Audit report, Stephens County Board of Education, Toccoa, Georgia, year ended June 30, 1995

GA Aioo .RI
E2b
ss
l99t.t-95
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, 1995

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

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

24

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 CASH AND CASH EQUIVALENTS

28

3 INVESTMENTS

29

4 ACCOUNTS RECEIVABLE

30

STEPHENS COUNTY BOARD OF EDUCATION : - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

5

STATE

31

6

LOCAL AND OTHER

32

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

33

8

LOTTERY PROGRAMS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

35

10

BY PROGRAM

36

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

SECTION II
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT 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 ill 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
SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

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

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, 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:
95ARL-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 ofsuch adjustments, 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 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, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated May 10, 1996, on our consideration ofthe Board's internal control structure and a report dated May IO, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Stephens County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I 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 ofthe Stephens County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, 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 of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
t t ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:jy 95ARL-13*

STEPHENS COUNTY BOARD OF EDUCATION - 1-

:mPHENS CQ!,!tfiY ~ABO OF ED!JQAT!QH QQMalNEQ BALANCE S!jl;;E! &,L FUND TYPE
JUNE 30, 1995

EXHIBIT "A"

Mfil Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

TOTALS

GENERAL

REVENUE

PROJECTS

{Memorandum Onl~

FUND

FUND

FUND

JUNE 30, 1995 JUNE 301 1994

s 487,199.74 S 785,252.53 S 1,2n,452.21 s 691,468.57

s 2,343,596.88

2,343,596.88 2,600,849.32

1,752,876.18

166,033.55

330,332.55 2,249,242.28 3,412,406.13

30,695.08 22,574.28

30,695.08 22,574.28

26,742.59 21,254.51

s 4.096,473.06 S 706,502.65 S 1.115,585.08 S 5,918,560.79 S s.1s2.n1 .12

l,.IABll,.mi;;s AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

s 152,339.85 477,414.12 S
1,609,438.67 s 2,239,192.64 S

39,256.37 133,082.25
6,585.50 s
178,924.12 S

s
136,304.55 163,939.29 300,243.84 S

152,339.85 S 516,670.49 1,742,520.92
6,585.50 136,304.55 163,939.29
2,718,360.60 S

348,571.58 556,265.83 1.e1s.1e1.n
36.26 597,833.14 282,798.65
3,401,273.18

s

5,816.79

s

s

5,816.79 S

1,851,463.63
s 1,857,280.42 S

30,695.08 22,574.28
s
53,269.36 S
474,309.17
527,578.53 $

s

447.77

s

5,816.79

5,816.79

815,341.24 815,341.24 S
0.00 815,341.24 $

30,695.08 22,574.28 815,341.24
874,427.39 S
2,325,772.80
3,200,200.19 S

26,742.59 21,254.51 102,120.00
156,381.66
3,195,066.28
3,351,447.94

s 4,096,473.06 $ 706,502.65 $ 1,115,585.08 S 5,918,560.79 S s.1s2.n1.12

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

STEPHENS COUNTY BOARD Of EDUCATION COMBINED STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES VEAR ENDED JUNE 30. 1995

EXHIBIT "B"

RMt,JUES
Slate Funds Federal Funds Local and Olher Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services PupilServices Improvement d Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transpoitation Services Central Support Services Other Support Services Food Services Operation
Other Operations or Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (!.!SES}
Compensation for Loss of Assets
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS
I.M!morandum On~l

YEAR ENDED

JUNE 301 1995

JUNE 301 1994

$ 12,070,223.13 $ 152,350.72 $ 1,309,2n.91 $ 13,531,851.76 $ 15,437,522.85

72,589.65

1,593,539.42

1,666,129.07

1,635,745.07

6,806,474.53

449,138.47

7,255,613.00

6,393,542.79

$ 18,949,287.31 $ 2,195,028.61 $ 1,309,277.91 $ 22,453,593.83 $ 23,466,810.71

$ 11,682,791.98 $ 700,458.62

$ 12,383,250.60 $ 11,804,140.95

691,414.15 457,041.67 436,941.82 306,429.27 1,080,539.67 253,985.45 1,652,634.64 910,813.79 127,752.38
2,904.33 53,030.93 147,192.17 412,810.14

22,617.77 43,670.79 25,009.00 20,762.33
9,187.26 13,596.36 58,570.50 68,648.71 1,281,434.28
3,666.25 $ 2,146,209.58

714,031.92 500,712.46 461,950.82 327,191.60 1,080,539.67 253,985.45 1,661,821.90 924,410.15 186,322.88
71,553.04 1,334,465.21
147,192.17 2,562,685.97

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

$ 18,216,282.39 $ 2~47,621.87 $ 2,146,209.58 $ 22,610,113.84 $ 23,878,253.66

$

733,004.92 $

-52,593.26 $ -836,931.67 $

-156,520.01 $

-411,442 .95

$ $ -1,081 ,632.22
$ -1,081 ,632.22 $

11,147.22 $

1,070,485.00 $

$ 1,081,632.22 -1,081 ,632.22

11,147.22 $ 1,070,485.00 $

0.00 $

938,287.83 712,055.91 -712,055.91
938~87.83

$

-348,627.30 $

-41,446.04 $ 233,553.33 $

-156,520.01 $

526,844.88

2,205,907.72

563,752.31

581,787.91

3,351,447.94

2,827,940.46

3,952.49 1 319.77

3,952.49 1 319.77

-8,397.68 5,060.28

FUND BALANCE JUNE 30

$ 1,857,280.42 $ 527,578.53 $ 815,341.24 $ 3,200,200.19 $ 3,351,447.94

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

mPl::!ENS @UNTY l;!QAB!:2 QF ED!.!QAIIQt:l
SIATEMEt:lI QE B~l;;t:l!.!l;;S, EiPENQII!.!Bl;;S At:lQ QHANgi:;;s lt:l FUND l;!A!,.ANCES f;!UDGl;;T At:lQ AQTUAL - (NON-GAAP l;!ASIS}
gENERAl, At:lQ SP!;;CIAl, Bi;;VENUE F!.!NQS Y~B E@EP JUt:lE 30, 1995

EXHIBIT "C"

BEYENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITUBES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANQING SOURQES (USES}
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994
Prior Year (Net)

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 12,049,150.30 $ 12,070,223.13

77,044.00

n,589.65

5,189,630.00

6,806,474.53

$ 17,315,824.30 $ 18,949,287.31

$ 11,792,308.04 $ 11,682,791.98

715,319.00 455,135.39 459,260.00 324,569.35 1,070,579.71 371,046.64 1,653,949.00 994,273.20 127,327.00
4,191.00 79,000.00 151,196.00 447,658.00

691,414.15 457,041.67 436,941.82 306,429.27 1,080,539.67 253,985.45 1,652,634.64 910,813.79 127,752.38
2,904.33 53,030.93 147,192.17 412,810.14

$ 18,645,812.33 $ 18,216,282.39

$ -1,329,988.03 $

733,004.92

$ -382,085.00 $ -1,081,632.22 $ -382,085.00 $ -1,081,632.22

$ -1,712,073.03 $ 2,744,320.55 38,666.02

-348,627.30 2,205,907.72

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 160,548.25 $ 152,350.n

1,659,696.56 1,593,539.42

392,900.00

449,138.47

$ 2,213,144.81 $ 2,195,028.61

$ 713,071.00 $ 700,458.62

17,764.00 54,716.17 24,799.00 18,987.00

22,617.77 43,670.79 25,009.00 20,762.33

8,400.00 14,919.00 58,090.00 96,953.00 1,171,720.00

9,187.26 13,596.36 58,570.50 68,648.71 1,281,434.28

6,600.00

3,666.25

$ 2,186,019.17 $ 2,247,621.87

$

27,125.64 $ -52,593.26

$

11,147.22

$

0.00

$

0.00 $

11,147.22

$

27,125.64 $ -41,446.04

559,137.45

515,755.21

10,019.95

FUND BALANCE JUNE 30 1995

$ 1,070,913.54 $ 1,857,280.42

$ 596,283.04 $ 474,309.17

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

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Stephens County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant 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 of government 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.

- 6-

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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

- 7-

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Stephens County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

- 8-

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Special Revenue
Fund
$ -41,446.04 563,752.31
-26,742.59 -21,254.51 $ 474,309.17

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,

- 9-

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Stephens County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar year) on October 18, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The 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 1994 tax year (calendar year) for the Stephens County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

17 60 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.

- 10 -

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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

- 11 -

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVEST:MENTS

(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 laws of the State of Georgia, and

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

CATEGORIZATION OF DEPOSITS

At June 30, 1995, the bank balances were $2,047,846.57. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1995, as follows:
Risk Category
1 2 3
Total

Bank Balance
$ 100,000.00 1,947,846.57 0.00
$ 2,047,846 57

- 12 -

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS
CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount of the Board's total investments was $2,343,596.88 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treaswy and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.
The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced
any losses related to natural disaster in the past three years.
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

- 13 -

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994

$

0.00 $ 2,329.33 $ 2,329.33 $

0.00

1995

$

0.00 $ 2,977.00 $ 2,977.00 $

0.00

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

Note 5: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

94-727-064

$ 2.178.601.53 $ 715 646.44

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

Note 6: 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 a legal proceeding pertaining to a matter incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements.

- 14 -

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $11,235,312.98; total payroll was $12,925,776.95.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $1,888,656.61, of which $1,326,889.52 was made by the Board and $561,767.09 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

- 15 -

STEPHENS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 7: RETIRE:MENT 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 of June 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958,000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of$1,326,889.52 was actuarially determined and represented .2347% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

p SERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between

- 16 -

STEPHENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe 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 ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. 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 ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 144 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS ~QUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $4,540.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 8: 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, 1995.

- 17 -

~ cash and cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Tolal Assets

Ilie!::IEN QQY!:fil aQABQ QE EDUCATION QQM~INlfl!G BALANQE SHEEI
PEQ!& BE~!l!!.!E E!.!NQ
J!,!fl!E 30, 1995

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

SCHOOL DROPOUT PREVENTION PROGRAM

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 541,197.45 $

0.00

5,060.35

$

7,806.65 $

23,247.04 $

105,135.74

30,695.08 22,574.28

$ 599,527.16 $

0.00 $

7,806.65 $

23,247.04 $

105,135.74

L!AalL!IIE ~D E!.!!l!Q EQ!.!!IY
L!AalLITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Tolal Liabilities
FUNDEQUIIY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

14,975.12

56,973.51

$

71,948.63

$

30,695.08

22,574.28

$

53,269.36

474,309.17 $

$ 527,578.53 $

$ 599,527.16 $

$

1,806.65 $

17,565.94 $

1,227.44

4,453.66

6,000.00

20,457.03 20,833.37 63,845.34

$

7,806.65 $

23,247.04 $

105,135.74

0.00 $

0.00 $

0.00 $

0.00

0.00 $

0.00 $

0.00 $

0.00

0.00 $

7,806.65 $

23,247.04 $

105,135.74

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE 11-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - ANDSCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS

JUNE 30, 1995

JUNE 30, 1994

s

0.00

s

902.05 S

542,099.50 S

580,743.23

s

9,141.34 $

15,385.46

256.97

166,033.55

459,207.77

30,695.08 22,574.28

26,742.59 21,254.51

s

0.00 S

9,141.34 $

15,385.46 S

1,159.02 $

761,402.41 $ 1,087,948.10

s

9,141.34 S

5,928.80

2,031.64 S

6,839.52

585.50

s

9,141.34 $

15,385.46 S

s
188.80 970.22
1,159.02 $

54,899.76 $ 39,256.37 133,082.25 6,585.50
233,823.88 S

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

s

447.77

s

30,695.08

22,574.28

26,742.59 21,254.51

s

53,269.36 $

48,444.87

s

0.00 S

0.00 S

0.00 S

0.00

474,309.17

515,307.44

s

0.00 S

0.00 S

0.00 S

0.00 S

527,578.53 S

563,752.31

s

0.00 $

9,141.34 S

15,385.46 S

1,159.02 $

761,402.41 $ 1,087,948.10

-19-

!;iil;et!Et:1 QQUt:lll ~ARQ QE EQUQAII~
QCMBlt:11~ liiIATEMEt:II QE BIM;NUl;!;i ~ENQITURE!;i Af:IQ Ql::!Af:IGE!;i It:! E!.!t:11:! BALANQE
SPl;Q!&, R~NUE F!.!t:!D
YEAR Et:fDEQ JUf::IE 30. 1995

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

SCHOOL DROPOUT PREVENTION PROGRAM

CHAPTER1 EDUCATION OF
DEPRIVED CHILDREN

BIM;NUE
State Funds Federal Funds Local and Other Funds

$

89,714.00 $

701,583.54

449,138.47

51,978.00 $

10,658.n $

42,878.12 $

633,943.34

Total Revenues

$ 1,240,436.01 $

51,978.00 $

10,658.72 $

42,878.12 $

633,943.34

E2!;PENDITUBES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Olher Support Services Food Services Operation Capital Outlay

$

31,610.23 $

20,367.77

4,456.34 $ 2,575.35

$ 1,281,434.28

3,666.25

54,433.89 $

526,307.81
11,648.45 17,851.12 9,187.26
445.99 68,502.71

Total Expenditures

$ 1,281,434.28 $

51,978.00 $

10,697.94 $

54,433.89 $

633,943.34

Excess of Revenues ewer (under) Expenditures

$ -40,998.27 $

0.00 $

-39.22 $

-11,555.77 $

0.00

OTHER FINANCING SOURCES

Operating Transfers In

39.22

11,108.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ -40,998.27 $

0.00 $

0.00 $

-447.77 $

0.00

FUND BALANCE JULY 1

563,304.54

0.00

0.00

447.77

0.00

Food Inventory - Net Change in Period Donated Commodities Purchased Food

3,952.49 1,319.77

FUND BALANCI; JUN!; 30

$ 527,578.53 $

0.00 $

0.00 $

0.00 S

0.00

See notes to the general purpose financial statements.

-20-

EXHIBIT"F"

AND SECONDARY EDUCATION ACT

TITLE II-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH

EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

25,009.00 $

15,552.70 $

$ _ _ _25_,009_._00_$ _ _ _15_,55_2._70_$

162,275.84 $ 162,275.84 $

$ 12,296.88
12,296.88 $

152,350.n $ 1,593,539.42
449,138.47

460,946.89 1,551,381.18
433,971.13

2,195,028.61 $ 2,446,299.20

$

73,271.47 $

10,378.88 $

700,458.62 $ 840,332.87

$

15,552.70

$

25,009.00

2,250.00 16,469.64
335.86
11,232.37 58,570.50
146.00

1,918.00

22,617.77 43,670.79 25,009.00 20,762.33
9,187.26 13,596.36 58,570.50 68,648.71 1,281,434.28
3,666.25

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

$

25,009.00 $

15,552.70 $

162,275.84 $

12,296.88 $

2,247,621.87 $ 2,389,687.43

$

0.00 $

0.00 $

0.00 $

0.00 $

-52,593.26 $

56,611.77

11,147.22

12,055.91

$

0.00 $

0.00 $

0.00 $

0.00 $

-41,446.04 $

68,667.68

0.00

0.00

0.00

0.00

563,752.31

498,422.03

3,952.49 1,319.77

-8,397.68 5,060.28

$

0.00 $

0.00 $

0.00 $

0.00 $

527,578.53 $ 563,752.31

-21

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

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

REGULAR

GEORGIA STATE

FINANCING AND

PROJECT

PROJECT

92-727-066A 90-727-0668

$

0.00 $

0.00

- - - - - $ 194,028.00

$

o.oo $ ===o=.o=o $ 194,02s.oo

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

$ 36,575.00 $ 36,575.00

$ 157,453.00

$

o.oo $ _ _ _o_.o_o

o.oo

$

- - - - - 0.00 $

0.00 $ 157,453.00

$

0.00 $ = = = =0.0=0 $ 194,028.00

See notes to the general purpose financial statements.

-22-

EXHIBIT"G"

INVESTMENT COMMISSION
PROJECT 97-727-064

LOTTERY PROJECT 96/95S-727-065

TOTALS

JUNE 30, 1995

JUNE 30, 1994

$

770,585.53 $

14,667.00 $

785,252.53 $

619,935.32

136,304.55

330,332.55

1,050,949.98

$

906,890.08 $

14,667.00 $

1,115,585.08 $

1,670,885.30

==========

$

136,304.55

127,364.29

$ _ _ _26_3..,.6.._6_8._84_

$

$

136,304.55

163,939.29

208,465.60 597,833.14 282,798.65

$

300,243.84 $ ----1-,0-8-9,-0'9-7.-39-

$

643,221.24 $

14,667.00 $

0.00

0.00

$

643,221.24 $

14,667.00 $

815,341.24 $

102,120.00

___ __ 0.00
815,341.24 $

479,667.91 58_1...,.7. 87.91

$

906,890.08 $

14,667.00 $

1,115,585.08 $ ===1'=67=0=,8=8=5.=30=

- 23 -

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

REVENUES
State Funds
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Compensation for Loss of Assets Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE

FINANCING AND

PROJECT

PROJECT

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

$

0.00 $ 57,108.50 $ 48,148.85

$

0.00 $ 79,800.00

20,112.00 $ 618,712.73

$

0.00 $ 99,912.00 $ 618,712.73

$

0.00 $ -42,803.50 $ -570;563.88

$ 42,803.50 $ 728,016.88 $ -479,667.91
$ -479,667.91 $ 42,803.50 $ 728,016.88

$ -479,667.91 $
479,667.91

0.00 $ 157,453.00

0.00

0.00

FUND BALANCE JUNE 30

$

0.00 $ = = = =0.0=0 $ 157,453.00

See notes to the general purpose financial statements.

-24-

EXHIBIT"H"

INVESTMENT COMMISSION
PROJECT 94-727-064

LOTTERY PROJECT 96/95S-727-065

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 1,204,020.56 $

0.00 $ 1,309,277.91 $ 3,653,817.05

$

96,200.00 $

1,331,384.85

$ 1,427,584.85 $

$ -223,564.29 $

0.00 $
0.00 $ 0.00 $

176,000.00 1,970,209.58 $
2,146,209.58 $
-836,931.67 $

5,022,664.46 5,022,664.46 -1,368,847.41

$ 764,665.53 $ 0.00
$ 764,665.53 $

14,667.00 $ 14,667.00 $

$ 1,550,152.91 -479,667.91
1,070,485.00 $

688,133.51 1,864,607.41 -1,164,607.41
1,388,133.51

$ 541,101.24 $ 102,120.00

14,667.00 $ 0.00

233,553.33 $ 581,787.91

19,286.10 562,501.81

$ 643,221.24 $

14,667.00 $

815,341.24 $

581,787.91

- 25 -

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

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
Agriculture, U. s. Department of
Through Georgia Department of Administrative Services, Fiscal DMsion National Forest Reserve Funds
Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1995 Grant National School Lunch Program 1994Grant 1995 Grant Food Distribution Program (1)

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.665 $

9,012.22 $

9,012.22 $

9,012.22

(5)

10.553
* 10.555 * 10.555
10.550

134,017.17
471,037.04 96,529.33

134,017.17
4,614.86 465,976.69 NIA

134,017.17

(2)

471,037.04 $ 1,184,904.95 (3)

96,529.33

96,529.33

Total U.S. Department of Agriculture

$ 710,595.76 $

613,620.94 $ 710,595.76 $ 1,281,434.28

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

23.013 23.013 $

$ 44,432.00

18,046.09 19,631.08 $

$ 42,878.12

447.n (3) 53,986.12 (3)

Total Appalachian Regional Commission

$ 44,432.00 $

376n.17 $ 42,878.12 $

54,433.89

Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Carry-Over (New) 1994 Regular 1994 Carry-Over 1995 Regular Chapter2 Block Grant - Flow Through 1993 Carry-Over (New) 1995 Regular Trtlell Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act TitleVl,B Flow Through 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1994 Regular 1994 Carry-Over 1995 Regular

* 84.010 $ * 84.010 * 84.010 * 84.010
84.151 84.151
84.164 84.164
84.027 84.027 84.027 84.027
84.173 84.173 84.173

3,189.00 $ 46,157.00 620,460.00
210.00 24,799.00
17,100.00
20,316.00 146,376.00
1,918.00 14,000.00

3,189.00 $ 97,986.49 40,757.00 484,861.60

3,189.00 $
46,157.00 584,597.34

3,189.00
46,157.00 584,597.34

210.00 24,799.00

210.00 24,799.00

210.00 24,799.00

16,652.00 6,015.19

396.17 15,156.53

396.17 15,156.53

1,000.00 20,881.53 17,628.00 130,433.38
7,121.62 1,918.00 10,121.91

20,316.00 141,959.84
1,918.00 10,378.88

20,316.00 141,959.84
1,918.00 10,378.88

- 26 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of Through Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant 1995 Grant Consumer and Homemaking Education 1994Grant Tech-Prep Education 1994Grant 1995 Grant
Total U.S. Department of Education

84.048 84.048 $
84.049
84.243 84.243
$

$ 38,957.58
241619.85 9581102.43 $

17,623.50 7,764.92 $
6,000.00
35,000.00 155.02
930,118.16 $

38,957.58
24,619.85 912,655.19 $

(4)
{42
8491on.1e

Total Federal Financial Assistance

$ 1?131130.19 $

115811416.27 $ 116661129.07 $ 211841945.93

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

See notes to the general purpose financial statements.

- 27 -

STEPHENS COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995
INTEREST BEARING ACCOUNTS
The Bank of Toccoa, Toccoa, Georgia
Checking Account (2.50%)

SCHEDULE "2" $ 1,120,112.42

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

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

SCHEDULE "3" $ 2,343,596.88

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

STEPHENS COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE 4

Appalachian Regional Commission School Dropout Prevention Program
Community Affairs, Georgia Department of Governor's Emergency Funds
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries - FY 1995 Food Services National School Lunch Program Vocational Education State Funds Federal Funds Other State Programs At-Risk Summer School Program Remedial Summer School Program Lottery Programs Distant Leaming Instructional Technology 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
Pioneer Regional Educational Service Agency Shared Services Refund of Overpayment
Stephens County Tax Commissioner County Wide School Tax
Various Sources Interest Earned

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

23,247.04

$

23,247.04

$

7,500.00

7,500.00

1,467,320.00
1,473.50 55,657.49
s,3n.38 8,533.68

5,060.35
3,666.25 4,140.40 105,135.74 9,141.34 14,799.96
256.97

1,467,320.00 5,060.35 1,473.50
55,657.49 8,3n.38 8,533.68 3,666.25 4,140.40
105,135.74
9,141.34
14,799.96 256.97

$

330,332.55

330,332.55

203,849.24 164.91

585.50

585.50 203,849.24
164.91

$ 1,752,876.18 $

166,033.55 $

330,332.55 $ 2,249,242.28

See notes to the general purpose financial statements.

- 30 -

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30.1995

SCHEDULE 5"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) 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 Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 and 5 Local Fair Share Deferred Summer Salaries - FY 94 Deferred Summer Salaries - FY 95 Educational Equalization Funding Grant Food Services Vocational Education other State Programs Alternative Programs At-Risk Summer School Program Environmental Science Program Innovative Programs Mentor Teacher Program Pre-School Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Distant Leaming Instructional Technology Media Center and library Equipment
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
CONTRACTS Education, Georgia Department of Leadership Seminar - Georgia Education Leadership Academy
OTHER Education, Georgia Department of Implementation of Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

7,500.00

$

7,500.00

7,693,992.00 1,112,991.00
265,903.00 326,200.00
99,333.00 2,165,485.00
462,635.00 124,510.00 247,045.00 353,700.00 73,598.00 61,457.00
19,971.00 -1,752,455.00 -1,385,446.00 1,467,320.00
649,667.00 $
24,900.50
8,037.50 14,227.27
500.00 4,980.00
690.00
8,533.68 11,948.18

89,714.00
51,978.00
2,575.35 3,666.25 4,140.40
276.72

7,693,992.00 1,112,991.00
265,903.00 326,200.00
99,333.00 2,165,485.00
462,635.00 124,510.00 247,045.00 353,700.00
73,598.00 61,457.00 19,971.00 -1,752,455.00 -1,385,446.00 1,467,320.00 649,667.00 89,714.00 24,900.50
8,037.50 14,227.27
500.00 4,980.00
690.00 51,978.00
8,533.68 11,948.18
2,575.35 3,666.25 4,140.40
276.72

$ 1,309,2n.91

1,309,277.91

1,000.00

1,000.00

2,000.00

2,000.00

(1) Band Uniforms for Stephens County High School See notes to the general purpose financial statements.

$ 12,010,223.13 $ 152,350.72 $ 1,309,277.91 $ 13,531,851.76 - 31 -

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

SCHEDULE "6"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Insurance Recovery Interest Earned Jury Duty Fees Reimbursement for Salaries Stephens County Teacher's Federal Credit Union Rents Sales Breakfast Lunches School Assets Shared Service Contributions Pioneer Regional Educational Service Agency Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 6,563,551.37 10,194.65 18,717.92

$. 6,563,551.37 10,194.65 18,717.92

1,050.58 115,906.09 $
1,765.00

9,779.32

1,050.58 125,685.41
1,765.00

54,161.70 2,425.00
4,534.00 1,317.50 29,810.03 3,040.69

18,301.36 419,302.01
210.00
1,545.78

54,161.70 2,425.00
18,301.36 419,302.01
4,744.00
1,317.50 29,810.03
4,586.47

$ 6,806,474.53 $

449,138.47 $ 7,255,613.00

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

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
- YEAR ENDED JUNE 30, 1995

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 Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 11,914,321.96 $ 3,402,901.61 58,388.76 173,978.35 11,269.83 84,352.73 3,010.89 9,699.86 68,564.00 36,096.82 20,578.46
23,843.80 10,237.42 774,764.84 594,086.73
154,289.64 21,993.71 2,280.21

1,011,454.99 $ 265,920.28 17,088.87 25,070.47
16,590.26 10,058.21 12,562.26
3,359.50
6,591.84 58,570.50
154,942.20 1,011.18
621,752.37 3,524.81 4,879.00 69.64

12,925,776.95 3,668,821.89 75,477.63 199,048.82 11,269.83 100,942.99 13,069.10 22,262.12 68,564.00 39,456.32 20,578.46 6,591.84 82,414.30 10,237.42 929,707.04 595,097.91 621,752.37 157,814.45 26,872.71 2,349.85

75,929.26 336,880.88 438,812.63

3,666.25 30,509.24

75,929.26 340,547.13 469,321.87

Total Expenditures

$ 18,216,282.39 $ 2,247,621.87 $ 20,463,904.26

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

EXPENDITURES
Operating Co6ts
Supplies Nonoperatingeoets
Equipment
Tml Expenditures

STEPHENS COUNTY BOARD Of EDUCATION SCHEDULE Of EXPENDITURES BY OBJECT
LOTTERY PROGRAMS
YEAR ENDED JUNE 30 1995

SCHEDULE "8"

ALTERNATIVE
SCHOOL
PROGRAM

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

TOTAL

$

606.35

1.969.00 $

.$

21575.35 $

$ 3666.25 3666.25 $

2,017.40 $ 2123.00 4140.40 $

315.94 $

2,939.69 7.758.25

315.94 $

10 697.94

See notes to the general purpo6e financial statements.

- 34 -

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$

9,460,543.00 $

314,427.00

$

10,345,995.43

533,259.89 $ _ _ _..:,4.;.:66:.i;,9:;.;:3;.=.9:.:.8.:..7

$

10,879,255~32

-105,012.91 $ ___1_0..:..7, _7_4-'-,2_4_2._4_1

$

o.oo $ =======o=.o=o

Note: (1) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.
See notes to the general purpose financial statements. - 35 -

STEPHENS COUNTY BOARD Of EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 39 1995

GENERAL ~D CABEER EDUCATION PROGRAMS
n Kindergarten
Grades 1 3 C, Sub-Total- K-3
Grades 4 5 (") Grades 6 8 C, Grades 9 12 C, High School Laboratories C, Vocational Education Laboratorie& C,
Total General and career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs Category II C, Category 111 (")
n category 1v
SUI>-Total Regular Category V (Gifted) C,
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C1
Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost ct Instruction Professional Development
TotalStalfDevelopment (") Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _.!,_

ORIGINAL

MID-TERM

$

799,221.00

$

719,298.90 $

2,017,047.00

1,815,342.30

$ 2,816,268.00 90 $ 2,534,641.20 $

980,693.00 90

882,623.70

1,660,882.00 90

1,494,793.80

1,172,647.00 90

1,055,382.30

454,352.00 90

408,916.80

609,150.00 90

548,235.00

$ 7,693,992.00

$ 6,924,592.80 $

0.00 61,457.00 61,457.00
0.00 0.00 0.00 0.00 0.00 61,457.00

$ 1,034,426.00

$

930,983.40 $

0.00

$ 1,034,426.00 90 $

930,983.40 $

78,565.00 90

70,708.50

$ 1,112,991.00

$ 1,001,691.90 $

$

265,903.00 90 $

239,312.70 $

$ 9,072,886.00

$ 8,165,597.40 $

0.00 0.00 0.00 0.00 61,457.00

$

259,273.00 90 $

233,345.70 $

0.00

66,927.00 90

60,234.30

0.00

$

326,200.00

$

293,580.00 $

0.00

$ 9,399,086.00

$ 8,459,177.40 $

61,457.00

$

23,401.00

$

23,401.00 $

0.00

75,932.00

75,932.00

0.00

$

99,333.00 100 $

99,333.00 $

0.00

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

See notes to the general purpose financial statements.

- 36 -

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

719,298.90 $ 1,012, 104.50 $

16,693.95 $ 1,028,798.45

1,876,799.30

2,239,585.35

57,434.95

2,297,020.30

$ 2,596,098.20 $ 3,251,689.85 $

74,128.90 $ 3,325,818.75 $

0.00

882,623.70

1,103,501.77

26,106.52

1,129,608.29

0.00

1,494,793.80

1,619,771.56

51,739.79

1,671,511.35

0.00

1,055,382.30

1,282,825.59

49,146.76

1,331,972.35

0.00

408,916.80

552,232.40

45,372.89

597,605.29

0.00

548,235.00

689,388.48

196,114.35

885,502.83

0.00

$ 6.986,049.80 $ 8,499,409.65 $

442,609.21 $ 8,942,018.86

$

930,983.40

$

420,619.16 $ 515,957.81 185,226.33

2,490.65 $ 14,121.28 3,095.33

423,109.81 530,079.09 188,321.66

$

930,983.40 $ 1,121,803.30 $

19,707.26 $ 1,141,510.56

0.00

70,708.50

106,095.87

642.34

106,738.21

0.00

$ 1,001,691.00 $ 1,227,899.17 $

20,349.60 $ 1,248,248.77

$

239,312.70 $

253,793.72 $

3,981.06 $

257,774.78

0.00

$ 8,227,054.40 $ 9,981,102.54 $

466;939.87 $ 10,448,042.41

$

233,345.70 $

364,892.89

$

364,892.89

0.00

60,234.30

$

66,320.02

66,320.02

0.00

$

293,580.00 $

364,892.89 $

66,320.02 $

431,212.91

$ 8,520,634.40 $ 10,345,995.43 $

533,259.89 $ 10,879,255.32 $

0.00

$

23,401.00

75,932.00

s_ _..,99.,,3,._33_.oo..,

$

70,832.63 $

70,832.63

28,502.29

28,502.29

$

99,334.92 $

99,334.92 s______o_.oo_

- 37 -

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Joe Ferguson, Chairman (*) 156 Currahee Point Toccoa, Georgia 30577
Mrs. Kathy Dunson (*) Route 4, Cawthon Road Toccoa, Georgia 305TT
Mr. Ferman Gregory Box8 Eastanollee, Georgia 30538
Mrs. Dorothy C. Hay (*) 150 Glenwood Road Toccoa, Georgia 305TT
Mrs. Bettye R. Henderson (*) 311 Tallulah Street Toccoa, Georgia 305TT
Mrs. Susan R. Irvin (*) P. 0. Box669 Toccoa, Georgia 305TT
Mr. Charlie Powell (*) Route 3, Box 299 Toccoa, Georgia 305TT
Mr. Janney Sanders 119 Foxdale Drive Toccoa, Georgia 305TT
Mr. Billy Shaw 110 Elm Drive Toccoa, Georgia 305TT
Mr. Jon West (*)
532 East Tugalo Street Toccoa, Georgia 305TT
(*) Denotes Board Members Serving as of June 30, 1995

COMPENSATION

TRAVEL

$

2,000.00

800.00

1,950.00

2,000.00 $

1,850.00

19.74 50.09

750.00

600.00

1,250.00

$

11,200.00 $ =======6=9.==83=

See notes to the general purpose financial statements.

- 38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 10, 1996

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 ofthe Stephens County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 10, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Stephens County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

95CRL-10

The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 95CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 10, 1996

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, 1995, and have issued our report thereon dated May 10, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

95CRL-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 grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~/d
Claude L. Vickers State Auditor
CLV:jy 95CRL-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 10, 1996

Honorable Zell Miller, Governor Members ofthe 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, 1995, and have issued our report thereon dated May 10, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We also have audited the Stephens County Board of Education's compliance with the requirements govemmg:

(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, 1995. 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.

95CRL-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 ofState and Local Governments". Those standards ofOMB 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, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as
inventories through alternative procedures. However, this matter has no affect on the Board's compliance with
the requirements listed in the second paragraph of this report.
The results of our audit procedures for major program 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, the Stephens County Board ofEducation's compliance with these requirements are necessary for the Board to comply with the requirements applicable to the major programs as described in the Schedule ofFindings and Improper or Questioned Costs.
In our opinion, except for those instances ofnoncompliance with the requirements applicable to major program referred to in the preceding paragraph of this report and identified in the Schedule ofFindings and Improper or Questioned Costs, the Stephens County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1995.
Resolving 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 ofnoncompliance will ultimately result in a disallowance of costs cannot presently be determined. Accordingly, no adjustment for any disallowances that may result has been made to the Federal program amounts listed in the Schedule of Federal Financial Assistance and no provision for any liability that may result from disallowances has been recognized in the Board's fiscal year 1995 financial statements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
c:~f,,r-, z:;z
Claude L. Vickers State Auditor
CLV:jy 95CRL-100

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 10, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the 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, 1995, and have issued our report thereon dated May 10, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1995 general purpose financial statements of the 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, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

( 1) Types of Services Allowed or Unallowed

(3) Applicable Special Tests and Provisions

(2) Eligibility

(4) Other Requirement Claims for Advances and Reimbursements

95CRL-140

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Stephens County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.
Material instances of noncompliance consist of failures 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,
~
Claude L. Vickers State Auditor
CLV:jy 95CRL-140

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 10, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated May 10, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe 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. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
95ICL-3

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.
In planning and perfonning our audit ofthe general purpose financial statements of the Stephens County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe 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) Revenues/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 internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Stephens County Board ofEducation's financial statements and this report does not affect our report thereon dated May 10, 1996.
95ICL-3

This report is intended for the information of management, tlie Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 95ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 10, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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 ofthe Stephens County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 10, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Stephens County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 10, 1996.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and the provisions ofOffice 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, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to
95ICL-7

major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We
have addressed internal control structure policies and procedures relevant to our audit ofthe general purpose financial statements in a separate report dated May 10, 1996.

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 of any evaluation ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

95ICL-7

During the year ended June 30, 1995, the Stephens County Board ofEducation expended 66% 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 ofFindings 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 of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Stephens County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated May 10, 1996.
95ICL-7

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
t::t~~
Claude L. Vickers State Auditor
CLV:jy 95ICL-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, 1995
PRIOR YEAR
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, reported that the Board had an underexpenditure of Quality Basic Education (QBE) 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 this underexpenditure as required. The underexpenditure of $385.47 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $5,431.32 Audit Control Number 7271-94-02
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $5,431.32 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $5,431.32 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
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, 1994, noted that the management of the 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
- 1-

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
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
Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
REVENUES/RECEIVABLES/RECEIPTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Segregation ofDuties/Administrative Controls Reportable Condition - Material Weakness Audit Control Number 7271-94-01
The audit report for the year ended June 30, 1994 reported 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. For fiscal year 1995 these weaknesses continued to exist. Our analyses 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 ofEducation (forms DE 108 and DE 112). These deficiencies resulted in inadequate internal controls over cash receipts and amounts claimed for Federal reimbursement. Additionally, the master list contained errors and there was no reconciliation between the class rosters 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, the 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.
-2-

STEPHENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ELIGIBILITY Failure to Maintain Master List ofEligible Students Federal Financial Assistance Major and Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7271-94-03
The audit report for the year ended June 30, 1994, reported 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 Verification policy, as required by the Georgia Department of Education. 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. A review of the master list for the year ended June 30, 1995 revealed these deficiencies continued to exist. These deficiencies were the result of management's failure to follow guidance established by the Georgia Department of Education. The Board should initiate policies requiring that the master list of all school lunchrooms be updated monthly in accordance with requirements of the Georgia Department of Education.
OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Provide Accurate Meal Counting System Federal Financial Assistance Major and Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Amount: $14,733.50 Audit Control Number 7271-94-04
The audit report for the year ended June 30, 1994, reported tests of claims for reimbursements for the National School Lunch (CFDA I0.555) and School Breakfast (CFDA I0.553) 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 of those students who had neither money nor other proof of eligibility. 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. For fiscal year 1995 these deficiencies continued to exist. As a result of these deficiencies relating to meal counts, the following actual and projected overclaims for Federal financial reimbursements were documented:
-3-

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

PRIOR YEAR/CURRENT YEAR

OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Provide Accurate Meal Counting System Federal Financial Assistance Major and Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Amount: $14,733.50 Audit Control Number 7271-94-04

ACTUAL

PROJECTED

OVERCLAIM OVERCLAIM

Food and Nutrition Program

School Breakfast Program - CFDA 10.553

Fiscal Year 1994

$

Fiscal Year 1995

National School Lunch Program - CFDA 10.555

Fiscal Year 1994

Fiscal Year 1995

346.56 $ 85.80
628.56 338.76

3,364.80 804.38
6,183.54 4,380.78

$ 1,399,68 $ 14,733,50

This condition existed because management failed to establish internal controls as required in Federal Regulation 7 CFR 210.7(a), which states.

"The school food authority shall establish internal controls which ensure the accuracy of lunch counts prior to submission ofthe 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 of free, 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.

-4-

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

STEPHENS COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7271-93-01
The maintenance of a General Fixed Assets Account Group would require the hiring of additional administrative staff and equipment and software for the administrative office. Due to current staffing limitations and budgetary considerations the Board has not pursued the recording ofgeneral fixed assets on the financial statements during this fiscal year. This will be addressed in the new budget year, after other building and instructional priorities have been addressed.
REVENUES/RECEIVABLES/RECEIPTS - Financial Statements ADMINISTRATIVE REQUIRE11ENTS - Federal Financial Assistance Inadequate Segregation of Duties/Administrative Controls Reportable Condition - Material Weakness Audit Control Number 7271-94-01
Duties will be separated as much as possible with two cashiers at the high school. The Board has implemented procedures that require that the master list be reconciled with every student name and number that has been assigned to them. One cashier will be solely responsible for maintaining and approving the Master List and the manager will be responsible for requests for federal reimbursement.
ELIGIBILITY Failure to Maintain Master List ofEligible Students Federal Financial Assistance Major and Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7271-94-03
Master rosters of students eligible for free and reduced meals for the National School Lunch and School Breakfast Programs will be maintained on a daily basis in all schools. The dates of student 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 School Nutrition Director will meet with the School Nutrition Managers monthly to check or the correct maintenance of the master roster.

STEPHENS COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Provide Accurate Meal Counting System Federal Financial Assistance Major and Nonmajor Programs Reportable Condition - Material Weakness Material Noncompliance Amount: $14,733.50 Audit Control Number 7271-94-04
Computers and software have been put in place to ensure that the Point of Service Meal Counting System is accurate. This software system will record the number of free, reduced price, and paid meals served daily on entry of a student account number. The system will safeguard against students reusing accounting numbers or eating free on several lines. The system will print daily reports. Daily meal counts, daily cash receipts, bank deposits and requisitions for Federal Reimbursements will be reconcilable with the daily computer reports. This program was tried some during the 1995-96 school year and will be used at the high school during the 1996-97 school year.
The procedure used at the high school for FY 96 when the computer system was not in place was that students coming through the line were counted by category using a multicounter. A coded roster with the names of free, reduced price and pre-paid students' names identified students by category. Students purchased extra servings or second trays at the time they first come through the line. The number of free, reduced price, and paid meals were recorded daily and reconciled to the daily counts taken offthe multicounter. Daily edit checks were done to ensure the accuracy oflunch counts prior to submission of the monthly claim for reimbursement.
Check# 118143 for $9,548.34 was mailed to the Georgia Department of Education in June 1996. This leaves an overclaim of$5,185.16 instead of$14,73.3.50.