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AUDIT REPORT THOMAS COUNTY BOARD OF EDUCATION
THOMASVILLE, GEORGIA YEAR ENDED JUNE 30, 1996

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

THOMAS 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

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

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

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 CASH AND CASH EQUIVALENTS

26

3 INVESTMENTS

27

4 ACCOUNTS RECEIVABLE

28

SCHEDULE OF REVENUE

5

STATE

29

6

TAXES AND OTHER

31

THOMAS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

33

8

LOTTERY PROGRAMS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

37

10

BY PROGRAM

38

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

40

SECTIONll
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

SECTIONm
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

THOMAS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 10, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomas 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 Thomas County Board of Education, as of and for the year ended June 30, 1996, 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 OMB 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.
96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
fmancial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements 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 Thomas County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated July 10, 1997, on our consideration ofthe Board's internal control structure and a report dated July 10, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Thomas County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part ofthe general purpose fmancial statements of the Thomas County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose fmancial 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 of this 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,

CLV:dt 96ARL-13

Claude L. Vickers State Auditor

THOMAS COUNTY BOARD OF EDUCAnON - 1-

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

THOMAS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996

EXHIBIT"B"

FUND BALANCE JUNE 30

$ 2,631,433,26 $ 1,094,026,85 $ 338,203,54 $ 4,063,663,65 $ 3,869,648.42

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

THOMAS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 1996

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 17,622,482.65 $ 16,759,646.10

27,000.00

27,648.04

3,497,700.00

3,776,797.23

Total Revenues

$ 21,147,182.65 $ 20,564,091.37

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

$ 13,287,441.00 $ 13,467,069.71

641,100.00 369,717.00 399,000.00 390,464.00 1,351,449.00 186,275.00 1,647,000.00 1,211,058.00
26,500.00

644,301.57 382,287.99 395,778.61 395,780.56 1,348,790.96 179,339.53 1,694,351.58 1,226,778.20 197,778.60
147.25

225,500.00

230,867.43

Total Expenditures

$ 19,735,504.00 $ 20,163,271.99

Excess of Revenues over (under) Expenditures

$ 1,411,678.65 $ 400,819.38

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -1,412,282.00 $ -223,626.57

Total Other Financing Sources (Uses)

$ -1,412,282.00 $ -223,626.57

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

-603.35 $ 177,192.81

FUND BALANCE JULY 1. 1995

1,984,976.53

2,454,240.45

Adjustments

-1,853.82

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,759,000.00 $ 3,362,736.82

2,208,432.00 2,616,001.90

453,000.00

489,649.27

$ 4,420,432.00 $ 6,468,387.99

$ 3,139,424.00 $ 3,140,601.89

536,387.00 300,950.00

598,553.05 309,258.76

246,017.00 17,840.00

249,826.86 22,139.04

95,969.00

233,873.86 5,751.86

96,127.00 1,842,030.00

98,462.59 1,790,391.40

$ 6,274,744.00 $ 6,448,859.31

$ -1,854,312.00 $

19,528.68

$ 1,412,282.00 $

11,626.57

$ 1,412,282.00 $

11,626.57

$ -442,030.00 $

31,155.25

1,096,911.42 1,062,871.60

23,867.44

FUND BALANCE JUNE 30. 1996

$ 1,982,519.36 $ 2,631,433.26

$ 678,748.86 $ 1,094,026.85

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

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Thomas County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental 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 Thomas County Board of Education.
Based upon the application of the above criteria, the Thomas 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 Thomas County, Georgia, excluding that area encompassed by the City of Thomasville. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its fmancial 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
-5-

THOMAS COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
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 ftnancial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose ftnancial statements.
The general purpose ftnancial statements account for all State, Federal, Taxes 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 educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board except those required. to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 speciftc objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for ftnancial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material accrued compensated absences.
BASIS OF ACCOUNTING
The accounting and ftnancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current ftnancial 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 ftnancing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

- 6-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the risk financing activities for the Board's unemployment compensation liabilities were reported as an expendable trust fund. This fund had a fund balance of$368,639.12 at June 30,1995. For fiscal year 1996, this fund has been reported as a part of the General Fund. The fund balance at July 1, 1995 has been restated as appropriate.

-7-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Thomas County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to fmancial institutions located within this State.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues ofinvestment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(l) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
-8-

THOMAS COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

Receivables consist of grant 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 Thomas County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on September 12, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The Thomas 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 1995 tax year (calendar year) for the Thomas County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

10.3 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). The Board uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund

- 9-

THOMAS COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
SUPPLIES INVENTORIES Inventories of consumable supplies are reported on the Combined Balance Sheet at average cost. The Board uses the consumption method to account for inventory whereby consumable supplies are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventory reported on the balance sheet is equally offset by a reservation of fund balance which indicates that it does not constitute "available spendable resources" even though it is a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose fmancial statements.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present fmancial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by
- 10-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS
surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities 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 of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $4,569,197.72. 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.

- 11 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS

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

The Board's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 395,702.50 4,173,495.22 0.00
$ 4.569.197.72

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $572,968.22 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

The Board has elected to self-insure for all losses related natural disaster. The Board has not experienced any losses related to these risks in the past three years.

- 12-

THOMAS COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1995 1996

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

3,184.00 $

$

0.00 $

1,929.50 $

Claims Paid

End ofYear Liability

3,184.00 $

0.00

1,929.50 $

0.00

The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $1,000,000.00.

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Balance July 1, 1995 Additions Balance June 30, 1996 Note 6: ON-BEHALF PAYMENTS

Compensated Absences
$ 106,697.28
3,977.17
$ 110,674.45

The Board has recognized revenues and expenditures in the amount of $456,759.23 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$375,706.87

- 13 -

THOMAS COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 6: ON-BEHALF PAYMENTS
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost
In the amount of$21,860.36
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost
In the amount of$59,192.00
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall fmancial position.
Note 8: ACCUMULATED EMPLOYEES' LEAVE
Twelve month employees earn ten days of vacation annually, with a maximum accumulation of thirty days, provided they have been employed at least nine months of the previous fiscal year. Upon retirement or termination of employment, employees have the option of early release or payment for accumulated vacation time at their current rate of pay. See Note 1- Compensated Absences
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life, Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 14-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS

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 1 years of service) and compensation up to the time of disability or death.

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $14,668,425.20; total payroll was $16,811,514.32.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 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 1996 amounted to $2,465,762.29, of which $1,732,341.03 was made by the Board and $733,421.26 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows:

Total pension benefit obligation Net assets available for benefits, at cost Unfunded pension benefit obligation

$17,442,607,000.00 15,857,066,000.00
$ 1.585.541.000.00

- 15 -

THOMAS COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. 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, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $1,732,341.03 was actuarially determined and represented .2853% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number of years of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 154 employees covered under PSERS for the year ended June 30, 1996.
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
- 16 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $4,772.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 10: SURETY BONDS
The School Superintendent, Dr. Terrel M. Solana, is bonded in the amount of $1 00,000.00 with the United States Fidelity and Guarantee Company, Baltimore, Maryland, their Bond No. 02-0170-11822-82-1, on which premium was paid through July 1, 1996.

- 17 -

THOMAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1996

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

SCHOOL FOOD
SERVICES FUND

SEVERELY EMOTIONALLY
DISTURBED

SOUTHWESTERN STATE HOSPITAL
CONTINUED SPECIAL
EDUCATION SERVICES
FUND

LOTIERY PROGRAMS

ELEMENTARY AND

TITLE I

GRANTS TO

LOCAL

EDUCATIONAL

MIGRANT

AGENCIES

EDUCATION

$ 1,020,226.84 $ 261,455.61

$

33,374.64 $

4,70123

15,965.60

6,400.00 $

103,216.45 $ 425,001.12

101,000.00

2,625.25

41,874.54 58,606.53

Total Assets

$ 1,136,673.51 $ 267,855.61 $

103,216.45 $ 425,001.12 $

134,374.64 $

7,326.48

LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Uneamed Lottery Funds
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Expired Grant Balances! Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

$ 19,615.33 $ 83,058.09

67,515.90

140,156.54

156.41

$ 87,131,23 $ 223,371.04 $

$ 41,874.54 58,606.53
$ 100,481.07 949,061.21 $
$ 1,049,542,28 $

44,484.57 $ 44,484.57 $

94,916.27 $ 8,300.18

256,463.93 56,677.94 $
108,680.08 3,179,17

103,216.45 $ 425,001,12 $

37,320.26 $ 89,355.90 7,698.48
134,374.64 $

2,692.76 4,633.72
7,326.48

0.00 $ 0.00 $

0.00 $ 0.00 $

0,00 $

0.00

0.00 $

0.00

Total Liabilities and Fund Equity

$ 1,136,673.51 $ 267,855.61 $

103,216.45 $ 425,001.12 $

134,374.64 $

7,326.48

See notes to the general purpose financial statements.

- 18-

EXHIBIT"E"

SECONDARY EDUCATION ACT

TITLE VI

TITLE II

INNOVATIVE

EISENHOWER

EDUCATION

PROFESSIONAL

PROGRAM

DEVELOPMENT STRATEGIES

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

VOCATIONAL EDUCATION
FEDERAL

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANTS

TOTALS JUNE 30,1996 JUNE 30, 1995

$ 1,319,758.32 $ 1,448,237.28

$

15,445.02 $

42,735.59 $ 110,494.00 $

19,338.02 $ 40,270.19 $

7,787.26

890,278.50

568,188.39

41,874.54 58,606.53

32,725.90 50,491.35

$

15,445.02 $

42,735.59 $ 110,494.00 $

19,338.02 $ 40,270.19 $

7,787.26 $ 2,310,517.89 $ 2,099,642.92

$

15,445.02 $

42,735.59 $ 75,376.54 $

11,970.78 $ 39,835.93 $

7,787.26 $ 544,531.32 $ 402,774.45

11,968.50

2,142.74

434.26

222,210.06

306,421.32

23,148.96

5,224.50

438,715.60

303,266.74

11,034.06

6,118.08

18,190.73

$

15,445.02 $

42,735.59 $ 110,494.00 $

19,338.02 $ 40,270.19 $

7,787.26 $ 1,216,491.04 $ 1,036,771.32

$

393.33

$

41,874.54

58,606.53

32,725.90 50,491.35

$ 100,481.07 $

83,610.58

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

993,545.78

979,261.02

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 1,094,026.85 $ 1,062,871.60

$

15,445.02 $

42,735.59 $ 110,494.00 $

19,338.02 $ 40,270.19 $

7,787.26 $ 2,310,517.89 $ 2,099,642.92

- 19-

THOMAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1996

SCHOOL FOOD
SERVICES FUND

SEVERELY EMOTIONALLY
DISTURBED

SOUTHWESTERN STATE HOSPITAL
CONTINUED SPECIAL
EDUCATION SERVICES
FUND

LOTIERY PROGRAMS

ELEMENTARY AND

TITLE I

GRANTS TO

LOCAL

EDUCATIONAL MIGRANT

AGENCIES

EDUCATION

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 118,614,00 $ 1,412,285,00 $

1,211,945,06

142,843,59

481,393,86

8,255,41

378,199,46 $ 1,453,638,36 $

824,301,52 $

39,948,57

Total Revenues

$ 1,811,952,92 $ 1,563,384,00 $

378,199,46 $ 1,453,638,36 $ 824,301,52 $ 39,948,57

EXPENDITURES

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

Other Support Services

Food Services Operation

$ 1,788,539,77

750,318,60 $ 298,432.48 262,225.48 181,365,41
62,906,60

378,199.46 $ 1,034,690,98 $
230,009,04
1,471,26
19,398,04
170,397,26 5,751,86 585,36 1,851,63

654,881,29 $
4,864,15 66,138,85
540,00 97,877.23

39,958,17

Total Expenditures

$ 1,788,539,77 $ 1,555,248,57 $

378,199,46 $ 1,464,155.43 $ 824,301,52 $ 39,958,17

Excess of Revenues over (under) Expenditures

$ 23,413,15 $

8,135,43 $

0,00 $ -10,517,07 $

0,00 $

-9,60

OTHER FINANCING SOURCES

Operating Transfers In

10,123,74

9,60

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

$ 23,413,15 $

8,135.43 $

0,00 $

-393,33 $

0,00 $

0,00

FUND BALANCE JULY 1

1,026,129,13

36,349,14

0,00

393,33

0.00

0.00

FUND BALANCE JUNE 30

$ 1,049,542,28 $ 44,484,57 $

0,00 $

0,00 $

0,00 $

0.00

See notes to the general purpose financial statements,

- 20-

EXHIBIT"F"

SECONDARY EDUCATION ACT

TITLE VI

TITLE II

INNOVATIVE

EISENHOWER

EDUCATION

PROFESSIONAL

PROGRAM

DEVELOPMENT STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

VOCATIONAL EDUCATION
FEDERAL

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANTS

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30,1995

$ 3,362,736.82 $ 3.071,593.07

$

24.342.10 $

42,735.59 $ 234,490.00 $

47,338.02 $ 40,270.19 $

7,787.26

2.616,001.90

2,605,428.74

489,649.27

447,886.28

$

24,342.10 $

42,735.59 $ 234,490.00 $

47,338.02 $ 40,270.19 $

7,787.26 $ 6,468.387.99 $ 6,124.908.09

$

42,656.42 $ 155,360.85 $

47.338.02 $ 37.198.10

$ 3,140.601.89 $ 3.115.770.22

68,546.90

1,564.63

598.553.05

594,246.45

$

24,555.63

46.16

79.17

8,354.98 2.197.27

$ 2,741.00

7,787.26

309,258.76
249,826.86 22,139.04

265,548.53 1,687.94
240,648.74 35,294.66

30.00

233,873.86 5.751.86
98,462.59 1,790.391.40

91,350.13 14,877.49 50.217.83 1,556,607.57

$

24.601.79 $

42,735.59 $ 234,490.00 $

47.338.02 $ 41,503.73 $

7,787.26 $ 6.448.859.31 $ 5.966.249.56

$

-259.69 $

0.00 $

0.00 $

0.00 $ -1,233.54 $

0.00 $

19,528.68 $ 158,658.53

259.69

1,233.54

11,626.57

3.904.00

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

31,155.25 $ 162.562.53

0.00

0.00

0.00

0.00

0.00

0.00

1,062.871.60

900.309.07

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 1.094.026.85 $ 1,062;871.60

- 21 -

THOMAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1996

EXHIBITlG"

ASSETS Cash and Cash Equivalents Investments
Total Assets

REGULAR

LOTTERY PROJECT 96/95S-736-066

TOTALS JUNE 30,1996 JUNE 30,1995

$ 327,039.80 $

0.00 $

327,039.80 $

412,412.21

11,459.36

11,459.36

9,059.30

$ 338,499.16 $

0.00 $ 338,499.16 $ ====42=1;,;.,4...7...1..;,;;.5=1

Total Liabilities and Fund Equity $ 338,499.16 $

0.00 $ 338,499.16 $ ===4:=21:=,4=:7:::1:=.5==1

See notes to the general purpose financial statements.

- 22-

THOMAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,1996

EXHIBIT "H"

FUND BALANCE JUNE 30

$ 338,203,54 $

0,00 $

338,203.54 $

352,536,37

See notes to the general purpose financial statements.

- 23-

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30,1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture. U, S, Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S, Department of Agriculture
Education. U, S. Department of Through Berrien County Board of Education d/b/a Southern Pines Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1995 Summer 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996 Grant Title II Eisenhower Professional Development 1995 Regular 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Innovative Special Education Proposal 1996 Grant Preschool 1996 Grant Severely Emotionally Disturbed 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant
Total U. S, Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10,553 $ 240,162.07

* 10,555 10.550

835.352.46 $
136,430,53

$ 1,211,945.06 $

(2)
1.652.109,24 (3) 136,430,53
1,788,539,77

84,011 $
84,011

1,657,72 $
38.290,85

1,657,72 38,300.45 (3)

* 84.010
84,281 84,281
84.298

824,301.52
8.897.08 15,445.02
42,735,59

824.301,52
9,156,77 (3) 15,445.02
42.735,59

84.276

7,787.26

7,787.26

* 84,027 * 84.027
84.173 * 84.027

227,494,00 6,996.00
47.338.02 142,843,59

227,494.00 6,996.00
47,338.02 142,843.59

84.048

40,270.19

$ 1,404,056,84 $

41,503.73 (3) 1,405,559.67

- 24 -

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30,1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Air Force R.OT.C. Program 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ _--=27,-,-,64;;;...;.;;.8=.04-,-

(4)

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

$ 2,643,649.94 $ 3,194,099.44

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 25 -

THOMAS COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30.1996
NONINTEREST BEARING ACCOUNTS Commercial Bank, Thomasville, Georgia Sun Trust Bank of South Georgia, NA, Albany, Georgia
INTEREST BEARING ACCOUNTS Commercial Bank, Thomasville, Georgia Non-consumer Premium Savings Account (Variable) Nations Bank of Georgia, NA, Thomasville, Georgia Super N.OW. Accounts (Variable)

SCHEDULE "2"
$ 565,346.50 43,990.34
$ 609,336.84
1,377,723.51 1,294,143.07 $ 3,281,203.42

See notes to the general purpose financial statements.

- 26 -

THOMAS COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30.1996
INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Govemment Investment Pool (5.361%)

SCHEDULE "3" $ 572,968.22

See notes to the general purpose financial statements.

- 27 -

THOMAS COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30,1996

SCHEDULE "4"

Berrien County Board of Education d/b/a Southem Pine Migrant Education Agency Migrant Education Program
Defense, U, S. Department of Department ofthe Air Force RO,T,C, Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Other State Programs Altemative Programs At-Risk Summer School Program Middle School Mentoring Program Preschool Handicapped Program Remedial Summer School Program Tuition for the Multi-Handicapped Lottery Programs Altemative Programs Instructional Technology Model Technology Schools Safe Schools Grant Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Goals 2000 State and Local Education Systemic Improvement Grants Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Severely Emotionally Disturbed
Human Resources, Georgia Department of Special Education Services
Office of School Readiness Pre-Kindergarten Program
Thomas County Tax Commissioner County Wide School Tax
Various Sources Sale of Land Vendor Overpayment
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

2,625,25 $

2,625,25

$

513,09

513,09

21,096,54
6,595,00 23,972.70
3,647,68 9,653,00 8,546.10 18,020.00

8,465.62 7,499.98 40,270.19
114,158.56 16,513.00
143,594,56 3,100,00

8,465,62 7,499,98
21,096,54 40,270.19
6,595.00 23,972,70
3,647,68 9,653.00 8,546.10 18,020,00
114,158.56 16,513.00
143,594,56 3,100,00

63,646,67
34,019.08 5,025.00

101,000.00 15,445,02 42,735.59
7,787,26
110,494,00 19,338,02 6,400,00
103,216.45
147,635.00

101,000.00 15,445.02 42,735,59
7,787,26
110,494.00 19,338.02 6,400.00
103,216.45
147,635,00
63,646.67
34,019.08 5,025.00

$

194,734.86 $

890,278.50 $ 1,085,013.36

- 28 -

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1996

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teacher Program Middle School Mentoring Program Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Teachers' Retirement Technology Training Tuition for the Multi-Handicapped Lottery Programs Alternative School Program Distant Learning Exceptional Growth-Capital Outlay Instructional Technology Model Technology Schools Pre-Kindergarten Program Safe Schools Grant Technology Installation
Human Resources, Georgia Department of Special Education Services
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 8,949,339,00 2,074,205,00 259,001.00 386,807.00 134,260.00 2,594,813.00

$ 8,949,339,00 2,074,205.00 259,001.00 386,807.00 134,260,00 2,594,813.00

638,545.00 195,050.00 341,024.00 174,802.00
72,799.00 212,149.00
16,259.00 27,520.00 -1,392,701.00 1,329,886.00
$ 28,340.54

118,614.00

638,545.00 195,050.00 341,024.00 174,802.00 72,799.00 212,149.00
16,259.00 27,520.00 -1,392,701.00 1,329,886.00 118,614.00 28,340,54

121,045,00 23,972,70 375,706.87
4,103,85 2,535,00 3,647,68 52,653,00 8,546,10
21,860.36 25,765.00 18,020,00

1,412,285.00

121,045,00 23,972.70
375,706,87 4,103.85 2,535.00 3,647.68
52,653.00 8,546,10
1,412,285.00 21,860.36 25,765.00 18,020.00

114,158.56 -1,575,29 $ 16,119,27
161,785,29 723,931,68
3,100,00 37,116,53

244,374,00

114,158.56 -1,575.29
244,374.00 16,119.27
161,785.29 723,931,68
3,100,00 37,116.53

378,199.46

378,199.46

399,002,32

399,002.32

59,192,00 - 29 -

59,192,00

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1996

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Transportation, Georgia Department of Through Thomas County Board of Commissioners Reimbursement for Drives and Parking Areas at New School

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 3,382.55 $

3,382.55

OTHER Education, Georgia Department of Reimbursements for Student Information Systems Project

$ _ _---'5"-=o:.::.o.;,;::;.o~0

500.00

$ 16,759,646.10 $ 3,362,736.82 $ 247,756.55 $ 20,370,139.47

See notes to the general purpose financial statements.

- 30 -

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Sources Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Reimbursements for Salaries Reimbursements for Medical Services Rents Sales Meals School Assets Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 3,432,586.42 8,524.32
12,060.35

$ 3,432,586.42 8,524.32
12,060.35

18,917.00 100,600.75 $
26.35 39,551.49 60,811.98 24,418.75

47,766.99 $ 5,164.00

15,075.00 63,125.00
1,099.82

434,218.28 2,500.00

621.74

18,917.00 148,989.48
26.35 39,551.49 60,811.98 29,582.75
434,218.28 15,075.00 63,125.00 3,599.82

$ 3,776,797.23 $ 489,649.27 $

621.74 $ 4,267,068.24

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

THIS PAGE LEFT BLANK

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 13,307,155.97 $ 3,504,358.35 $ 16,811,514.32

4,339,708.57

1,027,064.38

5,366,772.95

49,180.48

46,149.16

95,329.64

117,777.35

46,842.46

164,619.81

11,750.43

11,750.43

94,786.29

19,640.40

114,426.69

193,148.98

181,766.25

374,915.23

42,411.84

14,344.73

56,756.57

54,988.23

54,988.23

32,177.66

14,132.54

46,310.20

25,959.96

25,959.96

8,663.20

8,663.20

7,500.00

7,500.00

6,951.28

5,085.36

12,036.64

885,683.03

432,084.62

1,317,767.65

479,754.97

12,951.86

492,706.83

845,650.18

845,650.18

214,097.07

3,689.12

217,786.19

43,460.25

15,906.05

59,366.30

18,917.00

18,917.00

1,698.25

2,746.31

4,444.56

255,081.38

248,867.34

503,948.72

$ 20,163,271.99 $ 6,448,859.31 $ 26,612,131.30

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

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTIERY PROGRAMS YEAR ENDED JUNE 30,1996

ALTERNATIVE SCHOOL PROGRAM

DISTANT LEARNING

EXCEPTIONAL GROWTHCAPITAL OUTLAY

INSTRUCTIONAL TECHNOLOGY

EXPENDITURES

Operating Costs

Salaries

Employee Benefits

Travel of Employees

Professional and Technical Services

Water, Sewer and Cleaning Services

Repairs and Maintenance Services

$

Other Purchased Services

Supplies

Energy

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

Other Expenditures

8,610.49 58,305.47 $

44.74

$

7,279.44

Nonoperating Costs Building and Building Improvements Equipment

47,242.60

$

337,631.44

15,410.25

Total Expenditures

$ 114,158.56 $

44.74 $

337,631.44 $ ===2=2;;,:,6=8:=9.=6.9..

See notes to the general purpose financial statements.

- 34 -

SCHEDULE "8"

MODEL TECHNOLOGY
SCHOOLS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

$

99,031.38

31,989.56

30,764.35 $ . 161,785.29 $

786,314.16 238,890.18
4,127.64 250.00
3,459.15 588.75 585.36
69,978.70 $ 5,751.86 1,851.63 1,197.26 126.00 2,168.81
7,644.50

$ 3,100.00

$
32,674.54 579.06

786,314.16 238,890.18
4,127.64 250.00
3,459.15 140,905.16
585.36 171,276.97
5,751.86 1,851.63 1,197.26
126.00 2,168.81

6,189.55

337,631.44 107,251.25

1,122,934.00 $

3,100.00 $

39,443.15 $ 1,801,786.87

- 35 -

THOMAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations Expenditures per Audit
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 11.881.501,00 $ _ _.....:3:,.::.6=2.;.94.:..:;0.:..:;,0.;.0

$ 11,782.571,61 742,240,08 $ _ _..-'::.64.:.;:6:..!,;0.:,.:6:.:0.:.0:,=.2
$ 12.524.811,69

$

0,00 $ =====0=,0==0

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

THOMAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten C*) Grades 1 3 C*) Sub-Total K-3 Grades 45 (*) Grades 6 - 8 (*) Grades 9 - 12 C*) High School Laboratories (*) Vocational Education Laboratories C*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I C*) Category II C*) Category III C*) Category IV C*) Sub-Total - Regular Category V CGifted) C*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*) Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs C*) Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL -.:L

ORIGINAL

MID-TERM

$

929,934.00

$

836,940.60

2,182,163.00

1,963,946.70 $

$ 3,112,097.00 90 $ 2,800,887,30 $

1,190,219.00 90

1,071,197.10

2,008,571,00 90

1,807,713.90

1,069,659.00 90

962,693.10

1,087,123.00 90

978,410.70

481,670.00 90

433,503.00

$ 8,949,339.00

$ 8,054,405.10 $

212,149.00 212,149,00
212,149.00

$ 1,931,179.00

$ 1,738,061.10 $

0.00

$ 1,931,179.00

143,026.00

$ 2,074,205.00

$

259,001.00

$ 11,282,545.00

90 $ 90
$ 90 $
$

1,738,061.10 $ 128,723.40
1,866,784.50 $ 233,100.90 $
10,154,290.50 $

0.00
0.00 0.00 212,149.00

$

306,482.00 90 $

275,833.80 $

80,325.00 90

72,292.50

$

386,807.00

$

348,126.30 $

0.00 0.00

$ 11,669,352.00

$ 10,502,416.80 $

212,149.00

$

33,081.00

101,179.00

$

33,081.00 $

101,179.00

$

134,260.00 100 $

134,260.00 $

0.00 0.00
0.00

See notes to the general purpose financial statements.

- 38 -

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

836,940.60 $

1.060,073.32 $

24,098.06 $ 1,084,171.38

2.176,095.70

2,330,853.58

127,007.64

2,457,861.22

$ 3,013,036.30 $

3.390,926.90 $

151,105.70 $ 3,542.032.60 $

0.00

1,071,197.10

1,281,532.63

60,207.23

1.341.739.86

0.00

1,807.713.90

1.983,821.83

121.696.33

2.105.518.16

0.00

962,693.10

1,068,406.49

124.054.53

1,192,461.02

0.00

978,410.70

933,519.03

56,960.96

990,479.99

0.00

433,503.00

512,475.17

63.203.86

575,679.03

0.00

$ 8,266,554.10 $ 9,170,682.05 $

577,228.61 $ 9,747,910.66

$ 1,738,061.10 $

166,696.11 $ 564.195.82 1,215,774.37

2,702.76 $ 12,202.93 28.022.68 18,888.55

169,398.87 576,398.75 1.243,797.05
18,888.55

$ 1.738,061.10 $

1,946,666.30 $

61,816.92 $ 2,008,483.22

0.00

128,723.40

134,844.09

2,182.49

137,026.58

0.00

$ 1.866,784.50 $ 2.081,510.39 $

63,999.41 $ 2.145.509.80

$

233,100.90 $

240.235.87 $

4,832.00 $

245,067.87

0.00

$ 10,366,439.50 $ 11,492,428.31 $

646,060.02 $ 12.138,488.33

$

275,833.80 $

290.143.30

$

290.143.30

0.00

72,292.50

$

96,180.06

96.180.06

0.00

$

348,126.30 $

290,143.30 $

96,180.06 $

386,323.36

$ 10.714,565.80 $ 11,782,571.61 $

742,240.08 $ 12,524,811.69 $

0.00

$

33,081.00

101,179.00

$ ===1~34=:,,2=6=0=.0=0

$

52,962.39 $

52,962.39

88,741.83

88,741.83

$

141,704.22 $

141,704.22 $========0=.0",=0

39

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30,1996

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Cecil Stewart, Chairman (*) 3629 Stewart Road Ochlocknee, Georgia 31773
Mr. Johnny Bannister (*) P.O. Box 1921 Thomasville, Georgia 31799
Mr. Joey Holland (*) 4125 Georgia Highway 33 Boston, Georgia 31626
Mr. Mike Keown (*) P.O. Box 96 Coolidge, Georgia 31738
Mr. Elmo Lee (*) 109 Holly Hill Drive Thomasville, Georgia 31757
Mr. John Stephenson (*) P.O. Box 153 Meigs, Georgia 31765
Mr. Edward Vonier (*) 14395 Highway 122 Pavo, Georgia 31778
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

1,650.00 $

1,207.37

900.00

1,050.00

370.75

1,050.00

408.75

950.00

1,450.00

817.87

1,200.00

695.69

$

8,250.00 $ ======3:=,5=0=0.=43=

See notes to the general purpose financial statements.

- 40 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Thomas County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Thomas County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 10, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's ,report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Thomas County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on 'overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-10

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

CLV:dt 96CRL-IO

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 10, 1997

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

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 Thomas County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 10, 1997. 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 Thomas 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, 1996:

(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.

96CRL-70

Material instances ofnoncompliance consist of failures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule of Findings and Improper or Questioned Costs.
We considered this material instance of noncompliance in forming our opinion on whether the Thomas County Board of Education general purpose fmancial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated July 10, 1997, on those financial statements.
Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Thomas County Board of Education, complied, in all material respects, with the requirements listed in the second paragraph ofthis report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects with those requirements. Additionally, the results of our procedures disclosed immaterial instances of noncompliance with those requirements which are also described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:dt 96CRL-70

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 10, 1997

Honorable ZelLMiller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomas County Board of Education

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Thomas County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 10, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose fmancial statements.

We have also audited the Thomas County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility
(3) Matching, Level of Effort, and!or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Thomas 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.

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

96CRL-80

Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB 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 Thomas County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Thomas County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal fmancial assistance programs for the year ended June 30, 1996.
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:dt 96CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 10, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Thomas County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 10, 1997. 1bis 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 of the fiscal year 1996 general purpose financial statements of the Thomas County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Thomas County Board of Education had not complied, in all material respects, with those requirements.

96CRL-120

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:dt 96CRL-120

Claude L. Vickers State Auditor

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomas County Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Thomas County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 10, 1997. 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.
The management of the Thomas 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 of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit ofthe general purpose financial statements ofthe Thomas County Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control structure.
96ICL-3

With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennme our auditing procedures for the purpose of expressing our opinion on the general purpose fmancial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Thomas County Board of Education's financial statements and this report does not affect our report thereon dated July 10, 1997.
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
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CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomas 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 Thomas County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 10, 1997. 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 Thomas County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 10, 1997.
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 (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB 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 Thomas County Board of Education 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, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 10, 1997.
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The management of the Thomas 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, 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 ofthe design and operation ofpolicies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

For all of the internal control structure categories listed above, we obtained an understanding ofthe 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, 1996, the Thomas County Board of Education expended 77% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by OMB 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

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are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Thomas County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated July 10, 1997.
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,
~~
Claude L. Vickers State Auditor
CLV:dt 96ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIQR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $10,434.41 Audit Control Number 7361-94-01
The audit report for the year ended June 30, 1995, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $10,434.41 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 of Education 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 Inadequate Drug-Free Workplace Policy Federal Financial Assistance Finding Resolved Audit Control Number 7361-94-04
According to provisions ofP. L. 100-690, all grantees that have been approved or awarded a direct Federal grant are required to certify that a drug-free workplace is maintained. The audit report for the year ended June 30, 1995, reported that the Board's drug-free workplace policy did not include the requirement that the employee notify the employer in writing of any criminal drug statute conviction for a violation occurring in a workplace no later than five calendar days after such conviction. During the year under review, the Board amended their drug-free workplace policy to include all drug-free workplace compliance requirements.
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Separate Accountability Financial Statements Finding Resolved Audit Control Number 7361-95-01
The audit report for the year ended June 30, 1995, stated that the Board received $304,707.27 from the Georgia Department of Education for the Lottery - Model Technology program and failed to maintain expenditures for this program separately by facility, as directed by the Georgia Department of Education. In the year under review, additional documentation was submitted to the Georgia Department of Education for their review. In a letter dated September 17, 1996, the Georgia Department of Education has determined that no refund was due.
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THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Unearned Lottery Funds Financial Statements Finding Resolved Audit Control Number 7361-95-02
The audit report for the year ended June 30, 1995, stated that the Board received $393.33 in Instructional Technology Program funds in excess of the amount needed to cover program expenditures. Subsequent to the year under review, a refund of $393.33 was made to the Georgia Department of Education.
PRIORYENVCURRENTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7361-93-03
The audit report for the year ended June 30, 1995, noted that the management of the Thomas County Board of Education 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 fmancial 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 ofa 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 Nonmaterial Noncompliance Audit Control Number 7361-94-02
The audit report for the year ended June 30, 1995, stated that a review of cash management procedures for the Elementary and Secondary Education Act, Title I (CFDA 84.010) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirements for Grant Funds," were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests of cash management procedures again revealed excessive cash balance accumulations by the board. During fiscal year 1996, the Elementary and Secondary Education Act, Title I
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THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7361-94-02
(CFDA 84.010) program had an average cash balance of $9,063.53 with excessive ending monthly cash balances in five months and the Individuals with Disabilities Education Act, Part B - Special Education, Severely Emotionally Disturbed (CFDA 84.027) program had an average cash balance of $4,610.91 with excessive ending monthly cash balances in six months. 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
FEDERAL FINANCIAL REPORTS Failure to Obtain Budget Amendment Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7361-96-01
The project completion report for the Individuals with Disabilities Education Act - Title VI, B-Flow Through (CFDA 84.027), 1996 Regular project included expenditures in the amount of$68,546.90 for pupil services. However, the approved budget for this project only authorized $27,440.00 for pupil services expenditures. The instructions for this project requires an approved budget amendment when expenditures for a budget category exceeds 120 percent of the approved budget category amount. The Thomas County Board of Education did not obtain the required budget amendment.
This condition occurred because of management's failure to amend the Special Education Comprehensive Plan Budget (DE0885). The Georgia Department of Education should review this matter and determine if a reclaim of funds is appropriate.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirement Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7361-96-02
The Board failed to submit a copy of the 1995 audit report to the U. S. Department of Defense from whom the Board received Air Force R.O.T.e. program funds. Paragraph 13f of the OMB Circular A-128 requires that the recipients of Federal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of their audit report
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THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirement Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7361-96-02
distribution responsibilities by the Department of Audits, management failed to perform the distribution requirement. A copy of the 1995 audit report should be submitted to the U. S. Department of Defense as required. In addition, procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Programs Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7361-96-03
Property management records maintained by the Board for the following programs were incomplete and failed to meet property management standards as set forth in Chapter 41, ofthe Financial Management for Georgia Local Units of Administration (FMGLUA).
Elementary and Secondary Education Act Title I - Grants to Local Educational Agencies (CFDA 84.010)
Individuals with Disabilities Education Act Part B, Special Education - Severely Emotionally Disturbed (CFDA 84.027)
The inventory records as presented for audit did not accurately reflect all the components as required by FMGLUA. This condition occurred because management did not ensure that all required components were accurately included in property management records. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.
Note: The Thomas County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit fmdings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
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