Audit report, Sumter County Board of Education, Americus, Georgia, year ended June 30, 1994

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

AUDIT REPORT SUMTER COUNTY BOARD OF EDUCATION
AMERICUS, GEORGIA YEAR ENDED JUNE 30, 1994

SUMTER 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

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

22

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

24

3 ACCOUNTS RECENABLE

25

4 DEBT SERVICE REQUIREMENTS TO MATURITY

26

SCHEDULE OF REVENUE

5

STATE FUNDS

27

6

LOCAL AND OTHER FUNDS

28

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

29

8

LOTTERY PROGRAMS

30

SUMTER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION!

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

33

10

BY PROGRAM

34

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

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

SUMTER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION! FINANCIAL

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

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

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

94ARL-13

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* 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 of these umecorded 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 ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Sumter County Board of Education as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Sumter County Board of Education taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules I through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Sumter County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-13

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~/t'd
Claude L. Vickers State Auditor
CLV:jg 94ARL-13

SUMTER COUNTY BOARD OF EDUCATION - 1-

SUMTER COUNTY BOARD OF COMBINED BALANCE S
ALL FUND TYPES AND ACCO
JUNE 30 1994

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment ot. Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

452,259.48 $

217,006.82 $

0.00

82,417.85

377,359.89

22,396.39

17,107.32 22,777.64

Total Assets

$

534,677.33 $

656,648.06 $

0.00

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

$

18,245.06 $

125,690.06

103,217.16

2,493.83

10,258.12

22,396.39

$

20,738.89 $

261 561.73

$

40,957.96

$

10,171.53

17,107.32 22,777.64

$

10,171.53 $

80,842.92

503,766.91

314,243.41 $

$

513,938.44 $

395,086.33 $

0.00 0.00

Total Liabilities and Fund Equity

$

534,677.33 $

656,648.06 $

0.00

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

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onll) JUNE 30 1994 JUNE 30 1993

$ 442,594.43

$ 1,111,860.73 $ 1,007,174.25

11,329.94

471,107.68

331,777.01

22,396.39

17,107.32 22,777.64

26,104.27 16,467.66

$

453,924.37

453,924.37

329,494.79

3,466,075.63 217157.28

3,466,075.63 217 157.28

3,210,505.21 259,555.88

$ 453,924.37 $

4,137,157.28 $ 5,782,407.04 $ 5,181,079.07

$ 143,935.12 $

42,809.79

103,217.16

94,087.56

12,751.95

11,128.08

22,396.39

$

217,157.28

217,157.28

259,555.88

3,920,000.00

3 920 000.00

3,540 000.00

$

4,137157.28 $ 4,419 457.90 $ 3,947,581.31

$ 453,924.37
$ 453,924.37 0.00
$ 453,924.37

$

16,163.72

$

40,957.96

22,967.42

453,924.37

329,494.79

10,171.53

6,544.21

17,107.32 22,777.64

26,104.27 16,467.66 6,553.41

$ 544,938.82 $ 424,295.48

818,010.32

809,202.28

$ 1,362,949.14 $ 1,233,497.76

$

453,924.37 $

4,137,157.28 $ 5,782,407.04 $ 5,181,079.07

3.

SUMifR cqt JNTY BQARQ OF fQUCATIQN GQMB1NfQ STATf MfNT OF RfYfNtJfS EXPENPm JRES ANP 9::fANc;fs 'N fUNP BALANC:fS
GOVERNMENTAL FLJNPJYPES
VEAR f;NPEP JUNE 30 1994

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS fMemorandum On~
YEAR ENDED JUNE 30 1994 JUNE30 1993

~

state Funds Federal Funds Local and Other Funds

$ 6,877,466.84 $ 721,312.25

37,309.31 1,719,355.26

2 802 376.06

90566.57 $

24 274.55 $

$ 418 001.33

7,598,779.09 $ 1,756,664.57 3 335 218.51

6,473,306.77 1,724,901.57 2 994 569.77

Total Revenues

$ 9 717152.21 $ 2 531 234.08 $

24 274.55 $ 418 001.33 $ 12690662.17 $ 11192 778.11

fXPfNQllURES

Current Instruction Support SeNices Pupil Services lmprcwement r:I Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food ServieeS Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees

$ 5,401,309.49 $
262,961.78 282,588.25 208,924.45 168,151.64 839,247.43 195,771.62 775,661.57 841,594.74 150,173.55
36,511.90 1,529.51
170,945.25
18,135.33 18,772.90

962,555.13
115,696.56 24,729.86 81,446.65 46,639.11
17,925.41 26,312.71 172,974.48
1,947.42 989,592.06
$
24,263.27

428,590.00

$ 6,363,864.62 $ 5,953,207.31

378,658.34 307,318.11 290,371.10 214,790.75 839,247.43 195,771.62 793,586.98 867,907.45 323,148.03
38,459.32 991,121.57 599,535.25

169,081.63 354,033.11 226,553.41 202,931.45 663,500.74 209,216.48 760,926.52 708,561.27 234,153.45
930,987.38 74,400.77

110,000.00 205,563.75
1 415.00

152,398.60 224,336.65
1 415.00

91,030.54 250,304.84
702.42

Total E><penditures

$ 9 372 279.41 $ 2 464 082.66 $ 428 590.00 $ 316 978.75 $ 12 581 930.82 $ 10 829 591.32

Excess r:I Revenues CNer (under) Expenditures

344 872.80 $

67151.42 $ -404 315.45 $ 101 022.58 $

108 731.35 $

363186.79

OTHfR FINA~ING SQJ~!;;S (USES}

Accrued Interest on Bonds Sold Refunding Bond Issuance Co6t Proceeds from Refunding Bonds
Par Value '8counl Payments to Refunded Bond Escrow- Agent Capital Leases Operating Transfers In
Operating Transfers out

$ -304 814.15

2,198.06 $

302,616.09

13,410.08 $ 74,758.93

13,410.08 74,758.93

3,920,000.00 -8,624.15
-3,826,620.00

3,920,000.00 -8,624.15
-3,826,620.00 $
304,814.15 -304814.15

13,178.25 95,946.06 -95 946.06

Total Other Financing Sources (Uses) $ -304 814.15 $

2198.06 $ 302 616.09 $

23 407.00 $

23 407.00 $

13178.25

Exce&S r:I Revenues and Other Financing Sources CNer (under) Expenditures and Other Financing Uses

40,058.65 $

69,349.<8 $ 101,699.36 $ 124,429.58 $

132,138.35 $

376,365.04

FUNQ BAL ANCf JlJI Y 1

473,879.79

328,423.82

101,699.36

329,494.79

1,233,497.76

859,351.20

Food lnventOI)' Net Change in Period Donated Commodities Purchased Food

-8,996.95 6 309.98

-8,996.95 6 309.98

-3,038.44 819.96

FUND BALANCE JUNf 30

513 938.44 $ 395 086.33 $

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

0.00 $ 453 924.37 $ 1362949.14 $ 1233497.76

!,!MT!;B ~~ltfD:'. aQABQ QF l;QUQATIQN ~QMEHNEQ STAT!;M!;NT OF B~~!;NU~ l;~Pl;~QITUB!; ~~Q QHAN~l;S IN FYNQ f2A~NCES
ACTUAb AND B!,!DGET GOVERNMENTAb FUND TYPES YEAR ENDED JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~
State Funds Federal Fundo Local and Other Fund&

7,598,779.09 $ 1,756,664.57 3,335,218.51

0.00 $

7,598,779.09 $ 6,643,309.00 $ 1,756,664.57 1,454,136.00 3,335,218.51 3,065,830.00

955,470.09 302,528.57 269,388.51

Total Revenues

12,690,662.17 $

0.00 $ 12,690,662.17 $ 11,163,275.00 $ 1,527,367.17

El!;PE!,IQITU!lE!ii

Current Instruction Support Services Pupil Services Improvement of Instructional Services
Educational Media Services General Administration Schoof Administration Business Administration Maintenance and Operation of f>tant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Debt Service

6,363,864.62 $
378,658.34 307,318.11 290,371.10 214,790.75 839,247.43 195,771.62 793,586.98 867,907.45 323,148.03
38,459.32 991,121.57 599,535.25 378,150.25

0.00 $ 6,363,864.62 $ 5,931,353.00 $

378,658.34 307,318.11 290,371.10 214,790.75 839,247.43 195,771.62 793,586.98 867,907.45 323,148.03
38,459.32 991,121.57 599,535.25 378,150.25

300,131.77 337,193.47 229,644.38 203,950.44 773,101.59 212,047.89 773,305.39 917,026.77 173,442.22
23,012.00 967,656.11 362,000.00 350,692.00

-432,511.62
-78,526.57 29,875.36 -60,726.72 -10,840.31 -a;,145.84 16,276.27 -20,281.59 49,119.32 -149,705.81 -15,447.32 -23,465.46 -237,535.25 -27,458.25

Total Expenditures Exceu of R...,,,._ over (under) Expenditures

$ 12,581,930.82 $ $ 108,731.35 $

0.00 $ 12,581,930.82 $ 11,554,557.03 $ 0.00 $ 108,731.35 $ -391,282.03 $

-1,027,373.79 500,013.38

QTHER FIN6NCIN!, SOURCES (USES}

Other Sources Other Uses

4,238,224.23 $ -4,214,817.23

0.00 $ 4,238,224.23 $ -4,214,817.23

0.00 $ 4,238,224.23 -4,214,817.23

Total Other Financing Sources (Uses)

23,407.00 $

0.00 $

23,407.00 $

0.00 $

23,407.00

Excess of Revenues and other Financing Sources

over (under) Expenditures and other Financing

Uaes

$

132,138.35 $

0.00 $ 132,138.35 $ -391,282.03 $

523,420.38

FUNQ 1!61.e,NQE JUI Y l 1993

1,233,497.76

-42,571.93

1,190,925.83 1,072,355.37

118,570.46

AQJU!iiTMENTS

Prior Year (Net)
FQQQ l!,ll,'.ENTQRY !:lia CHANGES IN PERIOD

435.01

-435.01

Donated Commodities Purchased Food

-8,996.95

8,996.95

0.00

0.00

6,309.98

-6,309.98

0.00

0.00

FYt:jQ ~LAN~!; JUN~ ~ 1~

$ 1,362,949.14 $ -39,884.96 $ 1,323,064.18 $ 681,508.35 $

641,555.83

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

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Sumter County Board of Education (Board) was established under the laws of the State of Georgia 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 of the Board have been prepared in confonnity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Sumter County Board ofEducation.
Based upon the application of the above criteria, the Sumter County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Sumter County, Georgia, excluding that area encompassed by the City of Americus. 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 6-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources of the 1990 Bond Issue.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet.
- 7-

SUMTER COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A 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 of personnel 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 of Education 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 of the 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
The Sumter 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 of this tentative budget by the Board, such budget is advertised at least once in a newspaper
- 8-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:rvIBNTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. 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 (including savings and N. 0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Sumter County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 20, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70. l 03. The Sumter County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the balance of taxes collected to the Board.
Tax millage rates levied for the 1993 tax year (calendar year) for the Sumter County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

- 9-

SUMTER COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations School Bonds

15.06 mills 2.19mills

17 25 mills

INVENTORIES

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

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 1994, are recorded as prepaid items.

GENERAL OBLIGATION BONDS

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

INTERFUND TRANSACTIONS

The Board has the following types ofinterfund transactions:

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

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

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

- 10 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
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 ofnot less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(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 of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(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.

- 11 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $2,243,676.64. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Risk Category

Bank Balance

1

$ 300,000.00

2

1,943,676.64

3

0.00

Total Note 3: NON-MONETARY TRANSACTIONS

$ 2 243 676 64

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

Note4: RISKMANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$5,043.13 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Sumter County Board of Education has entered into various lease agreements as lessee for office equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

- 12 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

ADVANCE REFUNDING During the year under review, the Sumter County Board of Education issued $3,920,000.00 in General Obligation Refunding Bonds to advance refund $3,430,000.00 of 1990 Series outstanding bonds. The bond issue of$3,920,000.00 less discount of$8,624.15 and less underwriters and bond issue cost of$74,758.93 provided net proceeds of$3,836,616.92. $3,826,620.00 of the net proceeds were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on the 1990 Bond issue. As a result, the 1990 Series Bonds are considered defeased, and the liability for this issue has been removed from the General Long-Term Debt Account Group. The Sumter County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over 16 years beginning subsequent to fiscal year 1994 by $65,015.00 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of$82,710.00.

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

Balance July 1, 1993 Additions Deletions Balance June 30, 1994

Capital Leases

General Obligation
Bonds

Total

$ 259,555.88 $ 3,540,000.00 $3,799,555.88

3,920,000.00 3,920,000.00

42 398.60 3 540 000.00 3 582 398.60

$ 21715728 $ 3 92Q QQ0 0Q $4 ]3715728

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

Fiscal Year Ended June 30
1995 1996 1997 1998 1999 2000 and thereafter
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases

General Obligation
Bonds

Total Debt

$ 61,171.20 60,712.56 42,825.95 23,196.92 22,017.12 54 997.08
$ 264 920.83

$ 289,782.50 360,095.00 358,866.25 362,090.00 349,867.50
3 818 683.75
$ 5 532 :m Q0

$ 350,953.70 420,807.56 401,692.20 385,286.92 371,884.62
3 873 680.83
$ 5 SQ~ 3Q5 83

$ 47 763.55

$ 217 157 28 - 13 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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.
Note 7: SUBSEQUENT EVENT
On November 2, 1993, in accordance with Chapter 3 of Title 21 of the Official Code of Georgia Annotated, a special election was held ofthe qualified voters ofthe City ofAmericus, Georgia. In this election, the special school laws and provisions of the Charter of the City of Americus, which authorizes the City of Americus to establish, maintain and operate a system of public schools independent of the county school system of Sumter County, Georgia, were annulled, so as to cause the school system of, and the territory within the City of Americus, Georgia, to become part ofthe county school system of Sumter County, Georgia.
In the period subsequent to December 31, 1994, all property and assets of the Americus City Public School System, Americus, Georgia, were transferred to the county school system of Sumter County, Georgia.
All unresolved audit findings and questioned costs presented in the period ended December 31, 1994, audit report of the City of Americus Board ofEducation becomes the responsibility of the Sumter County Board of Education.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had
- 14 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS

the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $6,009,559.23, total payroll was $6,941,577.04.

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 $1,070,305.27, of which $709,729.58 was made by the Board and $360,575.69 was made by employees. These contributions represented 11.8 I% (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

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 of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

- 15 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
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$709,729.58 was actuarially determined and represented. 136% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life halfof what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 87 employees covered underPSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $2,832.00. 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.

- 16 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 9: SURETY BONDS
Dr. Robin Johnson Harben, School Superintendent through June 30, 1994, was bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 68226152.
Dr. Kathleen M. Brochu, School Superintendent effective July 1, 1994, is bonded in the amount of $100,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 2017010741940, on which premium is paid through July 1, 1_995.

- 17 -

!JMTi;R CQ!,!NTY BQllBQ QF EQY!.llT!QN !;;OMBININ!:a MLANCE 1:!EEI Pl;!;;IAb R~lll;NUE FUNQ J!,!NE30 1994

~
Cash and cash Equivalents
Accounts Receivable
Prepaid nems
Inventories Food Donated Commodities Purchased Food

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 323,927.49

$

9,571.55 $

0.00

46,198.53 $ 155,851.37

$

131,554.28

22,396.39

17,107.32 22.m.64

Total Assets

410,010.98 $ 178,247.76 $

9,571.55 $

0.00 $

131,554.28

LIAE!II !IIE At:IQ F!,!NQ EQUII)'.
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expirad Grant Balances Payable Uneamed Lottery Funds
Total Liabilities
F!,!NQ EO!,!II)'.
Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 72,753.01

$ 22,512.19

83,098.36 $

33,370.42

22,396.39

55,862.61 $ 178,247.76 $

17,107.32 22,m.64
$ 39,884.96
314,243.41 $ $ 354,128.37 $

0.00 $ 0.00 $

639.96 2,297.00 6,634.59 9,571.55
0.00 $ 0.00 $

$

17,062.37

16,554.77

56,60828

370.90

$

90,596.32

$

40,957.96

$ 0.00 0.00 $

40,957.96 0.00
40,957.96

Total Llabillties and Fund Equity

$ 410,010.98 $ 178,247.76 $

9,571.55 $

0.00 $

131,554.28

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT TITLE II -
EISENHOWER CHAPTER2 MATHEMATICS MIGRANT BLOCK GRANT - AND SCIENCE PROGRAM FLOW THROUGH EDUCATION

$

34.79 $

0.00

9,839.32

EVEN START

INDIVIDUALS WITH DISABILITIES
EDUCATION ACT TITLE VI, B FLOW THROUGH

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

3,597.16 $ 337,130.99 $ 172,878.30

28,506.03

5,410.36

377,359.89

258,156.92

22,396.39

17,107.32 22,777.64

26,104.27 16,467.66

$

9,839.32 $

34.79 $

0.00 $ 28,506.03 $

9,007.52 $ 776,772.23 $ 473,607.15

$

3,282.00

1,416.14

5,141.18

$

$

9,839.32 $

34.79 34.79

27,026.79 $
1,479.24
$ 28,506.03 $

$ 1,468.64 5,800.28 1,738.60
9,007.52 $

120,124.17 125,890.06 $ 103,217.16
10,258.12 22,396.39
381,685.90 $

39,967.69 94,087.56 11,128.08
145,183.33

$

o.oo $

$

0.00 $

$

9,839.32 $

0.00 $ 0.00 $
34.79 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 28,506.03 $

$ 40,957.96 $ 22,688.83

0.00 0.00 $

17,107.32 22,777.64 80,842.92 $ 314,243.41
395,086.33 $

26,104.27 16,467.66 65,260.76 263,163.06
328,423.82

9,007.52 $ 776,772.23 $ 473,607.15

-19-

!.!MTlaB QQIU:l!Y !!OABl:l QE lal:l!.!QATIQN QQMl!ININ!, STATEMla!:lI QF BlallfaNUia EXPENQITURE ANQ QHAN!:zE IN FUNQ i!AL.l!N!.la
PECIAL BEVEN!.!c FUND
YfAB la!:lPEl:l JUNE 30 1994

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

~

State Funds Federal Funds Local and Other Funds

63,400.00 $ 912,350.36
89,185.32

657,912.25 $

24,729.41 $

354.00 $

508,484.52

Total Revenues

$ 1,064,935.68 $ 657,912.25 $

24,729.41 $

354.00 $

508,484.52

EXPENQJIURE

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

$ 989,592.06 24,263.27

367,310.14 $
28,737.09 3,727.03
55,503.65
13,285.02 18,705.28 172,575.68
266.42

3,576.10 $
20,069.45 1,083.86

343.00 $ 11.00

438,073.74
4,691.81 2,193.68
29.18 42,526.02
590.00 398.80 1,437.40

Total Expenditures Excess of Revenues over (under) Expenditures

$ 1,013,855.33 $ $ 51,080.35 $

860,110.31 $ -2,198.06 $

24,729.41 $ 0.00 $

354.00 $ 0.00 $

489,940.63 18,543.89

QT!::!laB EINANQIN!, QUBQE (\JSE)

Operating Transfers In

2,198.06

Excess of Revenues and Other Financing Sources over (under) Expenditures
F!.!Nl:l llAL.l!NQE JUbY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

$ 51,080.35 $ 305,734.99
~.996.95 6,309.98

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

18,543.89 22,414.07

F!.!Nl:l l;!e,Ll!NQla JUNE 30

$ 354,128.37 $

0.00 $

0.00 $

0.00 $

40,957.96

See notes to the general purpose financial statements.

-20-

EXHIBIT"F"

AND SECONDARY EDUCATION ACT

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE 11EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

EVEN START

INDIVIDUALS WITH DISABILITIES
EDUCATION ACT TITLE VI, B FLOW THROUGH

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

77,322.87 $ $ 77,322.87 $

26,838.21 $

11,924.00 $ 87,366.26 $

26,838.21 $

11,924.00 $ 87,366.26 $

$ 69,985.63
1,381.25

721,312.25 $ 1,719,355.26
90,566.57

66,598.00 1,641,904.13
78,371.96

71,366.88 $ 2,531,234.08 $ 1,788,874.09

$ 27~7.88
37,717.17
$ 4,640.39 7,017.43

$ 77,322.87 $

$

0.00 $

$

0.00 $

0.00

$

0.00 $

$
25,913.82 924.39

$
57.85 11,722.05
418.86

84,044.16 $ 3,322.10

26,838.21 $ 0.00 $

12,198.76 $ -274.76 $

87,366.26 $ 0.00 $

0.00 $ 0.00

-274.76 $ 274.76

0.00 $ 0.00

0.00 $

0.00 $

0.00 $

41,260.11 $ 962,555.13 $ 515,081.29

24,423.19 2,681.14 2,758.84
243.60

115,696.56 24,729.88 81,446.65 46,639.11 17,925.41 26,312.71 172,974.48
1,947.42 989,592.06

56,036.21 68,776.14 26,127.09 59,443.78
4,778.64 8,125.78 36,423.91
930,987.38 8,975.00

24,263.27

71,366.88 $ 2,464,082.66 $ 1,714,755.22

0.00 $

67,151.42 $

72,118.87

2,198.06

800.11

0.00 $ 0.00

69,349.48 $ 328,423.82

72,918.98 257,723.32

-8,996.95 6,309.98

-3,038.44 819.96

0.00 $ 395,086.33 $ 328,423.82

-21-

SUMTER COUNTY BOARD OF EDUCATION l.,CHEDULE OF FEDERAL EINANCII\L Al.,SISTANCI;
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.553 $
10.555 10.555 10.550

$ 260,608.80
584,522.73 67218.83

61,116.03 246,864.68 $
87,478.15 562,376.02 NIA

260,608.80
584,522.73 $ 67218.83

(2)
946,636.50 (3) 67218.83

Total U. S. Department of Agriculture

$ 912 350.36 $

957 834.88

912,350.36 $ 1 013855.33

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1993 Grant 1993 carry-Over 1994Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Regular Education of Deprived Children 1992 Carry-Over 1993Regular 1993Summer 1993 Carry-Over 1994Regular 1994Summer State Program Improvements 1994Regular Chapter2 Block Grant - Flow Through 1993 Regular 1994Regular Trtlell Eisenhower Mathematics and Science Education 1993Regular 1994Regular Even Start 1993 carry-Over Individuals with Disabillties Education Act TrtleVl,B Flow Through 1992 Carry-Over Innovative Special Education Proposal 1993 Regular 1993carry-Over 1994Regular Vocational Education - Basic Grants to States High School Program Tech-Prep Education 1993Regular 1994Regular

84.186 84.186 $ 84.186
84.009 84.010 84.010 84.010 84.010 84.010 84.010 84.218
84.151 84.151
84.164 84.164 84.213
84.027 84.027 84.027 84.027
84.243 84.243

$ 2,469.00 28,895.00
354.00
102,043.00 389,725.00
43,700.00 13,148.00
28,873.00
11,924.00
36,343.00 94,214.00
30,000.00

-2,469.65 2,469.00$ 28,895.00

2,469.00 $ 22,260.41

2,469.00 22,260.41

354.00
-199.09 53,967.95 30,:360.00 92,043.00 283,321.10
13,148.00

354.00
-11,210.96 102,043.00 361,151.21 43,700.00
12,801.27

-20.46 28,873.00

28,838.21

354.00
11,203.11 102,043.00 361,151.21
2,742.04 12,801.27
28,838.21

11,924.00

11,924.00 3,386.71

274.76 11,924.00
3,386.71

10.00 -2,406.83 36,343.00 31,352.12

36,343.00 33,642.63

36,343.00 35,023.88 (3)

4,112.00 29,675.00

27,181.17

27,181.17

- 22 -

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FEDFRAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, u. S. Departmen1 of Through Chattahoochee Flin1 Regional Educational Service Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1994 Regular 1994Summer Through City of Americus Board of Education Even Start 1993 Regular 1993 Carry-Clwr 1994Regular Through Georgia Children and Youth Coordinating Council In-School Probation Program for Delinquen1 and Status Offenders 91J-13-9104-0012 93J-13-9304-008 Through Tift County Board of Education d/hla Peachtree Migran1 Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1993 Regular

84.011 84.011 84.213 84.213 84.213
16.540 16.540
84.011

37,717.17 $ 39,605.70
54,780.38 59,257.00
10,000.00

27,877.85 $ 39,605.70

37,717.17 $ 39,605.70

19,163.35 54,094.03 6,245.44

54,780.38 29,199.17

37,717.17 39,605.70
54,780.38 29,199.17

7,478.14

2,026.19 (3) 8,872.02 (3)

6,315.42

Total U.S. Departmerrt of Education

981 048.25 $

793,052.93

841664.21 $

828196.40

Small Business Administration Through Georgia Fo,estry Commission Contract No. 93-4

59.045 $

2650.00 $

2,650.00 $

2650.00 $

3 600.00 (3)

Total Federal Financial Assistance

$ 1 896 048.61 $

1 753537.81 $ 1 756 664.57 $ 1 845651.73

Major Programs are identified by an asterisk (") in fro,rt of the CFDA number.

(1) The amounts shown fo, the Food Distribution Program represents the Federally assigned value of nonmonetary assistance tor donated commocfrties received and/or consumed by the system during the current fiscal year.
(2) Expenditures fo, the SChool Breakfast Program were not maintained separately and are included in the 1994
National school Lunch Program. (3) Expenditures fo, this program include State, and/o, Local and Other Funds.
Expenditures are not maintained by fund source.

See notes to the general purpose financial statements.

- 23 -

SUMTER COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Citizens Bank of Americus, Americus, Georgia
N.O.W. Account (2.25%)
Sumter Bank and Trust Company, Americus, Georgia
Money Market Account (2.55%) N.O.W. Account (2.58%)
Wachovia Bank of Georgia, Americus, Georgia
Money Market Account (3.04%) N.O.W. Account (1.500/o)

$ 323,927.49

$

0.04

441,413.83

441,413.87

$ 338,076.50 8,442.87

346,519.37

$ 1,111,860.73

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

SUMTER COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

Americus City Schools Even Start Program Pr&-Kindergarten Program
Chattahoochee Flint RESA Migratory Education Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Lottery Programs Computers in Classrooms Distant Leaming Media Center and Library Equipment Federal Programs ESEA- Chapter I Education of Deprived Children Even Start Program Individuals with Disabilities Education Act TIiie VI, B - Flow Through
Georgia Chidren and Youth Coordinating Council In-School Probation Program for Delinquent and Status Offenders
Marion County Board of Education Physical Therapy
Other Due From Former Employees Cobra Insurance Premium Reimbursement for Salary Overpayment
Schley County Board of Education Physical Therapy
Sumter County Board of Commissioners County Wide Bond Tax County Wide School Tax Reimbursement for Summer Feeding Program
Various Sources Vendor Cred~ Memos

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 23,640.08 65,083.37

$ 23,640.08 65,083.37

9,839.32

9,839.32

13,744.12 22,146.71
35,268.00 3,000.00
52,500.00
131,554.28 4,865.95
4,029.11

13,744.12 22,146.71
35,268.00 3,000.00
52,500.00
131,554.28 4,865.95
4,029.11

$ 7,478.14

633.75

7,478.14 633.75

137.80 162.46

137.80 162.46

747.50

747.50

74,639.45

$ 11,329.94 10,222.20

11,329.94 74,639.45 10,222.20

85.50

85.50

See notes to the general purpose financial statements.

$ 82,417.85 $ 377,359.89 $ 11,329.94 $ 471,107.68 - 25 -

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999
2000 2001 2002 2003 2004
2005 2006 2007 2008 2009
2010

SUMTER COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30 1994

SCHEDULE "4"

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$ 289,782.50 $ 164,782.50 $ 125,000.00

360,095.00

160,095.00

200,000.00

358,866.25

153,866.25

205,000.00

362,090.00

147,090.00

215,000.00

349,867.50

139,867.50

210,000.00

342,307.50 348,922.50 344,707.50 349,786.25 348,970.00

132,307.50 123,922.50 114,707.50 104,786.25
93,970.00

210,000.00 225,000.00 230,000.00 245,000.00 255,000.00

347,397.50 349,855.00 346,097.50 346,295.00 345,590.00

82,397.50 69,855.00 56,097.50 41,295.00 25,590.00

265,000.00 280,000.00 290,000.00 305,000.00 320,000.00

348,755.00

8,755.00

340,000.00

$ 5,539,385.00 $ 1,619,385.00 $ 3,920,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Issued During Period Bonds Retired During Period Bonds Defeased During Period
Bonds Payable at June 30, 1994

TOTALS

1993 ISSUE

1990 ISSUE

$ 3,540,000.00 $

0.00 $ 3,540,000.00

3,920,000.00

3,920,000.00

110,000.00

110,000.00

3,430,000.00

3,430,000.00

$ 3,920,000.00 $ 3,920,000.00 $

0.00

MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date
See notes to the general purpose financial statements. - 26

JUN 1-DEC 1 DEC1

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

SCHEDULE "5''

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension Mid-term Adjustment Fiscal Year 1993 1994 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education other State Programs Mentor Teacher Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
CONTRACT Education, Georgia Department of Implementation of School-Based Leadership Development Activities
OTHER Education, Georgia Department of Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 4,154,224.00 497,591.00 192,398.00 181,179.00 60,853.00
1,272,643.00
443,090.00 115,254.00 176,081.00
62,170.00

$ 4,154,224.00 497,591.00 192,398.00 181,179.00 60,853.00
1 ,272,643.00
443,090.00 115,254.00 176,081.00
62,170.00

84,896.00 116,372.00 -969,341.00 449,386.00
$ 24,612.00
1,200.00

63,400.00

84,896.00 116,372.00 -969,341.00 449,386.00
63,400.00 24,612.00
1,200.00

1,050.00 11,808.84

2,316.00 53,500.00
3,000.00 52,500.00 516,596.25 30,000.00

1,050.00 11,808.84
2,316.00 53,500.00
3,000.00 52,500.00 516,596.25 30,000.00

1,000.00 1,000.00

1,000.00 1 000.00

$ 6,877,466.84 $

See notes to the general purpose financial statements.

- 27 -

721,312.25 $ 7,598,779.09

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

SCHEDULE "6''

Taxes County Wide Bond Tax County Wide School Tax Rai~oad Car Tax Real Estate Transfer Tax
Other Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Recovery of Prior Year Questioned Cost High School Payment Sales Adult Meals Contracted Meals School Assets Shared Service Contributions Sumter County Board of Education Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 2,741,112.38 259.46
8,709.87

$ 407,754.33 $ 407,754.33

2,741,112.38

37.73

297.19

1,266.57

9,976.44

2,484.43 9,000.00

13,851.08 15,749.59 $
305.00

5,988.12 $

274.55

1,000.00

2,825.00

54,784.30 25,458.83

24,000.00

6,361.25 718.00

1,381.25 2,954.07

8,942.70

2,484.43 9,000.00
13,851.08 30,954.96
305.00
1,000.00
54,784.30 25,458.83 26,825.00
1,381.25 6,361.25 3,672.07

$ 2,802,376.06 $ 90,566.57 $ 24,274.55 $ 418 001.33 $ 3 335,218.51

See notes to the general purpose financial statements.

- 28 -

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

SCHEDULE '7''

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

EXPENDITURES

Operating Costs

Salaries

$ 6,064,673.17 $

876,903.87

$

Employee Benefits

1,582,691.29

218,484.64

Travel of Employees

33,076.02

15,540.24

Professional and Technical Services

60,863.91

35,657.34

Compensation and Travel of Board Members

10,308.52

Water, Sewer and Cleaning Services

33,443.89

1,500.00

Repair and Maintenance Services

219,353.39

8,370.98

Rents

14,625.60

Property Services

824.25

Insurance

61,793.98

Communications

26,171.09

1,227.60

Commodity Hauling

5,080.32

Shared Services

11,519.00

Other Purchased Services

61,897.50

176,328.70

Supplies

306,114.96

355,099.13

Energy

232,508.89

10,157.82

Food Usage

563,172.87

Books, TextbookS and Periodicals

114,855.27

46,383.01

Dues and Fees

23,880.58

5,552.00

Federal Indirect Costs

13,851.08

Other Expend~ures

7,976.91

579.93

Nonoperating Costs Principal and Interest Building and Building Improvements Equipment

41,544.90 126,687.20 338,293.34

24,263.27 $
105,105.61

427,050.00 1,540.00

TOTAL
6,941,577.04 1,801,175.93
48,616.26 96,521.25 10,308.52 34,943.89 227,724.37 14,625.60
824.25 61,793.98 27,398.69
5,080.32 11,519.00 238,226.20 661,214.09 242,666.71 563,172.87 161,238.28 29,432.58 13,851.08
8,556.84
65,808.17 553,737.20 444,938.95

Total Expend~ures

$ 9,372,279.41 $ 2,464,082.66 $ 428,590.00 $ 12,264,952.07

See notes to the general purpose financial statements.

29 -

SUMTER 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 Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

2,396.15 $

35,293.86 $

3,000.00

18,232.00

$

2 396.15 $

53,525.86 $

3,000.00

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

SCHEDULE "8"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

52,503.65

$

52,503.65 $

94,703.58 24,262.28
2,617.58 172,842.10 166,287.71
12,238.17 1,070.00 579.93
42,093.00 $

$

94,703.58

24,262.28

2,617.58

172,842.10

259,481.37

12,238.17

1,070.00

579.93

31,990.30

92,315.30

516 694.35 $

31,990.30 $ 660,110.31

- 31 -

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 5,123,283.00 $

61,194.00

$ 4,967,031.55 265,249.87 $
$ 5,232,281.42 $

84,140.91 84,140.91

-27,745.45

$ 5,204,535.97 $

-33,118.44 51,022.47

$

0.00 $

10 171.53

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

SUMTER COi JNrY BQARP OF fDlJCATIQN

vsis ANAi

OF M1N1MuM EXPENPITI 1RE REOLIIBfMENTS. BY PROGRAM

GENE.RA! FUND QI IALITY BASIC EDI.JCATION PRQGRAM

YEAR f;NPfQ ILJNf 30 1994

GE:NERAI ANQ CAREER EDUCATION PROGRAMS
Kindergarten (") Grad51-3(")
Sub-Total K-3 Grad54-5 (") Grad56-8(") Grad59-12(")
High School Laboratolles (") Vocational Education laboratories (j
Total General and Career Education Programs SPECIAL fpLJCATIQN PROGRAMS
Regular Programs Categay I(") Categay II(") Categay Ill(") Categay IV (") Itinerant SUPP'ementaf Speech Sub-Total Regular Categay V (Gilled) (") Total Special Education Programs
RMEQIAL fDl.JCATlQN PROGRAM (1 MEDIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF DE\/\ OPMENT PROGRAMS (1) Cost r:i Instruction
Total Staff Development
\) Identifies Thirteen Weighted Programs Note: (1) $7,073.85 of the allotment for Professional
Development has been transferred to Cost of Instruction as authorized by OCGA 202182
See notes to the general purpose financial statements

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

~

ORIGINAL

MIO..TERM

REQUIRED

384,081.00 1105,344.00 1,489,425.00
577,441.00 919,499.00 705,345.00 201,909.00 260 605.00 4,154,224.00

90 $ 90 90 90 90 90

345,672.90 $ 994,809.60 1,340,482.50 $ 519,696.90 827,549.10 634,810.50 181,718.10 234 544.50 3,738,801.60 $

48,469.00 $ 48,469.00 $ 49,422.00
97,891.00 $

394,141.90 994 809.60 1,388,951.50 519,696.90 876,971.10 634,810.50 181,718.10 234,544.50 3,836,692.60

484,259.00

435,833.10 $

0.00 $

435,833.10

484,259.00 90 $ 13,332.00 90
497,591.00 192 398.00 90 $ 181179.00 90

435,833.10 $ 11 998.80
447 831.90 $ 173158.20 $ 163061.10

0.00 $
0.00 $ 0.00 $ 0.00 $

435,833.10 11 998.80
447 831.90 173,158.20 163,061.10

$ 5,025,392.00

$ 4,522 852.80 $

97 891.00 $ 4,620 743.80

20,767.85 100 S 40,085.15 100

20,767.85
40,085.15 s_ _~34~1~.oo~

20,767.85 40 426.15

60,853.00

60,853.00 $

341.00 $

61,194.00

5,086,245.00

4,583,705.80 $

98,232.00 $ 4,681,937.80

- 34 -

SCHEDULE "10'

REQUIRED ALLOTMENT

SALARIES ACTIJAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTIJAL

AMOUNT OF UNDEREXPENDlllJRE
FOR REQUIRED ALLOTMENT

384,987.10 $

460,519.07

9,154.80 $

11,875.45

962 820.90

994 361.35

31,988.70

41,563.17

1,347,808.00 $ 1,454,880.42 $

0.00

41,143.50 $

53,438.62 $

0.00

503,290.80

532,244.82

0.00

16,406.10

21,582.52

0.00

850,617.80

996,743.30

0.00

26,353.30

34,822.84

0.00

605,999.70

659,837.22

0.00

28,810.80

37,947.47

0.00

173,502.90

181,205.48

0.00

8,215.20

9,037.21

0.00

203,247.00

263,941.96

0.00

31,297.50

37 472.30

0.00

$ 3 684 466.20 $ 4 088,853.20 $

0.00

152,226.40 $

194,300.96 $

0.00

107,603.10 $ 268,STT.10
46,627.20

188,748.72 267,080.84
42,753.89

422,807.40 $ 11 656.80
434 464.20 $ 170 067.60 $ 124 893.00 $

498,583.45 $ 30,529.13 $
529112.58 194 448.03 $ 154,617.74 $

s 4 413,891.00

4.967,031.55 $

2,373.30 7,535.70 1,644.30
822.60 649.80

2,964.13 7,317.25 1,796.30

0.00

13,025.70 $

12,077.68 $

0.00

342.00

1,011.63 $

13 367,70 $

13 089.31

0.00

3,090.60 $

3 552.89 $

0.00

38,168.10 $

54,306.71 $

0.00

206,852 80 $

265,249.87 $

948.02 0.00
0.00 0.00
948.02

4413,891.00 $ 4 967,031.55 $

20,767.85 $ 40 426.15

53,886.29 $ 30 254.62

0.00 10,171.53

61,194.00 $

84,140.91 $

10,171.53

0.00

268,046.80 $

349,390.78 $

11,119.55

35

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. J. C. Buchanan, Chairman (*) 266 Buchanan Road Americus, Georgia 31709
Mr. Jerry Anthony (*) Route 2, Highway 19 South Americus, Georgia 31709
Mrs. Irene Edge(*) P.O. Box 52 Plains, Georgia 31780
Dr. Schley Gatewood, Sr. (*) Route 5, Box 157 Americus, Georgia 31709
Mr. Gary Houston (*) Route 1, Box 137-B Cobb, Georgia 31735
Mr. steve Reeves (*) 649 Brady Road Americus, Georgia 31709
Dr. William Tietjen (*) Route 2, Box 192 Plains, Georgia 31780
Mrs. Carolyn Whitehead (*) Route 1, Box 17 Leslie, Georgia 31764

COMPENSATION

TRAVEL

$

1,350.00

1,350.00

1,350.00

200.00

1,350.00

1,200.00 $

442.33

1,350.00

1,350.00

366.19

$

9,500.00 $ ==.,,.;;8;.;;;0;;;;8;;;;52;;,,

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

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

SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR {404) 6562174

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

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

94CRL-10

The results ofour tests indicate that, with respect to the items tested, the Sumter County Board of Education Complied in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
//~/~
Claude L. Vickers State Auditor
CLV:jg 94CRL-I0

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Sumter 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 Sumter County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Sumter County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule 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 of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression ofan opinion on the Sumter County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-60

Material instances of noncompliance consist offailures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed material instances of noncompliance that are described in the Schedule of Findings and Improper or Questioned Costs.
We considered these material instances of noncompliance in forming our opinion on whether the Sumter County Board ofEducation's general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated May 26, 1995, on those financial statements.
Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Sumter County Board of Education, complied, in all material respects, with the requirements listed in the second paragraph of this report, and 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 requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:jg 94CRL-60

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

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

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Sumter 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 Sumter County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Sumter County Board of Education'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 programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Sumter 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

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether 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.

We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph ofthis report.

In our opinion, the Sumter County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 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.

:i:Mll~

CLV:jg 94CRL-80

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
May 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Sumter 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 Sumter County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 26, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Sumter County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 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 ofan opinion on the Sumter 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 Sumter County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jg 94CRL-120

SECTION III INTERNAL CONTROL

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

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

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

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

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) Revenues/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

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

(1) Accounting Controls (Overall)

(2) General Fixed Assets

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

94ICL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Sumter County Board of Education's financial statements and this report does not affect our report thereon dated May 26, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
7~L
Claude L. Vickers State Auditor
CLV:jg 94ICL-3

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

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

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

94ICL-7

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

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

94ICL-7

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.
During the year ended June 30, 1994, the Sumter County Board of Education expended 61% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Allowable Costs/Cost Principles
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Sumter County Board of Education'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 May 26, 1995.
94ICL-7

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

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $13,693.79 Audit Control Number 7291-93-01
The audit report for the year ended June 30, 1989, reported improper expenditures of$20,039.95 by the Board for miscellaneous expenditures of the Sumter County High School activity account. At June 30, I993, reimbursements had been received which reduced the balance to $14,693.79. In the year under review, reimbursement of$1,000.00 was secured and deposited to the Board's General Fund. Appropriate action should be taken by the Board to secure reimbursement of the remaining balance of$ 13,693.79 for deposit in the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7291-93-02
The audit report for the year ended June 30, 1991, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $6,544.21 for the High School Laboratory Program. For the year under review, adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 7291-93-04
The audit report for the year ended June 30, 1993, disclosed that the Board did not have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-8-12. For the year under review, audit tests of the Board's bank balances indicated that the Board complied with the State law governing collateralization of cash deposits.

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 7291-93-07
The audit report for the year ended June 30, 1993, reported the Board failed to submit copies of the 1992 audit report to various entities that were the sources of Federal Financial Assistance. In the year under review, the Board submitted copies of the 1992 and 1993 audit reports as required.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7291-93-03
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 for all funds. For the year under review, our audit noted no improvements regarding adequate separation of employee duties. 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
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "l" 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 7291-93-05
The audit report for the year ended June 30, 1993, noted that the management of the Sumter County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost,

SUMTER 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 7291-93-05
location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMlNISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Contr(!l Number 7291-93-06
The audit report for the year ended June 30, 1993, disclosed weaknesses inintemal controls and accounting procedures. In the year under review, several of these deficiencies were corrected; however the following deficiencies still existed at June 30, 1994:
(1) Cash and Cash Equivalents: (a) Bank reconciliations were not reviewed by an administrative officer independent of cash operations. (b) Hand drawn checks were not posted in a timely manner.
(2) General Ledger Numerous journal entries were made to the accounting records which were not approved by supervisory personnel.
These deficiencies were the result ofmanagement's failure to implement procedures which provide an adequate degree of internal control over the assets ofthe Board. Appropriate actions should be taken to strengthen the internal accounting controls and appropriate procedures should be implemented to correct these deficiencies.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report are affected by this finding.

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7291-93-08
The audit report for the year ended June 30, 1993, stated that the Board's property managements records for the Elementary and Secondary Educational Act - Chapter 1 program (CFDA 84.010) were incomplete and failed to meet property standards as set forth in Chapter 8 of Part I of the Georgia Financial Accounting Handbook for Local School Systems (GFAH) or as outlined in 34 CFR 80.32. For the year under review, the Board's property management records again failed to meet Federal requirements. The records as presented for audit had the following deficiencies:
1. The fiscal year 1994 inventory detail did not contain items purchased in fiscal year 1993.
2. The fiscal year 1994 inventory detail contained several items that were not Chapter I equipment items.
3. One item on the list had the incorrect serial number.
4. One item located could not be found on the listing.
This condition occurred because management did not comply with the provisions of GFAH. An inventory system should be maintained that provides for the identification of all equipment purchases as outlined in the GFAH and 34 CFR 80.32. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year, when applicable. Periodic physical inventory counts should be made and reconciled to the property records to ensure the accuracy of the Board's inventory records.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $10,171.53 Audit Control Number 7291-94-01
For the year under review, the Board reported to the Georgia Department of Education on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $53,886.29 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $10,171.53 Audit Control Number 7291-94-01
Basic Education (QBE) Program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program purchases resulting in an underexpenditure of$10,l 71.53 for the minimum required allotment of$40,426.15 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $948.02 Audit Control Number 7291-94-02
For the year under review the Board had an underexpenditure of Quality Basic Education (QBE) funds of $948.02 for the operations portion ofthe Special Education Programs Program. This underexpenditure is the result ofthe Board not meeting the minimum expenditure requirements for this QBE program. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
GENERAL LEDGER Failure to Refund Unexpended Balance Financial Statements Nonmaterial Noncompliance Amount: $22,396.39 Audit Control Number 7291-94-03
For the year under review, the Board failed to refund the unexpended balance of $22,396.39 for the Lottery Programs - Pre-Kindergarten Program at June 30, 1994. The unexpended balance occurred due to the Board paying July and August 1994 salaries in June of 1994, which is not allowable under the policies and procedures established for this program by the grantor, the Georgia Department of Education. This amount should be refunded to the Georgia Department of Education.

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
ALLOWABLE COST/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Amount: $28,377.13 Audit Control Number 7291-94-04
A review ofthe director's salary charged to the Elementwy and Secondwy Education Act - Chapter 1 program (CFDA 84.010) revealed that expenditures were not supported by time and attendance records as required by Chapter 41 ofthe Financial Management for Georgia Local Units of Administration. This condition was the result of management's failure to adequately monitor employee time records. Salary charges to Federal programs should be based on actual time worked by employees.
Appropriate internal controls should be established by the Board to ensure that all salary charges of employees involved in Federal and/or State projects be based on actual hours worked. The Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate.
Note: The Sumter County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.