Audit report, Telfair County Board of Education, McRae, Georgia, year ended June 30, 1994

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

AUDIT REPORT TELFAIR COUNTY BOARD OF EDUCATION
MCRAE, GEORGIA YEAR ENDED JUNE 30, 1994

TELFAIR COUNTY BOARD OF EDUCATION TABLE OF CONTENTS.

SECTION!

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

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

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

26

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

27

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

29

3 INVESTMENTS

30

4 ACCOUNTS RECENABLE

31

5 DEBT SERVICE REQUIREMENTS TO MATURITY

32

TELFAIR COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

6

STATE FUNDS

33

7

LOCAL AND OTHER FUNDS

34

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

35

9

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

37

11

BY PROGRAM

38

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

40

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

C!AUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Telfair County Board of Education
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 Telfair County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility ofthe Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* 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.
94ARL-14

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the c;ffects 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 Telfair County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 9 to the general purpose financial statements, for fiscal year 1994, the Board began recording the assets and liabilities ofits deferred compensation plan in the general purpose financial statements. This change is in accordance with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Telfair County Board of Education taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Telfair 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 effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-14

A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~-~
Claude L. Vickers State Auditor
CLV:cm 94ARL-14

SECTION I FINANCIAL

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

TELFAIR COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalents
Investments
Investments Held by Trustee
Accounts Receivable
Inventories
Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 720,752.55 $ 237,008.02 $ 343,654.00 $

20,353.75

DEBT SERVICE
FUND
27,324.79

140,588.94

85,743.22

191,599.90

42.20

13,221.38 7,141.95

Total Assets

$ 881,695.24 $ 343114.57 $ 535253.90 $

27366.99

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Deferred Compensation Plan
Capital Lease Agreements General Obligation Bonds Payable

$

23,190.84

103,894.70

2.14

$ 135,972.00

55,627.90

71,693.70

Total Liabilities

$ 198,781.38 $ 191,599.90

FUND EQUITY

Fund Balances

Reserved

For Bus Replacement Funds

$ 163,130.84

For Debt Service For Expired Grant Balances/Questioned Costs

3,581.99

For Inventories

Food

Donated Commodities

$

Purchased Food

For State Capital Outlay Projects

$

13,221.38 7,141.95
$

338,000.21

Unreserved Undesignated

$ 166,712.83 $

20,383.33 $ 338,000.21 $

714,982.41

123,969.86

7,653.79

Total Fund Equity

$ 881,695.24 $ 144,333.19 $ 343,654.00 $

20,540.00
20,540.00 6,826.99 27,366.99

Total Liabilities and Fund Equity

$ 881,695.24 $ 343,114.57 $

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

535,253.90 $

27366.99

EXHIBIT"A"

FIDUCIARY FUND TYPE AGENCY FUNDS

$

110.40

224,634.47

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
!Memorandum Onlll JUNE 30, 1994 JUNE 30, 1993

$ 1,328,849.76 $ 521,611.41

20,353.75

19,634.00

224,634.47

417,974.26

304,340.98

13,221.38 7,141.95

17,200.96 10,624.61

$

20,000.00

20,000.00

40,000.00

119136.14

119,136.14

156,929.15

$

224,744.87 $

139136.14 $ 2,151,311.71 $ 1,070,341.11

$

110.40

224,634.47

$

$

224,744.87 $

$
119,136.14 20000.00
139136.14 $

23,190.84 $ 103,894.70
2.14 135,972.00
55,627.90 71,693.70
110.40 224,634.47 119,136.14 20,000.00
754,262.29 $

21,823.94 99,707.59
363.09
542.52 156,929.15 40,000.00 319,366.29

$

224,744.87 $

$

163,130.84 $'

177,808.92

20,540.00

42,160.00

3,581.99

13,221.38 7,141.95 336,000.21
$ 543,616.37 $
853,433.05
$ 1,397,049.42 $

17,200.96 10,624.61 199,120.00
446,914.49
304,060.33
750,974.82

139136.14 $ 2,151,311.71 $ 1,070,341.11

-3-

llLEa!B COUNTY ~ p QE EDUCATION ~QMWt:U;Q ~ran:~~ QE BmN!.n:s ~END.m.!BE~ ~p ~tt~~~ lt:I B.!NP ML &iQE~
~~BNMl:1:il61 l!Y!:H2 rt:PJ;
VEAR ENPEP JUNE 30 1994

EXHIBIT"B"

~
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENQITLJRES
Current Instruction Support Services Pupil Services Improvement of lnstruct-ional Services Educatk>nal Media Setvices General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Oll>er Support Services Food Services Operation Other Operations of Non-Instructional Services
Capi1al Ou11ay Oeb!Semce
Principal IntPaying Agent Fees
Tola! Expenditures
Excess of Revenues over (under) Expenditures
Qil:l~B El~~INg QYRQ~ (YE)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing U&eS
FUND ML ~QI;! J!.lLY 1
Food Inventory Net Change In Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAi. REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS
{M!morandum On!u
YEAR ENDED
JUNE30 19!M JUNE30 1993

6,628,566.90 $ 30,578.90
2~19,!!21.35

349,897.15 $ 1,460,798.90
101,!!11.78

8 878 867.15 $ 1 912 207.83 $

601,492.45 7~.79 $
60914624 $

319557

7,579,956.50 $ 1,491,377.80 2~1 882.49

6,788,888.04 1,525,488.35 2~86840.81

3195.57 $ 11 403~16.79 $ 10 601 197.20

5,305,215.89 $
236,349.18
149,791.67 241,703.47 303,228.21 662,804.43
57,148.93
529,535.70 534,492.47
9,273.00 15,000.00
80,544.32 7,646.91
37,793.01 9,438.96

856,37822
54,763.04
1,466.59 3,656.30 107,687.90
82,361.50 4,333.65
29,825.98 792,838.38

614,612.24

8179 966.15 $ 1933311.56 $ 614 612.24 $

6,161,594.11 $ 6,167,347.50

291,11222

394,994.30

151,25826 245,359.77 410,916.11 662,804.43
57,148.93

177,562.06 237,233.31 467,937.89 587,56028 114,812.70

611,89720 538,826.12
39,098.98 807,838.38

526,907.00 537,170.42
34,885.72
726,274.98

80,544.32 622,259.15

84,378.57 127,903.67

20,000.00 1,620.00
170.00

57,793.01 11,058.96
170.00

20,000.00 2,700.00
221.00

21 790.00 $ 10749679.95 $ 10 207 789.40

698 701.00 $ -21103.73 $

-5466.00 $ -18594.43 $

653536.84 $

393 407.80

$ -165 889.25

15,889.25 $ 150,000.00

-165889.25 $

15889.25 $ 150000.00

165,88925 $ -16588925

132,30355 -132 303.55

0.00 $

0.00

532,811.75 $ 348,883.49

-5,214.48 $ 157,009.91

144,534.00 $ 199,120.00

-18,594.43 $ 45,961.42

-3,979.58 -3 482.66

653,536.84 $ 750,974.82
-3,979.58 -3 482.66

393,407.80 329,741.45
17,200.96 10 624.61

E!.!NQ ~I ~QE JllN~ ~

881 695.24 $ 144333.19 $ 343654.00 $

27366.99 $ 1 397 049.2 $

750974.82

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

RLEAIB ~um 6QABQ QF EQU~IIQ~
QQMBl~EQ TAilMEffi QE BE~NUE~ E~PEtiQIIl!BE~ A~Q Cl::tAN!;iE lt.-f EUt.-fC MLAHCE AC.IL!AI at.-fQ liU..!~~ - ~QVEBtiMEtfiaL EUNQ n:eE YFAB FNQfQ JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ADJUSTMENlS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE !UNFAVORABLE)

~
state Fun<la Federal Fun<la Local an<! Other Funds

7,579,956.50 $ 1,491,377.80 2,331,882.49

0.00 $

7,579,956.50 $ 7,203,336.30 $ 1,491,377.80 1,252,797.00 2,331,882.49 2,073,210.00

376,620.20 238,580.80 258,672.49

Total Revenues

$ 11,403,216.79 $

0.00 $ 11,403,216.79 $ 10,529,343.30 $

873,873.49

E~EfNQID.!BES

current

Instruction

$ 6,161,594.11 $

Support Services

Pupil Services

291,112.22

Improvement of Instructional

Services Educational Media Services

151,258.26 245,359.77

General Administration

410,916.11

School Administration

662,804.43

Business Administration

57,148.93

Maintenance and Operation of ~nt

611,897.20

Student Transportation Services

538,826.12

Central Support Services

Other Support Services

39,098.98

Food Services Operation

807,838.38

Other Operationa of Non-ln&tructional

Services

80,544.32

Capital OUtlay

622,259.15

Debi Service

69,021.97

0.00 $

6,161,594.11 $ 6,294,839.00 $

291,112.22

288,368.30

151,258.26 245,359.77 410,916.11 662,804.43 57,148.93 611,897.20 538,826.12
0.00 39,098.98 807,838.38

168,308.00 314,017.00 443,722.00 689,641.00 83,286.00 653,609.00 554,655.00
1,000.00 41,872.00 778,245.00

80,544.32 622,259.15
69,021.97

69,566.00 57,500.00 21,841.00

133,244.89
-2,743.92
17,049.74 68,657.23 32,805.89 26,836.57 26,137.07 41,711.80 15,828.88 1,000.00 2,773.02 -29,593.38
-10,978.32 -$4,759.15
-47,180.97

Total Expen<lltures

$ 10.749.679.95 $

0.00 $ 10,749,679.95 $ 10.460,469.30 $

-289,210.65

Excess of Revenues over (under) Expen<lltures

$ 653,536.84 $

0.00 $

653,536.84 $

68,874.00 $

584662.84

QT~~R FINANQIN@ QUBQ~S (USE)

Other Sources Other Uses

$ 165,889.25 $ -165,88925

0.00 $

165,889.25 $ -165,889.25

10,000.00 $

155,889.25 -165,889.25

Total Other Financing Sources

(Uaes)

$

Excess of Revenues and Other Financing

Sources over (unoor) Expen<llturea

and other Financing Uses

$

0.00 $ 653,536.84 $

0.00 $

0.00 $

10,000.00 $

-10,000.00

0.00 $

653,536.84 $

78,874.00 $

574,662.84

FUNQ ~LANCE JUL)'.'. 1 1993

750,974.82

-27,825.57

723,149.25

792,659.22

-$,509.97

AQ.!!.!TM~tilll Prior Year (Net)

0.00

0.00

-29,248.97

29,248.97

EQQQ INV~NTOR)'. - tj!;I !:;HAN!,ES I~ .eIBIQQ

Donated Commodities

-3,979.58

3,979.58

0.00

0.00

Purchased Food

-3,482.66

3.482.66

0.00

0.00

FUNQ BALANCE JUNE 30 1994

$ 1,397,049.42 $

-20,363.33 $ 1,376.686.09 $ 842,284.25 $

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

534,401.84

TELFA1R COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SlJMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Telfair County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the,government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Telfair County Board ofEducation.
Based upon the application ofthe above criteria, the Telfair County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Telfair County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds 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.
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TELFAIR COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To 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 traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
- 8-

TELFAIR COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

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 ~n 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.
Agency funds are purely custodial in nature and do not involve measurement ofresults of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible-within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants, and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
- 9-

TELFAIR COUNTY BOARD OF EDUCATION

ExmBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
Telfair County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

- 10 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(4) Obligations of any corporation ofthe United States government,

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

INVESTMENTS HELD BY TRUSTEE

Investments held by trustee consist of contributions from employees who have elected to participate in the Board's deferred compensation plan. See Note 9 - Deferred Compensation Plan

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 Telfair County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 28, 1993 Qevy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Telfair County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

The tax millage rates levied for the 1993 tax year (calendar year) for the Telfair County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

li..Q2 mills

- 11 -

TELFAIR COUNfY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNfING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with, donated food commodity items received and consumed by the Board. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

- 12 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Banlc, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $2,844,697.20. 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.
- 13 -

TELFAIR COUNTY BOARD OF EDUCATION

EXIITBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

mNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

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

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

Risk Category
1 2 3
Total

Bank Balance
$ 200,110.40 1,896,911.50 747 675.30
$ 2 844 697 20

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount ofthe Board's total investments was $20,353.75 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Claims are paid from the fund which employed the individual. During fiscal year 1994, a total of$2,667.00 was paid in claims.

Note 5: OPERATING LEASES

Telfair County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1994, amounted to $16,611.04. Future minimum lease payments for these leases are as follows:

Year Ending
1995 1996 1997
Total

Amount
$ 16,871.04 1S,311.04 5 270.92
$ 37 ~S3 QQ

- 14 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO Tiffi GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: GENERAL LONG-TERM DEBT

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

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 2,783.34 $ 40,000.00 $ 42,783.34

Retroactive Restatement ofPrior Year Balances

154 145.81

154 145.81

Balance JuJY 1, 1993 Restate

$ 156,929.15 $ 40,000.00 $ 196,929.15

Deletions

37 793.01

20 000.00

57 793.01

Balance June 30, 1994

$ l 1213!:i 14 $ 2Q QQQ 0Q $ 132 IJ!:i 14

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

Fiscal Year Ended June 30
1995 1996 1997
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments
Note 7: SIGNIFICANT COMMITMENTS

Capital Leases
$ 44,714.07 44,485.17 44 485.17
$ 133,684.41
14 548.27

General Obligation
Bonds

Total Debt

$ 20,540.00 $ 65,254.07 44,485.17 44 485.17

$ 2Q 540 QQ $ 154 22Hl

$ 119136 H

At June 30, 1994, the Board had encumbrances in the amount of$71,693.70 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

- 15 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30 1994

Note 7: SIGNIFICANT COMMITMENTS

Distant Learning Media Center and Library Equipment Safe Schools Grant

$ 4,000.00 66,343.70 1 350.00
$ 71 693 70

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

Project

Unearned Executed Contracts

Funding Available From State

92-734-045

$ 538 854 27 $ 199 927 55

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

Note 8: CONTINGENT LIABILITIES

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

Note 9: DEFERRED COMPENSATION PLAN

The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.

It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims ofgeneral creditors in the future.

Investments are managed by the plan's trustee, VALIC, under an investment option, or a combination of investment options, made by the participants.

- 16 -

TELFAIR COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: DEFERRED COMPENSATION PLAN
For fiscal year 1994, the Board began accounting for the deferred compensation plan by recording the assets and liabilities associated with the plan. The reporting of the assets and liabilities associated with the deferred compensation plan in the financial statements is a change in accounting principles.
Note 10: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $5,811,782.51; total payroll was $6,448,908.66.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.

- 17 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE30 1994

Note 10: RETIRE:MENT PLANS

Total contributions made during fiscal year 1994 amounted to $1,035,078.12, of which $686,369.96 was made by the Board and $348,708.16 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ I 090 292 000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contnbution for the year ended June 30, 1994 of$686,369.96 was actuarially determined and represented .1316% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

- 18 -

TELFAIR COUNTY BOARD OF EDUCATION

ExmBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 10: RETIREMENT PLANS
PSERS provides 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 IO years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8. 00 per month multiplied by the number of years of creditable service, Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat 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 51 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required-by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $1,748.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 11: SURETY BONDS
The School Superintendent, Mr. Jerry Rogers, is bonded in the amount of$25,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60330296, on which premium is paid through January 1, 1997.

- 19 -

C8sh and C8sh Equivalents
-Accounts Receivable Food Donated Commodmes Purchased Food
Total Assets
UABILmss ANQ EUNP EQUITY
~ cash Overdraft Acccunls Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities
~
FuRnd..B..a..la..n,ces
For Inventories Food Donated Commodite& Purchased Food
UnreseNed Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

TELFAIR CQUNTY BQARQ OF fpt k"'.ATIQN COMB1N1NG BALANCE l-lffI SPECIAL RE\ffNUf flJNQ JUNE 30 1994

SCHOOL FOOD
SERVICES ~

STATE PRESCHOOL HANDICAPPED
PROGRAM

ALlERNATIVE INSlRUCTION

DAYCARE SLOT PURCHASE
PROGRAM FUND

LOTTERY PROGRAMS

$ 164,466.96 $

0.00

70,318.15

2,128.04

5,975.74$

2,591.00

1,375.55

13,221.38 ~
$ 186 958.33 $

0.00 S

5 975.74 $

2 591.00 $ 71 693.70

3,418.10 39,207.04

5,975.74$

2,591.00

_ _ _ _ _ _ _ _ _ s 11693.ro 5975.74 $ _ _~2=5~91=.00~$ 71693.70

13,221.38 ~
20,383.33
123 969.86 s____o=.oo_s _ _~o=.oo_s _ _ _~o...oo_s______Q;.QQ_
s 144 333.19 s_ _ _~o=.oo~s _ _~o=.oo~s _ _ _~o=.oo~s ______Q;.QQ_

s 186958.33 s _ _ _ _o_.oo_s

5975.74 s_ __,.2._59_1_.oo_s 71693.70

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"'

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEU-

CHAPTER1

EISENHOWER

EDUCATION OF EDUCATION OF

CHAPTER2

MATHEMATICS

CHILDREN IN

DEPRIVED

BLOCK GRANT ANO SCIENCE

STATE SCHOOLS

CHILDREN

FLOW THROUGH

EDUCATION

INDIVIDUALS WITH

DISABILffiES EDUCATION ACT

TITLE VI B

FLOW

PRESOiOOL

THROUGH

PROGRAM

TOTALS JUNE 30 1994 JUNE 30 1993

0.00 $

9,689.91 $

7.54 $

0.00 $ 1,092.20 $

0.00 $ 245,574.76 $

97,165.59

65,809.17

4,098.78

3,764.94

85,743.22

193,7TT.27

0.00 $

13,221.38
----- ~

17,200.96 10 624.61

75499.08 s_ _ _._1~00.3~2 s_ _ _""o"'.oo"" s 4857.14 s_ _ _-'o"'.oo"'-s s 351681.31 318768.43

17,349.24 $ 58,147.70
2.14
75499.08 $

1,205.64 2,900.68
4106.32

1,217.86 3,639.28
$ 4857.14

8,566.74 $ 23,190.84 103,894.70
2.14 71 693.70
$ 207 348.12 $

39,863.90 21,823.94 99,707.59
363.09
161 758.52

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 S

75 499.08 $

0.00 $ 0.00 $
4106.32 $

0.00 s~ $ 0.00 s~ s
0.00 S 4 857.14 $

13,221.38 $ ~
20,363.33 S
0.00 123 969.86
0.00 $ 144 333.19 $

17,200.96 10 624.61
27,825.57 129184.34
157 009.91

0.00 $ 351 681.31 $

318 768.43

Ifl FAIR CQl JNTY BQARQ Of EQLJCATIQN
COMB1N1NG STATEMENT Of REVENUES fXPENPIBJRES AND Q::fANGES IN BJND SAL ANCES SPfCIAI REVENUE El IND YEAR ENDED I\ JNf 30 1994

~
state Funds Federal Fund& Local and other Funds
Total Revenues
EXPfNPm IRES
Current Instruction Support Services Pupil Services lmproYement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services other Support Service& Food Services Operation
Total Expenditures
Excess of Revenues ower (under) Expenditures
Qil::fl;B FINANQlt:K.? QjlBQ~
Operating Transfers In
Excess of Revenues and other Financing Sources CM!f' (under) Expenditures
FlJNP BAI ANQf JtH Y 1
Food I Donated Commodilieo Pu<chasedFood
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES ~

STATE PRESCHOOL HANDICAPPED
PROGRAM

ALTERNATIVE INSTRUCTION

DAYCARE SLOT PURCHASE
PROGRAM FUND

LOTTERY ~

51,260.00 $ 680,588.32
55 775.58
$ 787 623.90 $

21,529.00 $
21 529.00 $

26,442.95$ 26442.95 $

$ 2TT,108.15 56,597.00 45 736.20
102 333.20 $ 277108.15

19,313.95 $ 2,215.05

2,115.39 $ 24,327.56

$ 792 838.38 $ 792 838.38 $
-5,214.48 $

21 529.00 $ 0.00 $

26 442.95 $ 0.00 $

-5,214.48 $ 157,009.91
-3,979.56 -3 482.66
$ 144 333.19 $

0.00 $ 0.00

0.00 $ 0.00

0.00 S

0.00 $

79,294.29 $ 165,883.04

37,921.97 556.69 449.50

23,804.59 1,466.59 3,656.30
80,6'15.00 1,185.95

466.68

118 222.45 $ 277108.15

-15,889.25 $

0.00

15 889.25

0.00 $

0.00

0.00

0.00

0.00 $ ---2.22.

See notes to the general purpose financial statements.

-22-

EXHIBrT"F''

ELEMENTARY AND SECONDARY EDUCATION AITT

TITLE 11-

CHAPTER1

EISENHOWER

EDUCATION OF EDUCATION OF

CHAPTER2

MATHEMATICS

CHILDREN IN

DEPRIVED

BLOCK GRANT - AND SCIENCE

STATE SCHOOLS

CHILDREN

FLOW THROUGH EDUCATIOO

INDIVIDUALS WrTH

DISABILrTIES EDUCATION AITT

TITLE VI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

354.00 $ 354.00 $

579,494.91 $ 579 494.91 $

23,844.45 $ 23844.45 $

11,488.00 $ 69,825.85 $ 11 488.00 $ 69 826.85 $

$ 12,162.42
12162.42 $

349,897.15 S 1,460,798.90
101 511.78

66,257.00 1,489,<57.94
123 466.59

1912207.83 $ 1 679181.53

354.00 $
354.00 S 0.00 S

503,429.42 $ 704.05
42,662.33 1,159.81 1,980.00
29,359.30 '
579 494.91 $ 0.00 $

23,806.87 $ 37.58

11,462.59 $

40,068.04 $ 2,200.00

25.41

26,840.61 718.20

23844.45 $ 0.00 $

11 488.00 $ 0.00 $

69 826.85 $ 0.00 $

10,650.63 $ 1,511.79
12162.42 $ 0.00 S

856,378.22 $

727,226.48

54,763.04 1,466.59 3,856.30
107,687.90 82,361.50 4,333.65
29,825.98 792 838.38

41,480.21 12,981.58
144,393.39 760.90
6,288.60 25,433.72
717 621.98

1933311.56 $ 1 676186.86

-21,103.73 S

2,994.67

0.00 $ 0.00

o.oo s
0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

15 889.25

13 303.55

0.00 $ 0.00

-5,214.48 S 157,009.91

16,298.22 112,886.12

-3,979.58 -3 482.66

17,200.96 10 624.61

0.00 $

0.00 $

0.00 $

0.00 $ ~ $

0.00 $

144 333.19 S

157 009.91

-23-

ASSETS Cash and Cash Equivalents Accounts Receivable

T!i;LFAIR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1994

EXHIBIT"G"

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT
COMMISSION PROJECT 92-734-045

TOTALS JUNE30 1994 JUNE30 1993

$

7,653.79 $

336,000.21 $ 343,654.00 $

199,120.00

191599.90

191599.90

Total Assets

$

7,653.79 $

527,600.11 $

535253.90 $

199120.00

LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabil~ies
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equfy
Total Liabil~ies and Fund Equfy

$ $

$

$

7653.79

$

7653.79 $

$

7 653.79 $

135,972.00 $ 55627.90
191 599.90 $

135,972.00 55627.90
191599.90

336,000.21 $
a.co
336000.21 $

336,000.21 $ 7653.79
343654.00 $

199,120.00 0.00
199120.00

527600.11 $ 535253.90 $

199120.00

See notes to the general purpose financial statements.

-24-

TELFAIR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAi PROJECTS FUND YEAR ENDED JUNE 30 1994

EXHIBIT"H"

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT
COMMISSION PROJECT 92-734-045

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration Other Allotment to Telfair County High School Activity Account
Capital Outlay Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expendftures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendftures
FUND BALANCE JULY 1

$ $ _ _:.7,.:;653=.79-=-
7 653.79 $
0.00 $ 0.00 $ 7,653.79 $
7,653.79 $ 0.00

601,492.45 $ 601492.45 $

601,492.45 $

0.00

7653.79

609146.24 s _ _ _--"o'"".oo""

614612.24 $ 614612.24 $ -13,119.79 $

15,434.04

614612.24

614 612.24 $ _ _1.:.,5:,:434=:=:04c.

-5,466.00 $

-15,434.04

150000.00

150000.00

119000.00

136,880.21 $ 199120.00

144,534.00 $ 199120.00

103,565.96 95554.04

FUND BALANCE JUNE 30

7653.79 s_ _ _.::336=,ooo==-2"-1 s

343654.00 $

199120.00

See notes to the general purpose financial statements.

-25-

TELFAIR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE. AGENCY FUNDS YEAR ENDED JUNE 30 1994

EXHIBIT"!"

DEFERRED COMPENSATION PLAN
ASSETS Investments Held by Trustee

BALANCE JULY 1 1993

ADDITIONS

BALANCE DEDUCTIONS JUNE30 1994

$

0.00 $ 224634.47 $

0.00 $ 224634.47

LIABILITIES Deferred Compensation Plan

$

0.00 $ 224634.47 $

0.00 $ 224634.47

TEACHER OF THE YEAR AWARD
ASSETS Cash and Cash Equivalents

$

542.52 $

569.98 $

1 002.10 $

110.40

LIABILITIES Funds Held for Others

542.52 $

569.98 $

1,002.10 $

110.40

TOTALS -AGENCY FUNDS
ASSETS Cash and Cash Equivalents Investments Held by Trustee

$

542.52 $

569.98 $

1,002.10 $

110.40

0.00.

224634.47

0.00

224634.47

$

542.52 $ 225,204.45 $

1 002.10 $ 224 744.87

LIABILITIES Funds Held for Otheni Deferred Compensation Plan

$

542.52 $

569.98 $

1,002.10 $

110.40

0.00

224634.47

0.00

224634.47

$

542.52 $ 225,204.45 $

1,002.10 $ 224 744.87

See notes to the general purpose financial statements.

-26-

IlaLEIIIB !:;Ql1NIY eQABQ QE EQU!:;l',]]QN
S~l::tEDUI E QE EEPEBAL EINANQl~L ASSISIA~QE YEAR ENPEP JUNE 30 1994

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRl',NI

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.553
10.555 10.555 10.550

$ 182,887.20
433,778.40 63 922.72

20,711.60 182,256.65 $
51,505.12 432,959.21 NIA

182,887.20
433,778.40 $ 63922.72

(2)
728,915.66 (3) 63922.72

Total U.S. Department of Agriculture

$ 880 588.32 $

887432.58 $ 880588.32 $

792838.38

Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Children in State'Schools 1994 Regular Education of Deprived Children 1993 Regular 1993 Summer School 1993 Carry-Over 1994 Regular Chapter2 Block Grant Flow Through 1993 Regular 1993 Carry-Over 1994 Regular Tillell Eisenhower Mathematics and Science Education 1994 Regular Individuals with Disabilities Education Act TnleVI, B Flow Through 1993 Regular 1993 Carry-Over 1994 Regular 1992 Innovative Program Preschool Program 1993 Regular 1993 Carry-Over 1994 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1993Grant 1994 Grant

84.009 84.010 84.010 84.010 84.010
84.151 84.151 84.151
84.164
84.027 84.027 84.027 84.027 84.173 84.173 84.173
84.048 84.048

354.00 $
47,043.00 525,815.00
2,341.00 22,007.00
11,488.00
5,207.00 67,808.00
1,407.00 10,845.00
30578.90

354.00 $
86,076.71 18,938.12 47,043.00 459,068.65

354.00 $
7,576.23 47,043.00 524,875.68

354.00
7,576.23 47,043.00 524,875.68

3,588.95 2,341.00 17,404.67

2,341.00 21,503.45

2,341.00 21,503.45

11,488.00

11,488.00

11,488.00

7,816.13 5,207.00 60,854.91 2,199.05
-247.43 1,407.00 10,755.42

5,207.00 64,619.85
1,407.00 10,755.42

5,207.00 64,619.85
1,407.00 10,755.42

2,234.57

10748.00

30578.90

(4)

Total U.S. Department of Education

$ 724893.90 $

747 277.75 $ 727749.53 $

697170.63

- 27

TELFAIR COUNTY BOARD OE EDUCATION SCHEDULE OE FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1

FUNDING AGENCY PROGRAM/GRANT

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Other Financial Assistance Through Telfair County Department of Family and Children Services AFDC - NonPeach Daycare Grant 1994 Grant (5) Child Care Block Grant 1994 Grant (5) Peach Benefits - Trtle IV-A Dayc:are 1994 Grant (5) Title IV-A At Risk Grant 1994 Grant (5) Title IV-A - Transitlonal Daycare 1994 Grant (5) Through Wheeler County Department of Family and Children Services Tltle IV-A At Risk Grant 1993 Grant (5) 1994 Grant (5)

$

6,238.00 $

38,260.00

4,691.00

3,835.00

3,363.00

6,112.00 $ 36,236.00
4,565.00 3,835.00 3,048.00

6,238.00 38,260.00
4,691.00 3,835.00 3,363.00

210.00

140.00 210.00

210.00

Total U. S. Department of Heatth and Human Services

56597.00 $

54146.00 $

56597.00 $

118=.45 (3)

Justice, U. S. Department of Through Office of Planning and Budget Juvenile Justice and Delinquency Prevention 1993 Contract 1994 Contract

16.540 $ 16.540

-1,766.92 $ 20 000.00

27,977.97 $

20,467.21 $ 5975.74

20,467.21 5975.74

Total U. S. Department of Justice

18233.08 $

27977.97 $ 26 442.95 $ _ _,:26=44=2"'.95""-

Total Federal Financial Assistance

$ 1 480 312.30 $

1 516 834.30 $ 1 491 377.80 $ 1634674.41

r> The Major Programs are identified byan asterisk in front of the CFOA 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 cufrent fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) This grant includes State, and/or Local and Other Funds, the exact amounts of which could net be determined.

See notes to the general purpose financial statements.

28 -

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Merchants and Citizen's Bank, McRae, Georgia
INTEREST BEARING ACC0UNTS
Merchants and Citizen's Bank, McRae, Georgia
Super N.O.W. Accounts (3.00%)
Security State Bank, McRae, Georgia
Super N.O.W. Accounts (3.10%)

$

110.40

1,162,772.40 165,966.96

$ 1,328,849.76

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

TELFAIR COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30 1994
INVESTMENT POOL Office of Treasury and Fiscal Services Local Government Investment Pool (4.194%)

SCHEDULE "3" $ 20,353.75

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

TELFAIR COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE 4

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Lottery Program Computers in Classrooms Federal Programs ESEA - Chapter 1 Education of Deprived Children ESEA - Chapter 2 Regular lndMduals with Disabilities Education Act TIiie VI, B - Flow Through other Contracts Elementary School Model Foreign Language Program

$ $ 19,830.90
11,057.42

630.55 819.19
1,375.55
65.809.17 4,098.78 3,764.94

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 191,599.90

Human Resources, Georgia Department of Day Care Slot Purchase Program

2,591.00

Office of Planning and Budget Children and Youth Coordinating Council Juvenile Justice and Delinquency Prevention

5,975.74

Telfair County Tax Commissioner County Wide Bond Tax County Wide School Tax

109,700.62

$

42.20

Various Sources Contracted Meals

678.30

TOTAL
630.55 819.19 19,830.90 1,375.55 65,809.17 4,098.78 3,764.94
11,057.42 191,599.90
2,591.00
5,975.74 42.20
109,700.62 678.30

s 140,588.94 s ss,743.22 s 191,599.so s _ _,;;:42:;;-:;;20:. s 417,974.26

See notes to the general purpose financial statements.

- 31 -

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

SCHEDULE 5

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995

TOTAL DEBT SERVICE

1972ISSUE

INTEREST

PRINCIPAL

$ 20,540.00 $

540.00 $===2=0.!..0.0...,0..0.=0

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period

$

40,000.00

20,000.00

Bonds Payable at June 30, 1994

$===2=0,..,00..0.=.o=o

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

FEB 1 -AUG 1 AUG1

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

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

SCHEDULE"6"

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 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Student Information Systems Innovative Programs Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and_PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
CONTRACT Education, Georgia Department of Elementary School Foreign Language Model Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 3,855,007.00 566,560.00 160,812.00 167,444.00 52,098.00
1,128,627.00
303,070.00 88,320.00
154,363.00 177,674.00 69,638.00 -670,763.00 510,054.00
$ 3,064.50
500.00 1,700.00

51,260.00 21,529.00

450.00 14,468.40

2,316.00 19,607.55 3,656.30 170,883.30 80,645.00

$ 3,855,007.00 566,560.00 160,812.00 167,444.00 52,098.00
1,128,627.00
303,070.00 88,320.00
154,363.00 177,674.00 69,638.00 -670,763.00 510,054.00 51,260.00
3,064.50
500.00 1,700.00 21,529.00
450.00 14,468.40
2,316.00 19,607.55 3,656.30 170,883.30 80,645.00

$ 601,492.45

601,492.45

45 480.00

45 480.00

$ 6,628,566.90 $ 349,897.15 $ 601,492.45 $ 7,579,956.50

See notes to the general purpose financial statements.

33 -

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

SCHEDULE'7"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Anti-Trust Milk Settlement Day Care Fees Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Recovery of Prior Year Questioned.Cost
Allotment to Telfair County High School
Activity Account Rents Sales
Lunches and Breakfast School Assets Tunion Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 2,136,010.42 10,118.77 15,989.66

$ 2,380.88 $

2,380.88

2,136,010.42

10,118.77

15,989.66

$

332.92

45,736.20

1,729.80 29,031.96
220.00 809.21

3,971.06 40.00

814.69

332.92 45,736.20
1,729.80 33,817.71
260.00 809.21

610.00
9,727.00 12,010.00 3,264.53

$ 7,653.79 51,431.60

7,653.79 610.00
51,431.60 9,727.00 12,010.00 3,264.53

$ 2,219,521.35 $ 101,511.78 $ 7,653.79 $ 3,195.57 $ 2,331,882.49

See notes to the general purpose financial statements.

- 34 -

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

SCHEDULE "8"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,526,752.09 $ 1,573,268.73 16,570.20 23,526.19 14,326.70 20,773.75 72,381.19
32,656.00 27,335.96
9,273.00 6,406.74 271,906.16 291,386.58
61,711.81 19,932.82

922,156.57 $ 249,198.45
7,696.51 58,805.44
1,509.80 76,295.00
1,219.50 4,218.09 4,854.52
3,143.32 141,766.22
624.00 405,146.82
2,746.64 2,586.00 1,729.80 1,510.97

6,448,908.66 1,822,467.18
24,266.71 82,331.63 14,326.70 20,773.75 73,890.99 76,295.00 33,875.50 31,554.05 4,854.52 9,273.00 9,550.06 413,672.38 292,010.58 405,146.82 64,458.45 22,518.82 1,729.80 1,510.97

47,231.97 7,646.91
156,879.35

48,103.91

47,231.97 7,646.91
204,983.26

Total Expenditures

$ 8,179,966.15 $ 1,933,311.56 $ 10,113,277.71

See notes to the general purpose financial statements. - 35 -

EXeENPmJRES
Operating ~ Salaries Employee Benefits Empk7feeTravel Prope,tySeNices other Pun:hased SeNices Supplie& Energy Dues and Fees Other Expenditures
Nonoperating ~ Equipment
Total Expenditures

IELEAIB Q;Q;! lfiti aQABQ QE El2~~ ~ft;! II EQE EXeE~Qffi IRES aY ~EC'.I
LOTJFRY PBQGBAMS
YfAR ENPEP ltJNE i3Q 1994

SCHEDULE "9"

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

MEDIA CENTER
ANO LIBRARY EQUIPMENT

PRE4<:INDERGARTEN PROGRAM

SAFE SCHCXX.S
GRANT

TOTAL

:,316.00 $

3,299.55 S

3,656.30

16 308.00

2 316.00 $

19 607.55 $

3 656.30 $

73,143.24 17,826.19
1,217.84
s
445.12
52,226.69 624.00 359.00 964.11

76,145.00

24 OTT.11

4 500.00

73,143.24 17,826.19
1,217.84 76,145.00
445.12 61,498.54
624.00 359.00 964.11
44 885.11

170 883.30 S

80 645.00 $ 2TT108.15

See notes to the general purpose financial statements.

36

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

SCHEDULE "1 o

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

4,749,823.00 $

52,098.00

$

4,862,113.14

192,873.29 $

$

5,054,986.43 $

52,331.69 52,331.69

-19,413.59

$

5,035,572.84 $

-3,815.68 48,516.01

$

0.00 $

3 581.99

See notes to the general purpose financial statements. - 37 -

Jfl FAIR QOI INJY RQABQ OF EQI ICATION ANAi VSIS Of M1NIMllM EXPfNQffilRE BEQI JJRfMENTS - BY PBOOBAM
GENERAi Fl lNP-QlJAI ITY RAIC EQI k?A,TIQN PROGRAMS
YEAR fNQEQ JUNE 30 1994

GENERAL ANQ CAREER EDI. JCATION PRQGRAMS Kindergarten (1 Grades 1 - 3 (1 Sub-Total - K-3 Grades 4 5 (1 Grades6-8 (1 Grades 9 -12 (1 High School Laboratories r) Vocational Education Laboratories (i Total General and Career Education Programs
SPfCIAI fQllCATIQN PROGRAMS Regular Programs catego,y I (1 catego,y II (1 catego,y Ill (1 catego,y IV (1
Itinerant Supplemental Speech
Sub-Total - Reguiar Catego,y V (Gifted) (1
Total Special Education Programs
r, Rl;MfQIAI fplJCATIQN PROG;RAM
MEDIA CFNTFR PROGRAMS
Total Thirteen Weighted and Media Center
STAFF QEVf[ OPMfNT PROGRAMS (1) Cost cl ln&truclion Professional Development
Total Staff Dewlopment
C, Identifies Thirteen Weighted Programs. Note (1) $6,057.75 cl the allotment for Professional
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL ~

ORIGINAL

MIO..TERM

REQUIRED

371,524.00

334,371.60 $

0.00 $

334,371.60

1 007184.00

906 465.60

906 465.60

1,378,708.00 90 $ 1,240,837.20 $

0.00 $ 1,240,837.20

537,453.00 90

483,707.70

0.00

483,707.70

920,589.00 90

828,530.10

828,530.10

544,051.00 90

489,645.90

489,645.90

212,206.00 90

190,985.40

190,985.40

262 000.00 90

235 800.00

235 800.00

3 855 007.00

$ 3469 506.30 $ ---~0~.00~ $ 3 469 506.30

539,762.00

485,785.80 $

0.00 $

485,785.80

539,762.00 26 798.00
588 580.00 160 812.00 167 444.00

90 $ 90
90 $
90 s

485,785.80 $ 24118.20
509 904.00 $ 144 730.80 $ 150 699.60 S

4,749,823.00

s 4,274,840.70 $

0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $

"485,785.80 24118.20
509 904.00 144 730.80 150899.60

0.00 $ 4,274840.70

17,770.75 100 $ 34 327.25 100

17,TT0.75 s
34 327.25

52,098.00

52 098.00 $

4,801 921.00

4 326,938.70 $

0.00 $

17,770.75 34327.25

0.00 $

52,098.00

0.00 $ 4 326,938.70

- 38

sa-lEOULE '"11"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNOEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDllURE

FOR REQUIRED

ACTUAL

ALLOTMENT

326,250.00 $

345,465.59

8,121.60 $

4,939.11

879 753.60

1066839.05

26 712.00

30053.98

1,206,003.60 $ 1,412,304.64 $

0.00

34,833.60 $

34,993.09 $

0.00

470,007.00

641,036.85

0.00

13,700.70

14,992.76

0.00

805,810.50

895,410.73

0.00

22,719.60

22,831.57

0.00

469,710.00

617,857.56

0.00

19,935.90

27,187.85

0.00

183,240.00

194,023.70

0.00

7,745.40

8,962.14

0.00

207 301.50

224 018.35

0.00

28 498.50

31 244.66

0.00

3 342072.60 $ 3,984651.83 $

0.00

127 433.70 $

140 212.07 $

0.00

0.00 163,919.70 $ 275,769.90
31,337.10 1,212.30 2 424.60

186,383.86 329,604.84
22,033.41

0.00 3,228.30 $ 6,907.50
986.40

5,467.91 8,079.79 1,848.00

474,663.60 $

538,022.11 $

0.00

11,122.20 $

15,395.70 S

0.00

23 502.60

41 682.56 $

0.00

615.60

621.82 $

0.00

498166.20 $

579 704.67

11 737.80 $

16 017.52

142363.80 $

143 474.72 $

0.00

2 367.00 $

4 068.03 $

0.00

118 597.50 $

154 281.92 $

0.00

32102.10 $

32 575.67 $

0.00

4,101,200.10 $ 4,862,113.14 $

0.00

173,640.60 $

192,873.29 $

0.00

4,101,200.10 $ 4,862,113.14 $

17,TT0.75 $ 34 327.25

21,586.43 $ 30 745.26

0.00 3 581.99

52,098.00 $

52,331.69 $

3,581.99

0.00

225,738.60 $

245,204.98 $

3,581.99

- 39 -

TELFAIR COUNTY BOARD OF EDUCATION

SCHEDULE "12"

SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

YEAR ENDED JUNE 30 1994

BOARD MEMBER ADDRESS
Mr. Johnny Spurlin, Chairman (*) Route 1, Box 63C McRae, Georgia 31055
Mrs. Sylvia Bowen (*) Route 1, Box 57 Jacksonville, Georgia 31544
Mr. Johnny Higginbotham (*) Liberty Street McRae, Georgia 31055
Dr. Joe Tom Jeffries (*) Route 1 McRae, Georgia 31055
Mr. Edison McDonald (*) Spaulding Drive McRae, Georgia 31055
Mr. Melvin Meeks (*) Route 1, Box 238 Helena, Georgia 31037
Mrs. Joyce S. Thomblin (*) P. 0. Box366 Lumber City, Georgia 31549

COMPENSATION

TRAVEL

$

1,800.00 $

706.49

1,800.00

46.84

1,800.00

427.91

1,800.00

1,800.00

545.46

1,800.00

1,800.00

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

12,600.00 $===1=,7=2=6.=70=

See notes to the general purpose financial statements. - 40 -

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
May 1, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Telfair 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 Telfair County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 1, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Telfair 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.
The results of our tests indicate that, with respect to the items tested, the Telfair County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

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

CLV:cm 94CRL-10

Claude L. Vickers State Auditor

C!AUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Telfair County Board of Education
SINGLE AUDIT REPORT O'N COMPLIANCE WITH THE GENERAL REQUIREMENTS
APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Telfair County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 1, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-40

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

CLV:cm 94CRL-40

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1995

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

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 Telfair County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 1, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Telfair 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, 1994. The management of the Telfair County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Telfair County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Telfair County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
7_:~
Claude L. Vickers State Auditor
CLV:cm 94CRL-80

C!AUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Telfair County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 1, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Telfair County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

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

94CRL-120

came to our attention that caused us to believe that the Telfair County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION III INTERNAL CONTROL

C!AUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Telfair 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 Telfair County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 1, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the Telfair County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Telfair County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfi11ing this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

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

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

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

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

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

We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, a reportable condition was noted in the following control category:

General Fixed Assets

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

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

This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Telfair County Board ofEducation's financial statements and this report does not affect our report thereon dated May I, 1995.

94ICL-3

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:cm 94ICL-3

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Telfair County Board ofEducation
SINGLE AUDIT REPORT dN THE INTERNAL CONTROL STRUCTURE USED
IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Telfair County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 1, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Telfair County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 1, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits 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 Telfair County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 1, 1995.
94ICL-5

The management ofthe Telfair 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 Joss 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 Jaws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Telfair County Board of Education expended 68% of its total Federal financial assistance under major Federal financial assistance programs.

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

94ICL-5

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.

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 constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.

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.

Ra.:ootl~

CLV:cm 94ICL-5

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Documentation Financial Statements Finding Resolved Audit Control Number 7341:93-01
The audit report for the year ended June 30, 1993, noted that the Board members and the Superintendent did not always submit individual travel expense reports for reimbursement. Instead, Board members and the Superintendent collectively used a credit card issued on the Board's behalf to charge most travel expenses. During the year under review, the Telfair County Board ofEducation implemented policies and procedures that provided for a separate and distinct accounting for each person receiving travel reimbursement, as promulgated by Chapter 40 of the Financial Management for Georgia Local Units of Administration.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $7,780.25 Audit Control Number 7341-93-03
The audit report for the year ended June 30, 1993, noted that the Board made a payment of$15,434.04 from GSFIC Project No. 88-734-111 to the Telfair High School Activity Account. The Official Code of Georgia Annotated Section 20-2-411 provides, in part, as follows:
"...school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses; for extracurricular and interscholastic activities, including literary events, music, and athletic programs within individual systems when such activities are sponsored by local boards of education as an integral part of the total school program; and for no other purpose...".
A payment of this nature is considered to be beyond the customary scope of expenditures for "educational purposes". This improper payment occurred because management disregarded the specific limitations imposed upon the Board by Georgia Laws. During the year under review, the Board secured reimbursement of $7,653.79. Appropriate action should be taken by the Board to secure reimbursement ofthe remaining balance of$7,780.25 for deposit to the Capital Projects Fund.

TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Outstanding Loans Financial Statements Finding Resolved Audit Control Number 7341-93-04
On December 31, 1992, the General Fund had unpaid loans outstanding in the amount of $375,000.00. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia provides, in part, as follows:
"The governing authority of any county, municipality or other political subdivision of this state may incur debt by obtaining temporary loans in each year to pay expenses. ... Such loans shall be payable on or before December 31 of the calendar year in which 9Uch loan is made...".
During the year under review, the Telfair County Board ofEducation had no loans outstanding at December 31, 1993, in conformity with the above quoted code section.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7341-93-02
The audit report for the year ended June 30, 1993, noted that the management ofthe Telfair County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland; buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED ruNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $3,581.99 Audit Control Number 7341-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $21,586.43 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) Program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost of Instruction Program purposes resulting in an underexpenditure of$3,581.99 for the minimum required allotment of$34,327.25 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE Programs in a subsequent fiscal period.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

TELFAIR COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $7,700.25 Audit Control Number 7341-93-03
We concur with this finding. Finding will be resolved in FY 96.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7341-93-02
We concur with the recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional staff, the Board has decided not to pursue the recording of general fixed assets on the financial statement.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $3,581.99 Audit Control Number 7341-94-01
We concur with this finding. This finding will be resolved by Georgia Department of Education through a future increase in Board's local fair share portion of QBE allotments.