j GA. A'BOO 
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1991.f-95 
STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET ATLANTA, GEORGIA 30334 
 
 AUDIT REPORT TOWNS COUNTY BOARD OF EDUCATION 
HIAWASSEE, GEORGIA YEAR ENDED JUNE 30, 1995 
 
 TOWNS 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 
 
4 
 
C 
 
STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
6 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING AND INDIVIDUAL FUND STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
18 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
20 
 
FIDUCIARY FUND TYPE 
 
G 
 
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
AGENCYFUND 
 
22 
 
SCHEDULES 
 
1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
23 
 
2 CASH AND CASH EQUIVALENTS 
 
25 
 
3 ACCOUNTS RECEIVABLE 
 
26 
 
4 DEBT SERVICE REQUIREMENTS TO MATURITY 
 
27 
 
SCHEDULE OF REVENUE 
 
5 
 
STATE 
 
28 
 
6 
 
LOCAL AND OTHER 
 
29 
 
 TOWNS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
7 
 
GENERAL, SPECIAL REVENUE AND CAPITAL PROJECTS FUNDS 
 
30 
 
8 
 
LOTTERY PROGRAMS 
 
31 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
9 
 
OVERALL 
 
33 
 
10 
 
BY PROGRAM 
 
34 
 
11 SCHEDULE OF COMPENSATION OF BOARD MEMBERS 
 
36 
 
SECTION II 
COMPLIANCE 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
SECTION III 
INTERNAL CONTROL 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
 TOWNS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 65&-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 12, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation 
and Superintendent and Members ofthe Towns 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) ofthe Towns County Board ofEducation, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
95ARL-13* 
 
 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
 
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in 
 
the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the 
 
financial position of the Towns County Board of Education as of June 30, 1995, 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 12, 1996, on our consideration 
 
of the Board's internal control structure and a report dated July 12, 1996, on its compliance with laws and 
 
regulations. 
 
 
 
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Towns County Board ofEducation taken as a whole. The combining and individual fund statements (Exhibits E through G) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Towns County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
 
A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Re~ 
 
CLV:gp 95ARL-13* 
 
Claude L. Vickers State Auditor 
 
 TOWNS COUNTY BOARD OF EDUCATION - 1- 
 
 TOWNS COUNTY BOARD OF EDUCATION 
COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP 
JUNE 30, 1995 
 
ASSETS Cash and Cash Equivalents Investments Held by Trustee Accounts Receivable Amount Available in Debt Service Fund Amount to be Provided in Future Years 
For Payment of Bond Debt 
Total Assets 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 796,517.41 $ 
 
7,729.22 $ 
 
114,528.69 
 
335,979.89 
 
64,977.88 
 
$ 1,132,497.30 $ 
 
72,707.10 $ 114,528.69 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Deferred Compensation Plan General Obligation Bonds Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For State Capital Outlay Projects 
Unreserved Designated for Self-Insurance Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
$ 113,586.56 $ 281,568.43 
 
3,869.81 13,438.84 
 
$ 395,154.99 $ 
 
17,308.65 
 
$ 
 
$ 
 
48,892.78 
 
$ 
 
48,892.78 $ 
 
15,372.54 673,076.99 
 
$ 737,342.31 $ 
 
5,273.75 
 
$ 5,273.75 $ 
 
114,528.69 114,528.69 
 
50,124.70 55,398.45 $ 
 
0.00 114,528.69 
 
$ 1,132,497.30 $ 
 
72,707.10 $ 114,528.69 
 
The notes to the general purpose financial statements are an integral part of this statement. -2- 
 
 EXHIBIT"A" 
 
DEBT SERVICE 
FUND 
$ 431,980.22 
 
FIDUCIARY FUND TYPE AGENCY FUND 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS {Memorandum Onlll JUNE 3011995 JUNE 3011994 
 
$ 1,350,755.54 $ 1,297,360.81 
 
$ 
 
291,659.51 
 
291,659.51 
 
292,446.52 
 
400,957.77 
 
435,150.24 
 
$ 
 
431,980.22 
 
431,980.22 
 
467,050.27 
 
8 019.78 
 
81019.78 
 
71949.73 
 
$ 431,980.22 $ 
 
291,659.51 $ 
 
440,000.00 $ 2,483,372.82 $ 2,499,957.57 
 
$ 
 
291,659.51 
 
$ 
 
$ 
 
2911659.51 $ 
 
$ 440,000.00 
 
$ 117,456.37 295,007.27 291,659.51 4401000.00 
 
46,354.67 85,524.35 267,458.41 292,446.52 475,000.00 
 
4401000.00 $ 111441123.15 $ 111661783.95 
 
$ 431,980.22 
$ 431,980.22 0.00 
$ 4311980.22 
 
i' 
 
$ 
 
5,273.75 $ 
 
5,284.00 
 
431,980.22 
 
467,050.27 
 
48,892.78 
 
48,892.78 
 
114,528.69 
 
1251000.00 
 
$ 600,675.44 $ 646,227.05 
 
15,372.54 723,201.69 
 
12,160.69 674i785.88 
 
$ 113391249.67 $ 11333, 173.62 
 
$ 431,980.22 $ 
 
291,659.51 $ 
 
440,000.00 $ 2,483,372.82 $ 2,499,957.57 
 
- 3- 
 
 TOWN QQ!.!tit( 6QABQ QE EC2!.!QAII~ QQMalNEQ IAI.EMEtil QF BE~N!,,!E, E2!;eENDIT!,!BE ~Q Q~gE IN El,!NQ BALANQE 
&.L ~~BNMEffi&. f!.!NP ME 
VEAR ENDED J!,!NE 30, 1995 
 
EXHIBIT e-. 
 
BE~N!,!E 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENPJIUBE 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
QT!::IEB EINANQIN~ Q!.!BQES a.!SE} 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
EUNO BALANCE JULY 1 (Restated  See Note 1) 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
. FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
<Memorandum On~l 
YEAR ENDED 
JUNE 30, 1995 JUNE 301 1994 
 
s 2,029,317.71 S 
56,118.70 
1,602,621.56 
 
32,815.00 S 
467,205.85 132,765.81 
 
s 3,688,057.97 S 632,786.66 S 
 
0.00 
s 
0.00 S 
 
s 2,062,132.71 S 1,933,031.68 
 
523,324.55 
 
455,642.09 
 
27,138.21 
 
1.762,525.58 
 
1,625,862.94 
 
s 27,138.21 
 
4,347,982.64 S 4,014,536.71 
 
s 2,433,641.97 S 269,779.55 
 
150,810.41 
 
22,901.59 
 
23,812.82 89,009.25 118,841.47 202,848.70 31,278.21 
 
2,119.38 1,376.23 
938.06 1,908.n 
 
330,215.86 
 
2,965.78 
 
258,955.56 4,n3.40 5,623.87 3,579.60 
 
22,653.76 21,354.00 
302.03 267,658.31 
s 
 
s 3,653,391.12 S 613,957.41 $ 
 
s 2,703,421.52 $ 2,343,597.89 
 
173,712.00 
 
93,020.00 
 
25,932.20 90,385.48 11e.ns.53 204,757.42 31,278.21 
 
24,248.84 110,336.99 111,391.18 197,271.20 31,n8.32 
 
333,181.64 
 
269,144.22 
 
12,350.00 
s 
 
35,000.00 26,992.50 
215.76 
 
281,609.32 26,127.40 5,925.90 
271,237.91 
12,350.00 
35,000.00 26,992.50 
215.76 
 
227,238.01 23,223.20 22.12 
274,990.81 5,684.37 
56,650.56 
35,000.00 29,057.50 
350.00 
 
12,350.00 S 62,208.26 S 4,341,906.79 S 3,833,005.21 
 
$ 34,666.85 $ 18,829.25 $ -12,350.00 $ -35,070.05 $ 
 
6,076.05 $ 181,531.50 
 
$ 
s -128,736.40 
 
3,736.40 $ 125,000.00 
 
s -128,736.40 S 
 
3,736.40 $ 125,000.00 
 
s 128,736.40 S 
-128,736.40 
 
s 
 
0.00 $ 
 
221.91 -221.91 
0.00 
 
$ -94,069.55 S 22,565.65 $ 112,650.00 $ -35,070.05 $ 
 
6,076.05 S 181,531.50 
 
831,411.86 
 
32,832.80 
 
1,878.69 467,050.27 1,333,173.62 1,151,642.12 
 
f!,!ND BALANCE JUNE 30 
 
$ 737,342.31 $ 55,398.45 $ 114,528.69 $ 431,980.22 $ 1,339,249.67 $ 1,333,173.62 
 
The notes to the general purpose financial statements are an integral part of this statement. -4- 
 
 TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - lNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1995 
 
EXHIBITc 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
Ei<cess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1, 1994 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 1,986,167.00 $ 2,029,317.71 
 
108,500.00 
 
56,118.70 
 
113021904.00 116021621.56 
 
$ 3,397,571.00 $ 3,688,057.97 
 
$ 2,334,367.14 $ 2,433,641.97 
 
103,942.60 20,219.00 89,340.30 111,788.00 181,208.70 35,416.00 
282,206.00 260,805.00 
4,TT3.00 
 
150,810.41 23,812.82 89,009.25 118,841.47 202,848.70 31,278.21 330,215.86 258,955.56 
4,TT3.40 5,623.87 3,579.60 
 
135,000.00 
 
$ 31559,065.74 $ 3,653,391.12 
 
$ -161,494.74 $ 34,666.85 
 
$ -5,983.00 $ -128,736.40 $ -5,983.00 $ -128,736.40 
 
$ -167,4TT.74 $ 826,027.23 
 
-94,069.55 831,411.86 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 16,000.00 $ 32,815.00 
 
413,849.00 
 
467,205.85 
 
1201650.00 
 
132?65.81 
 
$ 5501499.00 $ 632?86.66 
 
$ 250,185.00 $ 269,779.55 
 
21,386.00 8,000.00 
1,525.00 1,000.00 
 
22,901.59 2,119.38 1,376.23 938.06 1,908.72 
 
21,710.00 326.00 
263,860.00 5,000.00 
 
2,965.78 22,653.76 21,354.00 
302.03 267,658.31 
 
$ 572,992.00 $ 613,957.41 $ -221493.00 $ 18,829.25 
 
$ 
 
5,983.00 $ 
 
3,736.40 
 
$ 
 
5,983.00 $ 
 
3,736.40 
 
$ -16,510.00 $ 45,237.31 
 
22,565.65 32,832.80 
 
FUND BALANCE JUNE 30. 1995 
 
$ 658,549.49 $ 737,342.31 
 
$ 28,727.31 $ 55,398.45 
 
The notes to the general purpose financial statements are an integral part of this statement. -5- 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The Towns County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. 
The more significant ofthe Board's accounting policies are described below. 
REPORTING ENTITY 
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Towns County Board ofEducation. 
Based upon the application ofthe above criteria, the Towns County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Towns County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards. 
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. 
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the .funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
 
- 6- 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources 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 of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund~ however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of Towns County Comprehensive School, Georgia State Financing and Investment Commission Project No. 96-739-067. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: 
AGENCY FUND - the fund used to account for assets held for the Deferred Compensation Plan. 
 
- 7- 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Agency funds are purely custodial in nature and do not involve measurement of results ofoperations. 
Governmental funds are accounted for using the modified accrual basis ofaccounting 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, local option sales 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 substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. 
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. 
- 8- 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXIDBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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$12,160.69 at June 30, 1994. For fiscal year 1995, this fund has been reported as a part ofthe General Fund. The fund balance at July 1, 1994 has been restated as appropriate. 
 
BUDGET 
 
The Towns 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 ofbudget control was established by the Board at the 
 
aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted 
 
accounting principles. 
 
 
 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting 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 ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
CASH AND CASH EQUIVALENTS 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit 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 ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State. 
 
INVESTMENTS HELD BY TRUSTEE 
Investments held by trustee consist of contributions from employees who have elected to participate in the Board's deferred compensation plan. See Note 7 - Deferred Compensation Plan 
 
RECEIVABLES 
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when 
 
- 9- 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
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 Towns County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on October I, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Towns County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection, and remits the balance oftaxes collected to the Board. 
 
The tax millage rate levied for the 1994 tax year (calendar year) for the Towns County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
i l mills 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of purchased foods and donated food commodities used in the preparation of meals are not reported on the Combined Balance Sheet. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. 
 
GENERAL OBLIGATION BONDS 
 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
 
INTERFUND TRANSACTIONS 
 
The Board has the following types ofinterfund transactions: 
 
Reimbursements ofexpenditures 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. 
 
- 10 - 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXIDBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. 
Note 2: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State 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 ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
- 11 - 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. I 995 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $1,594,220.30. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities 
 
held by the Board or by the Board's agent in the Board's name. 
 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust 
 
department or agent in the Board's name. 
 
 
 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with 
 
securities held by the pledging financial institution, or by its trust department or agent but 
 
not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1995, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 200,010.00 
 
2 
 
0.00 
 
3 
 
1,394,210.30 
 
Total 
 
$ 1,594,220.30 
 
CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount of the Board's total investments was $291,659.51 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments. The market value ofthese investments was $291,659.51. 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
- 12 - 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation. 
 
The Board has obtained commercial insurance for risk ofloss associated with torts, assets, natural disaster and errors and omissions, however the errors and omissions policy excludes coverage for sexual harassment and discrimination claims. 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 is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
1994 1995 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
124.00 $ 
 
124.00 $ 
 
0.00 
 
The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of$250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss. 
 
Note 5: GENERAL LONG-TERM DEBT 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows: 
 
- 13 - 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Notes: GENERALLONG-TERMDEBT 
 
General Obligation 
Bonds 
 
Balance July 1, 1994 
 
$ 475,000.00 
 
Deductions 
 
35,000:00 
 
Balance June 30, 1995 
 
$ 440.000 00 
 
At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
General Obligation 
Bonds 
 
1996 1997 1998 1999 2000 2001 and thereafter 
 
$ 52,980.00 63,600.00 61,240.00 63,880.00 61,225.00 
265,400.00 
 
Total Principal and Interest 
 
$ 568,325 00 
 
Note 6: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter..agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
Note 7: DEFERRED COMPENSATION PLAN 
 
The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. 
 
- 14 - 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS 
 
JUNE 30, 1995 
 
Note 7: DEFERRED COMPENSATION PLAN 
All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value ofthe deferred account for each participant. 
It is the opinion ofthe Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required ofan ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims ofgeneral creditors in the futu_re. 
Investments are managed by the plan's trustee, Lincoln National Pension Company. Under this plan, participants select from an investment option, or combination ofinvestment options, determined by the Board. 
Note 8: RETIRE:MENT 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 ofage, 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. 
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. 
 
- 15 - 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 8: RETIREMENT PLANS 
 
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $2,135,102.06; total payroll was $2,494,315.35. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. 
 
Total contnbutions made during fiscal year 1995 amounted to $358,912.01, ofwhich $252,155.73 was made by the Board and $106,756.28 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll. 
 
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. 
 
Total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, was as follows: 
 
Total pension benefit obligation 
 
$15,313,743,000.00 
 
Net assets available for benefits, at cost 
 
14,254,785,000.00 
 
Unfunded pension benefit obligation 
 
$ 1.058.958.000.00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $252,155.73 was actuarially determined and represented .0446% of total contributions made by all participating employers. 
 
- 16 - 
 
 TOWNS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\.1ENTS 
 
JUNE 30, 1995 
 
Note 8: RETIRE1\.1ENT PLANS 
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) 
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. 
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life halfof what the employee would have received upon retirement. 
Membersbecome fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. 
There were 32 employees covered under PSERS for the year ended June 30, 1995. 
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $1,032.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00. 
Note 9: SURETY BONDS 
The School Superintendent, Mr. James Kimsey, is bonded in the amount of$25,000.00 with the Fidelity and Deposit Company ofMaryland, Baltimore, Maryland, their Bond No. 3044-11-83, on which premium was paid through December 31, 1995. 
- 17 - 
 
 TOWNS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
Total Assets 
 
ELEMENTARY AND SECONDARY 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
CHAPTER 1 EDUCATION OF 
DEPRIVED CHILDREN 
 
CHAPTER2 BLOCK GRANT -FLOW THROUGH 
 
$ 48,821.77 $ 
 
0.00 
 
$ 
 
0.00 
 
1,302.93 
 
$ 
 
39,168.93 
 
$ 50,124.70 $ 
 
0.00 $ 
 
39,168.93 $ _ _ _ _ _o_.o_o 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
$ 
 
25,006.74 
 
3,152.85 
 
11,009.34 
 
$ 
 
39,168.93 
 
$ 50,124.70 $ $ 50,124.70 $ 
$ 50,124.70 $ 
 
0.00 $ 0.00 $ 
 
0.00 $ 0.00 $ 
 
0.00 0.00 
 
0.00 $ 
 
- - - - - - 39,168.93 $ 
 
0.00 
 
See notes to the general purpose financial statements. 
 
-18 - 
 
 EXHIBIT"E" 
 
EDUCATION ACT TITLE II- 
EISENHOWER MATHEMATICS AND SCIENCE 
EDUCATION 
 
INDIVIDUALS WiTH 
 
DISABILITIES EDUCATION ACT 
 
TITLE VI, 8 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
DROPOUT 
 
PREVENTION 
 
TOTALS 
 
HEAD START PROGRAM JUNE 30, 1995 JUNE 30, 1994 
 
4,979.62 
 
$ 
 
0.00 
 
_ _ _ _ _ $ _ _ _6_5_3._0_1 _ _ _ _ _ $ 
 
10,681.74 $ 
 
$ 
13,171.27 
 
53,801.39 $ 64,977.88 
 
17,900.92 95,035.19 
 
$ 
 
----- ----- 4,979.62 $ 
 
653.01 $ 
 
0.00 $ 10,681.74 $ 13,171.27 $ 118,779.27 $ 112,936.11 
 
$ 
 
653.01 
 
$ _ _ _6_5_3_.0_1 
 
$ 10,387.61 $ 10,024.81 $ 716.96 
2,429.50 
$ 10,387.61 $ 13,171.27 $ 
 
46,072.17 $ 3,869.81 
13,438.84 
63,380.82 $ 
 
64,255.59 5,526.22 
10,321.50 
80,103.31 
 
$ 
 
4,979.62 
 
$ 
 
294.13 
 
$ 
 
5,273.75 
 
o.oo $ _ _ _ _o_.o_o $ _ _ _ _0._00_ _ _ _o_.o_o $ _____o_.o_o 
 
50,124.70 $ 32,832.80 
 
$ 
 
4,979.62 $ _ _ _ _o_.o_o $ _ _ _ _0._00_$ 
 
294.13 $ 
 
o.oo $ 55,398.45 $ 32,832.so 
 
$ 
 
4,979.62 $ _ _ _6_5_3_.0_1 $ _ _ _ _o_.o_o $ 10,681.74 $ 13,111.21 $ 118,779.27 $ 112,936.11 
 
-19 - 
 
 TOWNS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES 
Operating Transfers In 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUND BALANCE JULY 1 
Residual Equity Transfer 
 
SCHOOL FOOD 
SERVICES FUND 
 
ELEMENTARY AND SECONDARY 
 
LOTTERY PROGRAMS 
 
CHAPTER 1 EDUCATION OF 
DEPRIVED CHILDREN 
 
CHAPTER2 BLOCK GRANT FLOW THROUGH 
 
$ 16,154.00 $ 133,511.73 132,765.81 
$ 282,431.54 $ 
 
16,661.00 $ 
16,661.00 $ 
 
133,581.96 $ 133,581.96 $ 
 
4,790.00 4,790.00 
 
$ 2,869.94 $ 
 
14,381.00 
 
$ 265,139.64 $ 265,139.64 $ $ 17,291.90 $ 
 
17,250.94 $ -589.94 $ 
 
118,300.35 $ 
885.39 
1,376.23 867.03 
1,520.67 1,038.83 6,772.76 
302.03 2,518.67 
133,581.96 $ 
0.00 $ 
 
$ 17,291.90 $ 32,832.80 
 
589.94 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
4,778.35 11.65 
4,790.00 0.00 
0.00 0.00 
 
FUND BALANCE JUNE 30 
 
$ 50,124.70 $ 
 
0.00 $ 
 
------ 0.00 $ 
 
0.00 
 
See notes to the general purpose financial statements. 
 
-20- 
 
 EXHIBIT"F" 
 
EDUCATION ACT TITLE II- 
EISENHOWER MATHEMATICS AND SCIENCE 
EDUCATION 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLE VI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
HEAD START 
 
DROPOUT PREVENTION 
PROGRAM 
 
TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 
 
$ 
 
32,815.00 $ 
 
80,229.81 
 
$ 
 
7,000.00 $ 
 
39,740.01 $ 8,144.98 $ 76,917.17 $ 63,520.00 
 
467,205.85 
 
365,694.81 
 
132,765.81 
 
116,227.76 
 
$ 
 
7,000.00 $ 
 
39,740.01 $ 
 
8,144.98 $ 76,917.17 $ 63,520.00 $ 632,786.66 $ 562,152.38 
 
$ 
 
17,066.84 $ 
 
6,659.98 $ 73,196.09 $ 
 
46,908.00 $ 
 
269,779.55 $ 243,254.29 
 
$ 
 
2,015.96 
 
4.42 
 
2,257.74 103.42 
54.96 388.05 
19,869.00 
 
1,485.00 
 
1,926.95 1,500.00 
 
19,758.46 
 
22,901.59 2,119.38 1,376.23 938.06 1,908.72 2,965.78 
22,653.76 21,354.00 
302.03 267,658.31 
 
321.83 2,369.26 16,887.10 1,071.74 2,443.86 4,099.71 7,696.25 18,962.00 
22.12 268,134.26 
 
$ 
 
2,020.38 $ 
 
39,740.01 $ 
 
8,144.98 $ 76,623.04 $ 
 
66,666.46 $ 
 
613,957.41 $ 565,262.42 
 
$ 
 
4,979.62 $ 
 
0.00 $ 
 
0.00 $ 
 
294.13 $ 
 
-3,146.46 $ 
 
18,829.25 $ 
 
-3,110.04 
 
$ 
 
4,979.62 $ 
 
0.00 
 
$ 
 
4,979.62 $ 
 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
3,146.46 
 
3,736.40 
 
221.91 
 
294.13 $ 0.00 
 
0.00 $ 0.00 
 
22,565.65 $ 32,832.80 
 
-2,888.13 35,730.22 
-9.29 
 
- - - - 0.00 $ 
 
0.00 $ 
 
- - - - 294.13 $ 
 
0.00 $ 
 
55,398.45 $ 
 
32,832.80 
 
- 21 - 
 
 TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE -AGENCY FUND YEAR ENDED JUNE 30, 1995 
 
EXHIBIT "G" 
 
DEFERRED COMPENSATION PLAN 
ASSETS Investments Held by Trustee 
 
BALANCE JULY 1, 1994 
 
ADDITIONS 
 
DEDUCTIONS 
 
BALANCE JUNE 30, 1995 
 
$ 292,446.52 $ 
 
29,212.99 $ 
 
30,000.00 $ 291,659.51 
 
LIABILITIES Deferred Compensation Plan 
 
$ 292,446.52 $ 
 
29,212.99 $ 
 
30,000.00 $ 291,659.51 
 
See notes to the general purpose financial statements. 
 
-22 - 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30, 1995 
 
SCHEDULE 1 
 
FUNDING AGENCY 
PROGRAM/GRANT 
 
CFDA NUMBER 
 
AWARDS IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS) 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U. S. Department of Through Office of Treasury and Fiscal Services National Forest Reserve Funds Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994Grant 1995 Grant National School Lunch Program 1994 Grant 1995Grant Food Distribution Program (1) 
 
10.665 $ 
10.553 10.553 10.555 10.555 10.550 
 
22,237.79 $ 
35,448.46 79,964.00 18,099.27 
 
22,237.79 $ 22,237.79 
 
(5) 
 
3,556.04 35,448.46 
9,474.48 79,051.56 N/A 
 
35,448.46 
 
(2) 
 
79,964.00 $ 18,099.27 
 
247,040.37 (3) 18,099.27 
 
Total U.S. Department of Agriculture 
 
$ 155,749.52 $ 
 
149,768.33 $ 155,749.52 $ 265,139.64 
 
Appalachian Regional Commission Direct Dropout Prevention Program 94-68 GA-11517-94-1-302-0328 Pilot Kindergarten Program 92-46 C0-10947B-92-1-302-0115 
 
23.001 $ 23.001 
 
63,520.00 $ 
 
50,348.73 $ 4,794.22 
 
63,520.00 $ 
 
66,666.46 (3) 
 
Total Appalachian Regional Commission 
 
$ 63,520.00 $ 
 
55,142.95 $ 63,520.00 $ 
 
66,666.46 
 
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Regular 1994Summer 1994 Carry-Over 1995 Regular 1995Summer Chapter2 Block Grant - Flow Through 1995 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act TitleVl,B Flow Through 1994 Carry-Over 1995 Regular Preschool Program 1994 Carry-Over 1995 Regular 
 
84.010 84.010 84.010 $ 84.010 84.010 
 
$ 
27,412.00 105,981.00 23,050.00 
 
84.151 
 
4,790.00 
 
84.164 84.164 
 
7,000.00 
 
84.027 84.027 
84.173 84.173 
 
11,646.00 30,030.00 
4,969.00 3,500.00 
 
18,131.42 26,200.00 $ 27,412.00 50,000.00 
 
17,001.03 $ 27,412.00 78,318.88 10,850.05 
 
17,001.03 27,412.00 78,318.88 10,850.05 
 
4,790.00 
 
4,790.00 
 
4,790.00 
 
261.00 7,000.00 
 
7,000.00 
 
2,020.38 
 
11,646.00 27,441.00 
4,969.00 3,175.98 
 
11,646.00 28,094.01 
4,969.00 3,175.98 
 
11,646.00 28,094.01 
4,969.00 3,175.98 
 
- 23 - 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30, 1995 
 
FUNDING AGENCY 
PROGRAM/GRANT 
 
CFDA 
 
AWARDS 
 
NUMBER . IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS) 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Education, U. S. Department of Through Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1995 Grant Tech-Prep Education 1994Grant 1995Grant Through Pioneer Regional Educational Service Agency Vocational Education High School Program Related Vocational Instruction 1994Grant 
 
84.048 $ 84.243 84.243 
84.048 
 
3,248.26 $ 30,632.65 
 
Total U. S. Department of Education 
 
$ 2521258.91 $ 
 
3,248.26 $ 
 
3,248.26 
 
(4) 
 
12,118.70 
 
30,632.65 
 
(4) 
 
31n1.30 2001164.66 $ 
 
2271137.86 $ 
 
18812n.33 
 
Health and Human Services, U. S. Department of Through Ninth District Opportunity, Incorporated Head Start 1994 Grant 1995 Grant 
 
93.600 93.600 $ 
 
Total U. S. Department of Health and 
 
Human Services 
 
$ 
 
$ 
aa1n3.oo 
881773.00 $ 
 
16,110.90 $ 501146.06 
 
16,089.37 $ 601827.80 
 
16,089.37 601533.67 
 
661256.96 $ 761917.17 $ 
 
761623.04 
 
Total Federal Financial Assistance 
 
$ 560,301.43 $ 
 
471,332.90 $ 523,324.55 $ ___5_96_:7_00_._47_ 
 
The Board had no major programs as defined by the Single Audit Act of 1984. 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. 
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures. 
 
 See notes to the general purpose financial statements. 
 
- 24 - 
 
 TOWNS COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995 
 
SCHEDULE "2" 
 
NONINTEREST BEARING ACCOUNTS 
Towns County Bank, Hiawassee, Georgia 
INTEREST BEARING ACCOUNTS 
Bank of Hiawassee, Hiawassee, Georgia 
Certificates of Deposit No. 41-61-06-3 (6.00%) No. 41-61-07-1 (6.00%) No. 41-61-08-9 (6.00%) 
Insured Investment Account (3.20%) 
N.O.W. Accounts (3.05%) 
Towns County Bank, Hiawassee, Georgia 
Certificates of Deposit No. 59077030 (6.25%) No. 59077031 (6.25%) No. 59077032 (6.25%) No. 59077033 (6.25%) 
N.O.W. Account (3.50%) 
 
$ 
 
10.00 
 
$ 100,000.00 100,000.00 100,000.00 103,715.74 515,059.58 
 
918,775.32 
 
$ 100,000.00 100,000.00 100,000.00 100,000.00 31,970.22 
 
431,970.22 
 
$ 1,350,755.54 
 
See notes to the general purpose financial statements. - 25 - 
 
 TOWNS COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1995 . 
 
SCHEDULE "3" 
 
Appalachian Regional Commission Dropout Prevention Program 
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries- FY 1995 Food Services National School Lunch Program Vocational Education Federal Funds Federal Programs ESEA - Chapter 1 Education of_Deprived Children Individuals with Disabilities Education Act Title VI, B - Flow Through 
Fannin County Board of Education Reimbursement for Salaries 
Mayfield Dairy Farms, Incorporated Milk Reimbursement 
Ninth District Opportunity, Incorporated Head Start 
Revenue, Georgia Department of Local Option Sales Tax 
Towns County Tax Commissioner County Wide School Tax 
Union County Board of Education Reimbursement for Salaries 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 
 
13,171.27 $ 
 
13,171.27 
 
$ 
 
270,304.00 
 
30,632.65 
 
1,819.72 
 
5,048.48 24,535.74 
3,639.30 
 
912.44 
39,168.93 653.01 
390.49 10,681.74 
 
270,304.00 912.44 
30,632.65 39,168.93 
653.01 1,819.72 
390.49 10,681.74 
5,048.48 24,535.74 
3,639.30 
 
$ 
 
335,979.89 $ 
 
64,977.88 $ ===4=00=,9=57=.7=7 
 
See notes to the general purpose financial statements. - 26 - 
 
 TOWNS COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY 
JUNE 30, 1995 
 
SCHEDULE "4" 
 
PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 
1996 1997 1998 1999 2000 2001 2002 2003 2004 
 
TOTAL DEBT SERVICE 
 
1974 ISSUE 
 
INTEREST (*) 
 
PRINCIPAL 
 
$ 
 
52,980.00 $ 
 
12,980.00 $ 
 
40,000.00 
 
63,600.00 
 
23,600.00 
 
40,000.00 
 
61,240.00 
 
21,240.00 
 
40,000.00 
 
63,880.00 
 
18,880.00 
 
45,000.00 
 
61,225.00 
 
16,225.00 
 
45,000.00 
 
63,570.00 
 
13,570.00 
 
50,000.00 
 
65,620.00 
 
10,620.00 
 
55,000.00 
 
67,375.00 
 
7,375.00 
 
60,000.00 
 
68,835.00 
 
3,835.00 
 
65,000.00 
 
$ 568,325.00 $ 128,325.00 $ 440,000.00 
 
(*) Interest due on July 1, 1995, was paid prior to June 30, 1995, and has been excluded from this schedule. 
 
CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period 
 
TOTAL $ 475,000.00 
35,000.00 
 
Bonds Payable at June 30, 1995 
 
$ 440,000.00 
 
MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date 
 
JAN 1-JUL 1 JAN 1 
 
See notes to the general purpose financial statements. 
- 27 - 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1995 
 
SCHEDULE "5" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 and 5 Superintendent's Base Salary Local Fair Share Deferred Summer Salaries - FY 94 Deferred Summer Salaries - FY 95 Food Services Vocational Education Other State Programs At-Risk Summer School Program Preschool Handicapped Program Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Instructional Technology Safe Schools Grant 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 1,440,925.00 205,194.00 6,402.00 59,789.00 20,219.00 421,432.00 
143,333.00 41,971.00 95,860.00 56,783.00 25,747.00 32,831.00 29,535.00 19,971.00 21,590.00 -633,986.00 -261,308.00 270,304.00 
$ 1,590.00 
2,595.81 5,983.00 21,551.00 1,005.90 
 
$ 
16,154.00 2,280.00 14,381.00 
 
1,440,925.00 205,194.00 6,402.00 59,789.00 20,219.00 421,432.00 
143,333.00 41,971.00 95,860.00 56,783.00 25,747.00 32,831.00 29,535.00 19,971.00 21,590.00 -633,986.00 -261,308.00 270,304.00 16,154.00 
1,590.00 
2,595.81 5,983.00 21,551.00 1,005.90 
2,280.00 14,381.00 
 
$ 2,029,317.71 $ 
 
32,815.00 $ 2,062,132.71 
 
See notes to the general purpose financial statements. - 28 - 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE 
YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "6" 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL 
 
REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
Taxes County Wide School Tax Local Option Sales Tax Real Estate Transfer Tax 
 
$ 747,784.63 657,199.41 16,943.56 
 
$ 747,784.63 657,199.41 16,943.56 
 
Other Contributions for Unemployment Compensation from Other Funds Day Care Fees Interest Earned Ninth District Opportunity, Incorporated Child and Adult Care Food Program Reimbursement for Salaries and Benefits Revenue in Lieu of Taxes Tennessee Valley Authority Sales Lunches and Breakfast School Assets Shared Service Contributions Low Incidence Program Fannin County Board of Education Union County Board of Education Other 
 
3,335.85 6,824.25 
34,854.76 $ 
 
1,358.56 $ 27,138.21 
 
3,335.85 6,824.25 63,351.53 
 
100,042.72 16,520.02 
7,240.00 
 
131,016.66 
 
100,042.72 
16,520.02 
131,016.66 7,240.00 
 
3,021.48 6,042.96 2,811.92 
 
390.59 
 
3,021.48 6,042.96 3,202.51 
 
$ 1,602,621.56 $ 132,765.81 $ 27,138.21 $ 1,762,525.58 
 
See notes to the general purpose financial statements. - 29 - 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL SPECIAL REVENUE AND CAPITAL PROJECTS FUNDS 
YEAR ENDED JUNE 30, 1995 
 
SCHEDULE '7" 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Property Services Insurance Communications Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures 
Nonoperating Costs Building and Building Improvements Equipment 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
FUND 
 
TOTAL 
 
$ 2,241,249.59 $ 701,031.08 13,318.99 59,949.04 7,800.00 19,387.88 78,561.06 13,247.83 131.50 16,034.04 15,578.61 
4,773.40 16,010.00 136,669.80 141,055.09 
34,807.68 9,122.22 237.22 
 
253,065.76 72,331.62 1,199.71 587.08 
6,121.03 
948.54 21,354.00 
1,185.39 28,444.68 
6,889.99 157,545.30 
355.31 
 
$ 2,494,315.35 773,362.70 14,518.70 60,536.12 7,800.00 19,387.88 84,682.09 13,247.83 131.50 16,034.04 15,578.61 948.54 26,127.40 17,195.39 165,114.48 147,945.08 157,545.30 34,807.68 9,122.22 592.53 
 
144,426.09 
 
$ 63,929.00 
 
12,350.00 
 
12,350.00 208,355.09 
 
Total Expenditures 
 
$ 3,653,391.12 $ 613,957.41 $ 
 
12,350.00 $ 4,279,698.53 
 
See notes to the general purpose financial statements. - 30 - 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT 
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "8" 
 
EXPENDITURES 
Operating Costs Supplies 
Nonoperating Costs Equipment 
 
INSTRUCTIONAL TECHNOLOGY 
 
SAFE SCHOOLS 
GRANT 
 
TOTAL 
 
$ 
 
1,249.94 
 
$ 
 
1,249.94 
 
1,620.00 $ 
 
14,381.00 
 
16,001.00 
 
Total Expenditures 
 
$ 
 
2,869.94 $ 
 
14,381.00 $ ====17=,2=5=0=.9=4 
 
See notes to the general purpose financial statements. - 31 - 
 
 ~CJJ 
(fl~ 
qJ f' 
\r 
 
 TOWNS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "9" 
 
Minimum Expenditure Requirements (Total Allotment) 
Expenditures on Combined Program Basis Salaries (1) (2) Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
 
THIRTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS 
 
$ 1,741,845.00 $ 
 
66,905.00 
 
$ 1,828,220.83 192,083.03 $ _ _ _16_9_,_0_1_6_.3_3 
$ 2,020,303.86 
 
-5,222.02 $ 2,015,081.84 
 
Amount of Underexpenditure for Total Allotment 
 
$ 
 
o.oo $=====o==.o=o 
 
Note: (1) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
See notes to the general purpose financial statements. - 33 - 
 
 TOWNS COUNTY BOARD Of EDUCATION ANALYSIS Of MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
YEAR ENDED JUNE 30 1995 
 
GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten () Grades 1  3 (") Sub-Total - K-3 Grades 4  5 (") Grades 6  8 (") Grades 9  12 () High School Laboratories () Vocational Education Laboratories () Total General and Career Education Programs 
SPEQIAL EQUCATIQN PROGRAMS Regular Programs Category I () Category II () Category Ill () Sub-Total - Regular Category V (Gifted) () Total Special Education Programs 
REMEQIAL EPVQATIQN PROGRAM (l 
Total Thirteen Weighted Programs MEQIA CENTER PROGRAMS 
Salaries Operations 
Total Media Center Programs 
Total Thirteen Weighted and Media Center Programs 
STAFF QE~EbQPMENT PROGRAMS 
Cost or Instruction 
Professional Development 
Total Staff Development () Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred 
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
See notes to the general purpose financial statements. 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL _!_ 
 
ORIGINAL 
 
MID-TERM 
 
$ 131,285.00 
 
$ 
 
118,156.50 $ 
 
368,312.00 
 
331,480.80 
 
$ 
 
499,597.00 90 $ 
 
449,637.30 $ 
 
191,109.00 90 
 
171,998.10 
 
325,685.00 90 
 
293,116.50 
 
120,905.00 90 
 
108,814.50 
 
145,STT.OO 90 
 
131,289.30 
 
157,752.00 90 
 
141,976.80 
 
$ 1,440,925.00 
 
$ 1,296,832.50 $ 
 
0.00 0.00 29,535.00 
29,535.00 
 
$ 182,698.00 
 
$ 
 
164,428.20 $ 
 
0.00 
 
$ 
 
182,698.00 90 $ 
 
164,428.20 $ 
 
22,496.00 90 
 
20,246.40 
 
$ 205,194.00 
 
$ 
 
184,674.60 $ 
 
$ 
 
6402.00 90 $ 
 
5 761.80 $ 
 
$ 1,652,521.00 
 
$ 1,487,268.90 $ 
 
0.00 
0.00 0.00 29,535.00 
 
$ 
 
46,391.00 90 $ 
 
41,751.90 $ 
 
0.00 
 
13,398.00 90 
 
12,058.20 
 
$ 
 
59,789.00 
 
$ 
 
53,810.10 $ 
 
0.00 
 
$ 1,712,310.00 
 
$ 1,541,079.00 $ 
 
29,535.00 
 
$ 
 
4,760.00 
 
$ 
 
4,760.00 $ 
 
0.00 
 
15,459.00 
 
15,459.00 
 
0.00 
 
$ 
 
20,219.00 100 $ 
 
20,219.00 $ 
 
0.00 
 
(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
- 34 - 
 
 SCHEDULE "1 O" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES (1 )(2) OPERATIONS 
 
TOTAL 
 
AMOUNTOF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
118,156.50 $ 
 
154,293.65 $ 
 
8,125.83 $ 
 
162,419.48 
 
331,480.80 
 
406.961.89 
 
23.123.74 
 
430,085.63 
 
$ 
 
449,637.30 $ 
 
561,255.54 $ 
 
31,249.57 $ 
 
592,505.11 $ 
 
0.00 
 
201,533.10 
 
272,692.99 
 
13,336.53 
 
286,029.52 
 
0.00 
 
293,116.50 
 
303,424.95 
 
20,786.50 
 
324,211.45 
 
0.00 
 
108,814.50 
 
185,709.20 
 
30,925.63 
 
216,634.83 
 
0.00 
 
131,289.30 
 
172,878.46 
 
17,260.27 
 
190,138.73 
 
0.00 
 
141976.80 
 
123,593.04 
 
18,852.97 
 
142,446.01 
 
0.00 
 
$ 1.326,367.50 $ 1,619,554.18 $ 
 
132,411.47 $ 1,751,965.65 
 
$ 
 
164,428.20 
 
$ 
 
$ 139,986.62 
 
1,903.18 $ 677.17 
33,011.56 
 
1,903.18 677.17 
172,998.18 
 
$ 
 
164,428.20 $ 
 
139,986.62 $ 
 
35,591.91 $ 
 
175,578.53 
 
0.00 
 
20.246.40 
 
20955.44 
 
907.58 
 
21.863.02 
 
0.00 
 
$ 
 
184 674.60 $ 
 
160 942.06 $ 
 
36,499.49 $ 
 
197 441.55 
 
$ 
 
5 761.80 $ 
 
5780.27 $ 
 
105.37 $ 
 
5 885.64 
 
0.00 
 
$ 1.516,803.90 $ 1,786,276.51 $ 
 
169,016.33 $ 1,955,292.84 
 
$ 
 
41,751.90 $ 
 
41,944.32 
 
$ 
 
41,944.32 
 
0.00 
 
12,058.20 
 
$ 
 
23,066.70 
 
23,066.70 
 
0.00 
 
$ 
 
53 810.10 $ 
 
41,944.32 $ 
 
23,066.70 $ 
 
65,011.02 
 
$ 1,570,614.00 $ 1,828,220.83 $ 
 
192,083.03 $ 2,020,303.86 $ 
 
0.00 
 
$ 
 
4,760.00 
 
15 459.00 
 
s _ _ _20_,2_1_9_.o_o 
 
$ 
 
17,071.89 $ 
 
17,071.89 
 
5,027.26 
 
5,027.26 
 
$ 
 
22,099.15 $ 
 
22,099.15 s_ _ _ _ _ _o._oo_ 
 
- 35 - 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION OF BOARD MEMBERS 
YEAR ENDED JUNE 30. 1995 
 
SCHEDULE "11" 
 
BOARD MEMBER ADDRESS 
Mr. Mitchell Rhinehardt, Chairman (*) 
P. 0. Box988 
Young Harris, Georgia 30582 
Mr. David Hoodenpyle (*) 
P. 0. Box72 
Hiawassee, Georgia 30546 
Mr. Rickey Mathis (*) 
P. 0. Box438 
Hiawassee, Georgia 30546 
Ms. Anne Mitchell(*) 
P. 0. Box280 
Hiawassee, Georgia 30546 
Mr. Gary Walls (*) 
P. 0. Box673 
Hiawassee, Georgia 30546 
 
$ 
 
1,600.00 
 
1,650.00 
 
1,450.00 
 
1,550.00 
 
1,550.00 
 
(*) Denotes Board Members Serving as of June 30, 1995 
 
$===7=,a=o=o=.o=o 
 
See notes to the general purpose financial statements. - 36 - 
 
 SECTION II COMPLIANCE 
 
 CLAUDE L. VICKERS 
STATE AUDllOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 12, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Towns County Board ofEducation 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Towns County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 12, 1996. 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 ofthe 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 Towns 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 ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 
 
95CRL-10 
 
 This report is intended for the information of management, the Federal cognizant audit agency and other 
 
Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a 
 
matter of public record. 
 
Rz~ 
 
CLV:gp 95CRL-10 
 
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 12, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation 
and Superintendent and Members of the Towns County Board ofEducation 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Towns County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 12, 1996. 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 Towns County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995: 
 
( 1) Political Activity 
 
(5) Allowable Costs/Cost Principles 
 
(2) Civil Rights 
 
(6) Drug-Free Workplace Act 
 
(3) Cash Management 
 
(7) Audit Follow-Up/Resolution 
 
(4) Federal Financial Reports 
 
(8) Administrative Requirements 
 
Our procedures were limited to the applicable procedures described in the Office ofManagement 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. 
 
95CRL-40 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Towns County Board ofEducation had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:gp 95CRL-40 
 
 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 12, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation 
and Superintendent and Members ofthe Towns County Board ofEducation 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements ofthe Towns County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 12, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
In connection with our audit ofthe fiscal year 1995 general purpose financial statements of the Towns County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govemmg: 
 
(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 Towns County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 
 
95CRL-120 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Towns County Board ofEducation had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
t:Y~~ 
Claude L. Vickers State Auditor 
CLV:gp 95CRL-120 
 
 SECTION III 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 12, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation 
and Superintendent and Members ofthe Towns County Board ofEducation 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Towns Courity Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 12, 1996. 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 ofthe Towns County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
95ICL-3 
 
 In planning and perfonning our audit ofthe general purpose financial statements ofthe Towns County Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 
 
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, reportable conditions were noted in the following control categories: 
 
(1) Accounting Controls (Overall) 
 
(2) General Fixed Assets 
 
A material weakness is a reportable condition in which the design or operation of one or more ofthe 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 conditions disclosed above are also considered to be material weaknesses. 
 
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Towns County Board ofEducation's financial statements and this report does not affect our report thereon dated July 1_2, 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, 
L~ 
Claude L. Vickers State Auditor 
 
CLV:gp 95ICL-3 
 
 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 12, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Towns County Board ofEducation 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Towns County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 12, 1996. 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; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 12, 1996. 
The management ofthe Towns 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 
95ICL-15 
 
 objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: 
 
GENERAL REQUIREMENTS 
 
SPECIFIC REQUIREMENTS 
 
(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(1) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level ofEffort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(4) Reporting 
 
(6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements 
 
(5) Applicable Special Tests and Provisions 
(6) Other Requirement Claims for Advances and Reimbursements 
 
For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. 
 
During the year ended June 30, 1995, the Towns County Board ofEducation had no major Federal financial assistance programs and expended 56% ofits total Federal financial assistance under the following nonmajor Federal financial assistance programs: 
 
Food and Nutrition Program Food Services National School Lunch Program 
Elementary and Secondary Education Act - Title I - Chapter I Education of Deprived Children 
Head Start 
 
95ICL-15 
 
 We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor programs. 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 report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
 
CLV:gp 95ICL-15 
 
Claude L. Vickers State Auditor 
 
 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,134.09 Audit Control Number 7391-93-03 
The audit report for the year ended June 30, 1993, reported that the Board had underexpenditures ofQuality Basic Education (QBE) funds of$313.20 for the operations portion ofthe Special Education - Gifted Program and $820.89 for the salaries portions of the Remedial Education Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund these underexpenditures as required. The underexpenditures of $1,134.09 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $4,408.88 Audit Control Number 7391-93-04 
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$4,408.88 for the StaffDevelopment - Professional Development 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. The underexpenditure of $4,408.88 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $5,218. 73 Audit Control Number 7391-94-01 
The audit report for the year ended June 30, 1994, reported that the Board had underexpenditures of Quality Basic Education (QBE) funds of$4,806.58 and $376.47 for the operations portions of the General and Career - Vocational Educational Laboratories, and Special Education - Gifted Programs, respectively; and $35.68 for the StaffDevelopment - Cost oflnstruction Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund these underexpenditures as required. The underexpenditures of$5,218.73 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
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 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $38, 13 I.08 Audit Control Number 7391-94-02 
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$38,131.08 for the salaries portion of Special Education - Regular Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $3 8, 13 I.08 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
PRIOR YEAR/CURRENT YEAR 
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7391-93-01 
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Board made some improvements regarding separation of employee's duties but still did not achieve an adequate degree of internal control. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. 
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report are affected by this finding. 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7391-93-02 
The audit report for the year ended June 30, 1994, noted that the management of the Towns County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This 
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 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 
PRIOR YEAR/CURRENT YEAR 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7391-93-02 
condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
CURRENT YEAR 
EMPLOYEE COMPENSATION Salary Overpayment Financial Statements Nonmaterial Noncompliance Amount: $2,425.06 Audit Control Number 7391-95-01 
The Board entered into a contract with an employee for which services were to be rendered during the months of August, 1993 through June, 1994 with compensation in the amount of $42,372.80 to be paid during the months ofAugust, 1993 through July, 1994. However, the employee received an additional salary payment on August 26, 1994 in the amount of$2,425.06. This overpayment was a result of a miscalculation by Board payroll personnel. Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with their individual employment contracts. Reimbursement of $2,425.06 should be secured and deposited to the Board's General Fund. 
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 SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 TOWNS COUNIY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
YEAR ENDED JUNE 30, 1995 
EMPLOYEE COMPENSATION Salary Overpayment Financial Statements Nonmaterial Noncompliance Amount: $2,425.06 Audit Control Number 7391-95-01 
The salary overpayment in the amount of$2,425.06 on August 26, 1994 has been recovered by the Board and deposited back into the Board's General Fund. 
Note: The Towns County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.