Audit report, Schley County Board of Education, Ellaville, Georgia, year ended June 30, 1996

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AUDIT REPORT SCHLEY COUNTY BOARD OF EDUCAnON
ELLAVILLE, GEORGIA YEAR ENDED JUNE 30, 1996

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

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

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

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 MATURlTY

30

SCHEDULE OF REVENUE

6

STATE

31

7

TAXES AND OTHER

32

SCHLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

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 AND TRAVEL OF BOARD MEMBERS

38

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

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMIN!')TERING 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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 6, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and S~perintendent and Members of the Schley County Board of Education
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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should " be included in the general purpose financial statements.
The 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, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 6, 1997, on our consideration of the Board's internal control structure and a report dated March 6, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming 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 of additional 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 AnnotatedSection 50-6-24.
Respectfully submitted,
r::f~~
Claude L. Vickers State Auditor
CLV:cm 96ARL-13

SCHLEY COUNTY BOARD OF EDUCATION - 1-

SCHLEY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1996

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 Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

185,210.31 $

140,304.28 $

2,693.50

503,390.66

162,862.31

15,390.23

964,286.29

3,209.80 779.62

Total Assets

$

348,072.62 $

159,683.93 $ 1,470,370,45

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$

181,031.91 $

170,443.08

25,362.73 $ 43,559.84
3,376.51

3,105.82
208,030.96 246,028.70

$

351,474.99 $

72,299,08 $

457,165.48

$

6,397.54

$

22,898.28

$

29,295.82 $

-32,698.19

$

-3,402.37 $

7.00

3,209.80 779.62 $
3,996.42 $ 83,388.43 87,384,85 $

886,764.51 126,440.46
1,013,204.97
0.00
1,013,204~7

Total Liabilities and Fund Equity

$

348,072.62 $

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

159,683.93 $ 1,470,370.45

EXHIBIT "A"

$

209,500.46 $

81,850.50

214,002.92

190,289.48

3,376.51

717.95

208,030.96

8,991.28

246,028.70

9,342.00

$

830,455.29

830,455.29

1,895,000.00

1,895,000.00

1,945,000.00

$

2,725,455.29 $ 3,606,394.84 $ 2,236,191.21

$

54,558.55

$

54,558.55

0.00

$

54,558.55

$

54,558.55 $

$

6,397.54 $

17,079.54

. 7.00

54,558.55

56,753.39

22,898.28

27,849.96

3,209.80 779.62
886,764.51 126,440.46

1,891.24 913.53
838,586.79 758,057.01

$ 1,101,055.76 $ 1,701 ,131 .46

50,690.24

71,636.77

$ 1,151,746.00 $ 1,772,768.23

2,725,455.29 $ 4,758,140.84 $ 4,008,959.44

-3-

SCHLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30.1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 1,584,804.25 $ 568,359.99
$ 2,153,164.24 $

185,306.30 $ 339,794.29
49,940.04

1,338,304.00 75,4n.40

575,040.63 $ 1,413,781.40

$ 1,420,412.78 $
79,769.59 13,854.50 46,031.02 135,623.98 93,399.43 36,422.03 133,229.09 219,656.12 13,781.54
1,544.20 5,254.66

269,565.37

30,474.82 7,993.00

20,605.11

608.22

23,867.18

10,474.11 202,211.33
$

2,827,675.52

$ 2,198,978.94 $

$

-45,814.70 $

565,799.14 $ 2,827,675.52 9,241.49 $ -1,413,894.12

$

$

-7,840.56

$

-7,840.56 $

$

-53,655.26 $

50,252.89

$

-3,402.37 $

$ 7,840.56

830,455.29

7,840.56 $

830,455.29

17,082.05 $ 69,118.15

-583,438.83 1,596,643.80

1,318.56 -133.91
-"
87,384.85 $ 1,013,204.97

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

EXHIBIT "B"

DEBT
SERVICE
FUND

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

$ 3,108,414.55 $ 1,757,523.76

339,794.29

326,002.10

$

144,253.11

838,030.54

853,306.45

$

144,253.11 $ 4,286,239.38 $ 2,936,832.31

$ 1,689,978.15 $ 1,682,691.91

110,244.41 21,847.50 46,031.02
156,229.09 93,399.43 37,030.25
133,229.09 243,523.30
13,781.54 10,474.11 203,755.53 2,832,930.18

129,817.81
17,n1.94
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

95,m.50

670.45

50,000.00
95,m.50
670.45

50,000.00
97.2n.50
1,014.99

$

146,447.95 $ 5,738,901.55 $ 3,287,135.25

$

-2,194.84 $ -1,452,662.17 $ -350,302.94

$

830,455.29

7,840.56 $

-7,840.56

$

830,455.29 $

679.02 -679.02
0.00

$

-2,194.84 $

-622,206.88 $

-350,302.94

56,753.39

1,772,768.23

2,124,042.34

1,318.56 -133.91

-1,047.71 76.54

$

54,5tJ8.55 $ 1,151,746.00 $ 1,772,768.23

-5-

THIS PAGE LEn BLANK

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 30,1996

EXHIBITC

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services 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, 1995
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,436,094.00 $ 1,584,804.25

591,019.00

568,359.99

$ 2,027,113.00 $ 2,153,164.24

$ 1,370,666.00 $ 1,420,412.78

105,564.00 10,343.00
129,057.00 108,356.00 34,304.00 149,511.00 237,427.00
16,000.00 19,000.00

79,769.59 13,854.50 46,031.02 135,623.98 93,399.43 36,422.03 133,229.09 219,656.12 13,781.54
1,544.20 5,254.66

$ 2,180,228.00 $ .2,198,978.94

$ -153,115.00 $ -45,814.70

$

0.00

$

-7,840.56

$

0.00 $

-7,840.56

$ -153,115.00 $ 175,000.00

-53,655.26 50,252.89

FUND BALANCE JUNE 30, 1996

$

21 ,8~5.00 $ =~-3;;:,,4,;,;0;;;;2,;;;;.3~7

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 153,962.00 $ 185,306.30

357,812.00

339,794.29

55,250.00

49,940.04

$ 567,024.00 $ 575,040.63

$ 221 ,820.54 $ 269,565.37

27,980.89
4,023.00 22,505.00

30,474.82 7,993.00
20,605.11

13,206.00 5,157.00

608.22 23,867.18

17,074.00 273,065.06

10,474.11 202,211.33

$ 584,831.49 $ 565,799.14

$ -17,807.49 $

9,241.49

$

0.00 $

7,840.56

$

0.00 $

7,840.56

$ -17,807.49 $ 80,696.58 -1,608.12

17,082.05 69,118.15
1,318.56 -133.91

$ 61,280.97 $ 87,384.85

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

SC~EY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

.".
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 governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Schley County Board of Education.
Based upon the application of the above criteria, the Schley County Board of Education is determined.to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in 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 pres~ntly maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

SCHLEY COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds 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 resoun"es.

- 9-

SCIll-EY COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 1995 and ending in early June 1996. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The 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.
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 of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.'"

- 10 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including savings and N. O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
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 selecting among avenues of investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested 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 of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from 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 recorC:~d on the general purpose financirl statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
- 11 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The ScWey County Board ofCommissioners fixed the property tax levy for the 1995 tax year (calendar year) on September 19, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The ScWey 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.

Tax millage rates levied for the 1995 tax year (calendar year) for the ScWey County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

11.49 mills 2.92 mills

14.41 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). 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:

- 12 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
- 13 -

SCHLEY COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

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 Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $431,479.36. 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, 1996, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 100,000.00 331,479.36 0.00
$ 431 47936

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount ofthe Board's total investments was $503,390.66 and consisted entirely offunds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal 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 schQol breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

- 14 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

.~ 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 illness or injuries to employees and natural disaster.

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

The Board has elected to self-insure for natural disaster. The Board has not experienced any losses related to this risk in 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 Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Company to provide coverage for potential losses sustained by the Trust in excess of$250,000.00 loss per occurrence, up to $1,000,000.00.

Note 5: GENERALLONG-TERMDEBT

CAPITAL LEASES The Schley County Board of Education has entered into a lease agreement as lessee for buildings and equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1993

3.50% - 5.50% $ 1.895.000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Balance July 1, 1995
Additions
Deductions Payments
Balance June 30,1996

Capital Leases

General Obligation
Bonds

Total

$

0.00 $ 1,945,000.00 $ 1,945,000.00

830,455.29

830,455.29

50,000.00

50,000.00

$ 83045529 $ 189500000 $ 2 725 455 29

- 15 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: GENERALLONG-TERMDEBT

At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
1997 1998 1999 2000 2001 2002 and thereafter
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments
Note 6: ON-BEHALF PAYMENTS

Capital Leases

General
Obligation . Bonds

Total Debt

$ 112,099.44 112,099.44 112,099.44 112,099.44 112,099.44 560,497.20

$ 149,152.50 152,227.50 155,007.50 157,472.50 159,602.50
2228,850.00

$ 261,251.94 264,326.94 267,106.94 269,571.94 271,701.94
2,789347.20

$ 1,120,994.40 $ 300231250 $412330690

290,539.11

$ 83045529

The Board has recognized revenues and expenditures in the amount of$67,211.04 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$59,139.04

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $8,072.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

95/948-723-052

$ 1.071.89068

- 16 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 7: SIGNIFICANT COMMITMENTS
The amount described in this note is not reflected in the general purpose financial statements.
Note 8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
N0te 9: 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 of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $1,429,389.10; total payroll was $1,650,246.42.

- 17 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "011

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 9: RETIREMENT PLANS

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

Total contributions made during fiscal year 1996 amounted to $240,279.89, of which $168,810.45 was made by the Board and $71,469.44 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.

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

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15.857.066.000.00

Unfunded pension benefit obligation

$ 1,585 541,000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$168,810.45 was actuarially determined and represented .0278% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. 'Ibis information is useful in assessing TRS's accumulation of suffcient assets to pay pension benefits as they become due.

- 18 -

SCHLEY COUNTY BOARD OF EDUCATION

EXHIBIT "DII

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. 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 20 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees of the Board made during fiscal year 1996 amounted to $652.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30,1996, was $9,817,769.80.
Note 10: SURETY BONDS
The School Superintendent, Mr. William C. Johnson, is bonded in the amount of$8,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B77400, on which premium was paid through January 1, 1997.

- 19 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

ELEMENTARY AND

TITLE I

GRANTS TO

STATE

LOCAL

SCHOOL

EDUCATIONAL IMPROVEMENT

AGENCIES

GRANTS

$ 92,400.83 $ 16,548.20 $

26,741.56 $

0.00

2,866.23

12,462.00

3,209.80 779.62

Total Assets

$ 99,256.48 $ 29,010.20 $

26,741.56 $

0,_.00.

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable Expired Grant Balances Payable

$ 3,603.51 $ 11,120.72 $

8,275.12

17,889.48

7,919.09 16,283.72
2,538.75

Total Liabilities

$ 11,878,63 $ 29,010.20 $

26,741.56

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Program

For Expired Grant Balances/Questioned Costs

For Inventories

Food

Donated Commodities

$

Purchased Food

3,209.80 779.62

Unreserved Undesignated

$ 3,989.42

83,388.43 $

0.00 $

0.00 $

0.00

Total Fund Equity

$ 87,377.85 $

0.00 $

0.00 $

0.00
}\

Total Liabilities and Fund Equity

$ 99,256.48 $ 29,010.20 $

26,741.56 $

0.00

See notes to the general purpose financial statements.

- 20-

EXHIBIT"E"

SECONDARY EDUCATION ACT

TITLE VI

TITLE II

INNOVATIVE

EISENHOWER

EDUCATION

PROFESSIONAL

PROGRAM

DEVELOPMENT STRATEGIES

INDIVIDUALS WITH DISABILITIES
EDUCATION ACT PARTB SPECIAL
EDUCATION FLOW
THROUGH

TOTALS JUNE 30,1996 JUNE 30,1995

$

7.00 $

1,987.13 $

2,619.56 $ 140,304.28 $

99,145.14

62.00

15,390.23

27,520.00

3,209.80 779.62

1,891.24 913.53

$

7.00 $

2,049.13 $

2..,.6..1...9...5...6.. $ 159,683.93 $ 129,469:91

$

2,049.13 $

$

2,049.13 $

670.28 $ 1,111.52
837.76
2,619.56 $

. 25,362.73 $ 43,559.84 3,376.51

31,338.85 28,294.96
717.95

72,299.08 $ _----.;6;,.;;;0.:.,;;3,;,.;.5....;.;1....;..76,;..

$

7.00

$

7.00

0.00 $

0.00 $

$

7.00 $

0.00 $

$

7.00

$

684.78

$ 0.00 0.00 $

3,209.80 779.62
3,996.42 $ 83,388.43 87,384.85 $

1,891.24 913.53
3,489.55 65,628.60 69,118.15

$

7.00 $

2,049.13 $_~_====2=,6=1==9_.5.6.. $ 159,683.93 $

129,469.91

- 21 -

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND

TITLE I

GRANTS TO

STATE

LOCAL

SCHOOL

EDUCATIONAL IMPROVEMENT

AGENCIES

GRANTS

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 11,510,00 $ 173,796.30

158,351.80

$

49,940.04

146,948.25 $

4,000.00

Total Revenues

$ 219,801.84 $ 173,796.30 $ 146,948.25 $

4,000.00

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Student Transportation Services Other Support Services Food Services Operation

$ 124,834.27 $ 30,474.82

118,223.88 $

$ 202,095.69

2,096.56 608.22
23,867.18 196.91 115.64

18,447.17 10,277.20

4,007.21

Total Expenditures

$ 202,095.69 $ 182,193.60 $ 146,948.25 $

4,007.21

Excess of Revenues over (under) Expenditures

$ 17,706.15 $ -8,397.30 $

0.00 $

-7.21

OTHER FINANCING SOURCES

Operating Transfers In

7,766.20

7.21

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ 17,706.15 $

-631.10 $

0.00 $

0.00

FUND BALANCE JULY 1

68,487.05

631.10

0.00

0.00

Food Inventory - Net Change in Period Donated Commodities Purchased Food

1,318.56 -133.91

FUND BALANCE JUNE 30

$ 87,377.85 $

0.00 $

0.00 $

~q.;,;;,0,;..0

See notes to the general purpose financial statements.

- 22-

EXHIBIT"F"

SECONDARY EDUCATION ACT

TITLE VI

TITLE II

INNOVATIVE

EISENHOWER

EDUCATION

PROFESSIONAL

PROGRAM

DEVELOPMENT STRATEGIES

INDIVIDUALS WITH DISABILITIES
EDUCATION ACT PARTB SPECIAL
EDUCATION FLOW
THROUGH

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

8,000.00 $

4,962.00 $

$

8,000.00 $

4....:.,9_6_2_.0_0 $

$ 17,532.24
17,532.24 $

185,306.30 $ 339,794.29
49,940.04
575,040.63 $

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

$

5,022.77 $

$

7,993.00

6.38

$

7,993.00 $

5,029.15 $

$

7.00 $

-67.15 $

67.15

$

7.00 $

0.00 $

0.00

0.00

$

7.00 $

0.00 $

17,477.24 $ 55.00
17,532.24 $ 0.00 $

269,565.37 $
30,474.82 7,993.00
20,605.11 . 608.22
23,867.18 10,474.11 202,211.33
565,799.14 $
9,241.49 $

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

7,840.56

679.02

0.00 $ 0.00

17,082.05 $ 69,118.15

16,826.77 53,262.55

1,318.56 -133.91

-1,047.71 76.54

0.00 $

87,384.85 $~=6;;";9~,1==1~8==.1,,;,,,5

- 23-

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

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

EXHIBIT"G"

1993 BOND ISSUE
FUND

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

TOTALS JUNE 30, 1996 JUNE 30, 1995

$ 383,373.85

$ 383,373.85 $

61,193.96

503,390.66

503,390.66

1,553,783.12

$

964,286.29

964,286.29

$ 886,764.51 $

964,286.29 $ 1,851,050.80 $ 1,614,977.08

Total Liabilities and Fund Equity $ 886,764.51 $

964,286.29 $ 1,851,050.80 $

1,614,977.08
-'I

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 30,1996

EXHIBIT-H"

1993 BOND ISSUE
FUND

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

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

REVENUES

State Funds Taxes and Other Funds

$ $ 75,4n.40

1,338,304.00 $ 1,338,304.00 75,4n.40 $

95,622.66

Total Revenues

$ 75,4n.40 $

1,338,304.00 $ 1,413,781.40 $

95,622.66

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$

0.00 $

294,618.70 $

294,618.70 $

196,747.45

2,533,056.82

2,533,056.82

150,967.25

6,930.00

Total Expenditures

$

0.00 $

2,827,675.52 $ 2,827,675.52 $

354,644.70

Excess of Revenues over (under) Expenditures

$ 75,4n.40 $

-1,489,371.52 $ -1,413,894.12 $

-259,022.04

OTHER FINANCING SOURCES (USES)

Capital Leases Operating Transfers In Operating Transfers Out

$ $ -27,299.68

830,455.29 $ 27,299.68

830,455.29 $ 27,299.68 -27,299.68

0.00

Total Other Financing Sources (Uses)

$ -27,299.68 $

857,754.97 $

830,455.29 $

0.00

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

48,1n.72 $

-631,616.55 $

-583,438.83 $

-259,022.04

FUND BALANCE JULY 1

838,586.79

758,057.01

1,596,643.80

1,855,665.84

FUND BALANCE JUNE 30

$ 886,764.51 $

126,440.46 $ 1,013,204.97 $ 1,596,643.80

See notes to the general purpose financial statements.

- 25-

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30.1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996 Grant State School Improvement Grants 1996 Grant Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant
Total U. S. Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 $
10.555 10.550
$

48,909.33
96,447.83 $ 12,994.64
158,351.80 $

(2)
189,101.05 (3) 12,994.64
202,095.69

84.010 $ 84.218

146,948.25 $ 4,000.00

146,948.25 4,007.21 (3)

84.281

8,000.00

7,993.00

84.298

4,962.00

5,029.15 (3)

84.027 $

17,532.24 181,442.49 $

17,532.24 181,509.85

Total Federal Financial Assistance

$ 339,794.29 $ =====3=83=,6:::=0=:5=.5=4

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 1996 National School Lunch Program.
(3) Expenditures for this program include State, and/or 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 30,1996
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"
$ 52,490.57 328,054.93 153.16
$ 380,698.66

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

SCHLEY COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30.1996
INVESTMENT POOL .State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5.361 %)

SCHEDULE "3" $ 503,390.66

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

SCHLEY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "4"

Bank of Ellaville Capital Lease Proceeds
Crisp County School System Building Rental
Education, Georgia Department of Quality Basic Education
Deferred Summer Salaries FY 1996
Food Services School Breakfast Program National School Lunch Program
Federal Program Elementary and Secondary Education Act Title VI Innovative Education Program Strategies
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Schley County Senior Citizens Reimbursement for Meals
Schley County Tax Commissioner County Wide Bond Tax County Wide School Tax

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 830,455,29

$ 830,455,29

$ 1,500.00

1,500.00

150,233.00 $

1,017.62 782.61

150,233.00
1,017.62 782.61

62.00

62.00

133,831.00

133,831.00

12,462.00

12,462.00

1,066.00

1,066.00

11,129.31

$ 2,067.98

2,067.98 11,129.31

$ 162,862.31 $ 15,390.23 $ 964,286.29 $ 2,067.98 $ 1,144,606.81

See notes to the general purpose financial statements.

- 29 -

SCHLEY COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1996

SCHEDULE "5"

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

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$ 149,152.50 $ 152,227.50 155,007.50 157,472,50 159,602,50

94,152,50 $ 92,227.50 90,007,50 87,472,50 84,602.50

55,000,00 60,000.00 65,000,00 70,000,00 75,000.00

161,415,00 162,895.00 169,027,50 169,562,50 169,762,50

81,415.00 77,895.00 74,027,50 69,562,50 64,762.50

80,000.00 85,000.00 95,000.00 100,000,00 105,000.00

169,565,00 169,010.00 173,087.50 176,525.00 174,100.00

59,565.00 54,010.00 48,087.50 41,525.00 34,100.00

110,000.00 115,000.00 125,000,00 135,000.00 140,000.00

176,400.00 178,150.00 179,350.00

26,400.00 18,150.00
9,350.00

150,000.00 160,000.00 170,000.00

$ 3,002,312.50 $ 1,107,312.50 $======1=,8=9=5,=00=0==:.0=0

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period

1993 ISSUE

$

1,945,000.00

50,000.00

Bonds Payable at June 30, 1996

$ = = i : :1l,=89==:5=,0=0=0.:=0=0

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

MAR 1 - SEPT 1 MAR 1 ,..,

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

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

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 Mid-term Adjustment Migrant Mid-term Adjustment Sparsity Grant Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries - FY95 Deferred Summer Salaries - FY96 Educational Equalization Funding Grant Food Services Other State Programs Health Insurance Innovative Programs Lottery Programs Distant Learning Instructional Technology Pre-Kindergarten Program Safe Schools Grant
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 780,996.00 104,486.00 32,602.00 37,994.00 10,502.00 270,065.00
162,361.21 37,018.00 57,639.00 4,377.00 57,642.00 .4,106.00 25,765.00
-191,610.00 -137,172.00 150,233.00 107,489.00
$
59,139.04 3,100.00

11,510.00
-391.00 -240.10 84,000.00 33,465.40

$ 780,996.00 104,486.00 32,602.00 37,994.00 10,502.00 270,065.00
162,361.21 37,018.00 57,639.00 4,377.00 57,642.00 4,106.00 25,765.00
-191,610.00 -137,172.00 150,233.00 107,489.00
11,510.00
59,139.04 3,100.00
-391.00 -240.10 84,000.00 33,465.40

8,072.00

$ 1,338,304.00

1,338,304.00

56,962.00

56,962.00

8,072.00

$ 1,584,804.25 $ 185,306.30 $ 1,338,304.00 $ 3,108,414.55

See notes to the general purpose financial statements.

- 31 -

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30.1996

SCHEDULE "7"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

DEBT

GENERAL REVENUE PROJECTS SERVICE

FUND

FUND

FUND

FUND

TOTAL

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax

$ 542,861.85 2,563.89 2,422.29

$ 142,723.51 $. 142,723.51 542,861.85 2,563.89 2,422.29

Other Sources .Compensation for Loss of Assets Interest Earned Rents Sales Adult Meals Breakfast Contracted Meals Lunches School Assets Supplemental Other

11,832.77 4,177.10 $ 2,255.00

2,111.31 $ 75,477.40

210.00 2,037.09

11,805.40 6,406.50 8,056.00
20,540.88
1,019.95

1,529.60

11,832.77 83,295.41
2,255.00
11,805.40 6,406.50 8,056.00
20,540.88 210.00
1,019.95 2,037.09

$ 568,359.99 $ 49,940.04 $ 75,477.40 $ 144,253.11 $ 838,030.54

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

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

SCHEDULE "8"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 1,351,925.30 $ 361,035.60 3,092.78 12,730.56 3,210.25 9,253.65 48,588.65 15,430.00 8,230.06 175,750.00
13,781.54 2,144.07 45,794.36 57,018.25
29,110.72 5,087.00 1,363.15

298,321.12 $ 72,036.38 529.47 2,875.48
2,407.57
655.36
945.18
196.91 44,247.72
1,893.70 121,452.44
4,601.31 27.00 807.10

1,650,246.42 433,071.98 3,622.25 15,606.04 3,210.25 9,253.65 50,996.22 15,430.00 8,885.42 175,750.00 945.18 13,781.54 2,340.98 90,042.08 58,911.95 121,452.44 33,712.03 5,114.00 2,170.25

5,254.66 50,178.34

14,802.40

5,254.66 64,980.74

Total Expenditures

$ 2,198,978.94 $ 565,799.14 $ 2,764,778.08

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

SCHLEY COUNTY BOARD OF EDUCATiON SCHEDULE OF EXPENDITURES BY OBJECT
LOTIERY PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

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

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

112,043,87

$

112,043,87

26,524,35

26,524.35

252,50

252.50

572.16

572,16

196.91

196.91

6,259,52 $

23,613.00

29,872.52

58.25

58.25

267.00

267.00

553,64

553,64

2,000.00

9,852,40

11,852.40

$

148,728,20 $

33,465.40 $ =====1.8..2.=,1...9...3..=,6=0

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, 1996

SCHEDULE "10"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR
OPERATIONS PORTION OF
THIRTEEN WEIGHTED PROGRAMS

$

1,013,555.00 $ _ _---.,;3:.;;:2~,6;.;.7.;;.;8.;.;;.00~

$ 1,130,616.80 65,983.07 $ _ _-.-;.6"""'1..;.;12=7.;.;.7.;..9
$ 1,196.599.87

-6,137.62 $ 1,190,462.25

Amount of Underexpenditure for Total Allotment

$

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

0.00 $ =====0=,0==0

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 30,1996

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 "3 (*) Sub-Total- K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category II (*)
Category III (*)
SUb-Total- Regular Category V (Gifted) (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*)
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

126,729,00

$

114,056.10 $

293,857.00

264,471.30

$

420,586.00 90 $

378,527.40 $

179,082,00 90

161,173.80

181,328.00 90

163,195.20

$

780,996.00

$

702,896.40 $

28,738.00 28,739.00 57,477.00
57,477.00

$

98,213.00

$

88,391.70 $

0.00

$

98,213,00 90 $

88,391.70 $

6,273.00 90

5,645.70

$

104,486.00

$

94,037.40 $

$

32,602.00 90 $

29,341.80 $

$

918,084.00

$

826,275.60 $

0.00
0,00 0.00 57,477.00

$

31,156.00 90 $

28,040.40 $

6,838.00 90

6,154.20

$

37,994,00

$

34,194.60 $

0.00 0.00

$

956,078.00

$

860,470.20 $

57,477,00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs
(*) Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1996 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

$

2,598.00

7,904.00

$

2,598.00 $

7.904.00

162.00 0.00

$

10,502.00 100 $

10,502.00 $ ====16=2=:.0.=0

(2) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements.

36 -

SCHEDULE "11"

" TOTAL REQUIRED

ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

142,794.10 $

159,237.42 $

12,176.68 $

171,414.10

293,210.30

343,449.46

19,797.73

363,247.19

$

436,004.40 $

502,686.88 $

31,974.41 $

534,661.29 $

0.00

161,173.80

244,164.52

14,678.02

258,842.54

0.00

163,195.20

179,999.32

13,248.77

193,248.09

0.00

$

760,373.40 $

926,850.72 $

59,901.20 $

986,751.92

$

88,391.70

$

0.00 $

120,208.41

$

88,391.70 $

120,208.41 $

5,645.70

4,748.39

$

94,037.40 $

124,956.80 $

$

29,341.80 $

39,532.94 $

$

883,752.60 $ 1,091,340.46 $

0.00 $ 841.65 841.65 $ 152.86 994.51 $ 232.08 $ 61,127.79 $

0.00 121,050.06 121,050.06
4,901.25 125,951.31 39,765.02 1,152,468.25

0.00 744.45
0.00

$

28,040.40 $

6,154.20

$

34,194.60 $

39,276.34 $
39,276.34 $

$ 4,855.28
4,855.28 $

39,276.34 4,855.28
44,131.62

0.00 1,298.92

$

917,947.20 $ 1,130,616.80 $

65,983.07 $ 1,196,599.87 $=====2=,0..4.=3.=37=

$

2,760.00

7,904.00

$ ===1:::::0,=66=4=.0=0

$

3,590.26 $

3,590.26

6,822.77

6,822.77

$

10,413.03 $

10,413.03 $========2=5:=0:=.9=7

- 37 -

SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30.1996

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. Ronnie Heath, Chairman (*) Route 2, Box 71 Ellaville, Georgia 31806
Mr. Sammie Black (*) P.O. Box 126 Ellaville, Georgia 31806
Ms. Ann Gill (*)
P. o. Box214
Ellaville, Georgia 31806
Mr. Robert L. Pilcher, III (*)
P. O.Box 1048 Ellaville, Georgia 31806
Mr. Bryan Rooks (*) P. O. Box 581 Ellaville, Georgia 31806
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

650.00

650.00

600.00

600.00 $

110.25

600.00

$

3,100,00 $ ====1=1::::0,:::2==5

}\

See notes to the general purpose financial statements.

- 38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 6, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the 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, 1996, and have issued our report thereon dated March 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Schley County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-IO

This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a mat,ter of public record.
Respectfully submitted,
t1~~
Claude L. Vickers State Auditor
CLV:cm 96CRL-IO

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 6, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and S~perintendent and Members of the Schley County Board of Education

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Schley County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the 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, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-UplResolution

(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.

96CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tes!-.ed, 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 immaterial instances ofnoncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
(
c:L--~
Claude L. Vickers State Auditor
CLV:cm 96CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 6, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the ScWey County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1996 general purpose financial statements of the Schley County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govermng:

(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 ScWey County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

96CRL-120

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

CLV:cm 96CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 6, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Schley County Board of Education
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, 1996, and have issued our report thereon dated March 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management ofthe 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, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

96ICL-3

In planning and perfonning our audit of the general purpose financial statements of the Schley County Board ofEducation for the year ended June 30, 1996, we obtained an understanding of the internal control structure. Wit.h respect to the internal control structure, we obtained an understanding ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Procurement
(2) General Ledger
(3) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that 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 of Education's financial statements and this report does not affect our report thereon dated March 6, 1997.
96ICL-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 of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm 96ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 6, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Schley County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Schley County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 6, 1997.
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
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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 Fe~eral 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) Monitoring Subrecipients

(7) Qther Requirement Claims for Advances and Reimbursements

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

During the year ended June 30, 1996, the Schley County Board of Education had no major Federal financial assistance programs and expended 72% 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 - Title I Grants to Local F ducational Agencies

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We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to pre"venting or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor Federal financial assistance 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 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 Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the control category noted above includes a reportable condition that is also considered to be a material weakness.
This report is intended solely for the use ofmanagement, 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.
aRespectfully submitted,
Claude L. Vickers State Auditor
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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. 1996

PRIOR YEAR

AUDIT FOLLOW-UPIRESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7231-93-03

The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$I,637.19 for the Staff Development - Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.

AUDIT FOLLOW-UPIRESOLUTION Inadequate Accounting Procedures Financial Statements Finding Resolved 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. During the year under review, the Board implemented procedures to establish appropriate internal controls over the Board's cash assets.

AUDIT FOLLOW-UPIRESOLUTION 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 Staff Development - Cost of Instruction Staff Development - Professional Development

$ 569.15 136.80 361.80
1,132.83 1,274.33 4.308.99

$ 7.783.90

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SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
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 ofEducation to refund these underexpenditures as required. These underexpenditures of$7,783.90 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7231-94-03
The audit report for the year ended June 30, 1994, disclosed that the Board had an underexpenditure of Pupil Transportation funds of$5,867.79. This questioned cost had not been resolved at June 30, 1996. However, refund of$5,867.79 was made by the Board in the subsequent fiscal period and this amount is included in Accounts Payable as shown in the Combined Balance Sheet, Exhibit "A", ofthis report.
AUDIT FOLLOW-UP/RESOLUTION Failure to Adopt Balanced Budget Financial Statements Finding Resolved Audit Control Number 7231-95-01
The audit report for the year ended June 30, 1995, disclosed that the Schley County Board of Education failed to adopt a balanced budget for the General Fund as required by Chapter 32 of the Financial Management for Georgia Local Units ofAdministration (FMGLUA). For the year under review, audit tests revealed that the Board had adopted a balanced budget in accordance with requirements ofFMGLUA.
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SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
'"
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $11,876.30 Audit Control Number 7231-95-02
The audit report for the year ended June 30, 1995, reported that the Board had underexpenditures of Quality Basic Education (QBE) funds $9,844.12 for the Special Education Programs, $1,542.89 for the operations portion of Media Center Programs and $489.29 for the Staff Development Programs. 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$11,876.30 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UPIRESOLUTION Failure to File Completion ReportlUnearned Lottery Funds Financial Statements Finding Resolved Audit Control Number 7231-95-03
The audit report for the year ended June 30, 1995, disclosed that the Board failed to submit a completion report for the Instructional Technology (Computers in Classrooms) Program and the Distant Learning Program. Additionally, the Board failed to refund unearned lottery funds for these programs in the amount of$240.10 and $391.00 respectively. During the year under review, the completion reports still had not been submitted for these programs nor had the questioned cost been refunded as of June 30, 1996. However,
subsequent to the year under review completion reports were submitted to the Georgia Department of
Education and refund of $631.1 was made by the Board and this amount is included in Accounts Payable as shown in the Combined Balance Sheet, Exhibit "A", ofthis report.
AUDIT FOLLOW-UPIRESOLUTION Incomplete Free and Reduced Price Meal Applications Federal Financial Assistance Finding Resolved Audit Control Number 7231-95-05
The audit report for the year ended June 30,1995, reported $53.68 in over reimbursement for free and reduced priced meals for the National School Lunch (CFDA 10.555) and School Breakfast (CFDA 10.553) Programs, due to a incomplete free and reduced price meal application. This questioned cost had not been resolved at June 30, 1996. However, refund of$53.68 was made by the Board in the subsequent fiscal period and this amount is included in Accounts Payable as shown in the Combined Balance Sheet, Exhibit "A", ofthis report.
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SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7231-93-02
The audit report for the year ended June 30, 1995, noted that the management of the Schley County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the fonnal 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 fonnal 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 ofa GeneralFixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 7231-95-04
The audit report for the year ended June 30, 1995, stated that the Board's property management records 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). For the year under review, the Board's property management records again failed to meet Federal requirements for the National School Lunch Program (CFDA 10.555). The inventory records as presented for audit did not contain a manufactures serial or other identifying number for all items listed. This condition occurred because management did not ensure that all Federal requirements were included in property management records. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, of the FMGLUA.
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SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR
PROCUREMENT Failure to Meet Legal Compliance Financial Statements Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7231-96-01
An examination of the Board's records revealed that the Board had entered into a multi-year capital lease agreements for buildings and equipment. This lease agreement did not contain termination and renewal provisions which are required by the Official Code of Georgia Annotated Section 20-2-506 as follows:
"(a) Except as otherwise provided in this Code section, each county, independent, or area school system in this State shall be authorized to enter into multiyear lease, purchase, or lease purchase contracts ofall kinds for the acquisition ofgoods, materials, real and personal property, services, and supplies, provided that any such contract shall contain provisions for the following:
(l) The contract shall terminate absolutely and without further obligation on the part of the school system at the close ofthe calendar year in which it was executed and at the close of each succeeding calendar year for which it may be renewed as provided in this Code section;
(2) The contract may provide for automatic renewal unless positive action is taken by the school system to terminate such contract, and the nature of such action shall be determined by the school system and specified in the contract;..."
The Board should implement controls to ensure that all contracts entered into by the Board comply with Georgia Law. Additionally, this lease agreement should be amended to include the required termination and renewal provisions noted above.
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $2,294.34 Audit Control Number 7231-96-02
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 $744.45 for the Special Education -Gifted Program, $1,298.92 for the operations portion of Media Center Programs and $250.97 for the Staff Development Programs.
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SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $2,294.34 Audit Control Number 7231-96-02
The underexpenditure ofthe 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.
EXPENDlTURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $943.74 Audit Control Number 7231-96-03
For the year under review, the Schley County Board of Education received $168,229.00 from the Georgia Department ofEducation for Pupil Transportation expenditures other than bus replacement. The accounting records reflected $167,285.26 in expenditures resulting in $943.74 in unexpended funds. This is a violation of the Official Code of Georgia Annotated Section (O.C.G.A.) 20-2-188 which provides, in part, as follows:
"... the amount of funds to be actually distributed to any local unit of administration under this Code section during any school year shall not exceed the actual costs incurred by the local unit in transporting students to and from public schools..."
This questioned cost occurred because the Board expended less than the alloted Regular Pupil Transportation Program funds. Accordingly, the unexpended balance of $943.74 should be refunded to the Georgia Department of Education.
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SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR
EMPLOYEE COMPENSATION Salary Overpayment Financial Statements Nonmaterial Noncompliance Amount: $603.32 Audit Control Number 7231-96-04
For the year under review, a sample often employees were selected to test employee compensation. This testing revealed three instances where employees were overpaid in the aggregate amount of$603.32. These overpayments were the result ofthe Board's failure to accurately reduce the wages of employees for excess leave taken. The Board should obtain reimbursement of these overpayments for deposit into the Board's General Fund.
GENERAL LEDGER - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 7231-96-05
For the year under review, the Board's accounting procedures were insufficient to provide for adequate internal control over the journal entry process as follows:
(1) Journal entries were not supported by either adequate documentation or descriptions.
(2) Journal entries were made to the accounting records without proper authorization.
These conditions were a result of management's failure to adequately monitor and document journal entries. The deficiencies in accounting procedures were discussed with the Superintendent. In addition, the accounting personnel of the Board were given instructions in the proper accounting procedures for journal entries which include the necessity of all journal entries being properly approved and documented prior to entry into the accounting system.
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SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER ORQUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7231-96-06 A review ofcash management procedures for the Elementary and Secondary Education Act -Title I-Grants to Local Educational Agencies 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 of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1996, the program had an average cash balance of$6,885.95 and had excessive ending monthly cash balances in six months. The excessive cash balances are a result of management's failure to accurately forecast the cash needs ofthis program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board.
Note: The Schley County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
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