Audit report, Terrell County Board of Education, Dawson, Georgia, year ended June 30, 1994

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

AUDIT REPORT TERRELL COUNTY BOARD OF EDUCATION
DAWSON, GEORGIA YEAR ENDED JUNE 30, 1994

TERRELL COUNTY BOARD OF EDUCATION TABLE OF CONTENTS

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES. ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

SCHEDULE OF REVENUE

4

STATE FUNDS

28

5

LOCAL AND OTHER FUNDS

29

TERRELL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

30

7

LOTTERY PROGRAMS

31

8

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

33

10

BY PROGRAM

34

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

TERRELL 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
SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 18, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Terrell County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Terrell County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
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-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 Terrell County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Terrell County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Terrell 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.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-13

TERRELL COUNTY BOARD OF EDUCATION - 1-

TERRELL COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1994

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Prepaid Items Amount to be Provided in Future Years
For Payment of Capital Lease Agreements
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 1,089,733.22 $ 530,302.95 $

73,724.27

719,694.83

176,542.61

176.51

2,557.73 1,411.22

$ 1,809,604.56 $ 710,814.51 $

73,724.27

LIABILITIES AND FUND EQUITY
Ll8BILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 202,499.26 $ 109,514.58

787,000.49

153,980.94

15,632.94

19,444.74

$ 989,499.75 $ 298,573.20

$

94,617.94

$

26,056.44

4,011.66

2,557.73 1,411.22

$

98,629.60 $

30,025.39

721,475.21

382,215.92 $

$ 820,104.81 $ 412,241.31 $

73,724.27 73,724.27

$ 1,809,604.56 $ 710,814.51 $

73,724.27

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

EXHIBIT"A"

FIDUCIARY FUND TYPES EXPENDABLE TRUST FUND

$

19,165.84

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onl:i} JUNE 30, 1994 JUNE 30, 1993

$ 1,712,926.28 $ 1,346,308.20

896,237.44

916,340.43

2,557.73 1,411.22
176.51

3,564.15 1,266.58

$

53,965.57

53,965.57

27,960.60

$

19 165.84 $

53,965.57 $ 2,667,274.75 $ 2,295,439.96

$

312,013.84 $

215,956.82

940,981.43

865,874.89

15,632.94

16,481.79

19,444.74

$

53,965.57

53,965.57

27,960.60

$

53,965.57 $ 1,342,038.52 $ 1,126,274.10

$

19,165.84

$

19,165.84

$

19 165.84 $

$

94,617.94 $

40,351.94

26,056.44

46,097.07

4,011.66

2,190.29

2,557.73 1,411.22

3,564.15 1,266.58

$

128,654.99 $

93,470.03

1,196,581.24

1,075,695.83

$ 1,325,236.23 $ 1,169,165.86

53,965.57 $ 2,667,274.75 $ 2,295,439.96

-3-

TERRELL COUNTV BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

TOTAL

$ 6,068,760.00 $ 253,262.93

43,717.33 1,797,987.56

1 471,047.68

203341.66 $

$ 7 583 525.01 $ 2254592.15 $

$ 2580.35

6,322,022.93 1,841,704.89 1676969.69

2580.35 $ 9840697.51

$ 5,044,821.71 $ 913,674.02 $

157,184.45 260,796.09 185,398.16 160,506.17 470,255.56 29,291.50 577,593.92 350,914.72 77,651.48
4,090.51
40,351.42 9,360.00

201,624.80 102,550.30
2,928.36 69,204.65
2,004.37
26,593.01 3,882.03 1,410.46
40,224.95 925,224.01
34,873.00

26,497.06 6409.20

11,901.82 4518.18

$ 7 401121.95 $ 2 340 613.96 $

$ 182403.06 $ -86.021.81 $

0.00 $ 5,958,495.73

358,809.25
363,346.39 188,326.52 229,710.82 4n,2ss.93
29,291.50 604,186.93 354,796.75
79,061.94 44,315.46 925,224.01
40,351.42 44,233.00

38,398.88 10927.38

0.00 $ 9741735.91

2580.35 $

98 961.60

$

32,153.85 $

32,250.00

1,191.20

-1191.20

$

30962.65 $

33441.20

$ 213,365.71 $ -52,580.61 $

606,739.10

465,683.70

-1,006.42 144.64

$

64,403.85

1,191.20

-1191.20

$

64403.85

2,580.35 $ 163,365.45 71,143.92 1,143,566.72

-1,006.42 144.64

FUND BALANCE JUNE 30

820.104.81 $ 412.241.31 $

73,724.27 $ 1.306,070.39

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

EXHIBIT"B"

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS {Memorandum Onl;tl
YEAR ENDED JUNE30 1994 JUNE30 1993

$

0.00 $ 6,322,022.93 $ 6,286,856.54

1,841,704.89

1,921,546.38

1676969.69

1424778.04

$

0.00 $ 9 840,697.51 $ 9,633 180.96

5,958,495.73 $ 5,800,249.78

$

6,433.30

358,809.25 363,346.39 188,326.52 229,710.82 472,259.93
35,724.80 604,186.93 354,796.75
79,061.94 44,315.46 925,224.01 40,351.42 44,233.00

303,073.45 443,449.64 184,296.42 212,409.57 460,711.09
26,821.25 513,404.72 447,098.52
80,131.82
816,439.01 42,413.29
275,168.50

38,398.88 10,927.38

$

6,433.30 $ 9 748169.21 $ 9 605,667.06

$

-6 433.30 $

92528.30 $

27,513.90

$

64,403.85

1,191.20 $

-73,674.96

-1,191.20

73,674.96

$

64,403.85 $

0.00

-6,433.30 $ 25,599.14

156,932.15 $ 1,169,165.86

27,513.90 1,143,900.69

-1,006.42 144.64

-2,022.09 -226.64

19,165.84 $ 1,325,236.23 $ 1,169,165.86

-5-

IEBBELL QQUNIY eQABD QF EQ~JQaIIQ~
QQMEll~EQ SI8IEMEtH QE BE~EN!.!!;~ Et!SP&NQinJB!; ANQ Qt:!8NGE IH E!.!t:U:2 aei~ 8~QE
e~n~!il 6NQ Y~EI - GQYf R~Ml;tll.M. E!.!NQ n:e~
YEAR ENDl;Q JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~

State Funds Federal Funds LocaJ and Other Funds

6,322,022.93 $ 1,841,704.89 1,676,969.69

0.00 $

6,322,022.93 $ 6,102,027.00 $ 1,841,704.89 1,701,181.03 1676 969.69 1 543,214.50

218,995.93 1-40,513.86 133,755.18

Total Revenues

9,840,697.51 $

0.00 $ 9,840,697.51 $ 9 346,432.53 $

494,264.98

EXPENIJIIURE

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital OutJay Debt Service

$ 5,956,495.73 $
358,809.25 363,346.39 188,326.52 229,710.82 4n,2ss.93
29,291.50 604,186.93 354,796.75 79,061.94 44,315.46 925,224.01
-40,351.42 44,233.00 49,326.26

0.00 $

5,956,495.73 $ 6,106,nS.63 $

358,809.25 363,346.39
188,326.52 229,710.82 4n,2ss.s3 29,291.50 604,186.93 354,796.75 79,061.94 44,315.46 925,224.01

368,404.18 381,048.41 194,765.86 223,426.47 480,108.99 33,057.28 573,031.00 343,486.04
6,000.00 47,459.35 847,953.97

-40,351.42 44,233.00 49,326.26

45,244.00 19,704.00

148,232.80
8,584.83 17,702.02 6,439.34 -6,284.35 17,848.06 3,765.78 -31,155.93 11,310.71 -73,061.94 3,143.89 -77,270.04
4,892.58 24,529.00 -49,326.26

Total Expendltu,es

9,741,735.91 $

0.00 $ 8,741,735.91 $ 8,680,418.18 $

-61,317.73

Excess of Revenues over (under) Expenditures

98,961.60 $

0.00 $

98,961.60 $ -333,985.65 $

432,947.25

QTHER EINANCl~G SOURQE (YEl

Other Sources Other Uses

65,595.05 $ 1,191.20

0.00 $

65,595.05 $ 177,535.50 $ 1,191.20 214,516.50

-111,940.45 213,325.30

Total Other Financing Sources (Uses)

64,403.85 $

0.00 $

64-403.85 $ -36,981.00 $

101,384.85

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

163,385.45 $

0.00 $

163,365.45 $ -370,966.65 $

534,332.10

FYNQ eAL.eNCE J~II Y 1 1993

1,143,566.n

-4,830.73

1,138,735.99 1,405,476.24

266,7-40.25

AQJUSTMENIS

Prior Year (Net)

0.00

0.00

-43,424.53

43,424.53

FQQQ l~l(~NTORY NET !,HAN!,~ IN P~RIQQ

Donated Commodities

-1,006.42

1,006.42

0.00

0.00

Purchased Food

144.64

-144.64

0.00

0.00

FUND BALANCE JUNE 30 1994

$ 1,306,070.39 $

-3,968.95 $ 1,302,101.44 $ 991,085.06 $

311,016.38

The notes to the general purpose financial statements are an integral part of this statement. -6-

TERRELL COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Terrell County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception 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 Terrell County Board of Education.
Based upon the application of the above criteria, the Terrell County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Terrell 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.
- 7-

TERRELL COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the trust 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:
EXPENDABLETRUSTFUND Self-Insured Employee Benefit Fund - the fund used to account for Unemployment Compensation Insurance contributions and expenditures.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
- 8-

TERRELL COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: 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 and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governm!lntal funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically 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 are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Terrell County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board
- 9-

TERRELL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.

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

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including 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 ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, 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 Terrell County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on August 26, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January I, 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 Terrell County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1993 tax year (calendar year) for the Terrell County Board ofEducation was as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations

lL.8.5. mills

- 10 -

TERRELL COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING 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 of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
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, results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount 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:

- 11 -

TERRELL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the UnitedStates government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $2,411,440.09. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

- 12 -

TERRELL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category
1 2 3
Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance
$ 173,724.27 1,932,701.00 305 014.82
$2 4) I 440 09

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. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$6,433.30 was paid in claims.

Note 5: OPERATING LEASES

The Terrell County Board of Education has entered into various leases as lessee for a postage meter and modular buildings. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1994, amounted to $16,268.22. Future minimum lease payments for these leases are as follows:

Year Ending 1995 1996 Total
Note 6: GENERAL LONG-TERM DEBT

Amount $ 2,718.12
1 941.61 $ 4 659 73

CAPITAL LEASES The Terrell County Board of Education has entered into various lease agreements as lessee for office equipment, musical instruments and modular buildings. 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.

- 13 -

TERRELL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: GENERAL LONG-TERM DEBT

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

Balance July 1, 1993
Retroactive Restatement ofPrior Year Balances
Balance IuJY 1, 1993 Restate
Additions
Deletions
Balance June 30, 1994

Capital Leases $ 24,527.40
3 433.20
$ 27,960.60 64,403.85 38 398.88
$ S3 96~ SZ

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

Fiscal Year Ended June 30
1995 1996 1997 1998 1999
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments
Note 7: SIGNIFICANT COMMITMENTS

Capital Leases
$ 37,646.58 10,608.86 6,153.72 6,153.72 3 589.67
$ 64 152.55
$ 10 186.98
$ S3 96~ SZ

At June 30, 1994, the Board had encumbrances in the amount of$79,005.45 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department of Education 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:

- 14 -

TERRELL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: SIGNIFICANT COMMITMENTS

Algebra Classrooms
Computer in Classrooms
Distant Leaming Media Center and Library Equipment Safe Schools Grant

$ 1,424.82 1,714.19 3,980.00
52,441.70 19 444.74
$ 79 oos 45

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: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

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

- 15 -

TERRELL COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $5,593,227.48; total payroll was $6,427,135.60.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $996,155.28, ofwhich $660,559.36 was made by the Board and $335,595.92 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 Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo oo

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 contribution for the year ended June 30, 1994 of$660,559.36 was actuarially determined and represented .1267"/o of total contributions made by all participating employers.

- 16 -

TERRELL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
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 ofGeorgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as 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 55 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 $1,880.00. 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 10: SURETY BONDS
The School Superintendent, Mr. Robert D. Aaron, is bonded in the amount ofSl0,000.00 with the Allstate Insurance Company, Northbrook, Illinois, their Bond No. 074-013 665SB, on which premium is paid through December 31, 1996.
- 17 -

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

Il:BBEL~ s.Q!l!:!D'. !!Q,!,BQ QF l;QUCAl]Q!:!
CQMBINING BAL(INCE :l!:ma
l!eEQIAL BEVENUE E!,!NQ
JUNE 30 1994

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE 11-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER 2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN

FLOW THROUGH

EDUCATION

$ 413,906.67 $ 28,337.49 $

58,275.70$

304.07

23,162.99

51,388.32

78,220.85

$

8,221.50

2,557.73 1,411.22

Total Assets

$ 441,038.61 $ 79,725.81 $

136,496.55 $

304.07 $

8,221.50

~IABILIIIES ANQ FU!:!Q EQUITY
~
Cash overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabifrties
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 26,205.10 $ 28,648.64
$ 54,853.74 $

$

2,557.73

1,411.22

3,968.95

362,215.92 $

$ 386, 184.87 $

56,340.44 $ 3,940.63
19,444.74 79,725.81 $
0.00 0.00 $

17,727.83 $ 96,980.40
844.19 115,552.42 $
20,944.13
20,944.13 0.00 $
20,944.13 $

Total Liabilities and Fund Equity

$ 441,038.61 $ 79,725.81 $

136,496.55 $

$ 304.07

859.19 2,250.00

304.07 $

3,109.19

$

5,112.31

$ 0.00
o.oo $

5,112.31 0.00
5,112.31

304.07 $

8,221.50

See notes to the general purpose financial statements.

EXHIBIT"E"

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

$

2,171.30 $

5,771.47

$

15,546.95

TERRELLLEE-WORTH
SHARED SERVICES
FUND

TOTALS JUNE 30, 1994 JUNE 30, 1993

37,029.76 $ 545,796.46 $ 443,521.46

176,542.61

219,776.70

2,557.73 1,411.22

3,564.15 1,266.58

2,171.30 $

5,771.47 $

15,548.95 $

37,029.76 $

726,308.02 $

666,128.91

$

$

2,171.30

$

2,171.30 $

$ 149.24 1,128.76 4,493.47
5,771.47 $

14,634.32 914.63 $
15,548.95 $

$ 5,623.27 27,223.14 4,183.35
37,029.76 $

15,493.51 109,514.58 $ 153,980.94
15,632.94 19,444.74
314,066.71 $

45,922.79 140,040.63
16,461.79
202,445.21

$

0.00 $

0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

26,056.44 $

46,097.07

$ 0.00 0.00 $

2,557.73 1,411.22
30,025.39 $
382,215.92
412,241.31 $

3,564.15 1,266.58
50,927.80
414,755.90
465,683.70

2,171.30 $

5,771.47 $

15,548.95 $

37,029.76 $

726,308.02 $

666,128.91

-19-

I~RR!;I L COUt:i!Y BOARD OF !;;OUCATIQN COMBINING STATiaMENT OF REVENUE!, EXPlaNDITURES ANQ CHANGE IN FUNQ ML/INCES
SPECIAb REV!aNUE FUNQ YEAR ENQED JUNE :)0 1994

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEII-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN

FLOW THROUGH

EDUCATION

REVENUES

State Funds Federal Funds Local and other Funds

$ 51,576.00 $ 173,612.93

789,516.36

$

60,642.33

774,122.20 $

23,689.00 $

20,287.72

Total Revenues

$ 901,734.69 $ 173,612.93 $

774,122.20 $

23,689.00$

20,287.72

EXPENQITURES

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

$ 128,508.25 $

16,037.91 1,584.20

$

7,165.94

1,977.56

25,418.26 1,882.47

925,131.17

181.84

663,611.08 $
7,007.83 2,928.36 59,864.90 2,004.37
906.00 22.00
1,410.46 40,043.11
92.84 34,873.00
11,901.82 4,518.18

23,629.26
$ 59.74

17,516.60

Total Expenditures Excess of Revenues over (under) Expenditures

$ 934,274.67 $ -32,539.98 $

173,612.93 $ 0.00 $

829,183.95 $ -55,061.75 $

23,689.00 $ 0.00 $

17,516.60 2,771.12

OIHER Fll!!ANCJNG SQURCE

Capital Leases Operating Transfers In

$

32,250.00

Total Other Financing Sources

$

32,250.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ -32,539.98 $

FUND BALANCE JULY 1

419,586.63

Food Inventory - Net Change In Period Donated Commodities Purchased Food

-1,006.42 144.64

0.00 $ 0.00

-22,811.75 $ 43,755.88

0.00 $ 0.00

2,771.12 2,341.19

F!JND BALANCE JUNE 30

$ 386,184.87 $

0.00 $

20,944.13 $

0.00 $

5,112.31

See notes to the general purpose financial statements.

-20-

EXHIBIT"F"

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TERRELLLEE-WORTH
SHARED SERVICES
FUND

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

34,684.70 $

17,495.53 $

34,684.70 $

17,495.53 $

$ 27,213.25
27,213.25 $

28,074.00 $ 110,978.80 142,699.33
281,752.13 $

253,262.93 $ 1,797,987.56
203,341.66
2,254,592.15 $

92,287.00 1,872,544.93
182,383.06
2,147,214.99

$

16,994.70 $

18,686.73 $

24,830.43 $

37,413.57 $

913,674.02 $ 840,030.02

17,690.00

2,114.07 268.75

167,896.89 76,441.67

201,624.80 102,550.30
2,928.36 69,204.65
2,004.37 26,593.01
3,882.03 1,410.48 40,224.95 925,224.01 34,873.00

148,971.72 165,333.83
2,731.61 57,704.86
2,374.37
2,117.03 16,171.66
816,439.01

11,901.82 4,518.18

$

34,684.70 $

18,686.73 $

27,213.25 $

281,752.13 $ 2,340,613.96 $ 2,071,874.11

$

0.00 $

-1,191.20 $

0.00 $

0.00 $

-86,021.81 $

75,340.88

1,191.20

$

1,191.20

$

32,250.00

1,191.20 $

$

33,441.20 $

568.06 568.06

$

0.00 $

0.00 $

0.00 $

0.00 $

-52,580.61 $

75,908.94

0.00

0.00

0.00

0.00

465,683.70

392,023.49

-1,006.42 144.64

-2,022.09 -226.64

$

0.00 $

0.00 $

0.00 $

0.00 $

412,241.31 $

465,683.70

-21 -

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

ANNUAL PAYMENT HAZARD AND
DEPRECIATION RESERVE FUND

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 49,599.55 $

24,124.72 $

73,724.27 $

14,460.22

56,683.70

Total Assets

$ 49,599.55 $

24,124.72 $

73,724.27 $

71,143.92

FUND EQUITY
Fund Balances Unreserved Undesignated

$ 49,599.55 $

24,124.72 $

73,724.27 $

71,143.92

See notes to the general purpose financial statements. -22-

JERREi I COUNTY BOARD OF EDUCATION
COMBINING STATEMENT Of REVENUES FXPfNDITURES ANQ CHANGES IN fUNQ BAI ANCES CAPITAi PROJECTS FUNQ YEAR ENDED JUNE 30 1994

EXHIBIT"H"

.BfYE.N.U
State Funds Local and Other Funds
Total Revenues
EXPENDITURES Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES} Operating Transfers In Operating Transfers Out
Total Other Financing Sources {Uses)
Excess of Revenues and Other Financing Sources over {under) Expenditures and Other Financing Uses
FUNQ BAI ANCE JULY 1

REGULAR

ANNUAL PAYMENT HAZARD AND
DEPRECIATION RESERVE FUND

TOTALS YEAR ENDED JUNE30 1994 JUNE 30 1993

$

2 580.35 $

$

2580.35 $

0.00 $ 0.00 $

$ 2580.35
2580.35 $

151,034.70 4374.01
155 408.71

$

0.00 $

$

2580.35 $

$

0.00 $

0.00 $

$

2,580.35 $

47 019.20

0.00 $ 0.00 $

0.00 $ 2,580.35 $

275,168.50 -119 759.79

0.00 $ 0.00 $ 0.00 $ 24124.72

0,00 $ 0.00 $

73,106.90 -59307.60
13 799.30

2,580.35 $ 71143.92

-105,960.49 177104.41

FUND BALANCE JUNE 30

$ 49 599.55 $

24124.72 $

73724.27 $

71143.92

See notes to the general purpose financial statements.

-23-

IEBBELL !:.QL!l!ID'. l!Ql\BQ QF EQU!:;AIIQl!I
!il!:.t:tEQL!LE QE EEQEBAL Ell!IAl!l!:.IAL A!il!ill!ilTAl!l!:.E
XEAB ENQEQ JUNE 30 1994

SCHEDULE 1

FUNDING AGENCY PBQGRAMIGBANI
Agricufture, U. S. Department of Direct Food and Nutrition Service summer School Food Service Program for Chilcken 1993 Grant 1994Grant Through Georgia Department of Education Food and Nutrition Program Child and AdUft Care Food Program 1994 Contract Food Services School Breakfast Program 1993Granl 1994Grant National School Lunch Program 1993 Grant 1994Grant Food Dislrlbulion Program (1)

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS!

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 10.559 $

$ 95,688.70

58,389.00 $ 20,843.00

48,911.00 $ 34,488.76

48,911.82 34,488.76

10.558
10.553 10.553
10.555 10.555 io.550

2,274.31
172,948.38 477,264.01
53629.90

2,274.31
23,424.70 168,854.30
70,571.40 471,840.86 N/A

2,274.31
172,948.38 477,264.01
53629.90

(2)
(2) 797,244.19 (3)
53629.90

Total U. S. Department of Agriculture

$ 801805.30 $

816197.57 $ 789516.36 $

934274.67

Education, U. S. Department or

Th<ough Georgia Department or Education

E - . Y and Secondary Education Act

Chapler1

Education of Deprived Childran

1993 Regular

84.010

1993 SUmmer School

84.010

1993 carry-Oller

84.010 $

1994 Regular

84.010

1994 SUmmer School

84.010

State Program lmprovernenls

1993 Regular

84.218

Chapler2

Block Grant - Flow Through

1994 Regular

84.151

Tollell

E - Mathemalics and Science

Education

1993 Regular

84,164

19114 Regular

84.184

Individuals with Disabilities Education Act

n1eV1,B

FlcwThrough

1993 Regular

84.027

1993 C8ny-Oller

84.027

1994 Regular

84.027

Preschool Program

1992 carry-o-

84.173

1993 Regular

84173

1993 C8rry-Oller

84.173

1994 Regular

84.173

Vocational Education - Buie Grants to States

High School Program

Buie Grant

1993 Grant

84.048

1994 Grant

84.048

Community Based Organizations

Vocational Educational Support Program

1993 Contract

84.174

$ 101,584.00 685,666.00 32,010.00
23,689.00
13,323.00
14,985.00 74,654.00
6,893.00 15,906.00
43,717.33

80,053.02 -6,493.44 $ 101,584.00 570,244.98 32,010.00
13,500.00

-7,093.44 $ 101,584.00 847,821.64 32,010.00

36,662.44 101,584.00 647,621.64 (5)
11,065.87

23,689.00

23,689.00

23,689.00

6,964.72 6,681.50

6,964.72 13,323.00

9,305.91 8,210.69

-12,873.66 14,985.00 74,654.00
3,400.00 3,891.20 6,893.00 15,096.00

14,985.00 72,347.44
6,893.00 10,602.53

14,985.00 72,347.44 (6)
6,893.00 11,793.73 (3)

6,314.42

37,651.83

43,717.33

(4)

106.83

- 24 -

TERREL I COUNTY BOARQ QF EDUCATION SCHEDULE OF FEDERAL FINANCIAi ASSISTANCE
YEAR ENPEP JlJNE 30 1994

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Ed<lcalion, U. S. Depar1monl of Through Georgia Department of Ed<lcalion Vocational Ed<lcalion Ba8ic Grants to States High School Program Supplementary stale Grants for Facilities 1993 Contract Through Lee County Boold of Ed<lcalion Individuals with D - Education Act TllleVI, B Flow Through 1994 Regular

84.253 84.027 $

58401.00

1,368.00

58401.00 $ 58331.06 $

58331.06

Total U. S. Department of Education

$ 1 070 828.33 $

Labor, u. s. Department of

Tlw'ough Southwest Georgia Regional Development

Center

Job Training Partnership Act

92-B-69

17.250

93-8-82

17.250 $

$ 29403.00

1 038101.40 $ 1 024 975.28 $ 1 002489.78

22,914.55 $

11,664.30 $ 15548.95

11,664.30 15548.95

Total U. S. Department of Labor

$ 29403.00 $

22914.55 $ 27 213.25 $._ _.::27:...20-'1c::3,:,,25:,_

Total F - Financial As&islance

$ 1 902 038.63 $

1 877213.52 $ 1841704.89 $

Major Programs are identified by an asleri8k (') in front of the CFDA number.

(1) The amounts _ , for the Food Distribution Program represents the Federally assigned value of nonmonetary ~ for - . c l commodities l1ICeived and/or consumed by 1he system during the current fiscal year.
(2) Expenditures for the School B<alkfasl Program and the Child and Adult Food care Program were not maintained separately and are included in the 1994 National School Lunch Program.

(3) Expenditures for this pr<>gram include State, and/or Local and other Funds.

Expenditures are not -

by fund source.

(4) Expenditures on this program were not maintained by fund source.

(5) The expenditures for this project do not include $32,250.00 as&OCialed with the inception of a capital lease. (6) Elcpenditures of $52,647.74are included in the Tem,11- Lee-Worth Shared Services Fund.

1963977.70

See notes to the general purpose financial statements.

25.

TERRELL COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
Bank of Dawson, Dawson, Georgia
Super N.O.W. Account (3.60%)
Bank of Terrell, Dawson, Georgia
Super N.O.W. Account (3.66%)

SCHEDULE "2"

$

73,724.27

1,639,202.01

$ 1,712,926.28

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

TERRELL COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

Agriculture, U. S. Department of Food and Nutrition Services Summer Food Services Program

$

13,645.76 $ 13,645.76

Education, Georgia Department of

Quality Basic Education

Deferred Summer Salaries - FY 1994

$

644,055.00

Food Services

School Breakfast Program

National School Lunch Program

Vocational Education

Federal Funds

6,065.50

Lottery Programs

Algebra Classrooms

Computers In Classrooms

Federal Programs

ESEA - Chapter 1

Education of Deprived Children

ESEA -Title II

Eisenhower Mathematics and Science

Education

4,094.08 5,423.15
733.08 50,655.24

644,055.00
4,094.08 5,423.15
6,065.50
733.08 50,655.24

78,220.85

78,220.85

6,661.50

6,661.50

Recovery of Prior Year Questioned Cost Board Member Per Diem

100.00

100.00

Southwest Georgia Regional Development Center Job Training Partnership Act

15,548.95

15,548.95

Terrell County Board of Commissioners County Wide School Tax

68,816.21

68,816.21

Other Vendor Overpayment

658.12

1,560.00

2,218.12

$

719,694.83 $

176,542.61 $ 896,237.44

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

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

SCHEDULE 4

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

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

Sparsity Grant

Special Instructional Assistance

In-School Suspension

Mid-term Adjustment

Deferred Summer Salaries - 1993

Deferred Summer Selaries - 1994

Local Fair Share

Educational Equalization Funding Grant

Food Services

Vocational Education

other State Programs

Preschool Handicapped Program

Special Education Low Incidence Grant

Supervision and Assessment of Student and

Beginning Teachers and Performance-

Based Certification

Teachers Retirement

Lottery Programs

Algebra Classrooms

Computers in Classrooms

Pre-Kindergarten Program

Safe Schools Grant

3,147,375.00 637,925.00 172,139.00 137,518.00 46,388.00 964,073.00
219,278.00 70,184.00 58,314.00 466,765.00 33,729.00 102,366.00 -613, 162.01 644,055.00 -537,782.00 493,236.00
$ 796.00
22,885.00
150.00 2,528.01

$ 3,147,375.00 637,925.00 172,139.00 137,518.00 46,388.00 964,073.00

51,576.00

219,278.00 70,184.00 58,314.00
466,765.00 33,729.00 102,366.00
-613, 162.01 644,055.00 -537,782.00 493,236.00
51,576.00 796.00

28,074.00

22,885.00 28,074.00

733.08 68,887.24 78,574.35 25,418.26

150.00 2,528.01
733.08 68,887.24 78,574.35 25,418.26

$ 6,068,760.00 $ 253,262.93 $ . 6,322,022.93

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

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

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Compensation for Loss of Assets Donations Fish and Game Receipts Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Recovery of Prior Year Questioned Cost Board Member Per Diem Sales Lunch and Breakfast School Assets Shared Service Contributions Lee County Board of Education Terrell County Board of Education Worth County Board of Education Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,398,761.06 111.81
3,587.32

$ 1,398,761.06 111.81
3,587.32

2,945.19 770.00
2,079.00

12,133.29 38,380.11 $
860.00

14,102.50 $

100.00

10,390.00

46,539.83

929.90

67,127.85 69,061.48
6,510.00

2,580.35

2,945.19 770.00
2,079.00
12,133.29 55,062.96
860.00
100.00
46,539.83 10,390.00
67,127.85 69,061.48
6,510.00 929.90

$ 1,471,047.68 $ 203,341.66 $ 2,580.35 $ 1,676,969.69

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

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

SCHEDULE "6"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

EXPENDITURES

Operating Costs

Salaries

$

Employee Benefits

Travel of Employees

Professional and Technical Services

Compensation and Travel of Board Members

Water, Sewer and Cleaning Services

Repair and Maintenance Services

Rents

Insurance

Communications

Shared Services

Other Purchased Services

Supplies

Energy

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

Federal Indirect Costs

Other Expenditures

5,282,124.52 $ 1,027,113.03
20,925.36 33,835.85
5,069.95 39,520.62 96,575.51 15,948.92 21,638.25 25,986.82 75,961.48 16,201.50 274,774.47 221,317.63
72,816.16 7,418.85

1,145,011.08 $ 216,985.82 12,214.50 52,685.18
4,366.18 31,628.66
882.55 268.75 7,087.40
181.84 202,862.96
47,311.99 446,776.14
1,322.50 1,584.75 12,133.29
200.72

6,427,135.60 1,244,0g8.85
33,139.86 86,521.03
5,069.95 43,886.80 128,204.17 16,831.47 21,907.00 33,074.22 75,961.48 16,383.34 477,637.43 268,629.62 446,776.14 74,138.66 9,003.60 12,133.29
200.72

Nonoperating Costs Principal and Interest Building and Building Improvements Equipment

32,906.26 9,360.00
121,626.77

16,420.00 34,873.00 105,816.65

49,326.26 44,233.00 227,443.42

Total Expenditures

$ 7,401,121.95 $ 2,340,613.96 $ 9,741,735.91

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

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPfNDITURES BY ORJECT
LOTTERY PROGRAMS YE;AR ENPfP JUNE 30 1994

SCHEDULE"r

EXPE;NQITURfS
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Serv~es Repair and Maintenance Services Other Purchased Services Supplies Energy Dues and Fees
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

733.08 $

755.79

68 131.45

32,231.61 3.799.11 1.829.66 35.10
$
181.84 28.151.28
936.00 124.75
11 285.00

3.000.00 21,248.26
1170.00

TOTAL
32,231.61 3,799.11 1,829.66 35.10 3,000.00 181.84
50,888.41 936.00 124.75
80586.45

Total Expenditures

733.08 $

68,887.24 $

78,574.35 $

25 418.26 $ 173 612.93

See notes to the general purpose financial statements.

31

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1994

SCHEDULE "8"

EXPENDITURES
Operating Costs Unemployment Claims

$ ~===6;,l,,4;,;;3=3=.3=0

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

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

4,188,655.00 $

46,388.00

$

4,285,290.95

233,849.70 $

$

4,519,140.65 $

49,444.93 49,444.93

-18,099.63

$

4,501,041.02 $

-3,056.93 46,388.00

Amount of Underexpenditure for Total Allotment

$

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

Note: (1) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

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

TFBRELL CQllNJYRQARQQEfQlJCATIQN ANAi YIS OF MINIMUM EXPfNQITURE REQlllREMENT-BY PROGRAM
GENERAL fUNQ. QLIAI IJY BASIC EDUCATION PRQGRAMS YEAR ENQFD JUNE 3Q 1994

GENERA[ ANQ CARfl;R fOUCATION PROGRAMS Kindergarten (j Grades 1 - 3 (")
Sub-Total - K-3 Grodes4-5 (") Grodes6-8 (") Grades 9 - 12 r)
High School Laboratories r)
Vocational Education Laboratories (j Total General and Career Education Programs
PfCIAJ fPI ,CATION PROGRAMS Regular Programs
catego,yl(") catego,y II (") Category Ill (") catego,y IV (") Itinerant Supplemental Speech
Sub-Total - Regular catego,y V (Gifted) (")
Total Special Education Programs RfMfQIAI FQI JQATjON PRQGRAM ()
MFQIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF DEVfl OPMfNT PROGRAMS (1) Cost of Instruction Professional Development
Total Staff Development
() Identifies Thirteen Weighted Programs Note: (1) $4,596.00 of the allotment for Professional
OeYelopment has been transferred to Cost of Instruction as authorized by OCGA 20-2-182
See notes to the general purpose flnallciat statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL

~

ORIGINAL

MID-TERM

REQUIRED

296,613.00 800641.00 1,097,254.00 398,753.00 779,825.00 193,546.00 288,993.00 389 004.00 3,147 375.00

90 $ 90 90 90 90 90

266,951.70 $ 720 576.90 987,528.60 $ 358,8TT.70 701,842.50 174,191.40 260,093.70 350 103.60 2 832 637.50 $

25,000.00 $

291,951.70

720 576.90

25,000.00 $ 1,012,528.60

358,877.70

43,698.00

745,540.50

174,191.40

260,093.70

350 103.60

68 698.00 $ 2 901 335.50

632,152.00

568,936.80 $

0.00 $

588,936.80

632,152.00 5 773.00
637 925.00 172139.00 137 518.00

90 $ 90
90 $ 90

588,936.80 $ 5195.70
574132.50 $ 154925.10 $ 123 766.20 $

0.00 $
0.00 $ 25 000.00 $
0.00 $

588,936.80 5195.70
574132.50 179 925.10 123 766.20

4,094,957.00

$ 3,685,461.30 $

93,698.00 $ 3 779,159.30

13,452.75 100 $ 32 935.25 100

13,452.75 $ 32 935.25

46,388.00

46,388.00 $

0.00 $

13,452.75 32 935.25

o.oo s _ _4.6..,3.88.._.oo_

4,141,345.00

3,731,849.30 $

93,698.00 $ 3,825,547.30

(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines

34

SCHEDULE "10"

REQUIRED ALLOTMENT

SALARIES
ACTUAL (2) (3)

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDER EXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

285,307.00 $

297,646.45

698811.30

813 426.07

984,118.30 $ 1,111,072.52 $

348,398.10

356,887.02

723,313.20

766,976.17

166,879.80

437,479.28

249,219.00

247,345.56

306 593.10

355,297.62

$ 2 778 521.50 $ 3,275 058.17 $

0.00 0.00 0.00 0.00 1,873.44 0.00 1,873.44

6,644.70 $ 21 765.60 28,410.30 $ 10,479.60 22,227.30
7,311.60 10,874.70 43,510.50 122,814.00 $

9,025.67 24111.24 33,136.91 $ 16,381.46 43,664.78 36,019.19 10,907.29 43,908.68 184,018.31 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

3,795.30 326,910.60 $ 212,491.80
10,117.80 1,538.10 1,429.20
556,282.80 $
5 058.90
561 341.70 $
177 327.70 $
96,631.20 $

298,933.45 287,840.14
19,942.20
616,715.79 $ 41 747.45 $
648 463.24 233,570.26 $ 128,199.28 $

3,613,822.10 $ 4,285,290.95 $

0.00 0.00
0.00 0.00
1,873.44

184.50 6,646.50 $ 5,494.50
328.50

7,065.48 7,373.80 1,159.35

12,654.00 $ 136.80
12,790.80 $ 2 597.40 $
27135.00 $

15,598.63 $ 1 949.42 $
17,548.05 4,864.99 $
27 418.35 $

165,337.20 $

233,849.70 $

0.00 0.00
0.00 0.00
0.00

3,613,822.10 $ 4,285,290.95 $

1,873.44

(3) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines

13,452.75 $ 32,935.25

16,509.68 $ 32,935.25

46,388.00 $

49,444.93 $

211,725.20 $

283,294.63 $

- 35 -

0.00 0.00 0.00

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Ronald Ferguson, Chairman (*) Route 3, Box 48 Dawson, Georgia 31742
Mr. Marvin Brown (*) 962 Center Street Dawson, Georgia 31742
Mr. Larry Coleman (*) Route 2, Box 372 Dawson, Georgia 31742
Mrs. Mellean Davis (*) 4150 King Drive Dawson, Georgia 31742
Mr. Ronald Lee (*) P. 0. Box 184 Bronwood, Georgia 31726
Mr. Walter Stallworth P. 0. Box 174 Parrott, Georgia 31777

COMPENSATION

TRAVEL

$

1,050.00 $

38.64

900.00

33.60

550.00

299.20

1,000.00

68.78

700.00

33.60

350.00

46.13

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

$

4,550.00 $

519.95

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

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 18, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Terrell County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Terrell County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 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 perfonn 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 Terrell 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 perfonned 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 Terrell 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-I0

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-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 18, 1995

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

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Terrell County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 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 Terrell County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Terrell County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 18, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Terrell County Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Terrell County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 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 Terrell County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances 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 Terrell County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

We conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Terrell County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Terrell 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 granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~k~A
Claude L. Vickers State Auditor
CLV:cm 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 18, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Terrell County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 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 Terrell County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits 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 ofan opinion on the Terrell County Board ofEducation'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 Terrell County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 94CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 18, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Terrell 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 Terrell County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 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 Terrell 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 Terrell County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
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 of the design and operation of policies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

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

(!) Accounting Controls (Overall)

(2) General Ledger

(3) 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 perfonning 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

94ICL-3

reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in detennining the nature, timing, and extent of the procedures to be performed in our audit of the Terrell County Board of Education's financial statements and this report does not affect our report thereon dated May 18, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tt~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 18, 1995

Honorable Zell .Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Terrell County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Terrell County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 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 Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 18, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Terrell County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to 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 18, 1995.
94ICL-8

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Terrell 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-8

are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal. control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Cash Management
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule ofFindings and Improper or Questioned Costs, the following control category includes reportable conditions that are also considered to be material weaknesses:
Administrative Requirements
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Terrell County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated May 18, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 94ICL-8

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Audit Control Number 7351-93-01 Finding Resolved
The audit report for the year ended June 30, 1991, disclosed that the Staff Development Program had an underexpenditure of Quality Basic Education (QBE) funds of $52.07 for the required minimum allotment. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Lack ofWithholding Forms in Personnel Files Financial Statements Audit Control Number 7351-93-03 Finding Resolved
The audit reports for the years ended June 30; 1992 and June 30, 1993, noted that payroll tax withholding forms were not maintained in personnel records as required. During the year under review, the Board implemented procedures which ensure that withholding forms are maintained for all personnel employed by the Board.
AUDIT FOLLOW-UP/RESOLUTION Unearned Per Diem Payments Financial Statements Audit Control Number 7351-93-07 Finding Resolved
The audit report for the year ended June 30, 1993, noted that payments ofSl00.00 were made to a Board member for attendance of meetings in excess of the number of meetings actually attended. Subsequent to June 30, 1994, refund was obtained and this amount is reflected as an accounts receivable in Schedule "3" of this report.

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Audit Control Number 7351-93-10 Finding Resolved
The audit report for the year ended June 30, 1993, disclosed that the property management records maintained by the Board for the National School Lunch Program (CFDA 10.555) were incomplete and failed to meet property management standards as set forth in 7 CFR 3015.169. During the year under review, the Board implemented procedures which provide for both the identification ofall equipment purchased as outlined in 7 CFR 3015.169 and the historical information regarding additions and deletions made to the equipment inventory.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Financial Statements Audit Control Number 73 51-93-11 Finding Resolved
The audit report for the year ended June 30, 1993, disclosed that the property management records maintained by the Board for the Elementary and Secondary Education Act, Chapter I Program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in 34 CFR 80.32. During the year under review, the Board implemented procedures which provide for both the identification ofall equipment purchased as outlined on 34 CFR 80.32 and the historical information regarding additions and deletions made to the equipment inventory.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,898.28 Audit Control Number 7351-93-05
The audit report for the year ended June 30, 1993, disclosed that the Board had underexpenditures of Quality Basic Education (QBE) funds ofSI07.46 for the operations portion ofthe Grades 4-5 Program and $1,790.82 for the operations portion ofthe Media Center Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund these underexpenditures as required.
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.

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $239.94 Audit Control Number 7351-93-06
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $239.94 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Lack ofDocumentation for Expenditures Federal Financial Assistance Amount: $4,111.35 Audit Control Number 7351-93-09
The audit report for the year ended June 30, 1993, stated that $4,111.35 of expenditures were transferred from the General Fund to the Elementary and Secondary Education Act, Chapter 2 program (CFDA 84.151). Documentation on file supporting this charge was detennined to be inadequate and, as a result, it was not possible to determine the allowability ofthis program charge. For the year under review, no action was taken to resolve this questioned cost.
The Georgia Department ofEducation should review this matter to detennine the allowability of these grant program expenditures.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7351-93-02
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures for all funds. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 7351-93-02
(Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1 " of this report are affected by this finding.)
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7351-93-04
The audit report for the year ended June 30, 1993, noted that the management ofthe Terrell 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.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7351-93-08
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Elementary and Secondary Education Act, Chapter 1 Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures again revealed excessive cash balance accumulations by the Board. During fiscal year 1994, the program had an average cash balance of $30, 917.11

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7351-93-08
and had excessive ending monthly cash balances in five months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs of this program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board.
CURRENT YEAR
GENERAL LEDGER - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Control Procedures Reportable Condition - Material Weakness Audit Control Number 7351-94-01
For the year ended June 30, 1994, the Board's financial management control procedures were insufficient to provide for adequate internal control over assets of the Board. The following deficiencies were noted:
(I) Journal entries were not always supported by adequate documentation. (2) Journal entries were made to the accounting records without proper authorization. (3) Purchase orders were not required for all purchases. (4) Invoiced goods were not always noted as received on voucher packages. (5) Two checks were noted in which the Superintendent's signature was affixed prior to manual
completion of vendor and amount. (6) Void checks were not defaced in such a manner to prohibit subsequent use. (7) The bookkeeper records, reviews and approves vouchers for payment. (8) The bookkeeper's computer terminal was left on overnight on numerous occasions during our audit
process. In addition, the screen was at an operating function menu which did not require a password log on.
These deficiencies in control procedures were the result of management's failure to implement procedures which provide an adequate degree of internal control over the assets of the Board. Management should implement procedures to correct the deficiencies noted.

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
GENERAL LEDGER Failure to Maintain Separate Accountability Financial Statements Nonmaterial Noncompliance Audit Control Number 7351-94-02
During the year under review, the Board failed to maintain expenditures for the Lottery Programs separately by school. Although, total expenditures reported in the accounting records did agree with total expenditures reported on the project completion reports, accounting records should be adequately separated to identify Lottery Program expenditures by school as budgeted.
These deficiencies occurred because the Board failed to maintain expenditures by facility code as directed by the Georgia Department ofEducation. The Georgia Department ofEducation should review this matter to determine if a reclaim of Lottery Program funds is required.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,873.44 Audit Control Number 7351-94-03
For the year under review, the Board had underexpenditures of Quality Basic Education (QBE) funds of $1,873.44 for the salaries portion ofthe High School Laboratories Program. This condition resulted from the Board not expending all funds associated with this QBE program. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
PROCUREMENT Failure to Meet Legal Requirements Financial Statements Nonmaterial Noncompliance Audit Control Number 73 51-94-04
The Board has entered into multi-year lease purchase agreements for office equipment and modular buildings that do not include the renewal provision requirements of the Official Code of Georgia Annotated Section 202-506 as follows:
"(a) Except as otherwise provided in this Code section, each county, independent, or area school system in this State shall be authorized to enter into multi-year lease, purchase, or lease purchase contracts of all kinds for the acquisition ofgoods, materials, real and personal property services, and supplies, provided that any such contract shall contain provisions for the following:

TERRELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
PROCUREMENT Failure to Meet Legal Requirements Financial Statements Nonmaterial Noncompliance Audit Control Number 7351-94-04
(1) The contract shall terminate absolutely and without further obligation on the part of the school system at the close ofthe calendar year in which it was executed and at the close of each succeeding calendar year for which it may be renewed as provided in this Code section;
(2) The contract may provide for automatic renewal unless positive action is taken by the school system
to terminate such contract, and the nature of such action shall be determined by the school system and specified in the contract;...".
This noncompliance occurred because of management's failure to adhere to the requirements of the Official Code of Georgia Annotated Section 20-2-506. The Board should have these lease agreements amended to include the termination and renewal provisions noted above and establish the necessary controls and procedures to ensure that multi-year lease, purchase, or lease purchase agreements meet all of the requirements ofthe Georgia Laws prior to entering into those types of agreements.
Note: The Terrell County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board
has elected not to provide comments for inclusion in this report.