Audit report, Stephens County Board of Education, Toccoa, Georgia, year ended June 30, 1994

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

AUDIT REPORT STEPHENS COUNTY BOARD OF EDUCATION
TOCCOA, GEORGIA YEAR ENDED JUNE 30, 1994

STEPHENS 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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

.

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCYFUND

22

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

23

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

25

3 INVESTMENTS

26

4 ACCOUNTS RECEIVABLE

27

STEPHENS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

5

STATE FUNDS

28

6

LOCAL AND OTHER FUNDS

29

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

30

8

LOTTERY PROGRAMS

31

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

33

10

BY PROGRAM

34

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

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

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Stephens County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Stephens County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements_ An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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:
94ARL-13

The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The 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 of such adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Stephens County Board ofEducation as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Stephens County Board ofEducation taken as a whole. The combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Stephens County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect ofadjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-13

STEPHENS COUNTY BOARD OF EDUCATJON - 1-

STEPHC;NS COUNTY BOARD OF Fpt.JCATION COMBlNC;P BALANCE SHEET
ALL FUNP TYPES JUNE 30 1994

EXHIBIT"A"

~ Cab and Cab Equlvalonts
-Accounls Receivable -Food
Donated Commodities Pun:haaed Food
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE AGENCY FUND

TOTALS
fMemorandum OnM
JUNE30 1994 JUNE30 1993

s 279,998.ss s 411,<469.n

0.00 $ 691,468.57 $ 1,395,933.50

2,600,BG.32

2,600,849.32

2,022,144.38

1,902,246.38

459,207.77

1,050,949.98

3,412,-406.13 1,569,575.87

26,742.59 21254.51

26,742.59 21.254.51

35,14027 1619423

s s 4503097.70 s 787203.n 1452419_10 s_ _ _ _o_.00_s s e152n1.12 5036986.25

LIABILITU;S ANO FUND EOllrTY

CahOwlrdraft A=xmls Payable
--Payable
Exp;r9d Grant Balance& Payable
CRo_n,l_rmPsaPyayaabbllee

-,571.56 457,373.44 $ 1,491,244.96

98,892.39 124,522.76
3626 $

Total Liabilities

$ 2.297189.98 $ 223451.41 $

FUNPEOlJITY

Fund Balances R--i For Continuation of Federal Programs For Expired Grant Baiances/Questk>ned
Cools For Inventories
Food Donaled Commodities Pun:haaedFood
Fe.- Slate Capital Outlay Projects

5,816.79

447.77
26,742.59 21,254.51

5,816.79 $ 46,444.87 $

Total Fund Equity

2.2!!Q090.93
s 2205907.n

515307.44 563 752.31 $

597,833.14 262 798.65

0.00 $

-.571.58 556,265.83 $
1,&1s,1&1.n 3626
597,833.14 262 798.65

446,313.01 1,548,858.18
28924 196,009.49 195TT.87

880 631.79 $ --~o=.00~s 3401.273.18 s 2.211 047.79

102120.00 102,120.00 479667.91 $ 561 787.91 $

447.77 5,816.79 $

385.47

26,742.59 21,254.51 102 120.00

35,14027 16,19423 306 360.00

156,381.66 $ 358,079.97

0.00 3195066.28 2 469 860.49

0.00 $ 3 351 447.94 $ 2627~.46

Total LiabHilie& and Fund Equity

s 4503097.70 s 787203.n s 1462419.70 s _ _ _ _o_.00_s e152n1.12 s 5036986.25

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

!J:iet:lf;Jj QQ1llfil'. ~QQF l;QlJC6!1~ ~al~l:Q ~Metil QE Bl:~N!JI: exeet::1QIIUBI: ANQ c~~I; IN B.:!t::H:2 di ~Cf:
!:.?Q~BNMfrilAI. BJNQ IXEI: VEAR ENDED JUNE 3Q 1994

EXHIBIT"!!"

~
S-Funds F-Funds l..ooaJ and Other Funds
TotalReven.-
EXPENDITIJRFS
Current lnstruc:lion SUppcrt Services PupllServlcos irnprowment ollnstruotional Services Educa!ional Media Services GenenliAdminsalion School Adminislralion Business Administration Maintenance and Operation "' Plant Student Transpor1alion Servic:es CenlraJSupportServices Other SUppcrt Services Food Services Operation Other 0pwaticns "'Non-Instruction( Services
CapilaJOullay
Total Expenditures
Ex<ess ol Revenues over (under) Expenditures
QiljfB El~CING: Q!.!BQ~ !.!fl
Componoation for loss"' Assets Openlling Transfers In Operating Transfers Out
Total Olher F"18ncing Sources (Uses)
Excess ol Revenues and Other Financing Sources o,w (under) Expenditures and Other Financing Uses
FUND RALANCE JULY 1
Food lnvento,y- Net Change in Period Donated Commodities Purchased Food

GENERAi. FUND

SPECIAL REVENUE
FUND

CAPITAi. PROJECTS
FUND

TOTALS (Memorandum On~}
YEAR ENDED JUNE30 1994 JUNE30 1993

11,322,758.91 $ 460,946.89 $

84,363.89 1,551,381.18

5959571.66

433 971.13

3,653,817.05 $ 15,437,522.85 $ 1,635,745.07 6393542.79

11,204,717.19 1,517,661.28 6~58205.81

17366694.46 $ 2 446~99.20 $ 3 653 817.05 $ 23466810.71 $ 18~~.28

10,963,808.08 $ 840,332.87

11,804,140.95 $ 11,000,448.69

602,764.11 425,667.89 402,290.25 299,307.41 869.571.94 137,920.75 1,430,671.00 878.645.17
76,763.53 1,429.71
146,110.41 230951.52

16,135.20 24,244.10 125,151.33 18,026.40
67.393.14 55,230.34 55,011.75 60,098.25 1,128.064.05

5022 664.46

618,899.31 449,911.99 527,441.58 317,333.81 869.571.94 137,920.75 1,498,064.14 933,875.51 131,775.28 61.527.96 1,128,064.05 146,110.41 5 253615.98

588,234.71 420,112.47 413,561.58 297,897.36 857.519.01 125,125.22 1,349,008.15 873,073.77 166,814.58
1.593.17 1,050,526.91
142,269.71 670840.85

16465901.77 $ 2 389 687.43 $ 5 022 664.46 $ 23 878 253.66 $ 17 957 026.18

900 792.69 $ 56611.77 $ -1 388 847.41 $ -411 442.95 $ 1 023558.10

250,154.32 $
-712055.91
-461 901.59 $

12,055.91

688,133.51 $ 700,000.00

12055.91 $ 1 388133.51 $

938,287.63 712.055.91 $ -712 055.91
938287.83 $

700,000.00 -700000.00
0.00

438,891.10 $ 68,667.68 $

1.767,016.62

498,422.03

19,286.10 $ 526,844.88 $ 1,023,558.10

562,501.81

2,827,940.46

1,810,750.59

-8,397.68 5060.28

-8.397.68 5060.28

-9.651.08 3282.85

E!.!NQ ~ C f JYNI: ~

2.205 907.72 $ 563.752.31 $ 581 787.91 $ 3 351 447.94 $ 2~7940.46

The no1es to the general purpose financial statements are an integral part of this statement -3-

IEe!::l!i;~~ ~Ut:[C! ~BQ QF EQ!.!Qal:IQN ~alNEQ ~Uil;MENI QE BE~EtH.!ES e~eE~t'!II!:.!RI; 6NQ Q!:iAN~ES IN E~JNQ ~LAN&':E
aQIUAL ANQ a!JQgl;I - ~Ql!EBNMl;N!AL E!.!NQ n:eE
YEAR ENQl;Q JUNE 30 1994

EXHIBIT"C"

~
State Funds Fodefal Funds l.oeal and Other Funds

Total Revanuos

E~eENQIIUBE~

Cumin!

Instruction

Support Services

Pupil Services

lmpn,vemont cl Instructional Services

- - Educational Media Services
General Administration aa-!Admlnislralion

-

and Operation"' Plant

S - Transportation Services

Central Support Services

Other Support Services

Food Services Operation

Other Operations ol Non-lnslnlclional Servicoo

Capital Outlay

Total Expenditures ExcNo cl Revenues owr (under) Expenditures

QIHEB EINAN~ltHii QL!RCES mEl
Compensation for Loss ol Asoets Other Sources
Other u...

Total Other Financing Sources (Uses)

ExcNo cl Revenues and Other Financing Sources
"""' (unde<) Expenditures and Other ,.,.ncing
u...

FL!NQ ~I ANCE JUI Y l 1993 Al:!J!.!SIMENll
Prior v - (Not)

EQQQ ltfiENIQBY - tlEI C!::IANSil; IN eERIQQ

Donated Commodities Purchased Food

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE {UNFAVORABLg)

15,437,522.85 $ 1,635,745.07 6 393,542.79
$ 23,466,810.71 $

0.00 $

15,437,522.85 $ 16,774,351.38 $ 1,635,745.07 1,462,223.00 6,393,542.79 5,277,557.02

0.00 $ 23,466,810.71 $ 23,514131.40 $

-1,336,828.53 173,522.07
1115,985.77
-47,320.69

11,804,140.95 $
618,899.31 449,911.99 527,441.58 317,333.81 869,571.94 137,920.75 1,498,064.14 933,875.51 131,775.28 61,527.96 1,128,064.05 146.110.41 5,253,615.98
$ 23,878,253.66 $
-411 442.95 $

s 0.00 $ 11,804,140.95 $ 11,n3,537.BO

618,899.31 449,911.99 527,441.58 317,333.81 869,571.94 137,920.75 1,498,064.14 933,875.51 131,775.28 61,527.96 1,128,064.05 146,110.41 5,253,615.98

633,936.00 481,239.00 532,830.00 319,446.00 879,534.00 277,637.90 1,548,459.00 9n,821.00 131,688.00 83,802.00 942.786.00 149,046.00 6703845.17

0.00 $ 23,878,253.66 $ 25,380,613.87 $

0.00 $ -411.442.95 $ -1,866,482.47 $

-80,603.15
15,036.69 31,327.01 5,388.42
2,112.19 9,962.06 139,717.15 50,394.86 38,951.49
-a7.28 22,274.04 -185,278.05 2,935.59 1 450,229.19
1 502,360.21
1 455,039.52

$ 938,287.83 $ 712.055.91 -712.055.91
938,287.83 $

0.00 $ 0.00 $

938,287.83 $ 712.055.91 -712,055.91

941,787.83 $ 711,842.00 -11,642.00

938,287.83 $ 1,641,787.83 $

-3.500.00 413.91
-700,413.91
-703,500.00

$ 526,844.88 $ 2,827,940.46

0.00 $ -51,334.50

526,844.88 $ 224,694.64 $ 2,776,605.96 3,514,817.87

751.539.52 -738.211.91

0.00

0.00

68,030.37

-68,030.37

-a,397.68

8,397.68

0.00

0.00

5,060.28

-5,060.28

0.00

0.00

F!.!tH2 ~LANQE JUNE 30 l~

$ 3,351,447.94 $ -47,997.10 $ 3,303,450.84 $ 3,358,153.60 $

-54,702.76

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

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Stephens County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Stephens County Board of Education.
Based upon the application of the above criteria, the Stephens County Board of Education is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Stephens 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 to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

- 5-

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the funds used to account for assets held for the Clemson University Tuition Fund.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
- 6-

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis 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 1993 and ending in early June 1994. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. 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.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Stephens County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
- 7-

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits 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 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 Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose

- 8-

STEPHENS COUNTY BOARD OF EDUCATION

ExmBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Stephens County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 1, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Stephens County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1993 tax year (calendar year) for the Stephens County Board of Education was as follows (a mill equals$! per thousand dollars of assessed value):

School Operations

1.1..Q mills

INVENTORIES

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

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

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

- 9-

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation 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 ofinsurance, or by collateral in an amount of not Jess than 110 percent of the public

funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides

an officer holding public funds may, in his discretion, waive the requirement for security in the case of

operating funds placed in demand deposit checking accounts.



Acceptable security for deposits consists of any one of or any combination of the following:

( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

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

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

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

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

- 10 -

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS
At June 30, 1994, the bank balances were $1,366,890.03. The amounts of the total bank balances are
classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
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, 1994, as follows:

Risk Category

Bank Balance

1

$ 101,960.58

2

1,264,929.45

3

0.00

Total

$ I 366 890 03

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount of the Board's total investments was $2,600,849.32 and consisted entirely offunds in the Local Government Investment Pool administered by the 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.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$2,329.33 was paid in claims.

- 11 -

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 5: COMPENSATION FOR LOSS OF ASSETS

During the period ended June 30, 1994, the Board sustained substantial fire damage to the Big A Elementary School. On July 12, 1994, the Board received a settlement in the amount of$938,287.83 from the insurer. This amount is included in accounts receivable at June 30, 1994.

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$326.47 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department of Education has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Media Center and Library Equipment Safe Schools Grant

$

315.94

10.53

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1994, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

90-727-066A 90-727-066B

$ 12,595.98 $ 57,108.50

605 504.14

48 148.85

$ 618 lOQ 12 $ 105 25735

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

Note 7: CONTINGENT LIABILITIES

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

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.

- 12 -

STEPHENS COUNrY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable 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 ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $10,281,658.92; total payroll was $11,818,639.58.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50"/o.
Total contributions made during fiscal year 1994 amounted to $1,831,162.13, of which $1,214,263.09 was made by the Board and $616,899.04 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

- 13 -

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS

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

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. 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, .1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$1,214,263.09 was actuarially determined and represented .2328% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice 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

- 14 -

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years 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 ofservice. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contnbutions occurs, but the member's contributions are refunded with interest.
There were 135 employees covered under PSERS for the year ended June 30, 1994.
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 ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $4,624.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. David Edward Mills, is bonded in the amount of$10,000.00 with the State Automobile Insurance Company, Columbus, Ohio, their Bond No. 0039541, on which premium was paid through December 31, 1994.

- 15 -

STEPHliNS COUNTY BOARD OF EDUCATION COMBINING BAI ANCE SHEET
SPECIAl REWNUE FUND JUNE:30 1@94

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

SCHOOL FOOD
SERVICES FUND

TUITION FOR THE
MULT~ HANDICAFPED

STATE PRESCHOOL HANDICAFPED
PROGRAM

STATE SUPER PROGRAM

LOTTERY PROGRAMS

SCHOOi. DROPOUT PREVENTION PROGRAM

$ 580,74323 $

0.00 $

0.00

4,614.86

2,440.07 $ 290,86128 $ 18,046.09

26,742.59 21254.51

TolalAssets

$ 633,355.19 $

LlaalLIIIES ~1:2 BJt:U2 EQUD:!
~
Cash Overdraft AccounlsPayable SalariesPayable Expired Grant Balances Payable
Total Liabilities
B,INPEOLJITY
Fund Balances ROS8Mld For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignal8d
Total Fund Equity

15,008.97 55,041.68 70,050.65
28,742.59 21~54.51 47,997.10 515,307.44 $ $ 563,304.54 $

Total Liabilities and Fund Equity

$ 633,355.19 $

0.00 $
0.00 $ 0.00 $ 0.00 $

0.00 $

2,440.07 $ ~ $ 18,046.09

2,440.07 $ 231,222.35 $ 59,602.67
~ 2,440.07 $ 290,861.28 $

14,384.32 3,214.00
17,598.32

447.77

0.00 $ 0.00 $

0.00 $ ~ 0.00 $ ~ $

447.77 0.00
447.77

0.00 $

2,440.07 $ ~ $ 18,046.09

See notes to the general purpose financial statements.

-16-

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEU-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER 2

MATHEMATICS

DEPRIVED

BLOCK GRANT ANO SCIENCE

CHILDREN FLOWTHROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30 1994 JUNE 30, 1993

0.00

580,74323 $ 506,757.45

97,986.49

16,255.83 $

21,881.53 $

7,121.62

459,207.77

116,695.78

26,742.59 21254.51

35,14027 16,19423

s1.986.4s s_____0_.0_0_ $

16,255.83 $

21,881.53 $

7,121.62 $ 1,087,948.10 $ 674,787.73

15,976.79 $ 18,96720 63,042.50
97,986.49 $

0.00 $

16.255.83 $

13,343.40 $ 2,099.55 6,438.58

0.00 $

16,255.83 $

21,881.53 $

7,121.62 $ 7,121.62 $

300,744.38 $ 98,892.39
124,522.76 36.26
524,195.79 $

31,425.69 31,015.91 113,634.86
289.24
176,365.70

----=o-"'.oo=-s----0=.0=0 $
0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

447.77

0.00 0.00 $

26,742.59 $ 21,254.51 48,444.87 $ 515,307.44 563,752.31 $

35,14027 16,194.23 51,334.50 447087.53 498,422.03

97,986.49 $ _ _ _...0...0.0..,$

16,255.83 $

21,861.53 $

7,121.62 $ 1,087,948.10 $ 674,787.73

-17-

STEetiENS COUNTY B0 ARP OF EDUCATION COMBINING STATEMENT OF REVfNlJES EXPENQITURfs ANP CHANGES IN BJNP BALANCES
SPECIAi, RE\/ENUE E\INP YEAR ENPfP JUNE 30 19$4

~
S-Funds Federal Funds Local and Other Funds
Total Revenues
EXfFNDtTURES
Cumin! Instruction SupportSarvic:es Pupil Sarvices Improvement of Instructional Sarvices Educational Madia Sarvic:es General Admlnlslration Maintenance and Operation of Plant Student Transportation Sarvices Cantral Support Services Other Support SaNices Food Sarvic:es Operation
Tolal Expenditu,_
Excess of Revenues over (under) Expenditures
Q!tjER EJ~CI~ SOUBs:;es
Operating Tranoten; In
Excas d Revenues and Other F'onanc:ing Sources over (under) Expenditures
B.!NP a&.eiNCE JULY 1
Food ln..-Y Net Changa In Period Donatad Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

TUmON FOR THE
MULT~ HANDICAPPED

STATE PRESCHOOL HANDICAPPED
PROGRAM

STATE SUPER PROGRAM

LOTTERY PROGRAMS

SCHOOL DROPOUT PREVENTION PROGRAM

79,652.00 $ 682,660.83 433971.13
1,196,283.96 $

6,667.40 $

43,803.00 $

3,535.47 $ 327,289.02 $

44,432.00

6667.40 $

43803.00 $

3535.47 $ 327 289.02 $ 44432.00

$ 1,128,064.05 $ 1128 064.05 $
68,219.91 $

6,667.40 $

31,203.27 12,599.73 $

3,535.47

116,217.12 $
104,723.28 57,619.64 49,676.89

55,092.23

6,667.40 $

43,803.00 $

3,535.47 $ 328,236.93 $ 55,092.23

0.00 $

0.00 $

0.00 $

-947.91 $ -10,660.23

68,219.91 $ 498,422.03
-ll,397.68 5,060.28

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

947.91

11,108.00

0.00 $ 0.00

447.n 0.00

BJNQ ~CE JUNE 30

$ 563,304.54 $

0.00 $

0.00 $

0.00 $

0.00 $

447.n

See notes to the general purpose financ:ial statements.

-18-

EXHIBIT"P

ELEMENTARY AND SECONDARY EDUCATION N:.T

mLED

CHAPTER1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT. AND SCIENCE

CHILDREN FLOW THROUGH EDUCATION

INDMDUALS WITH

DISABILITIES EDUCATION ACT

mLEVl,B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 623,933.68 $ 623,933.68 S

28,798.00 $ 28 796.00 S

16,255.83 $ 137,69827 $ 16,255.83 $ 137,69827 S

$ 17,602.57

460,946.89 $ 183,096.00

1,551,381.18 1,423,438.40

433,971.13

450,993.89

17,602.57 S 2,446.29920 $ 2,057,528.29

528,195.10 S
7,373.92
11,sn.ss
9,773.50 1,790.06 511,22325
623,933.68 $
0.00 $

8.305.:30 $ 20,428.05
64.65
28,796.00 $

16,255.83 $ 67,094.05 $
16,870.18 383.90
3,763.39 48,711.75
875.00
16.255.83 S 137,698.27 S

11,302.57 $ 840,332.87 $ 708,500.38

6,300.00

16,135.20 24,244.10 125,151.33 18,026.40 67,393.14 55,230.34 55,011.75 60,09825 1,128,084.05

13,489.37 50,458.96 26,349.34 16,11329
5,145.53 2,759.40 89,100.49 1,593.17 1,050,526.91

17,602.57 $ 2,389,687.43 $ 1,962,036.86

0.00 S

0.00 $

0.00 S

0.00 $

56,611.77 $ 95.491.43

0.00 $ 0.00

0.00 $ 0.00

0.00 S 0.00

0.00 $ 0.00

12,055.91

0.00 $ 0.00

68,667.68 $ 496,422.03

95,491.43 409,296.83

-8,397.68 5,080.28

-9,651.08 3,282.85

0.00 $

0.00 S

0.00 $

0.00 S

0.00 $ 563,752.31 $ 498.422.03

-19-

STEPHEN$ COUNTY RQABD Of FDLJCATION
COMBINING BAI ANCE SHEET CA:PIIAL PROJECTS FUND JUNE :30 lQQ.4

EXHIBITV

Caoh and Caoh Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

90-727--066A 90-727-066B 94-727-064

TOTALS JUNE 30 1994 JUNE 30 1993

115,073.34 $ 423,354.98 $ 81,507.00 $ 619,935.32 $ TTS,089.17

136919.50

205283.97

20613.00 1 050949.98

TolalAssals

$ 688133.51 $ 251 992.84 $ 628 638.95 $ 102120.00 $ 1670865.30 $ n8089.17

LIABII mes AND FUND EQUITY
~
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUNPEOUIIY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignatod
Total Fund Equity

$ 208,465.60 $

115,073.34 $ 136 919.50

482,759.80 145 879.15

$ 208 465.60 $ 251 992.84 $ 628 638.95

208,465.60 597,833.14 $ 282 798.65
1 089 097.39 $

102,120.00 $

s 479667.91 s_ __,,o,,,.oo,,_s _ ____,o,,.oo,,_

o.oo

s 479 667.91 s _ __,,o,,,.oo"- s _ ____,o,,.oo,,_ s s 102120.00

102,120.00 $ 479667.91
s 581 787.91

196,009.49 19 5n.87
215 587.36
306,360.00 258141.81 562 501.81

Total Liabilities and Fund Equity

$ 688133.51 $ 251992.84 $ 628638.95 $ 102120.00 $ 1670885.30 $ n8089.17

See notes to the general purpose financial statements.

-20-

STEPHENS COl lNTY BOARD OF EDUCATION COMBINtNG STATEMENT OF BEVFNUES EXPENPJTLJRES ANP CHANGES IN FUND BALANCES
CA?IJAI PBOJECTS FUND YEAR ENPEP JUNE 30 19

EXHJBIT"H"

REGULAR

GEORGIA STATE FINANCING ANO

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

90-727-0GSA 90-727-066B 94-727-064

TOTALS YEAR ENOEO JUNE 30 1994 JUNE 30 1993

State Funds
EXf'ENPJIURES
Capital Outlay Land and Land Improvements Building and Bullding Improvements
Total~os
E>a:ou of Rewnuos over (under) Expenditures
OTHER FINANCING SOURCES lUSES\
Compenoation for Loos of Assets Operating Transfers In Operating Transtar, Out
Total Other F-.nancing Sources (Uses)
E>a:ou of R....,.... and Other Fmanoing Soun:os over (under) Expenditures and Other Financing Uses
FUND BAI ANCE JULY 1

0.00 $ 1762211.50 $ 1 870 992.55 $ 20 613.00 $ 3 653 817.05 $

21138.60

0.00 $ 2 707 703.93 $ 2294 347.53 $ 20613.00 $ 5 022,!164.46 0.00 $ 2 707 703.93 $ 2 294 347.53 $ 20613.00 $ 5 022 664.46 $

315,550.15 280 854.93
596405.08

0.00 $ -945 492.43 $ -423 354.98 $

0.00 $ -1368847.41 $ -575 268.48

688,133.51 700,000.00 $ -1 164 607.41

843,372.43 $

321,234.98

223 526.10 $ 843 372.43 $ 321 234.98

688,133.51 1,864,607.41 $ -1164 607.41

1,137,768.29 -437 768.29

$ 1 388133.51 $ 700000.00

223.526.10 $ -102,120.00 $ -102,120.00 $

0.00 $

256141.81

102 120.00

102120.00 102 120.00

19.286.10 $ 562 501.81

124,733.52 437 768.29

RJNP BALANCE JUNE 30

479 687.91 $

0.00 $

0.00 $ 102120.00 $ 581 787.91 $ 562,501.81

See notes to the general purpose financiaJ statements.

-21-

STEPHENS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30 1994

EXHIBIT"!"

CLEMSON UNIVERSITY TUITION FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY1 1993

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30 1994

$

0.00 $

30 170.00 $

30,170.00 s_____o._oo_

LIABILITIES Funds Held for Others

$

0.00 $

30 170.00 $

30 170.00 $ ____o_.o_o_

1

See notes to the general purpose financial statements.

-22-

STEPHENS COUNTY BOARQ OF FPUCATION SCHEDULE OE FEDERAL FJNANCJAI t!!SSlIANQE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agricullure, U.S. Department of Tlvough Office of Treasury and Fiscal Services National Forest Rese,ve Funds 1994 Grant Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994Grant National School Lunch Program 1993 Grant 1994Grant Food Distribution Program (1)

10.665 $

10,980.39 $

10.553
10.555 10.555 10.550

135,656.66
464,061.26 82 942.91

10,980.39 $ 10,980.39

(5)

135,656.66
3,674.84 459,446.40 NIA

135,656.66

(2)

464,061.26 $ 82,942.91

1,045,121.14 (3) 82942.91

Total U.S. Department or Agriculture

$ 693641.22 $

609,758.29

693,641.22

1 128,064.05

Appalachian Regional Commission Direct Appalachian Regional Development Act of 1995 (ARDA) School Dropoot Prevention Program 1994Grant

23.013 $ 44432.00 $

26385.91 $ 44432.00 $

55 092.23 (3)

Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993Regular 1993 Carry-Over 1994Regular Chapter 2 Block Grant - Flow Through 1993 Regular 1994Regular Titlell Eisenhower Mathematics and Science Education 1994Regular Individuals with Disabilities Education Act TitleVl,B Flow Through 1992 Carry-Over 1993 Regular 1993 carry-Over 1994Regular Preschool Program 1993 Regular 1994 Regular

84.010 84.010 84.010
84.151 84.151
84.164
84.027 84.027 84.027 84.027 84.173 84.173

33,972.00 617,404.00
28,798.00
16,652.00
9,279.00 146,048.00 19,521.00

70,348.17 33,972.00 $ 491,975.19

33,972.00 $ 589,961.68

33,972.00 589,961.68

-210.00 28,798.00

28,798.00

28,798.00

16,255.83

16,255.83

1,005.00 18,006.29 8,279.00 107,537.74
10,506.73 10,480.95

9,279.00 128,419.27
17,602.57

9,279.00 128,419.27
17,602.57

23.

STEPHENS COUNTY BOARP OE EQlJCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of

Through Georgia Department of Education

Vocational Education Basic Grants to states

High School Program

Basic Grant

1993 Grant

84.048

$

21,501.87

1994Grant

84.048 $ 31,163.50

13,540.00 $ 31,163.50

(4)

Consumer and Homemaking Education 1994 Grant

84.049

6,000.00

6,000.00

(4)

Tech-Prep Education

1993 Grant

84.243

1,400.00

1994Grant

84.243

35,000.00

35,000.00

(4)

S u ~ r y State Grants for Facillties,

Equipment and other Program

lmprc,,ement Ac:tiVilies

84.253

1,220.00

1,220.00

1,220.00

(4)

Through Georgia Mountains Regional

DeYelopment Center

Job Training Partnership Act

1993Gnlnl

17.250

1226.71

Total U. S. Department of Education

945057.50 $

819587.65 $ 897671.85 $

824288.35

Total Federal Financial Assistance

$ 1 683130.72 $

1 455 731.85 $ 1 635 745.07 $ 2007444.63

Major Programs are identified by an asterisk(") in front of the CFDA number.
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary ..-nee for donated commodities received and/or consumed by 1he system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and other Funds. Expenditures are not maintained by fund source.
(4) Expend~ures on this program were not maintained by fund source. (5) Fund& earned on this program do not raquire reporting of expenditures.

See notes to the general purpose financial statements.

24

STEPHENS COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
The Bank of Toccoa, Toccoa, Georgia
Checking Account (2.25%)
The Citizens Bank, Toccoa, Georgia
Checking Account (2.00%)

SCHEDULE "2"

$

1,960.58

340,936.41

$ 342,896.99

See notes to the general purpose financial statements. - 25 -

STEPHENS COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30 1994
INVESTMENT POOL Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%)

SCHEDULE "3" $ 2,600,849.32

See notes to the general purpose financial statements. - 26 -

STEPHENS COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE 4

Appalachian Regional Commission School Dropout Prevention Program
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries - FY 1994 Food Services National School Lunch Program Vocational Education State Funds Federal Funds Lottery Programs Algebra in Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant Federal Programs ESEA - Chapter 1 Education of Deprived Children Title II Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act Title VI, B Flow Through Preschool Program
Georgia state Financing and Investment Commission Reimbursement on Construction Projects
Planning and Budget, Georgia Office of Georgia Children and Youth Coordinating Council SUPER Program
Selective Insurance Company Insurance Recovery
stephens County Tax Commissioner County Wide School Tax

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 18,046.09

$

18,046.09

$ 1,385,446.00
906.86 58,623.50

4,614.86
2,316.00 70,536.00
6,000.00 104,723.28 107,286.00

97,986.49

16,255.83

21,881.53 7,121.62

1,385,446.00 4,614.86
906.86 58,623.50
2,316.00 70,536.00
6,000.00 104,723.28 107,286.00
97,986.49
16,255.83
21,881.53 7,121.62

$ 362,816.47

362,816.47

2,440.07

250,154.32

688,133.51

207,117.70

2,440.07 938,287.83 207,117.70

$ 1,902,248.38 $ 459,207.77 $ 1,050,949.98 $ 3,412,406.13

See notes to the general purpose financial statements.

- 27 -

STEPHfNS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE"5"

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 Special Instructional Assistance ln--School Suspenslcn Mid-term Adjustment Local Fair Share Deferred Surrvner Salaries - FY 1993 Deferred Summer Saiaries - FY 1994 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Governor's Emergency Funds (1) Innovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Tuition for the Multi-Handicapped Lattery Programs Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Planning and Budget, Georgia Off,ce of Georgia Children and Youth Coordinating Council SUPER Program
OTHER Education, Georgia Department of Implementation of Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 7,419,673.00 1,010,924.00 171,321.00 311,708.00 96,722.00 2,107,511.00
394,650.00 116,192.00 304,611.00
70,468.00 110,301.00 -1,641,241.00 -1,333,321.21 1,385,446.00 677,902.00
$ 75,097.74
25,000.00 4,980.00 1,440.00

79,652.00 43,803.00

2,300.00 10,574.38

6,667.40
2,316.00 106,963.74
6,000.00 104,723.28 107,286.00

$ 7,419,673.00 1,010,924.00 171,321.00 311,708.00 96,722.00 2,107,511.00
394,650.00 116,192.00 304,611.00
70,468.00 110,301.00 -1,641,241.00 -1,333,321.21 1,385,446.00 677,902.00 79,652.00 75,097.74
25,000.00 4,980.00 1,440.00
43,803.00
2,300.00 10,574.38 6,667.40
2,316.00 106,963.74
6,000.00 104,723.28 107,286.00

$ 3,653,817.05

3,653,817.05

3,535.47

3,535.47

500.00

500.00

(1) Replace books and materials destroyed in fire at Big A Elementary School
See notes to the general purpose fmancial statements.

$ 11,322.758.91 $ 460,946.89 $ 3,653,817.05 $ 15437,522.85 - 28 -

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE "6"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Interest Earned Jury Duty Fees Recovery from Anti-Trust Lawsuit Reimbursement of Salaries Stephens County Teacher's Federal Credit Union Rents Sales Breakfast Lunches School Assets Shared Services Pioneer Regional Educational Service Agency Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 5,761,180.44 241.73
15,497.96

$ 5,761,180.44 241.73
15,497.96

93,275.49 $ 2,460.00

8,785.21 3,232.13

49,935.10 2,053.00

16,500.15 404,253.64
1,200.00

2,137.52 22,488.67 10,301.75

102,060.70 2,460.00 3,232.13
49,935.10 2,053.00
16,500.15 404,253.64
1,200.00
2,137.52 22,488.67 10,301.75

$ 5,959,571.66 $ 433,971.13 $ 6,393,542.79

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

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 10,888,476.19 $ 3,080,852.35 54,083.67 79,547.94 8,924.90 55,373.22 3,004.80 5,833.00 64,158.00 27,576.05
21,565.70 8,509.05
675,850.44 567,385.48
265,546.03 17,496.18 4,875.64

930,163.39 $ 245,407.39
13,317.76 15,549.56
2,612.00 8,711.04 12,893.50
4,377.99 9,805.00 5,535.02
55,011.75 163,392.80
3,508.55 561,030.19
1,608.45 5,692.00 1,790.06

11,818,639.58 3,326,259.74 67,401.43 95,097.50 8,924.90 57,985.22 11,715.84 18,726.50 64,158.00 31,954.04 9,805.00 5,535.02 21,565.70 63,520.80 839,24324 570,894.03 561,030.19 267,154.48 23,188.18 6,665.70

227,351.52 409,491.61

349,280.98

227,351.52 758,772.59

Total Expenditures

$ 16,465,901.77 $ 2,389,687.43 $ 18,855,589.20

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

STEPHENS COUNTY BOARD OE EDUCATION SCHEDULE OE EXPFNQITURE BY OBJECT
LOJifBY PROGRAMS
YEAR ENDED JUNE 30 1994

SCHEDULE "8"

E~eEt:U,11TUBES
Operating Costs Supplies
Nonoperating Costs
Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

TOTAL

$

2,522.94 $ 11,956.07

$

4,175.27 $

4,655.35 $ 23,309.63

95220.20 $

6517.91

100548.01

102 641.18

304927.30

Total Expenditures $

2,522.94 $ 107,176.27 $

6,517.91 $

104,723.28 $ 107,296.53 $ 328,236.93

See notes to the general purpose financial statements.

- 31 -

STEPHENS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE g

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 9,023,927.00 $

96,722.00

$ 9,929,048.54 577,955.00 $
$ 10,507,003.54 $

96,749.57 96,749.57

-88,418.58

$ 10,418,584.96 $

-5 458.89 91,290.68

Amount of Underexpenditure for Total Allotment

$

Note: (1) Salary accruals (July and August 1994 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 1993 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 $ =====5=,4=3=1.=32..

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

SJFPMENS COUNTY BQARQ Qf SDI.JCATION ANAi VSIS OF LUM Mt M FXPENPffi IRE REQUIREMENTS - RV PBQGBAM
GENERA! FUND - QI IAI JTY RASIC EQl JCATION PBOOBM.4S
YEABFNPEPJLJNFM 1?94

GENERAL ANO CAREER fpt JCATION PBOOBAMS
<i Kindergarten Grades 1 - 3 <i

Sub-Tolal-K-3
Grades4-5 M

Grades 6 - 8 (")
Grades 9 -12 <i

High - - r >

Vacatianal Education -

(i

Total Geneml and Career Education Programs

SPEC1A1 fQl )CATION ffiOGBAM

Regular Programs
-catega,y II (")
catega,y Ill (") catega,y IV (")
Supplemental Speech

Sub-Tdal - Regular

categoly V (Gifted) (i Total Special Education Programs
REMEQIAI EQUCADON PBQGRAM r,
LIEQIA CfNTfB pRQGRAMS

Total Thineen Weighted and Media Center

STAFF PEYEI QPMENT ffiQGRAMS ~1)
Coit cl Instruction

-

Development

Tdal Staff Development

('") Identifies Thirteen Weighted Programs. Nole: (1) $11,245.65 <11he allotment for Professional
Development has been transferred to Cost or
Instruction as authorized byOCGA 20-2-182
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL ...JL_

ORIGINAL

MID-TERM

REQUIRED

722,618.00

650,356.20 $

1947300.00

1752570.00

$ 2,669,918.00 90

2,402,926.20 $

991,744.00 90

892,569.60

1,555,953.00 90

1,400,357.70

1,129,853.00 90

1,016,867.70

429,260.00 90

386,334.00

642,945.00 90

578 650.50

7 419 673.00

$ 6 677 705.70 $

0.00 $ 650,356.20

1752570.00

0.00 $ 2,402,926.20

892,569.60

110,301.00

1,510,656.70

1,016,867.70

386,334.00

578 650.50

110301.00 $ 6788006.70

968,754.00

871,878.60 $

0.00 S

871,878.60

968,754.00 42,170.00
1010924.00 171 321.00 311 708.00

90 $ 90
90 $ 90 $

871,878.60 $ 37 953.00
909 831.60 $ 154166.90 $ 280 537.20 $

0.00 $
0.00 $ 0.00 $ 0.00 $

871,878.60 37 953.00
909 831.60 154188.90 280537.20

8,913 626.00

$ 8,022,263.40 $

110,301.00 $ 8,132,564.40

32,996.65 100 $ 63 725.35 100

32,996.65 $ 63 725.35

96,722.00

96,722.00 $

0.00 $

32,996.65 63 725.35

0.00 $

96,722.00

9,010,348.00

$ 8,118,985.40 $

110,301.00 $ 6,229,286.40

(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to compty with program guidelines.

- 34 -

SCHEDULE ''10"

REQUIRED ALLOTMENT

SALARIES
ACTUAL (2) (3)

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

634,704.30 S 953,466.94

15,651.90 $

27,240.83

1 701 399.60

2 061 222.74

51170.40

66 615.89

s 2,336,103.90 $ 3,014,689.68 S

0.00

66,822.30 S

93,856.72 $

0.00

887,573.90

1,015,254.10

0.00

24,995.70

42,413.65

0.00

1,464,341.10

1,759,745.09

0.00

46,317.60

75,767.85

0.00

975,933.00

1,334,102.99

0.00

40,934.70

90,439.58

0.00

370,843.20

453,024.83

0.00

15,490.80

44,623.40

0.00

509 440.50

678 583.46

0.00

69 210.00

140 928.92

0.00

6 524 235.60 S 8 255 400.15 $

0.00

263 771.10 $

488030.12 $

0.00

248,806.80 S 501,027.30 95,132.70
2,853.00 3 853.80

345,349.82 ~1,407.09 151,381.26

4,842.00 $ 12,402.90
2,960.10

4,171.51 12,957.05
3,930.12

851,673.60 $ 1,038,138.17 $

0.00

20,205.00 S

21,058.68 $

0.00

36 995.40

99 215.18 $

0.00

957.60

3,174.61 $

0.00

868 689.00 $ 1137 353.35

21,162.60 $

24,233.29

151 690.50 S 199 233.25 S

0.00

2 498.40 $

2 626.80 $

0.00

220 918.50 $

337 061.79 $

0.00

59 618.70 $

63 064.79 $

0.00

7,785,513.60 S 9,929,048.54 $

0.00

347,050.80 $

577,955.00 $

0.00

7,785,513.60 $ 9,929,048.54 $

0.00

(3) Salaly accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior
- General Purpo<e Financial Statements are ineluded on this analya; as required by
program guidelines.

32,996.65 $ 63,725.35

38,455.54 $ 58,294.03

96,722.00 $

96,749.57 $

443,772.80 $

674,704.57 $

0.00 5,431.32 5,431.32
5,431.32

35

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Billy Shaw, Chairman () 110 Elm Street Toccoa, Georgia 30577
Mrs. Kathy Dunson () Route 4, Cawthon Road Toccoa, Georgia 30577
Mr. Ferman Gregory () BoxB Eastanollee, Georgia 30538
Mrs. Dorothy C. Hay () 150 Glenwood Road Toccoa, Georgia 30577
Mrs. Bettye R. Henderson () 311 Tallulah Street Toccoa, Georgia 30577
Mrs. Susan R. Irvin () P. 0. Box669 Toccoa, Georgia 30577
Mr. Janney Sanders () 275 Cross Creek Drive Toccoa, Georgia 30577

COMPENSATION

TRAVEL

$

1,250.00

1,100.00

1,450.00

1,150.00 $

374.90

1,050.00

1,350.00

1,200.00

$

8,550.00 $

374.90

() Denotes Board Members Serving as of June 30, 1994

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

SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Stephens County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Stephens County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Stephens County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
94CRL-10

The results ofour tests indicate that, with respect to the items tested, the Stephens County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
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.
t t ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:gp 94CRL-10

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Stephens County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Stephens County Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Stephens County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Stephens County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We also have audited the Stephens County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility
(3) Matching, Level ofEffort, and/or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to each of its major Federal financial assistance programs which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994. The management ofthe Stephens County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-100

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and the provisions of the Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards of0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Stephens County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
The results of our audit procedures for major programs as administered by the Board disclosed material instances of noncompliance with the specific requirements as described in the Schedule of Findings and Improper or Questioned Costs.
In our opinion, except for those instances of noncompliance with the requirements applicable to the major programs referred to in the preceding paragraph of this report and identified in the Schedule of Findings and Improper or Questioned Costs, the Board complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
Resolving instances of noncompliance identified in the sixth paragraph of this report is primarily the responsibility ofthe Georgia Department ofEducation together with other providers of direct Federal funds. The determination ofwhether the identified instances of noncompliance will ultimately result in a disallowance ofcosts cannot presently be determined. Accordingly, no adjustment for any disallowances that may result has been made to the Federal program amounts listed in the Schedule of Federal Financial Assistance and no liability that may result from disallowances has been recognized in the Board's fiscal year 1994 financial statements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~//4,
Claude L. Vickers State Auditor
CLV:gp 94CRL-100

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Stephens County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the Stephens County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed
(2) Eligibility

(3) Other Requirement Claims for Advances and Reimbursements

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

94CRL-140

Material instances of noncompliance consist offailures to follow requirements or violations of prohibitions, contained in statutes, regulations, contracts, or grants that cause us to conclude that the aggregation of the misstatements resulting from those failures or violations is material to a Federal financial assistance program.
With respect to the items tested, the results of our procedures disclosed material instances of noncompliance with the requirements listed in the second paragraph that are described in the Schedule of Findings and Improper or Questioned Costs. With respect to the items not tested, nothing came to our attention that caused us to believe that the Stephens 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,
d:4,X~
Claude L. Vickers State Auditor
CLV:gp 94CRL-140

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
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Stephens County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Stephens County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit ofthe general purpose financial statements ofthe Stephens County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Stephens 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.
94ICL-3

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

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation
(8) General Ledger (9) General Fixed Assets

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

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) Revenue/Receivables/Receipts

(2) 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.

94ICL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Stephens County Board ofEducation's financial statements and this report does not affect our report thereon dated July 26, 1995.
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 ofthis report which is a matter of public record.
~~:;~
Claude L. Vickers State Auditor
CLV:gp 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Stephens County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Stephens County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 26, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Stephens County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

94ICL-7

In planning and performing our audit for the year ended June 30, 1994, 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 on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 26, 1995.

The management ofthe Stephens County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

94ICL-7

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

During the year ended June 30, 1994, the Stephens County Board ofEducation expended 67% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.

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

(1) Administrative Requirements (2) Eligibility

(3) Other Requirement Claims for Advances and Reimbursements

A material weakness is a reportable condition in which the design or operation ofone or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions described above are also considered to be material weaknesses.

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Stephens County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated July 26, 1995.

94ICL-7

This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~/~
Claude L. Vickers State Auditor
CLV:gp 94ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Legal Requirements Financial Statements Finding Resolved Audit Control Number 7271-93-02
The audit report for the fiscal year ended June 30, 1993, called attention to the fact that the Board had entered into a multi-year lease agreement for portable classrooms that did not include the termination and renewal provision requirements of the Official Code of Georgia Annotated Section 20-2-506. During the year under review, the Board amended the lease agreement to include these requirements.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $385.47 Audit Control Number 7271-93-03
The audit report for the year ended June 30, 1993, noted that the Board had an underexpenditure of Quality Basic Education funds of$385.47 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditures as required. These funds 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 Maintain Separate Accountability Financial Statements Finding Resolved Audit Control Number 7271-93-04
The audit report for the period ended June 30, 1993, disclosed that separate ledgers for each capital outlay project, funded in part by the Georgia State Financing and Investment Commission, were not maintained and designated by project name and number as required by Chapter 70 of the Georgia Financial Accounting Handbook for Local School Systems (GFAH). During the year under review, the Board took appropriate action to restructure its accounting records and maintain them in accordance with the instructions contained in Chapter 70 ofGFAH.

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEARENDEDJUNE30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7271-93-01
The audit report for the year ended June 30, 1993, noted that the management ofthe Stephens County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
REVENUES/RECEIVABLES/RECEIPTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Segregation ofDuties/Administrative Controls Major Program/Nonmajor Programs Reportable Condition - Material Weakness Audit Control Number 727J-g4-0I
During the year under review, tests of amounts claimed for reimbursements from the National School Lunch (CFDA 10.555) and School Breakfast (CFDA 10.553) Programs at the Stephens County High School disclosed a lack of segregation of duties in the maintenance of the master list, cash receipts and the requests for reimbursements from the Georgia Department ofEducation for the School Food Services Program. Our analysis disclosed that one individual had total control over cash receipts at one serving line. In addition, this individual had ultimate responsibility over additions and deletions to the master lists and also had the responsibility for completing the requests for reimbursements from the Georgia Department of Education (forms DE 108 and DE 112). These deficiencies resulted in inadequate internal controls over cash receipts and amounts claimed for Federal reimbursement. The master lists contained errors and there was no reconciliation between the class rolls and the number of students listed as eligible for free or reduced meals on the master list. As a result, claims for reimbursements were made for students who had withdrawn, transferred or were absent. These deficiencies were the result ofmanagement's failure to provide adequate internal control through segregation of duties. The Board should establish policies that separate the responsibilities for collection of cash from the function of maintaining or approving the master list and the requests for Federal reimbursement. The Board should also implement policies that require that the master list be reconciled with class rosters.

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEARENDEDJUNE30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $5,431.32 Audit Control Number 7271-94-02
For the year under review, the Board reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $38,455.54 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program purposes resulting in an underexpenditure of$5,431.32 for the minimum required allotment of$63,725.35 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds 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.
ELIGIBILITY Failure to Maintain Master List of Eligible Students Federal Financial Assistance Major Program/Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7271-94-03
For the year under review, the master list of students eligible for free and reduced meals for the National School Lunch (CFDA 10.555) and School Breakfast (CFDA 10.553) Programs at the Stephens County High School were not maintained properly. This deficiency resulted in noncompliance with the Guidance for School Officials on Free and Reduced Priced Meals and Verificatio!l, policy as required by the Georgia Department ofEducation. The master list for the school, as presented for examination, was not updated monthly and did not contain dates of withdrawals, transfers, or denials or approvals of the students. These deficiencies were the result of management's failure to follow guidance established by the Georgia Department ofEducation. The Board should initiate policies requiring that the master list of all school lunchrooms be updated monthly in accordance with requirements ofthe Georgia Department of Education.

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 I994

CURRENT YEAR

OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Provide Accurate Meal Counting System Federal Financial Assistance Major Program/Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Amount: $9,548.34 Audit Control Number 7271-94-04

For the period ended June 30, 1994, tests ofclaims for reimbursements for the National School Lunch (CFDA 10.555) and School Breakfast (CFDA 10.553) Programs at Stephens County High School disclosed that the Board did not maintain a meal counting system which provided an accurate count taken at the point of service as required by Federal regulations. Specifically, lunchroom personnel did not utilize a cash register, require that students remain in a group until served, or keep records ofthose students who had neither money or other proofofeligibility. The meal counting system allowed incorrect reimbursement requests for second meals for the same students, meals for students who had withdrawn, transferred or were absent. As a result of these deficiencies relating to meal counts, the following actual and projected overclaims for Federal Financial reimbursements were documented:

ACTUAL PROJECTED OVERCLAIM OVERCLAIM

Food and Nutrition Program School Breakfast Program - CFDA 10.553

$

346.56 $ 3,364.80

School Lunch Program - CFDA 10.555

628.56

6 183.54

$

975 12 $ 9 548 34

This condition existed because management failed to establish internal controls as required in Federal Regulation 7 CFR 210. 7(a), which states in part...

"The school food authority shall establish internal controls which ensure the accuracy oflunch counts prior to submission of the monthly claim for reimbursement."

The Board should establish policies to ensure that the point of service meal counting system is accurate. The system should be based on the actual count ofstudents served. The system should record the number offree, reduced price and paid meals served daily. The records should be reconcilable to the class roster, the daily meal counts, daily cash receipts, bank deposits and requisitions for Federal reimbursements.

The Georgia Department ofEducation should review this matter to determine the amount of overclaim to be refunded.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7271-93-01
We concur with this recommendation. Steps are being taken to secure valuation of land, buildings and equipment owned by the Stephens County Board ofEducation to include in the financial report.
REVENUES/RECEIVABLES/RECEIPTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Segregation ofDuties/Administrative Controls Major Program/Nonmajor Programs Reportable Condition - Material Weakness Audit Control Number 7271-94-01
The responsibility ofthe collection ofcash will be the duty of both cashiers at the High School. Second party checks will be conducted by the cashiers. One cashier will be solely responsible for maintaining and approving ofthe Master List and the manager will be responsible for requests for Federal reimbursement. Class lists are not used at the High School, but criterion 4 of the State Prototype Meal Accountability procedure will be followed. The Master List will be reconciled with every student name and number that has been assigned to them.
ELIGIBILITY Failure to Maintain Master List ofEligible Students Federal Financial Assistance Major Program/Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7271-94-03
Master rosters ofall school lunchrooms will be maintained on a daily basis and dates of withdrawals, transfers, denials, or approvals will be updated monthly.
The state Prototype Meal Accountability Procedure and the Eligibility Guidance for School Meals Manual will be followed. The Director will meet the Managers monthly to check for the correct maintenance of the master roster.

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Provide Accurate Meal Counting System Federal Financial Assistance Major Program/Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Amount: $9,548.34 Audit Control Number 7271-94-04
Software has been ordered to ensure that the point of service meal counting system is accurate. The system will record the number offree, reduced price, and paid meals served daily based on entry of a student account number. The system will safeguard against students reusing account numbers or eating free on several lines. The system will print daily total reports. Daily meal counts, daily cash receipts, bank deposits, and requisitions for Federal reimbursements will be reconcilable with the daily computer reports.
Internal controls have been established to ensure the accuracy oflunch counts prior to submission of the monthly claim for reimbursement. There are changes in personnel which will also improve internal control. A new lunchroom manager is in place at the Stephens County High School. A new Food Service Director with experience in another system has been hired.