Audit report, Sumter County Board of Education, Americus, Georgia, year ended June 30, 1995

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AUDIT REPORT SUMTER COUNTY BOARD OF EDUCATION
AMERICUS, GEORGIA YEAR ENDED JUNE 30, 1995

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

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

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

4 DEBT SERVICE REQUIREMENTS TO MATURITY

28

SCHEDULE OF REVENUE

5

STATE

29

6

LOCAL AND OTHER

30

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

31

8

LOTTERY PROGRAMS

32

SUMTER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

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 I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 3, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the 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, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

95ARL-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, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. 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, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated July 3, 1996, on our consideration of the Board's internal control structure and a report dated July 3, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Sumter County Board of Education taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the 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
95ARL-13*

necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
4'~,c;,~ Claude L. Vickers State Auditor
CLV:jy 95ARL-13*

SUMTER COUNTY BOARD OF EDUCATION - 1-

TY BOARD OF EDUCATI N BALANCE SHEET
AND ACCO!,!NT QRQ!,!P J!,!NE30 1995

EXHIBIT"A"

~ Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Prollicled in Future Years For Payment of: Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,969,975.89 $

ns,769.57 s

57,235.00 $

88,886.96

459,644.43

DEBT SERVICE
FUND
346,824.51
2,136.97

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTAL [Memorandum Onl:t)
JUNE 30, 1995

$

3,149,804.97

550,668.36

42,441.04 24,086.85

$

348,961.48

42,441.04 24,086.85
348,961.48

3,446,038.52 473836.29

3,446,038.52 473 836.29

$ 2,058,862.85 $ 1 301 941.89 $

57235.00 $ 348961.48 $

4,268,836.29 $

8,035,837.51

LIABILITI!;~ 8t,IQ FUNQ EQUITY
l,IABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Slate Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$

82,009.60 $

127,248.78

253,349.28

68,505.18

$

$

82 009.60 $ 449103.24

$

$

144,543.56

80,200.35

$
$ 224,743.91 $ 1,752,109.34
$ 1,976,853.25 $

42,441.04 24,086.85
$
66,527.89 $
786 310.76
852,838.65 $

$ 348,961.48

57235.00 57,235.00 $
0.00 57235.00 $

348,961.48 0.00
348 961.48

Total Liabilities and Fund Equity

$ 2,058,862.85 $ 1,301,941.89 $

57235.00 $ 348 961.48 $

$ 473,836.29 3,795,000.00 4,268,836.29 $
$
$ $ 4,268,836.29 $

209,258.38 253,349.28
68,505.18 473,836.29 3,795,000.00 4 799949.13
144,543.56 348,961.48
80,200.35
42,441.04 24,086.85 57 235.00 697,468.28 2,538,420.10 3,235,888.38
8035 837.51

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

!.!MIEB !:,Q!,!NTY BOARQ QE EDUCATION
COMBINED TATEMENT QE RrnN!.!E~. EXPENQITUBES ANQ !:,HANGE~ IN B!t:IC! BALANQES & GO~RNMENTAL FUND TYPES YEAR ENQ!;D JUNE 30, 1995

EXHIBIT"B"

R~t:1!.!ES
state Funds Federal Funds Local and Other Funds
Total Revenues
EXPEt:11:!!I!.!RES
Current Instruction Support SeMces Pupil SeMces lmprowment of Instructional Services Educational Media SeMces General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OT!::!ER FINANCIN!a SOURCES (!,!SES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE J!,!LY 1
Absorption of the City of Americus Board of Education (Note 8)
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL (Memorandum On~}
YEAR ENDED JUNE 30, 1995

$ 11,877,736.14 $ 843,804.18 $

63,111.71

2,908,990.50

4,238,081.66

274,923.93

$ 16,178,929.51 $ 4,027,718.61 $

0.00 $
0.00 $

$ 186,067.41 186,067.41 $

12,n1,540.32 2,9n,102.21 4,699,073.00
20,392,715.53

$ 9,297,639.79 $ 1,633,324.33 $

514,644.12 583,597.03 322,824.74 203,658.00
1,202,498.4
221,717.40 1,171,740.96
900,876.98 131,383.77 75,346.19
499.08 50,459.05 66,348.91 94,146.20

223,922.03 75,005.86
,560.00 86,64.13
12,889.17 5,858.47 32,907.70 124,734.28 1,665,184.48

103,104.95 32,085.87

25,980.38

$ 14,972,571.48 $ 3,890,830.83 $ $ 1,206,358.03 $ 136,887.78 $

0.00

$

$
0.00 $ 0.00 $

125,000.00 164,782.50
1,247.80
291,030.30 $
-104,962.89 $

10,930,964.12
738,566.15 658,602.89 327,384.74 290,122.13
1,202,498.4
221,717.40 1,184,630.13
906,735.45 164,291.47 200,080.47 1,665,683.56 50,459.05 66,348.91 94,146.20
254,085.33 196,868.37
1,247.80
19,154,432.61
1 ~38~82.92

$

57,235.00

$

$

-57~35.00

$

-57,235.00

$

57,235.00

$

$ 1,149,123.03 $
513,938. 4

136,887.78 $ 395,086.33

57,235.00 $ 0.00

-104,962.89 $ 453,924.37

313,791.78

331,698.46
11,477.76 -22,311.68

57,235.00 -57,235.00
0.00
1,238,282.92 1,362,949.14
645,490.24 11,477.76 -22,311.68

FUND BALANCE JUNE 30

$ 1,976,853.25 $ 852,838.65 $

57,235.00 $ 348,961.48 $

3,235,888.38

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

THIS PAGE LEFT BLAHK

SUMTER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 1995

EXHIBIT"C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Total Other Financing Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994
Adjustments

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 7,083,119.00 $ 11,8n,736.14

63,111.71

2,568,539.00

4,238,081.66

$ 9,651,658.00 $ 16,178,929.51

$ 5,719,730.00 $ 9,297,639.79

369,397.00 361,967.00 221,7n.OO 165,248.00 801,000.00 212,463.00 860,532.00 865,000.00 155,504.00
28,598.00
250,000.00

514,644.12 583,597.03 322,824.74 203,658.00 1,202,498.44 221,717.40 1,171,740.96 900,876.98 131,383.n
75,346.19 499.08
50,459.05 66,348.91 94,146.20 135,190.82

$ 10,011,216.00 $ 14,972,571.48

$ -359,558.00 $ 1,206,358.03

$

-57,235.00

$

-57,235.00

$ -359,558.00 $ 1,149,123.03

514,204.31

827,730.22

-137.80

FUND BALANCE JUNE 30, 1995

$ 154,508.51 $ 1,976,853.25

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 843,090.00 $ 843,804.18

1,417,262.59 2,908,990.50

n,200.00

274,923.93

$ 2,3371552.59 $ 4,027z718.61

$ 675,914.00 $ 1,633,324.33

137,443.09 13,117.00
41,075.50

223,922.03 75,005.86
4,560.00 86,464.13

1,680.00
388,545.00 23,078.00
1,056,400.00

12,889.17 5,858.47 32,907.70 124,734.28 1,665,184.48

25,980.38

$ 2,337,252.59 $ 3,890,830.83

$

300.00 $ 136,887.78

$

300.00 $ 136,887.78

389,039.06

649,422.98

-39,934.54

$ 349,404.52 $ 786,310.76

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

SUMTER COUNTY BOARD OF EDUCATION

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Sumter County Board ofEducation (Board) was established under the laws ofthe 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 ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the 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. 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, 1995

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 ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund~ however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of Georgia State Financing and Investment Commission Project No. 96-729063.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources 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.

- 7-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. 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 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. 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.

- 8-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Sumter County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

Fund Balance July 1, 1994

Adfustments: nventories - July 1, 1994 Food Donated Commodities Purchased Food

Absorption of the City of Americus Board ofEducation

Inventories absorbed from the City of Americus Board of Education -

January 1, 1995

Food

.

Donated Commodities

Purchased Foods

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

Fund Balance June 30, 1995 (Budget Basis)

Special Revenue
Fund $ 395,086.33
-17,107.32 -22,777.64 331,698.46
-13,855.96 -23,620.89
136,887.78 $ 786,310.76

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SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on October 20, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Sumter County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the balance oftaxes collected to the Board.

Tax millage rates levied for the 1994 tax year (calendar year) for the Sumter County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

15.04 mills ___:12 mills

15.79 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

- 10 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

- 11 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness 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 of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $4,876,048.15. 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.)

- 12 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

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

Bank Balance
$ 301,287.00 4,503,909.40
70,851.75

Total

$4,876,048.15

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

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

The Board has elected to self-insure for all losses related to natural disaster and errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

1994 1995

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

5 043.13 $

$

0.00 $

3 622.84 $

Claims Paid

EndofYear Liability

5 043.13 $

0.00

3,622.84 $

0.00

- 13 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized. on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of$250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the
retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience
rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

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 and a computer system. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1994

$ 217,157.28 $ 3,920,000.00 $4,137,157.28

Balance Carried Forward as of December 31, 1994 from Absorption of City of Americus Board ofEducation

395,029.50

395,029.50

Deductions

138,350.49 125,000.00 263,350.49

Balance June 30, 1995

$ 473.836,29 $ 3.795.000,00 $ 4,268,836.29

- 14 -

SUMTER COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO Tiffi GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1996 1997 1998 1999 2000 2001 and thereafter

$ 226,914.77 $ 360,095.00 $ 587,009.77 209,028.18 358,866.25 567,894.43 23,196.92 362,090.00 385,286.92 22,017.12 349,867.50 371,884.62 22,017.12 342,307.50 364,324.62 32,979.96 3,476,376.25 3,509,356.21

Total Principal and Interest

$ 536,154.07 $ 5,249,602.50 $5,785,756.57

Deduct: Imputed Interest

62,317.78

Net Present Value ofFuture Minimum Lease Payments

$ 473,836.29

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1994, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1995, $3,305,000.00 ofbonds are outstanding and are considered defeased.

Note 7: CONTINGENT LIABILITIES

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

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

- 15 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: ABSORPTION OF CITY OF AMERICUS SCHOOL SYSTEM
On November 2, 1993, in accordance with Chapter 3 of Title 21 ofthe 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 ofthe City of Americus, which authorized the City of Americus to establish, maintain and operate a system ofpublic 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 of the county school system of Sumter County, Georgia.
On January 1, 1995, 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 six months ended December 31, 1994, audit report ofthe City of Americus Board ofEducation have become the responsibility of the Sumter County Board of Education.
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death.

- 16 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 9: RETIREMENT PLANS

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $10,439,835.77, total payroll was $11,972,828.66.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $1,754,346.53, of which $1,232,552.67 was made by the Board and $521,793.86 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1 058 958,000.00

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

- 17 -

SUMTER COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 9: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $1,232,552.67 was actuarially determined and represented .218% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1995 TRS Component.Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of
service, the beneficiary.shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 155 employees covered under PSERS for the year ended June 30, 1995.
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 1995 amounted to $5,228.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.

- 18 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 10: SURETY BOND
The School Superintendent, Dr. Kathleen M. Brochu, is bonded in the amount of $100,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 02017010741940, on which premium was paid through July 1, 1996.

- 19 -

SUMTER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30. 1995

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

AFTER SCHOOL TIME ENRICHMENT
PROGRAM

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 807 .463.28 $ 67,385.83 $

3,424.75

$

0.00 $

42,561.35

116,481.29

122.94

2,219.61 $

7,998.09

167,030.00

42,441.04 24,086.85

$ 990,472.46 $ 67,508.77 $

5,644.36 $

7,998.09 $

0.00 $ 209,591.35

L,IABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 55,245.07 $ 82,388.74
$ 137,633.81 $

22,798.95 $ 44,709.82
s1.sos.n $

$ 42,441.04 24,086.85
$ 66,527.89
786,310.76 $
$ 852,838.65 $

0.00 $ 0.00 $

$ 1,217.38 4,426.98
5,644.36 $

7,998.09 7,998.09

0.00 $ 0.00 $

0.00 $ 0.00 $

Total Liabilities and Fund Equity

$ 990,472.46 $ 67,508.77 $

5,644.36 $

7,998.09 $

$

42,664.47

148,214.58

18,712.30

$ 209,591.35

0.00 $

0.00

0.00 $

0.00

0.00 $ 209,591.35

See notes to the general purpose financial statements.

20-

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE 11-

EISENHOWER

STATE

CHAPTER2 MATHEMATICS

PROGRAM

MIGRANT BLOCK GRANT AND SCIENCE

IMPROVEMENT PROGRAM FLOW THROUGH EDUCATION

EVEN START

INDMDUALS WITH
DISABILITIES EDUCATION ACT
TITLE VI, B FLOW
THROUGH

TOTAL JUNE 30, 1995

$

2,114.25

$

0.00

$

922,949.46

$

9,281.82

$

2,445.05 $ 105,421.95 $

48,643.68

459,644.43

42,441.04 24,086.85

$

2,114.25 $

9,281.82 $

0.00 $

2,445.05 $ 105,421.95 $

48,643.68 $ 1,449,121.78

$

4,486.00

1,152.54

3,643.28

$

2,114.25

$

2,114.25 $

9,281.82

$

2,445.05 $ 105,421.95 $

$

2,445.05 $ 105,421.95 $

26,828.80 $ 4,170.37 14,675.70 2,968.81
48,643.68 $

147,179.89 127,248.78 253,349.28
68,505.18
596,283.13

$

0.00 $

0.00 $

$

0.00 $

0.00 $

$

2,114.25 $

9,281.82 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $

2,445.05 $ 105,421.95 $

$
$ 0.00 0.00 $

42,441.04 24,086.85 66,527.89
786,310.76
852,838.65

48,643.68 $ 1,449,121.78

- 21

SUMTER COUN1Y BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30 1995

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services
Improvement or Instructional Services
Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Debt Service Principal
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Absorption of the City of
Americus Board or Education (Note 8)
Food Inventory- Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

AFTER SCHOOL TIME ENRICHMENT
PROGRAM

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 103,557.00 $ 740,247.18

1,492,874.35

$

272,579.25

$ 1,869,010.60 $ 740 247.18 $

30,257.20 $ 30,257.20 $

7,998.09 $ 7,998.09 $

349.00 $ 349.00 $

882,482.38 882,482.38

$ 546,788.52 $
79,185.81 5,197.97 4,560.00 6,962.82 3,360.00

3,671.68 $
25,351.16 1,172.08
62.28

7,998.09 $

$ 1,665,184.48

94,192.06

25 980.38

$ 1 691 164.86 $ 740247.18 $

$ 177,845.74 $

0.00 $

354,128.37

0.00

30,257.20 $ 0.00 $ 0.00

7 998.09 $ 0.00 $ 0.00

331,698.46
11,477.76 -22 311.68

339.00 $ 10.00

818,783.67 3,248.25
70,866.20

30,542.22

349.00 $ 0.00 $ 0.00

923 440.34 -40,957.96 40,957.96

FUND BALANCE JUNE 30

$ 852 838.65 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-22-

EXHIBIT"F"

ELEMENTARY AND SECONDARY EDUCATION ACT

STATE PROGRAM IMPROVEMENT

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

TOTAL YEAR ENDED JUNE 301 1995

$

27,106.75 $ 61,062.64 $

$

27 106.75 $ 61 062.64 $

23,843.00 $ 23,843.00 $

24,663.25 $ 138,149.00 $ 24,663.25 $ 138,149.00 $

$ 843,804.18

220,204.84 2,908,990.50

2344.68

274 923.93

222,549.52 $ 4,027,718.61

$

11,064.72 $ 18,527.52 $

16,042.03

28,788.71

9,529.17 4,217.24

$

27 106.75 $ 61 062.64 $

$

0.00 $

0.00 $

0.00

0.00

23,528.64 $ 314.36
23 843.00 $ 0.00 $ 0.00

9,931.16 $
13,945.26 786.83

86,094.00 $
16,006.42 3,140.88

32,907.70

24,663.25 $ 138 149.00 $

0.00 $

0.00 $

0.00

0.00

106,597.33 $ 1,633,324.33

71,341.68 35,507.64
7,461.64
1,641.23

223,922.03 75,005.86 4,560.00 86,464.13 12,889.17 5,858.47 32,907.70
124,734.28 1,665,184.48

25 980.38

222 549.52 $ 3,890,830.83

0.00 $ 136,887.78

0.00

395,086.33

331,698.46
11,477.76 -22,311.68

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 8521838.65

-23-

S!,!MTER COUNTY BOARD OF EDUC8TIQN SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

SCHEDULE 1

FUNDING AGENCY PROGRAM/GR8NT
Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994 Grant 1995 Grant National School Lunch Program 1994 Grant 1995 Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1994 Grant 1994 Carry-Over 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Carry-Over 1995 Regular Education of Deprived Children 1993 Carry-Over 1994 Regular 1994 Summer 1994 Carry-Over 1995 Regular State Program Improvements 1994 Regular 1995 Regular Chapter 2 Block Grant - Flow Through 1994 Regular 1995 Regular Title II Eisenhower Mathematics and Science Education 1995 Regular Even Start 1993 Carry-Over 1994 Carry-Over Individuals with Disabilities Education Act Title VI, B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular Vocational Education - Basic Grants to States High School Program Tech-Prep Education 1994 Regular Through Chattahoochee Flint Regional Educational Service Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1994 Regular 1995 Regular 1995 Summer

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 10.553 * 10.553 $

$ 388,081.53

* 10.555 10.555
10.550

9n,323.26 127,469.56

$ 1,492,874.35 $

13,744.12

361,340.99 (5) $ 388,081.53

(2)

22,146.71 972,921.64 (5) NIA

9n,323.26 $ 127,469.56

1,563,695.30 (3) 127,469.56

1,370,153.46 $ 1,492,874.35 $ 1,691,164.86

84.186 84.186 $ 84.186

$ 6,643.00 31,221.00

-6,634.59 6,634.00 (5) $ 23,149.00 (5}

6,643.00 $ 23,614.20

6,643.00 23,614.20

84.009 84.009
* 84.010 * 84.010 * 84.010 84.010 * 84.010
84.218 84.218
84.151 84.151

31.00 318.00
134,881.00 890,451.00
29,221.00
23,843.00

31.00 318.00
10,000.00 n,830.11
3,953.07 134,881.00 691,164.45 (5)
-346.73 29,221.00
-34.79 23,843.00

31.00 318.00
-39,746.93 134,881.00 787,348.31
27,106.75
23,843.00

31.00 318.00
1,211.03 134,881.00 787,348.31
27,106.75
23,843.00

84.164
84.213 84.213

34,903.00 138,149.00

22,200.00 (5)
3,386.71 32,727.05

24,663.25 138,149.00

24,663.25 138,149.00

84.027 84.027 84.027

64,425.00 162,462.00

2,290.51 46,000.00 (5) 134,448.24 (5}

64,813.28 155,391.56

64,813.28 157,736.24 (3)

84.243

-2,493.83

84.011 84.011 84.011

28,788.71 32,272.93

9,839.32 19,506.89 32,273.93

28,788.71 32,273.93

28,788.71 32,273.93

- 24 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS
IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of Through City of Americus Board of Education Elementary and Secondary Education Act Even Start 1993 Carry-Over 1994 Regular Through Sumter County Board of Education Elementary and Secondary Education Act Even Start 1995Grant

84.213 84.213
84.213

$

686.35

22,953.73

26,258.79 (5)

Total U. S. Department of Education

$ 1,577,609.64 $

1,344,086.21

$ 1,408,118.06 $ 1,451,420.70

Federal Emergenc:y Management Agency

Through Georgia Emergenc:y Management Agency

Disaster Assistance FEMA-1033-DR-GA

83.516 $

19,546.30 $

40,884.30 (5) $

19,546.30

(4)

Health and Human Services, U. S. Department of Through Georgia Department of Human Resources Child Care and Development Block Grant Act After School Time Enrichment Program 427-93-42046 Through Georgia School Age Care Association Child Care and Development Block Grant Act After School Time Enrichment Program 427-93-52099

93.673 93.673 $

$ 15,000.00

146.60 (5)

$

7,998.09 $

7,998.09

Total U. S. Department of Health and Human Services
Justice, u. s. Department of
Through Georgia Children and Youth Coordinating Council In-School Probation Program for
Delinquent and Status Offenders
93J-13-9304-008 94J-13-9304-008

$

15,000.00 $

146.60 $

7,998.09 $

7,998.09

16.540 16.540 $

$ 10,000.00

7,478.14 $

2,384.39 $ 6,859.99

1,586.04 (3) 6,860.20 (3)

Total U.S. Department of Justice

$

10,000.00 $

7 478.14 $

9,244.38 $

8,446.24

OTHER FEDERAL ASISTANCE
. Defense, U.S. Department of Direct Department of the Army R.O.T.C. Program 1995Grant

$

34,321.03 $

39 079.26 (5) $

34,321.03

(4)

Total Federal Financial Assistance

$ 3,149,351.32 $

2,801,827.97 $ 2,972,102.21 $ 3,159,029.89

Major Programs are identified by an asterisk (*) in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Federal receipts (net of refunds) associated with accounts receivables and/or Expired Grant Balances Payable at
December 31, 1994 with the absorption of City of Americus Board of Education.

See notes to the general purpose financial statements.

- 25 -

SUMTER COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995

SCHEDULE "2"

NONINTEREST BEARING ACCOUNT
Citizens Bank of Americus, Americus, Georgia
INTEREST BEARING ACCOUNTS
Citizens Bank of Americus, Americus, Georgia
N.O.W. Account (2.10%)
Sumter Bank and Trust Company, Americus, Georgia
N.O.W. Account (2.10%)
Wachovia Bank of Georgia, Americus, Georgia
Money Market Account (3.39%) N.O.W. Account (1.50%)
OTHER
Petty Cash

$

1,287.00

813,144.98

346,948.21

$ 1,889,877.55 98,487.23

1,988,364.78

60.00

$ 3,149,804.97

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

SUMTER COUNTY BOARD OF EDUCATION
ACCOUNTS RECEIVABLE JUNE30, 1995

SCHEDULE "3"

Army, u. s. Department of
R.O.T.C. Program
ChatlahoochM-Flint RESA Migratory Education Program
Cherokee Elementary School Activity Account ASTEP Program
City Federation Women"s Club Contracted Meals
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Other State Programs N. Risk-Summer School Program Innovative Programs Federal Programs Drug-Free Schools and Communities /tv;;t. ESEA. Chapter 1 Education of Deprived Children ESEA Title II Even Start Program Individuals with Disabilities Educationltv;;t. Title VI, B Flow Through
Georgia Children and Youth Coordinating Council In-School Probation Program for Delinquent and Status Offenders
Georgia School-Age Care Association Federal Program ASTEP Program
Sumter County Tax Commissioner County Wide Bond Tax County Wide School Tax
Various Sources Due from Former Employees Cobra Insurance Premium Returned Checks Vendor Overpayment
Webster County Board of Education Physical Therapy Shared Services Contributions
West Georgia Community Action Council Contracted Meals

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$

11,373.59

$

11,373.59

$

9,281.82

9,281.82

12,005.96

26,358.20

12,005.96 26,358.20

17,687.79 5,000.00

41,603.12 47,691.87
2,219.61 167,030.00
2,445.05 105,421.95
46,299.00

41,603.12 47,691.87
17,687.79 5,000.00
2,219.61 167,030.00
2,445.05 105,421.95
46,299.00

9,244.38
33,060.58 195.60 221.56 97.50

7,998.09 $
87.00 122.94 2,344.68 741.10

2,136.97

9,244.38
7,998.09
2,136.97 33,060.58
195.60 87.00 344.50
97.50 2,344.68
741.10

See notes to the general purpose financial statements.

$

88,886.96 $ 459,644.43 $

2 136.97 s _ _s_50.,,668"""""'_,36,..

- 27

SUMTER COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1995

SCHEDULE "4"

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

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$ 360,095.00 $ 358,866.25 362,090.00 349,867.50 342,307.50

160,095.00 $ 153,866.25 147;090.00 139,867.50 132,307.50

200,000.00 205,000.00 215,000.00 210,000.00 210,000.00

348,922.50 344,707.50 349,786.25 348,970.00 347,397.50

123,922.50 114,707.50 104,786.25
93,970.00 82,397.50

225,000.00 230,000.00 245,000.00 255,000.00 265,000.00

349,855.00 346,097.50 346,295.00 345,590.00 348,755.00

69,855.00 56,097.50 41,295.00 25,590.00
8,755.00

280,000.00 290,000.00 305,000.00 320,000.00 340,000.00

$ 5,249,602.50 $ 1,454,602.50 $ 3,795,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period

1993 ISSUE $ 3,920,000.00
125,000.00

Bonds Payable at June 30, 1995

$ 3,795,000.00

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

JUN 1 - DEC 1 DEC 1

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

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1995

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 Middle School Incentive Special Instructional Assistance In-School Suspension Migrant Mid-term Adjustment School Counselors Grades 4 and 5 Superintendent's Base Salary Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Governor's Emergency Funds (1) Innovative Programs Mentor Teacher Program Remedial Summer School Program Teachers' Retirement Lottery Programs Distant Leaming Instructional Technology Pre-Kindergarten Program
Georgia Emergency Management Agency Reimbursement for Flood Damage
Georgia State Financing and Investment Commission Reimbursement on City of Americus Board of Education Construction Projects
OTHER Education, Georgia Department of Reimbursement for Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 7,053,530.00 960,700.00 324,892.00 304,189.00 72,012.00
2,104,908.00
536,964.00 151,635.00 265,334.00 322,997.00
99,398.00 19,495.00 29,955.00
6,891.00 -1,388,992.00
894,365.00 $
26,406.00
17,687.79 4,000.00 9,800.00
12,190.00 11,691.82 26,805.43
4,240.00

$ 7,053,530.00 960,700.00 324,892.00 304,189.00 72,012.00
2,104,908.00

103,557.00

536,964.00 151,635.00 265,334.00 322,997.00
99,398.00 19,495.00 29,955.00
6,891.00 -1,388,992.00
894,365.00 103,557.00
26,406.00

17,687.79 4,000.00 9,800.00
12,190.00 11,691.82 26,805.43

4,560.00 3,307.00 732,380.18

8,800.00 3,307.00 732,380.18

2,101.70

2,101.70

540.40

540.40

4,000.00

4,000.00

$ 11,877,736.14 $

843,804.18 $ 12,721,540.32

(1) These funds are designated for the A. S. Staley Middle School - 1!:l95 School of Excellence and the Sumter County Elementary School - 1995 School of Excellence.

See notes to the general purpose financial statements.

- 29 -

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1995

SCHEDULE 6"

Taxes City Wide School Tax County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Recovery of Prior Year Questioned Cost High Schoof Payment Rents Sales Adult Meals Banquets Contracted Meals Lunches Schoof Assets Supplemental Shared Service Contributions Webster County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 864,741.00
3,033,719.24 12,533.72 14,084.89

$ 864,741.00

$

175,880.49

175,880.49

3,033,719.24

12,533.72

14,084.89

81,263.72 500.00
34,536.32 43,046.15 $
825.00 1,079.24 1,000.00 21,749.58
13,062.50
51,439.27 52,075.23 12,425.80

11,483.19 240.00
. 83,934.20 3,706.08
79,181.80 74,174.64 19,859.34
2,344.68

10,186.92

81,263.72 500.00
34,536.32 64,716.26
1,065.00 1,079.24
1,000.00 21,749.58
83,934.20 3,706.08
79,181.80 74,174.64 13,062.50 19,859.34
53,783.95 52,075.23 12,425.80

$ 4,238,081.66 $ 274,923.93 $

186,067.41 $ 4,699,073.00

See notes to the general purpose financial statements.

- 30 -

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

SCHEDULE '7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 10,263,632.27 $ 2,688,997.43 51,213.99 95,417.25 24,889.31 65,541.05 199,223.06 35,084.54 3,844.99 101,859.07 48,884.37
74,166.50 80,577.62 309,802.46 390,065.95
117,835.59 42,969.13
1,782.56
6,175.90

1,709,196.39 $ 437,963.07 19,237.19 96,064.86
5,350.83 9,472.92 1,470.00 6,072.96
3,835.71 8,719.37
137,670.89 279,318.53
37,644.30 882,117.50
35,194.59 13,731.95
34,536.32 3,578.80

11,972,828.66 3,126,960.50
70,451.18 191,482.11 24,889.31 70,891.88 208,695.98 36,554.54
9,917.95 101,859.07
52,720.08 8,719.37
74,166.50 218,248.51 589,120.99 427,710.25 882,117.50 153,030.18
56,701.08 1,782.56
34,536.32 9,754.70

135,190.82 54,385.67 181,031.95

25,980.38 143,674.27

161,171.20 54,385.67
324,706.22

Total Expenditures

$ 14,972,571.48 $ 3,890,830.83 $ 18,863,402.31

See notes to the general purpose financial statements. - 31 -

SUMTER COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS
YEAR ENDED JUNE 30, 1995

SCHEDULE"B"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

DISTANT
LEARNING (1)

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

$

4,560.00 $

1,358.00

4,240.00

$

8 800.00 $

1,949.00 3307.00 $

282,612.65 $ 73,981.88 2,854.49 3,775.00 796.30 95,488.06
144,647.93 24,542.07
542.00 3,578.80

282,612.65 73,981.88 2,854.49 3,775.00 796.30 95,488.06
150,565.93 24,542.07
542.00 3,578.80

99 561.00

105,750.00

732 380.18 $

744 487.18

(1) Includes expenditures in the amount of $4,240.00
which were recorded in the General Fund.

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 11,933,806.00 $

402,588.00

$ 11,897,874.47 616,278.73 $ _ _ _52_7..:..,9_2_0_.2_1
$ 12,514,153.20

-48,008.85 $ 12,466,144.35

$

0.00 $ ======0.0=0

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

SUMTER COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1995

~ENERAL ANQ CARl;ER EDUCATION PROGRAMS Kindergarten (") Grades 1 3 (") SUl>-Total K-3 Grades 4 5 (") Grades6-8 (") Grades 9- 12 (") High School Laboratories (") Vocational Education Laboratories (") Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I(") Category II (") Category Ill (")
Category IV (i
SUl>-Total Regular
Category V (Gifted) (1
Total Special Education Programs REMEDIAL EDUCATION PROGRAM C')
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development (*) Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _.!_

ORIGINAL

MID-TERM

$ 1,042,130.00

$

937,917.00 $

2,379,981.00

2,141,982.90

$ 3,422,111.00 90 $ 3,079,899.90 $

1,201,580.00 90

1,081,422.00

2,292,872.00 90

2,063,584.80

1,148,550.00 90

1,033,695.00

1,099,355.00 90

989,419.50

552,618.00 90

497,356.20

$ 9,717,086.00

$ 8,745,377.40 $

0.00 0.00
0.00

$ 1,247,444.00

$ 1,122,699.60 $

0.00

$ 1,247,444.00 90 $ 1,122,699.60 $

0.00

84,504.00 90

76,053.60

$ 1,331,948.00

$ 1,198,753.20 $

0.00

$

467,826.00 90 $

421,043.40 $

0.00

$ 11,516,860.00

$ 10,365,174.00 $

0.00

$

324,557.00 90 $

292,101.30 $

0.00

92,389.00 90

83,150.10

$

416,946.00

$

375,251.40 $

0.00

$ 11,933,806.00

$ 10,740,425.40 $

0.00

$

32,395.00

$

32,395.00 $

0.00

105,159.00

105,159.00

$

137,554.00 100 $

137,554.00 $

0.00

See notes to the general purpose financial statements.

- 34 -

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

937,917.00 $ 1,138,358.47 $

35,833.10 $ 1,174,191.57

2,141,982.90

2,248,958.87

40,086.16

2,289,045.03

$ 3,079,899.90 $ 3,387,317.34 $

75,919.26 $ 3,463,236.60 $

0.00

1,081,422.00

1,112,884.10

29,122.66

1,142,006.76

0.00

2,063,584.80

2,225,467.99

59,371.67

2,284,839.66

0.00

1,033,695.00

1,334,360.29

199,032.33

1,533,392.62

0.00

989,419.50

947,262.75

46,790.97

994,053.72

0.00

497,356.20

619,987.10

78,369.28

698,356.38

0.00

$ 8,745,3TT.40 $ 9,627,279.57 $

488,606.17 $ 10,115,885.74

$ 1,122,699.60 $

4,835.44 380,781.51 $ 632,899.97 114,876.30

$ 3,023.13 4,654.15 27,356.27

4,835.44 383,804.64 637,554.12 142,232.57

$ 1,122,699.60 $ 1,133,393.22 $

35,033.55 $ 1.168,426.n

0.00

76,053.60

76,545.39

1,512.66

78,058.05

0.00

$ 1,198,753.20 $ 1,209,938.61 $

36,546.21 $ 1,246,484.82

$

421,043.40 $

684,059.96 $

2,767.83 $

686,827.79

0.00

$ 10,365,174.00 $ 11,521,278.14 $

527,920.21 $ 12,049,198.35

$

292,101.30 $

376,596.33

$

376,596.33

0.00

83,150.10

$

88,358.52

88,358.52

0.00

$

375,251.40 $

376,596.33 $

88,358.52 $

464,954.85

$ 10,740,425.40 $ 11,897,874.47 $

616,278.73 $ 12,514,153.20 $

0.00

$

32,395.00

105,159.00

s _ _1_3.1.._s54_.oo_

$

118,859.43 $

118,859.43

37,583.99

37,583.99

$

156,443.42 $

156,443.42 s_ _ _ _ _ _o_.oo_

- 35 -

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Steve Reeves, Chairman (*) 649 Brady Road Americus, Georgia 31709
Mr. Jerry Anthony Route 2, Highway 19 South Americus, Georgia 31709
Mr. Wayne Arrington (*) P. 0. Box 1288 Americus, Georgia 31709
Mr. J. C. Buchanan(*) 266 Buchanan Road Plains, Georgia 31780
Mr. Russ Childers (*) P. 0. Box 1547 Americus, Georgia 31709
Ms. Irene Edge (*) P. 0. Box52 Plains, Georgia 31780
Ms. Edith Ann Green (*) 311 Harvey Lane Americus, Georgia 31709
Mr. Gary Houston (*) Route 1, Box 137-8 Cobb, Georgia 31735
Ms. Lorena Sabbs (*) P. 0. Box 1185 Americus, Georgia 31709
Dr. William Tietjen Route 2, Box 192 Plains, Georgia 31780
Ms. Carolyn Whitehead (*) Route 1, Box 17 Leslie, Georgia 31764

COMPENSATION

TRAVEL

$

2,400.00 $

297.28

1,200.00

1,200.00

1,272.22

2,400.00

1,200.00

802.88

2,400.00

1,200.00

1,036.80

2,400.00

300.08

1,200.00

821.26

1,200.00

342.24

2,400.00

816.55

(*) Denotes Board Members Serving as of June 30, 1995 See notes to the general purpose financial statements.

- 36 -

$

19,200.00 $ ====5=,6=89=.31=

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 3, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Sumter County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the.auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to 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.

95CRL-20

Material instances of noncompliance consist of failures to follow requirements or violations of prohibitions, contained in laws, regulations, contracts, or grants, that cause us to conclude that the aggregation of the misstatements resulting from those failures or violations is material to the general purpose financial statements. The results of our tests of compliance disclosed a material instance of noncompliance, which is described in the Schedule ofFindings and Improper or Questioned Costs.
As also described in the Schedule of Findings and Improper or Questioned Costs, the material instance of noncompliance noted above has been corrected in the financial statements.
We considered this material instance ofnoncompliance in forming our opinion on whether the fiscal year 1995 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 July 3, 1996 on those general purpose financial statements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~;.~_;
Claude L. Vickers State Auditor
CLV:jy 95CRL-20

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 3, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the 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 of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

95CRL-40

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

CLV:jy 95CRL-40

~~,;r:~
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
July 3, 1996

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the 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 of Effort, 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, 1995. 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.

95CRL-90

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 talcing of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
The results ofour audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
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, 1995.
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:jy 95CRL-90

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 3, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
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 of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthefiscal year 1995 general purpose financial statements of the Sumter County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

( 1) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-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 ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies.. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully ~ubmitted,

CLV:jy 95CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 3, 1996

Honorable Zell Miller, Governor Members of the 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, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe 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, 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 of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
95ICL-4

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.

In planning and performing our audit ofthe general purpose financial statements of the Sumter County Board
ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal .control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

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

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

(1) Accounting Controls (Overall)

(3) General Ledger

(2) Cash and Cash Equivalents

(4) General Fixed Assets

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

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

However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:

(1) Accounting Controls (Overall)

(3) General Fixed Assets

(2) General Ledger

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 July 3, 1996.

95ICL-4

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,
~.. , ; r . ~
Claude L. Vickers State Auditor
CLV:jy 95ICL-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 3, 1996

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 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, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Sumter County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 3, 1996.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General 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 of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major
95ICL-8

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 July 3, 1996.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

95ICL-8

During the year ended June 30, 1995, the Sumter County Board of Education expended 76% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by Oivffi 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 of Federal 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 of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Administrative Requirements
(2) Applicable Special Tests and Provisions
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings arid Improper or Questioned Costs, the following control category includes reportable conditions that are also considered to be material weaknesses:
Administrative Requirements
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, 1995, and this report does not affect our report thereon dated July 3, 1996.
95ICL-8

This report is intended for the information 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,
/4-~~
Claude L. Vickers State Auditor
CLV:jy 95ICL-8

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, 1995
FINDINGS TRANSFERRED FROM CITY OF AMERICUS BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $30,317.80 Audit Control Number 7601-93-04
The audit report for the year ended June 30, 1993, reported that the City of Americus Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of $30,317.80 for the Staff Development Professional Development Stipends Program. For the year under review, no adjustment was made to the Sumter County Board ofEducation's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $30,317.80 should be returned to the Georgia Department ofEducation through an increase in the Sumter County Board of Education's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $38,763.00 Audit Control Number 7601-94-01
The audit report for the year ended June 30, 1994, reported that the City of Americus Board of Education had an underexpenditure of Quality Basic Education (QBE) funds of $38,763.00 for the Staff Development Professional Development Stipends Program. For the year under review, no adjustment was made to the Sumter County Board ofEducation's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $38,763.00 should be returned to the Georgia Department ofEducation through an increase in the Sumter County Board ofEducation's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Reimbursement Requisitions not Supported by Accounting Records Federal Financial Assistance Amount: $588.13 Audit Control Number 7601-94-03
The audit report for the year ended June 30, 1994, reported that the City of Americus Board of Education received $588.13 from the Georgia Department ofEducation for the National School Lunch Program (CFDA 10.555), as reimbursements of meals served at the Eastview Center in excess of maximum allowable reimbursements which could have been claimed by the Board. The $588.13 questioned cost should be refunded to the Georgia Department ofEducation. Additionally, the Georgia Department of Education should review this matter to determine if additional amounts should be refunded.
- 1-

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
FINDINGS TRANSFERRED FROM CITY OF AMERICUS BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Schoolwide Project Expenditure Documentation Federal Financial Assistance Finding Resolved Audit Control Number 7601-94-04
The audit report for the year ended June 30, 1994, stated that the City of Americus Board ofEducation could
not provide documentation sufficient to determine iffunds expended per pupil in a Schoolwide project equaled
or exceeded the amount of funds expended per pupil served in the Board's other schools for the Elementary and Secondary Education Act - Chapter 1 (CFDA 84.010) program as required by 34 CFR 200.36(c)(l)(I). The Georgia Department of Education has reviewed this matter and in a letter dated December 4, 1995, determined that a reclaim of funds is not appropriate.
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $12,693.79 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, 1994, reimbursements had been received which reduced the balance to $13,693.79. 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 ofthe remaining balance of $12,693. 79 for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 7291-93-08
The audit report for the year ended June 30, 1994, stated that the Board's property management 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 the Georgia Financial Accounting Handbook for Local School Systems (GFAH). During the year under review, the Board installed a property management system which meets Federal property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA), which superseded Chapter 8 of the Georgia Financial Accounting Handbook for Local Systems.
-2-

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $10,171.53 Audit Control Number 7291-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$10,171.53 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $10,171.53 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $948.02 Audit Control Number 7291-94-02
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$948.02 for the operations portion of the Special Education Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$948.02 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Refund Unexpended Balance Financial Statements Finding Resolved Audit Control Number 7291-94-03
The audit report for the year ended June 30, 1994, reported the Board failed to refund the unexpended balance of $22,396.39 for the Lottery Programs - Pre-Kindergarten Program at June 30, 1994. This unexpended balance had not been resolved at June 30, 1995. However, a refund of $22,396.39 was made by the Board in the subsequent fiscal period and this amount is included in Accounts Payable as shown in the Combined Balance Sheet, Exhibit "A" ofthis report.
-3-

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Time and Attendance Records Not Utilized Federal Financial Assistance Amount: $28,377.13 Audit Control Number 7291-94-04
The audit report for the year ended June 30, 1994, reported that a review of the director's salary charged to the Elementary and Secondary Education Act - Chapter 1 Program (CFDA 84.0 I0) revealed that expenditures were not supported by time and attendance records as required by Chapter 41 ofthe Financial Management for Georgia Local Units ofAdministration. In the year under review, procedures were implemented to ensure time and attendance records were maintained as required. The Georgia Department of Education should review this matter to determine ifa reclaim offunds is appropriate.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements AO:MINISTRATIVE 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, 1994, stated that the Board did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. In the year under review, the Board made some improvements regarding separation of employee duties, but still did not achieve an adequate degree of internal control. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Appropriate internal controls should be established by the Board to provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds.
Note: All federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "I " of this report, are affected by this finding.
-4-

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7291-93-05
The audit report for the year ended June 30, 1994, 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 B~ard 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 subsidiaiy records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 7291-93-06
The audit report for the year ended June 30, 1994, disclosed weaknesses in internal controls and accounting procedures. For the year under review, the records as presented for audit had the following deficiencies:
(I) Cash and Cash Equivalents (a) Bank reconciliations were not reviewed by an administrative officer independent of cash operations. (b) Excessive hand drawn checks were issued for both operating and payroll accounts and were not posted to the accounting system in a timely manner. (c) Numerous vendor and payroll checks were issued out of sequence. (d) Outstanding checks from previous fiscal years were not followed-up on a timely basis.
(2) General Ledger (a) Numerous journal entries made to the accounting records 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 of the Board. Appropriate action should be taken to strengthen the internal accounting controls and appropriate procedures should be implemented to correct these deficiencies.
- 5-

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 7291-93-06
Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule ",11' ofthis report, are affected by this finding.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7291-95-01
As of June 30, 1995, the Sumter County Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code ofGeorgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given a bond to the public body as set forth in this Code section... The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance."
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement adequate procedures to monitor the collateralization of bank balances to ensure compliance at all times with State Laws governing deposits and investments.
-6-

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
GENERAL LEDGER Failure to Record Program Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 7291-95-02
During the year under review, the Board failed to record the financial activity ofthe local After School Time Enrichment Program within the Board's accounting records. A correcting audit adjustment was necessary to record the activity ofthis program into the Board's financial statements.
This condition occurred because of management's failure to ensure that all financial activity was included in the Board's accounting records. The Board should implement procedures to ensure that the financial activity ofthe local After School Time Enrichment Program is recorded in the formal accounting records.
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 7291-95-03
The Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Project for the 1995 fiscal year. Both the instructions in Chapter 41 ofthe Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive funding through Georgia State Financing and Investment Commission require that the Board transfer local matching funds by year end and designate those funds by project name and number. A correcting audit adjustment was necessary to transfer $57,235.00 from the General Fund to GSFIC Project No. 96-729-063 as required.
APPLICABLE SPECIAL TESTS AND PROVISIONS Failure to Invite Private Schools to Participate Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7291-95-04
For the year under review, the Board could not provide documentation supporting contact with all private schools in the area inviting them to participate in the Elementary and Secondary Education Act - Chapter 1 Education ofDeprived Children Program (CFDA 84.010) as required by 34 CFR 200.34 which states, in part, as follows:
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SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR APPLICABLE SPECIAL TESTS AND PROVISIONS Failure to Invite Private Schools to Participate Federal Financial Assistance Major Program Reportable Condition Nonrnaterial Noncompliance Audit Control Number 7291-95-04
"An LEA may receive funds under this part only ifit implements programs, activities, and procedures for the involvement ofparents ofparticipating, public and private school children. This involvement must include, but is not limited to, parent input into the planning, design, and implementation ofthe Chapter I LEA Program." This deficiency was the result ofthe Board's failure to maintain adequate records to document contact with all private schools in the area. Appropriate internal controls should be established by the Board to ensure that private school involvement provisions provided for in the approved application are followed. Additionally, the Georgia Department of Education should. review this matter to determine if a reclaim of funds is appropriate.
Note: The Sumter County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
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