Audit report, Stewart County Board of Education, Lumpkin, Georgia, year ended June 30, 1994

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

AUDIT REPORT STEWART COUNTY BOARD OF EDUCATION
LUMPKIN, GEORGIA YEAR ENDED JUNE 30, 1994

STEWART COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

22

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

24

3 ACCOUNTS RECEIVABLE

25

SCHEDULE OF REVENUE

4

STATE FUNDS

26

5

LOCAL AND OTHER FUNDS

27

STEWART COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

29

7

LOTTERY PROGRAMS

30

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

33

9

BYPROGRAM

34

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

SECTION IT
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

SECTION ID
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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Stewart 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) ofthe Stewart County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility ofthe Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

94ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Stewart County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Stewart County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through IO which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements ofthe Stewart 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 effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-13

STEWART COUNTY BOARD OF EDUCATION - 1-

STEWART COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
All FUND TYPES AND ACCOUNT GROUP JUNE 30, 1994

EXHIBIT "A"

ASSETS

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

ACCOUNT GROUP

TOTALS

GENERAL

(Memorand1111 Only)

LONG-TERM DEBT

J-U-N-E--3--0-, --1-9-9-4---JU-N-E---3-0-,--1-9-9-3

Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Cannodities Purchased Food
Amount to be Provided in Future Years For Pa~t of Capital Lease Agreements

$ 305,688.63$ 69,158.02

80,437.17$ 77,917.74
6,540.47 3,141.37

2,727.90

$ 388,853.70$ 484,521.45 147,075.76 113,110.62

6,540.47 3,141.37

8,779.62 4,132.15

$ 134,569.43 134,569.43 115,313.17
-------------

Total Assets

$===3=7=4=,=8=4=6=.=6=5

$==1==6=8=,0=3==6=.7=5$====2=,=7=2=7=.9=0$===1=3==4=,5=6=9==.4=3$-

680,180.73$ 725,857.01
------ =---======

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

$

Salaries Payable

Ex~ired Grant Balances Payable

Deferred Revenue

Capital Lease Agreements

3,138.31 $ 21,834.07 63,834.73 863.12 4,748.60

Total Liabilities

$ 3,138.31 $ 91,280.52

FUND EQUITY

$ 24,972.38 $ 28,823.67

63,834.73

73,404.05

863.12

261. 74

4 748.60

$ 134,569.43 134:569.43 115,313.17

------------- ------------- -------------

$ 134,569.43 $ 228,988.26$ 217,802.63
------------- ------------- -------------

Fund Balances Reserved For Bus Replacement Funds $ For Continuation of Federal Pre>grams For Expired Grant Balances/ Questioned Costs For Inventories Food Donated Cannodities Purchased Food

9,500.58 6,162.91
$

6,540.47 3,141.37

Unreserved Undesignated

$ 15,663.49 $ 9,681.84 356,044.85 67,074.39$ 2,727.90

Total Fund Equity

$ 371,708.34$ 76,756.23 $ 2,727.90

$ 9,500.58$ 28,955.87

27.12

6,162.91

1,957.50

6,540.47

8,779.62

3,141.37

4,132.15

------------- -------------

$ 25,345.33 $ 43,852.26

425,847.14 464,202.12
------------- -------------

$ 451,192.47$ 508,054.38
------------- -------------

Total Liabilities and

Fund Equity

$--3-74-,-84-6-.6-5$==1=6=8=,=0=3=6=.7=5$====2=,7=2=7==.9=0$===1=3=4,=5=6=9.=4=3 $===6=8=0=,1=8=0=.=7=3 $===7=2=5,=8=5=7.=0=1

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

STEWART COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandun Only)
----------Y-EA-R---EN--D-ED----------
JUNE 30, 1994 JUNE 30, 1993

REVENUES

State Funds Federal Funds Local and Other Funds

$2,694,647.85$ 194,937.13 $ 10,000.00$ 2,899,584.98$ 2,693,818.16

31,265.00 771,948.82

803,213.82 884,631.23

1,067,118.21

22,099.95

60.62 1,089,278.78 1,130,151.10

Total Revenues

$3,793,031.06$ 988,985.90$ 10,060.62 $4,792,077.58$ 4,708,600.49

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Adninistration Business Adninistration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Cap;tal Outlay Debt Service
Principal Interest
Total Expenditures

$2,217,180.68$ 437,534.79

$2,654,715.47$ 2,552,532.92

99,839.47 92,289.76 85,865.25 124,146.16 354,904.83 55,467.55 358,835.33 308,170.42 15,632.00

16,572.83 24,381.01 29,903.38 63,114.34
23,224.00 13,586.00 88,248.72 348,123.48

116,412.30 116,670.77 115,768.63 187,260.50 354,904.83 55,467.55 382,059.33 321,756.42 15,632.00 88,248.72 348,123.48

117,325.04 83,817.63 79,447.37 162,220.03 349,611.29 53,897.26 348,108.41 302,348.13 99,317.80 343,727.85

52,018.22 37,196.56

$ 10,000.00

52,018.22 47,196.56

46,707.45

35,207.74 31,190.40

66,398.14

8,362.34

368.70

8,731.04

------------- ------------- ------------- ------------- -------------

$ 3,845,116.31 $1,076,247.65$ 10,000.00 $4,931,363.96$ 4,539,061.18

Excess of Revenues over (under) Expenditures $ -52,085.25 $ -87,261.75 $

60.62 $ -139,286.38 $ 169,539.31

OTHER FINANCING SOURCES (USES)

Capital Leases Operating Transfers In Operating Transfers Out

$ 85,654.40

165.05

$

-165.05

$ 85,654.40 165.05 $ -165.05

364.43 -364.43

Total Other Financing Sources (Uses)

$

-165.05 $ 85,819.45

$ 85,654.40$

0.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other

Financing Uses

$ -52,250.30 $ -1,442.30 $

60.62 $ -53,631.98 $ 169,539.31

FUND BALANCE JULY 1
-------------------

423,958.64

81,428.46

2,667.28 508,054.38 340,062.59

Food Inventory Donated Conmodities July 1 June 30 Purchased Food July 1 June 30

-8,779.62 6,540.47

-8,779.62 -11,784.56

6,540.47

8,779.62

-4,132.15

-4,132.15

-2,674.73

3,141.37

3,141.37

4,132.15

------------- ------------- ------------- ------------- -------------

FUND BALANCE JUNE 30

$ 371,708.34$ 76,756.23 $ 2,727.90$ 451,192.47 $ 508,054.38
====-===== ========= ========== ============ =======

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

STEWART COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

ACTUAL

ACTUAL

PER

PER

EXHIBIT "B" ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federal Funds Local and Other Funds

$2,899,584.98$ 803,213.82
1,089,278.78

0.00 $2,899,584.98$ 2,698,050.00$ 201,534.98 803,213.82 775,540.00 27,673.82
1,089,278.78 1,156,191.00 -66,912.22

Total Revenues

$4,792,077.58$

0.00 $4,792,077.58$ 4,629,781.00$ 162,296.58

EXPENDITlRES

Current Instruction Support Services Pupil Services Ill!Provement of Instructional Services Educational Media Services General Aaninistration School Aaninistration Business Aaninistration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Total Expenditures

$2,654,715.47$

0.00 $2,654,715.47$ 2,485,497.00$ -169,218.47

116,412.30 116,670.77 115,768.63 187,260.50 354,904.83 55,467.55 382,059.33 321,756.42 15,632.00 88,248.72 348,123.48

116,412.30 116,670.77 115,768.63 187,260.50 354,904.83 55 467.55 382:059.33 321,756.42 15,632.00 88,248.72 348,123.48

127,674.00 98,078.00 88,593.00 187,958.00 361,480.00 55,570.00 351,475.00 368,944.00 126,765.00
200.00 321,870.00

11,261.70 -18,592.77 -27,175.63
697.50 6,575.17
102.45 -30,584.33 47 187.58 111:133.00 -88,048.72 -26,253.48

52,018.22

52,018.22

58,700.00

6,681.78

47,196.56

47,196.56

-47,196.56

75,129.18

75,129.18

-75,129.18

------------- ------------- ------------- ------------- -------------

$4,931,363.96$

0.00 $4,931,363.96$ 4,632,804.00$ -298,559.96

Excess of Revenues over (under) Expenditures $ -139,286.38 $

0.00 $ -139,286.38 $ -3,023.00 $ -136,263.38

OTHER FINANCING SOIRCES (USES)

Other Sources Other Uses

$ 85,819.45$ -165.05

0.00 $ 85,819.45$ 1,000.00$ 84,819.45

-165.05

-165.05

Total Other Financing Sources (Uses)

$ 85,654.40$

0.00 $ 85,654.40$ 1,000.00$ 84,654.40

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other

Financing Uses

$ -53,631.98 $

0.00 $ -53,631.98 $ -2,023.00 $ -51,608.98

FUND BALANCE JULY 1, 1993
-------------------------
ADJUSTMENTS
-----------
Prior Year (Net)

508,054.38 -12,911.77 495,142.61 495,627.95

-485.34

0.00

656.86

-656.86

FOOD INVENTORY
--------------
Donated Comnodities July 1 1993 June 30, 1994
Purchased Food July 1 1993 June 30, 1994

-8,779.62

8,779.62

0.00

0.00

6,540.47

-6,540.47

0.00

0.00

-4,132.15

4,132.15

0.00

0.00

3,141.37

-3,141.37

0.00

0.00

------------- ------------- ------------- ------------- -------------

FUND BALANCE JUNE 30, 1994

$ 451,192.47 $ -9,681.84 $ 441,510.63 $ 494,261.81 $ -52,751.18
=========== ======== ===-======= ========= ==========

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

STEWART COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Stewart County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification ofGovernmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Stewart County Board ofEducation.
Based upon the application ofthe above criteria, the Stewart County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Stewart County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits 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 ofaccounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 5-

STEWART COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these :financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose :financial statements account for all State, Federal, Local and Other Funds under contr61 ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all :financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board ofeducation.
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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
- 6-

STEWART COUNTY BOARD OF EDUCATION

EXfllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number ofpersonnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion ofthe compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and
measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
Stewart County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
- 7-

STEWART COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.

CASH AND CASH EQUIVALENTS

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

RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal and State 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 Stewart County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 21, 1993 (levy date). Taxes were due on January 20, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria ofGASB codification section P70.103. The Stewart County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection, and remits the balance oftaxes collected to the Board.
The tax millage rate levied for the 1993 tax year (calendar year) for the Stewart County Board ofEducation was as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations

llJ.2 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

- 8-

STEWART COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofnet current assets.
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 ofthis data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public fund~ 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:
( I) 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 ofthe United States or of the State of Georgia,
- 9-

STEWART COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

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

(5) Bonds ofany public authority created by the laws ofthe 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 ofthe State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $619,498.72. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1994, as follows:

Risk Catego:ry

Bank Balance

1

$ 100,000.00

2

0.00

3

519,498.72

Total

$ 619.498.72

- 10 -

STEWART COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

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: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Stewart County Board ofEducation has entered into various lease agreements as lessee for computer equipment, copier and buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Capital Leases

Balance July 1, 1993

$ 115,313.17

Additions

85,654.40

Deletions

66,398.14

Balance June 30, 1994

$ IJ~,569.43

At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items:

Fiscal Year Ended June 30

Capital Leases

1995 1996 1997 1998

$ 46,689.83 64,248.93 22,422.35 19,868.04

Total Principal and Interest

$ 153,229.15

Deduct: Imputed Interest

18,659.72

Net Present Value ofFuture Minimum Lease Payments

$ 134,569.43

- 11 -

STEWART COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$6,323.60 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment

$ 1,357.20 67.83 30.41
4,868.16

$ 6,323.60

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.

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. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of

- 12 -

STEWART COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS
creditable service up to 40 years. The nonnal retirement pension is payable monthly for life. Options are available for distnbution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time ofdisability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $2,645,156.69; total payroll was $3,125,016.63.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $471,250.96, ofwhich $312,500.86 was made by the Board and $158,750.10 was made by employees. These contributions represented 11. 81 % (Board) and 6% (employees) ofcovered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A ~dardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

- 13 -

STEWART COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 7: RETIREMENT PLANS

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292,000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$312,500.86 was actuarially determined and represented .0599% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TR.S'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 ofGeorgia.

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years ofservice and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as 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 ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.

Members become fully vested after ten years of service. Ifa 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 35 employees covered under PSERS for the year ended June 30, 1994.

- 14 -

STEWART COUNTY BOARD OF EDUCATION

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 7: RETIRE:MENT PLANS
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contnbutions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contnbutions from employees ofthe Board made during fiscal year 1994 amounted to $1,184.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 8: SURETY BONDS
The School Superintendent, Mr. Fountain B. WlDls, is bonded in the amount of$25,000.00 with the Western
Surety Company, Sioux Falls, South Dakota, their Bond No. 58595288, on which premium was paid through August 31, 1995.

- 15 -

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

STEWART COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1994

SCHOOL FOOD SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED PROGRAM

ELEMENTARY
CHAPTER 1
EDUCATION OF DEPRIVED CHILDREN

$ 75,430.41 $ ll ,B82 .12 $ 2,289.39

0.00 $

71,508.64

6,540.47 3,141.37

Total Assets

$ 87,401.64 $ 11,882.12 $

0.00 $ 71,508.64

============= ============= ============= =============

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY

$

710.25 $ 6,861.25

9,935.16

272.27

4,748.60

------------- -------------

$ 10,645.41 $ 11,882.12
------------- -------------

Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 6,540.47 3,141.37
-------------

$ 9,681.84

67,074.39 $

0.00 $

------------- -------------

$ 76,756.23 $

0.00 $

------------- -------------

$ 7,684.32 11,065.31 52,683.64 75.37
-------------
$ 71,508.64
-------------

0.00 $

0.00

0.00 $

0.00

Total Liabilities and Fund Equity $ 87,401.64 $ 11,882.12 $

0.00 $ 71,508.64

============= ============= ============= =============

See notes to the general purpose financial statements. - 16 -

EXHIBIT "E"

AND SECONDARY EDUCATION ACT

CHAPTER 2
------------BLOCK GRANT FLOW THROUGH

TITLE II EISENHOWER
MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

JOB TRAINING PARTNERSHIP ACT

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

301.82 $

486.82 $

107.89

$ 88,209.06$ 68,314.45

2,345.93

$ 1,773.78

77,917.74

88,050.29

6,540.47 3,141.37

8,779.62 4,132.15

$

0.00 $ 2,647.75$

486.82 $

107.89 $ 1,773.78$ 175,808.64$ 169,276.51

============= ============= ============= ============= ============= ============= =============

$

87.57 $ 7,771.89

$ 2,647.75$

79.23

470.28

21,834.07 $ 14,182.26

1,215.93

63,834.73

73,404.05

407.59 $

107.89

863.12

261.74

4,748.60

------------- ------------- ------------- ------------- ------------- -------------

$ 2,647.75 $

486.82 $

107.89 $ 1,773.78 $ 99,052.41 $ 87,848.05

$

27.12

$ 6,540.47 3,141.37

8,779.62 4,132.15

$ 9,681.84$ 12,938.89

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

67,074.39

68,489.57

$ ----

0.00
--------

$

0.00

-------------

$

0.00

-------------

$

0.00

-------------

$

0.00

-------------

$ 76,756.23
-------------

$ 81,428.46
-------------

$==========0=.0==0

$ 2,647.75
=============

$

486.82

=============

$

107.89

=============

$ 1,773.78$ 175,808.64
============= =============

$ 169,276.51
=============

- 17 -

STEWART COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1994

SCHOOL FOOD SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED PROGRAM

ELEMENTARY CHAPTER 1 EDUCATION OF DEPRIVED CHILDREN

REVENUES

State Funds Federal Funds Local and Other Funds

$ 23,006.00$ 164,836.13$ 301,602.35 22,099.95

7,095.00 $ 417,153.2!

Total Revenues

$ 346,708.30$ 164,836.13$

7,095.00$ 417,153.27

EXPENDITURES

Current Instruct;on Support Serv;ces Pup;l Serv;ces Improvement of Instruct;onal Serv;ces Educat;onal Media Serv;ces General Admin;strat;on Ma;ntenance and Operat;on of Plant Student Transportat;on Serv;ces Central Support Serv;ces Other Support Services Food Serv;ces Operat;on Debt Serv;ce Principal Interest Total Expenditures

$ 142,452.90

$ 266,972.50

10,337.39 $ 2,027.70
29,903.38 23,224.00 11,150.00

3,596.11

62,996.05 2,436.00

$ 348,123.48

3,500.00

84,748.72

31,190.40
------------- --------3-6-8-.7--0 ------------- -------------

$ 348,123.48$ 250,654.47 $

7,096.11 $ 417,153.27

Excess of Revenues over (under) Expend;tures $ -1,415.18 $ -85,818.34 $

-1.11 $

0.00

OTHER FINANCING SOURCES

Capital Lease Operating Transfers In

$ 85,654.40
--------1-6-3-.-9-4 $----------1-.1--1

Total Other Sources

$----8--5-,8--1-8-.3--4 $----------1-.1-1-

Excess of Revenues and Other Financ;ng Sources

over (under) Expenditures

$ -1,415.18 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1

81,401.34

0.00

0.00

0.00

Food Inventory Donated Commodit;es July 1 June 30 Purchased Food July 1 June 30

-8,779.62 6,540.47 -4,132.15 3,141.37

FUND BALANCE JUNE 30

$=====7=6=,7==5=6=.2==3 $==========0=.0==0 $==========0=.0==0 $==========0=.0==0

See notes to the general purpose f;nancial statements. - 18 -

EXHIBIT "F"

A-N-D--S-E-C-O-N-D-A-R-Y---E-D-U-C-TA-ITT-IOL-NE---AI-IC-T----

-B-LO-CC-HK-A-P-GT-ERR-A-N-T2---

EISENHOWER MATHEMATICS AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

JOB TRAINING PARTNERSHIP ACT

----------Y-EA-TR-O-T-AE-NL-DS-ED----------
JUNE 30, 1994 JUNE 30, 1993

$ 11,220.00 $ 10,932.88$ 24,565.41 $ $ 11,220.00 $ 10,932.88$ 24,565.41 $

3,176.11 $ 3,176.11 $

$ 194,937.13 $ 30,436.66

3,298.80 771,948.82 853,124.93

22,099.95

23,050.16

3,298.80$ 988,985.90$ 906,611.75

$ 11,175.54

$ 11,169.01 $

$ 10,960.00

2,016.83 11,305.74

44.46

73.83

$ 11,220.00 $ 10,960.00 $ 24,565.41 $

$

0.00 $

-27.12 $

0.00 $

2,553.61 $ 622.50
3,176.11 $ 0.00 $

3,211.23 $ 87.57

437,534.79$ 16,572.83 24,381.01 29,903.38 63,114.34 23,224.00 13,586.00 88,248.72 348,123.48 31,190.40
368.70

385,195.28 8,019.77 13,033.05 60,061.97 2,259.00
84,051.80 343,727.85

3,298.80$ 1,076,247.65$ 896,348.72

0.00 $ -87,261.75 $ 10,263.03

$ 85,654.40 165.05 $
$ 85,819.45$

364.43 364.43

$

0.00 $

-27.12 $

0.00 $

0.00 $

0.00 $ -1,442.30 $ 10,627.46

0.00

27.12

0.00

0.00

0.00

81,428.46

72,348.52

-8, 779. 62 6,540.47 -4,132.15 3,141.37

-11,784.56 8,779.62 -2,674.73 4,132.15

$==========0=.0==0 $==========0=.0==0 $==========0=.0==0 $==-==-===0-=.0=0- $-==--=--==0-.=0=0 $=-===7=6=,=7=5=6=.2==3 $=====8=1=,4=2==8=.4=6=

- 19 -

STEWART COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Unreserved Undesignated

REGULAR

GOVERNOR'S EMERGENCY FUND

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 2,727.90 $

0.00 $ 2,727.90$ 2,667.28

============= ============= ============= =======S====

$ 2,727.90$

0.00 $ 2,727.90$ 2,667.28

============= ============= ============= =============

See notes to the general purpose financial statements. - 20 -

STEWART COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REGULAR

GOVERNOR'S EMERGENCY FUND (1)

TOTALS
YEAR ENDED ---------------------------JUNE 30, 1994 JUNE 30, 1993

REVENUES

State Funds local and Other Funds
Total Revenues
EXPENDITURES

$ 10,000.00 $ 10,000.00

$

60.62

60.62 $

61.93

------------- ------------- ------------- -------------

$

60.62 $ 10,000.00 $ 10,060.62 $

61.93

------------- ------------- ------------- -------------

Current Per Diem Building and Building Improvements

$

0.00 $ 3,879.40 $ 3,879.40 $

0.00

6,120.60

6,120.60

------------- ------------- ------------- -------------

Total Expenditures

$

0.00 $ 10,000.00 $ 10,000.00 $

0.00

------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $

60.62 $

0.00 $

60.62 $

61.93

FUND BALANCE JULY 1

2,667.28

0.00

2,667.28

2,605.35

FUND BALANCE JUNE 30

$ 2,727.90 $

0.00 $ 2,727.90$ 2,667.28

============= ============= ============= =============

(1) The purpose of these funds is to renovate Lumpkin Elementary School.

See notes to the general purpose financial statements. - 21 -

STEWART COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1994

SCHEDULE "l" Page 1

FUNDING AGENCY PROGRAM/GRANT
--------------

FEDERAL FUNDS

RECEIVED IN FEDERAL

CFDA AWARDS

PERIOD (NET REVENUE EXPENDITURES

NIJ4BER IN PERIOD OF REFUNDS) IN PERIOD

IN PERIOD

------------- ------------- ------------- -------------

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994 Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1)

10.553 $ 58,637.58$ 58,637.58$ 58,637.58

(2)

10.555

2,071.10

10.555 219,346.93 217,057.54 219,346.93$ 324,505.64(3)

10.550 23,617.84

N/A

23,617.84

23,617.84

------------- ------------- ------------- -------------

Total U. S. Department of Agriculture

$ 301,602.35$ 277,766.22$ 301,602.35$ 348,123.48
------------- ------------- ------------- -------------

Education, U. S. Department of

Through Georgia Department of Education

Elanentary and Secondary Education Act

Chapter 1

Education of Deprived Children

1993 Regular

*84.010

$ 81,417.34

1993 Carry-Over

*84.010 $ 13,472.00

13,472.00$ 13,472.00$ 13,472.00

1994 Regular

*84.010 406,026.00 332,248.00 403,681.27 403,681.27

Chapter 2

Block Grant - Flow Through

1994 Regular

84.151

11,220.00

11,220.00

11,220.00

11,220.00

Title II

Eisenhower Mathematics and Science

Education

1993 Regular

84.164

3,932.88

3,932.88

3,960.00

1994 Regular

84.164

7,000.00

4,654.07

7,000.00

7,000.00

Individuals with Disabilities Education Act

Title VI, B

Flow Through

1993 Regular

84.027

-105.69

1993 Carry-Over

84.027

2,795.00

2,795.00

2,795.00

2,795.00

1994 Regular

84.027

29,992.00

22,178.00

21,770.41

21,770.41

Preschool Program

1993 Regular

84.173

-0.71

1994 Regular

84.173

5,784.00

3,284.00

3,176.11

3,176.11

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1994 Grant

84.048

31,265.00

30,195.00

31,265.00

(4)

------------- ------------- ------------- -------------

Total U. S. Department of Education

$ 507,554.00$ 505,289.89$ 498,312.67$ 467,074.79
------------- ------------- ------------- -------------

- 22 -

STEWART COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1994

SCHEDULE "l" Page 2

FUNDING AGENCY PROGRAM/GRANT
--------------
Justice, U. S. Department of Through Office of the Governor Juvenile Justice and Delinquency Prevention Program In-School Probation 1993 Grant
Labor, U. S. Department of Through Columbus, Georgia Consolidated Government Job Training Partnership Act Contract No. 92362 Contract No. 93087
Total U. S. Department of Labor

FEDERAL FUNDS

RECEIVED IN FEDERAL

CFDA AWARDS

PERIOD (NET REVENUE EXPENDITIRES

NUMBER IN PERIOD OF REFUNDS) IN PERIOD

IN PERIOD

------------- ------------- ------------- ------------

16.540

$ 2,214.93
-------------

17.250

$ 3,871.94 $ 1,525.02 $ 1,525.02

17.250 $ 4,682.00

1,773.78

1,773.78

------------- ------------- ------------- -------------

$ 4,682.00$ 3,871.94 $ 3,298.80$ 3,298.80
------------- ------------- ------------- -------------

Total Federal Financial Assistance

$ 813,838.35$ 789,142.98$ 803,213.82 $ 818,497.07
========= ==~-====== ========= =======

The major program is 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 comnodities 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 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements. - 23 -

STEWART COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994
INTEREST BEARING ACCOUNTS
Farmers State Bank, Lumpkin, Georgia
N.O.W. Accounts (2.25%)
OTHER
Petty Cash

SCHEDULE "2"
$ 388,823.70 30.00
$ 388,853.70
=============

See notes to the general purpose financial statements. - 24 -

STEWART COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "3"

Columbus, Georgia Consolidated Government Job Training Partnership Act
Education, Georgia Department of Food Services National School Lunch Program Vocational Education Federal Funds Federal Programs ESEA - Chapter 1 Education of Deprived Children ESEA - Title II Eisenhower Mathematics and Science Education
Stewart County Tax Commissioner County Wide School Tax

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 1,773.78 $ 1,773.78

$ 1,070.00

2,289.39

2,289.39 1,070.00

71,508.64 2,345.93

71,508.64 2,345.93

68,088.02

68,088.02

------------- ------------- -------------

$ 69,158.02$ 77,917.74$ 147,075.76
============= ============= =============

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

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

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs$ 1,586,076.00

Special Education Programs

292,034.00

Remedial Education Program

44,167.00

Media Center Programs

67,791.00

Staff Development Programs

22,279.00

Indirect Cost

477,027.00

Pupil Transportation

Regular

176,272.00

Bus Replacement

60,241.00

SparsHy Grant

98,82.().00

Special Instructional Assistance

80,049.00

In-School Suspension

68,632.00

Local Fafr Share

-402,404.00

Educational Equalization Funding Grant

118,591.00

Food Services

$

Other State Programs

Governor's Emergency Funds (1)

Mentor Teacher Program

2,880.00

Preschool Handicapped Program

Teachers' Retirement

2,192.85

Lottery Programs

Algebra Classrooms

Computers in Classrooms

Distant Learning

Media Center and Library Equipment

Pre-Kindergarten Program

Safe Schools Grant

23,006.00
$
7,095.00
928.25 52,918.91 2,969.59 29,903.38 43,742.00 34,374.00

$1,586,076.00 292,034.00 44,167.00 67,791.00 22,279.00 477,027.00

176,272.00 60,241.00 98,820.00 80,049.00 68,632.00 -402,404.00 118,591.00 23,006.00

10,000.00

10,000.00 2,880.00 7,095.00 2,192.85

928.25 52,918.91 2,969.59 29,903.38 43,742.00 34,374.00

$2,694,647.85$ 194,937.13$ 10,000.00$ 2,899,584.98
============= ============= ============= =============
(1) The purpose of these funds is to renovate Lumpkin Elementary School.

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

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

SCHEDULE "5"

Taxes County Wide School Tax Rail road Car Tax Real Estate Transfer Tax
Other Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Sales Adult Meals Supplemental Meals School Assets Tuition Other

GOVERNMENTAL FUND TYPES

-------------------------------------------

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

------------- ------------- -------------

TOTAL
-------------

$ 906,137.36 268.67
1,107.71

$ 906,137.36 268.61
1,107.71

4,297.84 330.65

4,297.84 330.65

7,751.23 8,116.51 $

1,100.62 $

60.62

7,751.23 9,277.75

4,773.00
129,505.00 4,830.24
-------------

19,966.41 1,032.92
-------------

-------------

19,966.41
1,032.92 4,773.00
129,505.00 4,830.24
-------------

$ 1,067,118.21 $ 22,099.95$

60.62 $1,089,278.78

============= ============= ============= =============

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

~ (Jj .,,,-, r ~

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

SCHEDULE "6"

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 Commodity Hauling Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Interest Expense Federal Indirect Costs Other Expenditures
Nonoperating Costs Principal and Interest Building and Building Improvements Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$2,657,430.35$ 555,545.74 21,131.22 6,567.29 8,531.63 15,473.81 81,685.68 1,916.02 43,783.32 11,722.32
12,875.00 98,085.43 84,890.62
48,767.43 12,964.50
918.31
13,936.61

467,586.28$ 3,125,016.63

108,289.65 663,835.39

7,707.56

28,838.78

2,027.08

8,594.37

8,531.63

3,037.51

18,511.32

3,625.18

85,310.86

1,916.02

43,783.32

707 .11

12,429.43

1,629.64

1,629.64

6,645.00

19,520.00

87,374.31

185,459.74

11,778.36

96,668.98

173,255.29

173,255.29

48,767.43

1,443.00

14,407.50

918.31

7,751.23

7,751.23

10,860.87

24,797.48

43,570.08 37,196.56 88,124.39

31,559.10 150,970.48

75,129.18 37,196.56 239,094.87

$ 3,845,116.31 $1,076,247.65$ 4,921,363.96
============= ============= =============

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

STEWART COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1994

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Supplies Dues and Fees
Nonoperating Costs Principal and Interest Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

$

928.25 $ 1,418.91

31,559.10 105,595.30

$

928.25 $ 138,573.31

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

SCHEDULE "7"

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS GRANT

TOTAL

$

$

2,969.59 $

5,204.50

16,471.58 3,872.60 2,476.21 14,842.55 $
310.00

$
34,219.00 155.00

16,471.58 3,872.60 2,476.21 59,582.80
465.00

31,559.10

24,698.88

5,933.00

136,227.18

------------- ------------- ---------------- ------------- -------------

$

2,969.59 $ 29,903.38$

43,905.94 $ 34,374.00$ 250,654.47

============= ============= ================ ============= =============

- 31 -

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

SCHEDULE "B"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$1,990,068.00$ 22,279.00

$1,916,752.15 109,493.52 $ 22,278.34
$ 2,026,245.67 $ 22,278.34
-4,203.80 -4,204.75
$ 2,022,041.87 $ 18,073.59

$

0.00 $ 4,205.41

============= =============

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

STEWART COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1994

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories(*) Vocational Education Laboratories(*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Re~lar Pr,rams
l tegory (*l
Category I I ( Category III ( ) Itinerant Supplemental Speech
Sub-Total - Regular Category V (Gifted) (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM(*) MEDIA CENTER PROGRAMS

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

...L

ORIGINAL

MID-TERM

REQUIRED

$ 144,723.00 381,124.00
$ 525,847.00 90 202,699.00 90 363,814.00 90 257,322.00 90 90,893.00 90 145,501.00 90
$1,586,076.00

$ 130,250.70$ 343,011.60
$ 473,262.30$ 182,429.10 327,432.60 231,589.80 81,803.70 130,950.90
$1,427,468.40$

0.00 $ 0.00 $

130,250.70 343,011.6~ 473,262.30 182,429.10 327,432.60 231,589.80 81,803.70 130,950.90

0.00 $1,427,468.40

$ 262,677.00

$ 236,409.30 $

0.00 $ 236,409.30

$ 262,677.00 90 29,357.00 90
$ 292,034.00 $ 44,167.00 90 $ 67 I 791. 00 90

$ 236,409.30 $ 26,421.30
$ 262,830.60$ $ 39,750.30$ $ 61,011.90 $

0.00 $
0.00 $ 0.00 $ 0.00 $

236,409.30 26,421.30 262,830.60 39,750.30 61,011.90

Total Thirteen Weighted and Media Center $1,990,068.00

$1,791,061.20$

0.00 $1,791,061.20

STAFF DEVELOPMENT PROGRAMS (1) Cost of Instruction Professional Development

$ 7,595.25 100 $ 7,595.25$

14,683.75 100

14,683.75

0.00 $ 7,595.25 14,683.75

Total Staff Development

$ 22,279.00

$ 22,279.00$

0.00 $ 22,279.00

$ 2,012,347.00

$1,813,340.20$

0.00 $1,813,340.20

(*) Identifies Thirteen Weighted Programs.

Note: (1) $2,591.25 of the allotment for Professional Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.

See notes to the general purpose financial statements. - 34 -

SCHEDULE "9"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 127,051.20 $ 145,099.39

$ 3,199.50$

3,367.68

332,788.50

361,534.85

10,223.10

10,645.17

$ 459,839.70$ 506,634.24$

0.00

$ 13,422.60$ 14,012.85$

0.00

177,189.30

217,396.56

0.00

5,239.80

7,369.28

0.00

318,327.30

364,952.21

0.00

9,105.30

15,770.02

0.00

222,028.20

239,803.18

0.00

9,561.60

27,808.44

0.00

78,439.50

82,959.91

0.00

3,364.20

3,419.98

0.00

114,921.00

114,969.40

0.00

16,029.90

20,091.62

0.00

$1,370,745.00$ 1,526,715.50 $

0.00

$ 56,723.40$ 88,472.19 $

0.00

$ 3,861.00 $ 95,028.30 129,715.20 822.60 1,602.00

43,606.00 111,707.69 88,282.91

$

184.50 $

1,899.00

3,296.70

203.28 3,330.44 1,930.68

$ 231,029.10$ 243,596.60$

0.00

$ 5,380.20$

5,464.40$

0.00

25,737.30

33,925.34 $

0.00

684.00

794.57 $

0.00

$ 256,766.40$ 277,521.94

$ 6,064.20$

6,258.97

$ 39.092.40 $

54,482.32$

0.00

$

657.90 $

799.95 $

0.00

$ 47,591.10 $

58,032.39 $

0.00

$ 13,420.80$ 13,962.41 $

0.00

$1,714,194.90$ 1,916,752.15$

0.00

$ 76,866.30 $ 109,493.52$

0.00

$ 1,714,194.90 $ 1,916,752.15 $=====o=.o=o

$ 7,595.25$ 14,683.75

11,800.00 $ 10,478.34

0.00 4,205.41

$ 22,279.00$ 22 I 278. 34 $.====:::i4i:::!::12:0::5::::::4.::::1

$ 99,145.30 $ 131,771.86 $=====4=,2=0=5=.4=1

- 35 -

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

SCHEDULE "10"

BOARD MEMBER ADDRESS
STEWART COUNTY BOARD MEMBERS
Mr. Eugene Baldwin, Chairman(*) P. 0. Box 757 Lumpkin, Georgia 31815
Ms. Joan Flowers(*) Route 1, Box 38-B Lumpkin, Georgia 31815
Ms. Janice French(*) 785 Wall Street Richland, Georgia 31825
Mr. Bill Lee(*) P. 0. Box 22 Lumpkin, Georgia 31821
Mr. David White(*) General Delivery Louvale, Georgia 31814
QUITMAN COUNTY BOARD MEMBERS
Mr. Willie Anderson(*) Route 2, Box 74 Georgetown, Georgia 31754
Mr. Willie Bussey(*) Route 1, Box 32 Morris, Georgia 31767
Mr. Loyd Lewis(*) Route 2, Box 236 Georgetown, Georgia 31754
Ms. Eva Massey(*) Route 2, Box 251 Georgetown, Georgia 31754
Mr. C. P. Redding(*) P. 0. Box'336 Georgetown, Georgia 31754

COMPENSATION

TRAVEL

$ 1,700.00$ 1,550.00 1,450.00 1,300.00 1,500.00

422.17 27.30 31.50
133.86 16.80

250.00

50.00

100.00

$ 7,900.00$
=============
Stewart and Quitman Counties operate a consolidated high school located in Stewart County. Members of the Quitman County Board of Education are paid per diem for each meeting of the Stewart County Board of Education that they attend.
(*) Denotes Board Members Serving as of June 30, 1994

631.63

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

SECTIOND COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Stewart 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 Stewart County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Stewart 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.
The results ofour tests indicate that, with respect to the items tested, the Stewart County Board ofEducation
complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to
items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

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

CLV:gp 94CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Stewart 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 ofthe Stewart County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Stewart 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, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-50

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

CLV:gp 94CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Stewart 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 ofthe Stewart County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement 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 material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Stewart 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 program for the year ended June 30, 1994.
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,
17~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Stewart 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 ofthe Stewart County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing
came to our attention that caused us to believe that the Stewart 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 ofpublic record.
Respectfully submitted,

CLV:gp 94CRL-120

Claude L. Vickers State Auditor

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Stewart 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 ofthe Stewart County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement.
In planning and performing our audit ofthe general purpose financial statements ofthe Stewart County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Stewart 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, 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
94ICL-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 ofpolicies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants; Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more ofthe specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions:

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all ofthe reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in determining the nature, timing, and extent of the procedures to be perfonned in our audit ofthe Stewart County Board ofEducation's financial statements and this report does not affect our report thereon dated March 17, 1995.
This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Stewart 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 Stewart County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Stewart County Board of Education's compliance with requirements applicable to the major Federal financial assistance program and have issued our opinion thereon dated March 17, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Stewart County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to its major Federal financial assistance program 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 March 17, 1995.
94ICL-7

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

SPECIFIC REOUIREl\.IBNTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Stewart County Board of Education expended 52% of its total Federal financial assistance under one major Federal financial assistance program.

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to the Board's major Federal financial assistance program, which is

94ICL-7

identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessmy to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Stewart County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated March 17, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted, /
tf"~,,,,~
Claude L. Vickers State Auditor
CLV:gp 94ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

STEWART COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,957.50 Audit Control Number 7281-93-04
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Program had an underexpenditure ofQuality Basic Education (QBE) funds of $1,957.50 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $1,957.50 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7281-93-02
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible
for accounting functions. Management should periodically review this decision to determine if employee duties
can be reassigned to achieve a higher degree ofinternal control with existing staff. For the year under review, our audit noted no improvement regarding adequate separation of employee duties.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule 111 11 of this report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7281-93-03
The audit report for the year ended June 30, 1993, noted that the management of the Stewart 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

STEWART COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7281-93-03
accordance with generally accepted accounting principals. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $1,600.00 Audit Control Number 7281-94-01
In the year under review, an expenditure of$1,600.00 was made from the Board's General Fund for a senior class graduating trip. This expenditure occurred because the Board believed that without school funds, many students of the senior class would not have the opportunity to participate in a senior trip due to economic reasons. The Office Code of Georgia Annotated Section 20-2-411 provides, in part, as follows:
"...school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses; for extracurricular and interscholastic activities, including literary events, music, and athletic programs within individual schools and between schools in the same or different school systems when such activities are sponsored by local boards of education as an integral part of the total school program; and for no other purpose. . .".
An expenditure ofthis nature is considered to be beyond the customary scope of expenditures for "educational purposes". Appropriate action should be taken by the Board to secure reimbursement of the $1,600.00 for deposit to the Board's General Fund.

STEWART COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
EXPENDITURES/LIABil.ITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $4,205.41 Audit Control Number 7281-94-02
For the year under review, the Board ofEducation reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $11,800.00 for the Staff Development - Cost oflnstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) Program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost ofInstruction Program purposes resulting in an underexpenditure of$4,205.41 for the minimum required allotment of$14,683.75 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation ofOfficial Code ofGeorgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent period.
EMPLOYEE COMPENSATION Salary Overpayment Financial Statements Nonmaterial Noncompliance Amount: $1,982.20 Audit Control Number 7281-94-03
For the year under review, our audit noted that an employee was overpaid in the amount of $1,982.20 according to the terms ofthe individual's contract. This overpayment was a result ofthe employee receiving a salary advance, which subsequently, was never collected through appropriate payroll deductions. The granting of salary advances constitute interest-free loans which are considered gratuities and are prohibited by Article III, Section VI, Paragraph VI ofthe Constitution ofthe State of Georgia. Reimbursement should be secured for deposit to the Board's General Fund.

STEWART COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

CURRENT YEAR

AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7281-94-04

The Board failed to submit a copy ofthe 1993 audit report on a timely basis to various agencies that were the sources ofFederal Financial Assistance. The agencies are as follows:

Office of the Governor Columbus, Georgia Consolidated
Government

In-School Probation Program (CFDA 16.540) Job Training Partnership Act Program
(CFDA 17.250)

Paragraph 13f of 0MB Circular A-128 requires that recipients of Federal financial assistance submit copies ofsingle audit reports to those agencies providing Federal financial assistance, within 30 days after receiving the audit report. The management ofthe Board stated they were unaware ofthe time distribution requirements even though formally notified in writing of these report distribution responsibilities by the Department of Audits.

Procedures should be implemented by the Board to ensure that reports are submitted to granter agencies in accordance with audit distribution requirements.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

STEWART COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7281-93-02
We concur with this finding, however due to current budgetary constraints, .the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding cannot be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition -Material Weakness Audit Control Number 7281-93-03
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $1,600.00 Audit Control Number 7281-94-0 I
We concur with this finding, however, the Board members strongly feel that the expenditure was necessary due to the poverty level of the children we serve. The system discontinued this annual expenditure as of this date.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Nonc~mpliance Amount: $4,205.41 Audit Control Number 7281-94-02
We concur with this finding. This finding will be resolved by the Georgia Department ofEducation through a future increase in Board's local fair share portion of QBE Allotments.

STEWART COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED ~TE 30, 1994
EMPLOYEE COMPENSATION Salary Overpayment Financial Statements Nonmaterial Noncompliance Amount: $1,982.20 Audit Control Number 7281-94-03
We concur with this finding. This finding will be resolved through monthly salary deductions from the employee, with complete and total restitution by August 31, 1995.
Note: The Stewart County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.