,873.50

322,220.25

39,290.72

361,510.97

$

394,750.80 $

463,633.12 $

73,589.28 $

537,222.40 $

0.00

144,628.20

188,140.88

33,615.97

221,756.85

0.00

158,724.00

184,581.25

30,816.57

215,397.82

0.00

$

698,103.00 $

836,355.25 $

138,021.82 $

974,377.07

$

94,624.20

$

$

94,624.20 $

2,661.30

$

97,285.50 $

$

23,994.90 $

$

819,383.40 $

86,770.19 $ 86,770.19 $
0.00 86,770.19 $ 37,149.72 $ 960,275.16 $

563.19 $ 563.19 $ 108.00 671.19 $
0.00 $ 138,693.01 $

87,333.38 87,333.38
108.00 87,441.38 37,149.72 1,098,968.17

7,290.82 2,553.30
0.00

$

27,394.20 $

6,373.80

$

33,768.00 $

37,765.08 $
37,765.08 $

$ 4,830.91
4,830.91 $

37,765.08 4,830.91
42,595.99

0.00 1,542.89

$

853,151.40 $

998,040.24 $

143,523.92 $ 1,141,564.16 $

11,387.01

$

2,421.00

7,841.00

s_ _ _1_0_.2_&2_._oo_

$

2,309.84 $

2,309.84

7,462.87

7,462.87

$

9,m.11 s

9,772.11 s_ _ _ _ _48_9_.29_

- 37

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1995
BOARD MEMBER ADDRESS Mr. Ronnie Heath, Chairman (*) Route 2, Box 71 Ellaville, Georgia 31806 Mr. Sammie Black (*)
P. 0. Box 126
Ellaville, Georgia 31806 Ms. Susan Ellis P. 0. Box573 Ellaville, Georgia 31806 Ms. Ann Gill (*) P. 0. Box214 Ellaville, Georgia 31806 Mr. Bryan Rooks (*) P. 0. Box581 Ellaville, Georgia 31806
(*) Denotes Board Members Serving as of June 30, 1995
Note: One position was unfilled at June 30, 1995.

SCHEDULE "12"

$

750.00

700.00

650.00

750.00

700.00

$===3=,5=5=0=.0=0

See notes to the general purpose financial statements.

- 38 -

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 8, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Schley 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 Schley County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 8, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the Schley County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

95CRL-10

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

CLV:cm 95CRL-10

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 8, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Schley County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 8, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

95CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Schley County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.

This report is intended for the information of management, the Federal cognizant audit agency and other

Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a

matter ofpublic record.

Res2 submitted,

CLV:cm 95CRL-50

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 856-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 8, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Schley County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated March 8, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(3) Applicable Special Tests and Provisions

(2) Eligibility

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

95CRL-130

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 Schley County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule 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:cm 95CRL-130

Claude.L. Vickers State Auditor

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 8, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Schley 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 Schley County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 8, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management ofthe Schley County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

95ICL-3

In planning and perfonning our audit of the general purpose financial statements of the Schley County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(I) Budget Preparation/Execution
(2) Cash and Cash Equivalents
(3) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Schley County Board ofEducation's general purpose financial statements and this report does not affect our report thereon dated March 8, 1996.
95ICL-3

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 ofpublic record.
Respectfully submitted,
~ ~
Claude L. Vickers State Auditor
CLV:cm 95ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 8, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Schley County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Schley County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated March 8, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report o~ the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal 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 8, 1996.
The management ofthe Schley 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, that transactions are
95ICL-14

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

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1995, the Schley County Board of Education had no major Federal financial assistance programs and expended 71% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:

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

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We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is not a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Re~

CLV:cm 95ICL-14

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

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

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,637.19 Audit Control Number 7231-93-03

The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$ 1,637.19 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 $1,637.19 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 7231-93-04

The audit report for the year ended June 30, 1994, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. For the year under review, audit tests of cash management procedures revealed no excessive cash balance accumulations by the Board.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $7,783.90 Audit Control Number 7231-94-02

The audit report for the year ended June 30, 1994, reported that the Board had underexpenditures of Quality Basic Education (QBE) funds as follows:

Special Education - Regular
Special Education - Gifted Remedial Education Program
Media Center Programs StaffDevelopment - Cost of Instruction StaffDevelopment - Professional Development

$ 569.15 136.80 361.80
1,132.83 1,274.33 4,308.99
$ 7 783 90

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $7,783.90 Audit Control Number 7231-94-02
For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund these underexpenditures as required. These underexpenditures of$7,783.90 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $5,867.79 Audit Control Number 7231-94-03
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Pupil Transportation funds of $9,027.90. A subsequent review of the 1994 fiscal year Pupil Transportation expenditures revealed that the Board had under reported the expenditures for Pupil Transportation by $3,160.11. Therefore, the amount of unexpended funds for Pupil Transportation for the year ended June 30, 1994 is reduced to $5,867.79. During the year under review, this unexpended balance was not refunded to the Georgia Department of Education as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Separate Accountability Financial Statements Finding Resolved Audit Control Number 7231-94-04
The audit report for the year-ended June 30, 1994, stated that the capital outlay project funded in part by the Georgia State Financing and Investment Commission, was not maintained and designated by separate project name and number as required by Chapter 70 ofthe Georgia Financial Accounting Handbook for Local School Systems (GFAH). During the year under review, the Board implemented procedures which provide for separate accountability of the capital outlay project as required.

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 7231-94-05
The audit report for the year ended June 30, 1994, stated that the Schley County Board ofEducation failed to transfer local matching funds to the Capital Projects Fund Project No. 95/94S-723-052 as required. Both the instructions in Chapter 70 of the Georgia Financial Accounting Handbook for Local School Systems (GFAH) and the agreement signed by the Board to receive 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, local funds were transferred as required.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7231-93-02
The audit report for the year ended June 30, 1994, noted that the management of the Schley 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.

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 7231-94-01
The audit report for the year ended June 30, 1994, stated that the Board's accounting procedures did not provide for adequate internal control over cash assets ofthe Board. Deficiencies continued to exist during the year under review and are summarized as follows:
(1) Checks were not issued sequentially from the general operating account.
(2) Bank reconciliations did not indicate that an administrative review was performed to determine that reconciliations were correct and that all required adjustments had been made.
(3) Formal bank reconciliations were not performed for the capital project, debt service and the savings accounts.
These deficiencies were a result of management's failure to adequately manage cash assets of the Board of Education. The Board should establish internal controls to ensure that checks are issued sequentially, bank reconciliations are reviewed by administrative personnel and formal bank reconciliations are performed for all accounts.
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7231-95-01
For the year under review, an examination of the Board's budget revealed that the Board failed to adopt a balanced budget for the General Fund. Chapter 32 of the Financial Management for Georgia Local Units of Administration (FMGLUA) issued by the Georgia Department of Education states in part:

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7231-95-01
"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated expenditures, a portion of the unreserved fund balance from previous years must be used to fund the shortfall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available fund balance."
This condition occurred because management neglected the specific limitations imposed upon the Board by the Georgia Department ofEducation. Appropriate procedures should be implemented by the Board to ensure that the adopted budget is balanced.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $ 11,876.30 Audit Control Number 7231-95-02
For the year under review, the Schley County Board of Education reported to the Georgia Department of Education on DE form 0420 underexpenditures of Quality Basic Education (QBE) funds of $9844.12 for the Special Education Programs, $1,542.89 for the operations portion ofMedia Center Programs, and $489.29 for the Staff Development Programs. The underexpenditure of the various QBE Programs listed above occurred because the Board expended less than the minimum expenditure requirement for these QBE Programs. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
GENERAL LEDGER Failure to File Completion Report/Unearned Lottery Funds Financial Statements Nonmaterial Noncompliance Amount: $63 I. I 0 Audit Control Number 7231-95-03
An examination of the Board's compliance with Lottery Program regulations for the fiscal year 1994 Instructional Technology (Computers in Classrooms) Program and Distant Leaming Program revealed that the Board failed to file a final completion report for these programs as required by guidelines established by the Georgia Department of Education. Accounting procedures applicable to the program revealed unearned lottery funds in the amount of $240.10 and $391.00 respectively, which were required to be refunded to the Georgia Department ofEducation. These deficiencies occurred because management neglected the specific limitations imposed upon the Board by the Georgia Department ofEducation. Appropriate procedures should be implemented by the Board to ensure that completion reports are submitted by the required date and that all unearned lottery funds are refunded as required. The Board should submit the final Lottery Programs Completion Report to the Georgia Department of Education and should include a refund of $631.10 for the unearned lottery funds.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 7231-95-04
Property management records maintained by the Board for the National School Lunch Program (CFDA 10.555) were 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). Inventory records presented for examination did not contain a description of the property, a manufacturer's serial number or other identifying number and a percentage of Federal participation in the cost of the of the inventory items. In addition, one inventory item selected from physical inspection was not included on the equipment inventory records. This condition occurred because management was not aware of all the provisions of the Financial Management for Georgia Local Units of Administration (FMGLUA). An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, of the 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.

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
ELIGIBILITY Incomplete Free and Reduced Price Meal Application Federal Financial Assistance Nonmaterial Noncompliance Amount: $53.68 Audit Control Number 7231-95-05
A review ofapplications at the Schley County Elementary Lunchroom for the National School Lunch (CFDA 10.555) and the School Breakfast (CFDA 10.553) Programs revealed one application which did not meet applicable compliance and eligibility requirements as set forth in P. L. 101-147. This application was lacking a social security number of either the head of the household/primary wage earner or the adult signing the application. The amount of overreimbursement which was attributable to this questioned application was $38.81 for the National School Lunch Program and $14.87 for the School Breakfast Program. This condition occurred because management did not sufficiently supervise the review of applications before the applicants were approved for free or reduced-price meals. The Board should refund $53.68 to the Georgia Department of Education.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SCHLEY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,637.19 Audit Control Number 7231-93-03

We concur with this finding and understand that adjustment will be made through an increase in the Board's local fair share in a subsequent fiscal year.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $7,783.90 Audit Control Number 7231-94-02

We concur with this finding. However, we have found the following amounts should have been charged to the following programs:

Special Ed Programs Remedial Ed

$ 697.56 75.00

We understand that adjustments will be made to the Board's local fair share in a subsequent fiscal period.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $5,867.79 Audit Control Number 7231-94-03

We concur with this finding. We will be returning the unexpended amount to the Georgia Department of Education.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7231-93-02

We concur with this finding. At this time the Schley County Board ofEducation has decided not to pursue the recording of General Fixed Assets on the financial statements.

SCHLEY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 7231-94-01
We concur with this finding. Procedures implemented to ensure all checks are issued sequentially, all bank reconciliations have administrative review, and formal bank reconciliations are performed.
BUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7231-95-0I
We concur with this finding. Procedures implemented to ensure that a balanced budget is adopted and in use in this current fiscal year.
EXPENDITURES/1.JABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $ 11,876.30 Audit Control Number 7231-95-02
We concur with this finding. This finding will be resolved through a future increase in the Board's local fair share.
GENERAL LEDGER Failure to File Completion Report/Unearned Lottery Funds Financial Statements Nonmaterial Noncompliance Amount: $631.10 Audit Control Number 7231-95-03
We concur with this finding. We will resolve this by filing a completion report and return unearned lottery funds to Georgia Department of Education.

SCHLEY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 7231-95-04
We concur with this finding. We have implemented procedures to maintain an inventory of property with serial number, acquisition date, and a percent of Federal participation in the cost of equipment.
ELIGIBILITY Incomplete Free and Reduced Price Meal Application Federal Financial Assistance Nonmaterial Noncompliance Amount: $53.68 Audit Control Number 7231-95-05
We concur with this finding. Procedures are in place to ensure all applications have social security numbers.