Audit report, Treutlen County Board of Education, Soperton, Georgia, year ended June 30, 1994

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

AUDIT REPORT TREUTLEN COUNTY BOARD OF EDUCATION
SOPERTON,GEORGIA YEAR ENDED JUNE 30, 1994

TREUTLEN 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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

22

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

23

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

25

3 ACCOUNTS RECEIVABLE

26

SCHEDULE OF REVENUE

4

STATE FUNDS

27

5

LOCAL AND OTHER FUNDS

28

TREUTLEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

29

7

LOTTERY PROGRAMS

30

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

31

9

BY PROGRAM

32

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

34

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

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

TREUTLEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Treutlen County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Treutlen County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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:
94ARL-14

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Treutlen County Board ofEducation as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method of accounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Treutlen County Board ofEducation taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Treutlen County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
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A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~/~
Claude L. Vickers State Auditor
CLV:gp 94ARL-14

TREUTLEN COUNTY BOARD OF EDUCATION - 1-

8.ill Cash and Cash Equivalents Investments Held by Trustee Accounts Receivable Inventories
Food
Donated Commodities Purchased Food
Total Assets

TBEUUEN COUNTY BOARD Of EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 1994

EXHIBIT"A"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE AGENCY FUND

TOTALS !M!!morandum On~} JUNE 301 1994 JUNE 301 1993

$ 204,099.78 $ 247,544.06 $ 215,731.39

$ 667,375.23 $ 770,141.00

$ 167,837.70

167,837.70

135,709.10

809.50

78,111.28

97,638.42

176,559.20

246,342.94

11,987.27 8,887.42

11,987.27 8,887.42

14,349.32 8,564.52

$ 204,909.28 $ 346,530.03 $ 313,369.81 $ 167,837.70 $ 1,032,646.82 $ 1,175,106.88

LIABILITIES AND FUND EQUITY
LIAB1LmEs

Accounts Payable

Salaries Payable

$

Expired Grant Balances Payable

Contracts Payable

Retainages Payable

Deferred Compensation Plan

Deferred Revenue

Total Liabilities

$

FUND EQUITY

Fund Balances

R868fVed

For Bus Replacement Funds

$

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

Purchased Food

For State Capital Outlay Projects

$ Unreserved
Undesignated

Total Fund Equity

$

$ 900.00
900.00 $
14,739.96 $
1-4,739.96 $ 189,269.32 204,009.28 $

11,128.55 62,392.68
7,326.88 $
3,600.00 8,4 "'48.11 $
8,214.79
11,987.27 8,887.42
$ 29,089,,48 $ 232,992.44 262,081.92 $

51,694.42 9,591.20 $
61,285.62 $
252,08-4.19 252,08-4.19
0.00 252,08-4.19

$ 167,837.70 167,837.70 $
$
$ $

11,128.55 $ 63,292.68
7,326.88 51,694.,42
9,591.20 167,837.70
3,600.00
31-4,471.43 $

11,1-47.99 65,223.78
"4,705.66 179,591.60 2-4,1-40.7,4 135,709.10
-420,518.87

1-4,739.96 $ 8,21-4.79

8,258.92 5,336.91

11,987.27 8,887.-42 252,08-4.19

1-4,349.32 8,564.52 345,068.12

295,913.63 $ 381,sn.111

-422J61.76

373,010.22

718,175.39 $ 75-4,588.01

Total Liabilities and Fund Equity $ 204,909.28 $ 346,530.03 $ 313,369.81 $ 167,837.70 $ 1,032,646.82 $ 1,175,106.88

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

TREUTLEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GQYERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

EXHIBIT"B"

REVENUES
State Funds Federal Funds Local and Other Funds

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS ~emorandum On~
YEAR ENDED JUNE 301 1994 JUNE 301 1993

$ 3,824,598.00 $ 18,051.33
583,916.17

143,123.57 $ no,063.29 118,268.11

1,106,914.02 $

5,074,635.59 $ 788,114.62 702,184.28

4,004,686.31 751,123.12 631,034.99

Total Revenues

$ 4,426,565.50 $ 1,031,454.97 $ 1,106,914.02 $ 6,564,934.49 $ 5,386,844.42

EXPENQITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 2,842,025.06 $

419,984.59

$ 3,262,009.65 $ 3,090,175.89

75,168.71 32,033.31 159,491.84 183,238.45 298,538.70 27,692.01 332,679.98 259,024.53 31,609.93

8,843.40
29,213.90 4,258.96
11,970.82 14,085.20
17,394.47 523,213.12

75,168.71 40,876.71 159,491.84 212,452.35 302,797.66 27,692.01 344,650.80 273,109.73 31,609.93 17,394.47 523,213.12

81,155.03 35,168.80 154,696.88 203,921.43 302,592.<16 25,448.87
336,2n. 1
257,407.30 46,432.99 2,635.20
396.~- 2

56,223.58 3,012.31

$ 1.269,605.09

56,223.58 1 12 n 1s 1 1 . 4 0

57,688.14 304,525.95

$ 4.300,738.41 $ 1,028,964.46 $ 1,269.605.09 $ 6,599,307.96 $ 5.294,579.83

$

125,827.09 $

2,490.51 $ -162,691.07 $

-34,373.47 $

92,264.59

OTHER FINANCING SOURCES /USES}
Operating Transfers In Operating Transfers Out

$

-69,707.14

$

69,707.14 $

69,707.14 $

183,546.00

-69 707.14

-183,546.00

Total Other Financing Sources (Uses)

$

-69,707.14

$

69,707.14 $

0.00 $

0.00

Excess of Revenues and Other Financing

Sources over (under) Expenditures and

Other Financing Uses

$

FUND BALANCE JULY 1
FOOD INVENTORY NET CHANGE IN PERIOD Donated Commodities Purchased Food

56,119.95 $ 147,889.33

2,490.51 $ 261,630.56
-2,362.05 322.90

-92,983.93 $ 345,068.12

-34,373.47 $ 754,588.01
-2,362.05 322.90

92,264.59 659,824.01
476.28 2,023.13

FUND BALANCE JUNE 30

$

204.009.28 $

262.081.92 $

252.084.19 $

118,115.39 s _ _1_54..,,588__,,.o.1..

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

TREUTLEN COUNTY BOARD Of EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUALANDBUDGET-GOVERNMENTALFUNDJYPES YEAR ENDED JUNE 30 1994

EXHIBIT "C"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and other Financing Uses
FUND BALANCE JULY 1 1993
ADJUSTMENTS
Prior Year (Net)
FOOD INVENTORY - NET CHANGE IN PERIOD
Donated Commodities Purchased Food

ACTUAL PER
EXHIBIT B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 5,074,635.59 $ 788,114.62 702,184.28

0.00 $ 5,074,635.59 $ 3,840,184.00 $

788,114.62

691,367.00

702,184.28

696,923.75

s 6,584,934.49 s____o_._oo_s e,584,934.49 s 5,228,474.75 s

1,234,451.59 96,747.62 5,260.53
1,336,459.74

$ 3,262,009.65 $

0.00 $ 3,262,009.65 $ 3,108,468.40 $

-153,541.25

75,168.71 40,876.71 159,491.84 212,452.35 302,797.66 27,692.01 344,650.80 273,109.73 31,609.93 17,394.47 523,213.12 56,223.58 1,272,617.40

75,168.71 40,876.71 159,491.84 212,452.35 302,797.66 27,692.01 344,650.80 273,109.73 31,609.93 17,394.47 523,213.12 56,223.58 1,2n,617.40

79,219.38 39,747.00 159,911.71 214,761.31 324,848.43 29,068.13 355,025.10 267,139.11
48,719.93 605,188.00
59,980.10 405,191.00

4,050.67 -1,129.71
419.87 2,308.96 22,050.77 1,376.12 10,374.30 -5,970.62 -31,609.93 31,325.46 81,974.88 3,756.52 -867,426.40

$ 6,599,307.96 $ _ _ _ _0._00_$ 6,599,307.96 $ 5,697,267.60 $ _ _-902=;.:..;040~--36'"-
s $ -34,373.47 s_ _ _ _o._oo_s -34,373.47 -468,792.85 s_ _434.;.;;.;"'"'4;..;.1.;;.9._38'"-

$ 69,707.14 $ -69,707.14

$

0.00 $

0.00 $ 69,707.14 $ 150,000.00 $ -69,707.14 -150,000.00

-80,292.86 80,292.86

o.oo s___.;..o;.;..oo'"-s

o.oo s____.;.;o._oo'"-

$ -34,373.47 $ 754,588.01

0.00 $ -22,913.84

-34,373.47 $ -468,792.85 $

731,674.17

747,451.34

434,419.38 -15,m.11

0.00

0.00

0.00

-1,376.00

1,376.00

-2,362.05

2,362.05

0.00

0.00

322.90

-322.90

0.00

0.00

FUND BALANCE JUNE 30, 1994

s s_ _ $ 718,175.39 $ -20,874.69 s 697,300.70

277,282.49

4_2_0_,0_1_s._2_1

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

TREUTLEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNJFICANT ACCOUNTING POLICIES
The Treutlen County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Treutlen County Board ofEducation.
Based upon the application of the above criteria, the Treutlen 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 Treutlen County, ~rgia. 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 to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

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TREUTLEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SillvflviARY 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 reflectedin 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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund~ however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the 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 FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
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
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TREUTLEN COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion ofthe compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Treutlen County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board
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TREUTLEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SillvfMARY OF SIGNIFICANT ACCOUNTING POLICIES
receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to 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 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 Treutlen County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 10, 1993 (levy date). Taxes were due on December 30, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Treutlen County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

- 8-

TREUTLEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SillvfMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

School Operations

l.L2 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

- 9-

TREUTLEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS

Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at

any time in any depository for a time longer than ten days a sum of money which has not been secured by

suretybond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public

funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides

an officer holding public funds may, in his discretion, waive the requirement for security .in the case of

operating funds placed in demand deposit checking accounts.



Acceptable security for deposits consists of any one of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Banlc, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $1,119,867.14. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.

- 10 -

TREUTLEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

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

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

Risk Category

Bank Balance

1

$ 100,000.00

2

0.00

3

1,019,867.14

Total

$1,119,867.14

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of $1,464.00 was paid in claims.

Note 5: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$34,652.59 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of$34,216.43 are available to fund these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant

$ 3,015.00 3,925.00 11,096.59 16,616.00

$ 34,652.59

- 11 -

TREUTLEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5: SIGNIFICANT COM1vf!TMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

93/94-94-740-067

$2,486,746 36 $ 2 030.413.58

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

Note 6: CONTINGENT LIABILITIES

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

Note 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.

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

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

Investments are managed by the plan's trustee, the Cresent Bank and Trust Company of Jasper, Georgia under an investment option, or a combination of investment options, made by the participants.

- 12 -

TREUTLEN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

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. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $3,002,076.02; total payroll was $3,457,246.02.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $534,670.20, of which $354,545.12 was made by the Board and $180,125.08 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

- 13 -

TREUTLEN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: RETIREMENT PLANS

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090.292,000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $354,545.12 was actuarially determined and represented .0679% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

- 14 -

TREUTLEN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: RETIREMENT PLANS
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 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 half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of
service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 39 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $1,368.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Gary J. Walden, is bonded in the amount of $50,000.00 with the State Farm Fire and Casualty Company, Bloomington, Illinois, their Bond No. 91-77-4186-9, on which premium is paid through August 26, 1995.

- 15 -

TREUTLEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1994

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 250,575.06

$

15,225.77

10,349.21 $ 34,773.57

32,988.50

11,987.27 8,887.42
$ 281,798.96 $ 34,773.57 $ _ _ _48_,2_1_4_.2_7

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 31,173.57

$

2,114.19

$

25,817.64

3,600.00

$ 27,931.83 $ 34,773.57 $

8,028.62 33,725.04
41,753.66

$ 11,987.27 8,887.42
$ 20,874.69 232,992.44 $
$ 253,867.13 $

$

6,460.61

$ 0.00 0.00 $

6,460.61 0.00
6,460.61

Total Liabilities and Fund Equity See notes to the general purpose financial statements.

- 16 -

-------- $ 281,798.96 $ 34,773.57 $

48,214.27

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE II -

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

1,620.00 $

1,754.18 $

5,198.56 $

4,344.06 $ 278,717.63 $ 292,368.12

78,111.28

27,426.03

11,987.27 8,887.42

14,349.32 8,564.52

$

1,620.00 $

1,754.18 $

5,198.56 $

4,344.06 $ 377,703.60 $ 342,707.99

$

1,620.00

$

1,620.00

$

31,173.57

$

985.74

11,128.55 $

11,147.99

2,850.00

62,392.68

65,223.78

1,362.82 $

4,344.06

7,326.88

4,705.66

3,600.00

$

5,198.56 $

4,344.06 $ 115,621.68 $

81,077.43

$

1,754.18

$

8,214.79 $

5,336.91

11,987.27 8,887.42

14,349.32 8,564.52

$

1,754.18

$

29,089.48 $

28,250.75

$

0.00

0.00 $

0.00 $

0.00

232,992.44

233,379.81

$

0.00 $

1,754.18 $

0.00 $

0.00 $ 262,081.92 $ 261,630.56

$

1,620.00 $

1,754.18 $

5,198.56 $

4,344.06 $ 377,703.60 $ 342,707.99

- 17 -

TREUTLEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services 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
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED . CHILDREN

$ 32,434.00 $ 110,689.57

370,702.71

$

118,268.11

$ 521,404.82 $ 110,689.57 $

344,083.46 344,083.46

$ 94,204.41 $

285,815.49

10,463.96 6,021.20

$ 521,792.19

$ 521,792.19 $ 110,689.57 $

$

-387.37 $

0.00 $

256,293.65

0.00

24,499.05 4,258.96 1,506.86 8,064.00
17,394.47 1,420.93
342,959.76
1,123.70
5,336.91

-2,362.05 322.90

$ 253,867.13 $

------- 0.00 $

6,460.61

See notes to the general purpose financial statements.

- 18 -

EXHIBIT"P'

AND SECONDARY EDUCATION ACT

TITLE II -

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

143,123.57 $

43,933.00

$

10,604.00 $

7,000.00 $

33,497.18 $

4,175.94

770,063.29

737,090.36

118,268.11

125,550.47

$

10,604.00 $

7,000.00 $

33,497.18 $

4,175.94 $ 1,031,454.97 $ 906,573.83

$

10,575.15 $

28.85

$

10,604.00 $

$

0.00 $

0.00

------ $

0.00 $

542.86 $
4,686.40 16.56

24,670.74 $
4,157.00 4,669.44

5,245.82 $ 1,754.18 $
0.00

33,497.18 $ 0.00 $ 0.00

4,175.94 $ 419,984.59 $

8,843.40 29,213.90
4,258.96 11,970.82 14,085.20

17,394.47 523,213.12

4,175.94 $ 1,028,964.46 $

0.00 $

2,490.51 $

0.00

261,630.56

379,834.46
3,850.00 13,110.40 24,483.09
1,704.13 371.02
17,955.09
396,453.42
837,761.61
68,812.22
190,318.93

-2,362.05 322.90

476.28 2,023.13

1,754.18 $ _ _ _ _o_.o_o $ _ _ _ _o_.o_o $ 2s2.081.s2 $ 261,630.56

- 19 -

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

93/92S-740-082 93/94-94-740-067

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

215,731.39 $

215,731.39 $

341,476.49

97,638.42

971638.42

207,323.97

Total Assets

$

0.00 $

313,369.81 $

313,369.81 $=:=...5=48..,..8..0. =0=.4=6

LIABILITIES AND FUND EQUITY

LIABILITIES

Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$

$

51,694.42 $

51,694.42 $

179,591.60

91591.20

91591.20

241140.74

$

61,285.62 $

61,285.62 $

203?32.34

$ 0.00 0.00 $

252,084.19 $ 0.00
252,084.19 $

252,084.19 $ 0.00
252,084.19 $

345,068.12 0.00
345,068.12

Total Liabilities and Fund Equity

$

0.00 $

313,369.81 $

313,369.81 $ -=====5=4=8=,=8=0=0-.=4=6=

See notes to the general purpose financial statements.

-20-

TREUTLEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REVENUES
State Funds
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

93/92S-740-082 93/94-94-740-067

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

903,818.60 $

203,095.42 $ 1,106,914.02 $ 288,208.47

$ 1,061,948.86 $ $ 1,061,948.86 $ $ -158,130.26 $

$ 207,656.23 $ 1,269,605.09
207,656.23 $ 1,269,605.09 $
-4,560.81 $ -162,691.07 $

2,100.00 291,554.35
293,654.35
-5 445.88

$

3,253.14 $

66,454.00 $

69,707.14 $ 290,191.00

-106,645.00

$

3,253.14 $

66,454.00 $

69,707.14 $ 183,546.00

$ -154,877.12 $ 154,877.12

61,893.19 $ 190,191.00

-92,983.93 $ 345,068.12

178,100.12 166,968.00

FUND BALANCE JUNE 30

$

0.00 $

252,084.19 $ 252,084.19 $ 345,068.12

See notes to the general purpose financial statements.

- 21 -

TREUTLEN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1994

EXHIBIT"!"

DEFERRED COMPENSATION PLAN
ASSETS
Investments Held by Trustee

BALANCE JULY 1, 1993

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1994

$ 135,709.10 $

32,128.60 $

0.00 $ 167,837.70

LIABILITIES Deferred Compensation Plan

$ 135,709.10 $

32,128.60 $

0.00 $ 167,837.70

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

TREUTLEN COUNTY BOARD OF EDUCATION
SCHEDULE Of FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1994

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutriti(!n Program Food Services School Breakfast Program 1993 Grant 1994 Grant National School Lunch Program 1993 Grant 1994Grant Food Distribution Program (1) Through Middle Georgia Community Action Agency, Incorporated Child and Adult Care Food Program 1994 Contract

10.553 10.553 $

$ 63,204.50

10.555 10.555 10.550

256,200.63 35,880.72

2,803.17 61,424.45 $

63,204.50

8,493.18 248,373.47 NIA

256,200.63 $ 35,880.72

(2)
485,911.47 (3) 35,880.72

10.558

15,416.86

15 416.86

15,416.86

(2)

Total U.S. Department of Agriculture

$ 370,702.71 $

336511.13 $ 370,702.71 $

521,792.19

Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1993 Carry-Over 1993Summer 1994 Regular 1994Summer Chapter2 Block Grant Flow Through 1994 Regular Trtle II Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act TrtleVI, B Flow Through 1993 Regular 1993 Carry-Over 1994 Regular Preschool Program 1993 Regular 1993 Carry-Over 1994 Regular

. 84.010
. 84.010 . 84.010 . 84.010 . 84.010

$

84.151

84.164 84.164

84.027 84.027 84.027
84.173 84.173 84.173

$ 49,579.00 250,097.00 31,765.00
12,224.00
7,000.00
1,010.00 36,512.00
3,459.00 5,061.00

12,617.53 49,579.00 $ 34,515.96 215,000.00 12,000.00

49,579.00 $ 34,515.96 247,988.50 12,000.00

49,579.00 39,852.87 247,988.50 5,539.39

12,224.00

10,604.00

10,604.00

-653.75 7,000.00

7,000.00

5,245.82

2,349.70 1,010.00 33,850.00
-3,459.46 3,459.00 5,061.00

1,010.00 32,487.18
3,459.00 716.94

1,010.00 32,487.18
3,459.00 716.94

- 23 -

TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30.1994

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U.S. Department of

Through Georgia Department of Education

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1994 Grant

84.048 $ 18.051.33 $

18,051.33 $ 18,051.33

(4)

Supplementary State Grants for Facilities

1993 Grant

84.253

760.00

Total U.S. Department of Education

$ 414,758.33 $

403,364.31 $ 417 411.91 $

396,482.70

Total Federal Financial Assistance

$ 785,461.04 $

7391875.44 $ 1881114.62 s_ _.9.1..8_12..1..4.8..9..

Major Program is identified by an asterisk (*) in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program and Child and Adult Care Food Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 24 -

TREUTLEN COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Bank of Soperton, Soperton, Georgia
N.O.W. Accounts (2.80%) Passbook Savings Account (4.02%)
OTHER
Petty Cash

$ 633,970.91 33,384.32 $ 667,35523
20.00 $ 667,375.23

See notes to the general purpose financial statements. - 25 -

TREUTLEN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "3"

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Lottery Programs Computers in Classrooms Media Center and Library Equipment Safe Schools Grant Federal Program ESEA - Chapter 1 Education of Deprived Children
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Treutlen County Mental Retardation Service Center Contracted Meal Sales
Various Sources Payroll Withholdings

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,780.05
7,827.16
14,485.00 16,903.41
3,385.16
32,988.50

$ 1,780.05
7,827.16
14,485.00 16,903.41
3,385.16
32,988.50

$ 97,638.42

97,638.42

$ - - - - - 809.50

742.00

742.00 809.50

$

809.50 $ 78,111.28 $ 97,638.42 $ 176,559.20

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

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

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant

$ 2,139,996.00 279,487.00 61,625.00 91,974.00 30,047.00 640,102.00
171,573.00 42,702.00 73,720.00 32,650.00 15,819.00
-224,639.00 395,921.00
$ 53,150.00
4,800.00 1,440.00 13,631.00
100.00

32,434.00
2,316.00 50,485.00
2,700.00 41,403.41 13,785.16

$ 2,139,996.00 279,487.00 61,625.00 91,974.00 30,047.00 640,102.00
171,573.00 42,702.00 73,720.00 32,650.00 15,819.00
-224,639.00 395,921.00
32,434.00 53,150.00
4,800.00 1,440.00 13,631.00
100.00
2,316.00 50,485.00
2,700.00 41,403.41 13,785.16

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

$ 1,106,914.02

1,106,914.02

OTHER Education, Georgia Department of Reimbursement for GENESIS Project

500.00

500.00

$ 3,824,598.00 $ 143,123.57 $ 1,106,914.02 $ 5,074,635.59

See notes to the general purpose financial statements.

- 27 -

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

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Compensation for Loss of Assets Donations Interest Earned Rents Sales Lunches and Breakfast Shared Service Contribution Wheeler County Board of Education Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 541,652.64 49.52
753.93

$ 541,652.64 49.52
753.93

1,500.00 872.85
13,550.41 $ 6,461.00
2,481.80 16,594.02

6,513.13 109,314.75
2,440.23

1,500.00 872.85
20,063.54 6,461.00
109,314.75
2,481.80 19,034.25

$ 583,916.17 $ 118,268.11 $ 702, 184.28

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

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

SCHEDULE "6

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

GENERAL
FUND

SPECIAL REVENUE
FUND

TOTAL

$ 2,990,541.58 $
667,512.58 12,789.83 15,736.14 15,341.63 7,117.10 17,383.62 9,741.50 100.00 20,621.92 10,735.28 1,200.00
54,349.40 31,609.93 162,506.10 161,446.65
52,981.17 5,019.23

466,704.44 $ . 3,457,246.02

102,943.73

770,456.31

1,290.40

14,080.23

7,538.49

23,274.63

15,341.63

14.20

7,131.30

12,887.10

30,270.72

9,741.50

100.00

20,621.92

1,882.55

12,617.83

1,200.00

2,754.40

2,754.40

54,349.40

1,420.93

33,030.86

55,723.98

218,230.08

10,302.54

171,749.19

229,945.33

229,945.33

52,981.17

707.00

5,726.23

1,452.00 1,560.31 60,992.44

134,849.37

1,452.00 1,560.31 195,841.81

$ 4,300,738.41 $ 1,028,964.46 $ 5,329,702.87

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

TREUTLEN COUNTY BOARD Of EDUCATION SCHEDULE Of EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

SCHEOULEr

EXPENDITURES
Operating Costs Repairs and Maintenance Services Supplies
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER ANO
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

TOTAL

$

2,316.00

$

525.00

2,175.00

$

525.00

$

6,021.20

10,512.20

$

50,485.00

$

41 403.41

7,763.96

99,652.37

Total Expenditures

$

2,316.00 $

50,485.00 $

2,700.00 $

41,403.41 $

13,785.16 $ 110,689.57

See notes to the general purpose financial statements.

30

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

SCHEDULE a

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

THIRTEEN
WEIGHTED AND
MEDIA CENTER PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 2,588,901.00 $

30,047.00

$ 2,601,711.44 193,327.11 $
$ 2,795,038.55 $

30,059.33 30,059.33

-67,517.84

$ 2,727,520.71 $

-12.33 30,047.00

$

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

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

TREUTLEN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - OUALl"TY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30 1994

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
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Itinerant Supplemental Speech Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*l MEDIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF DEVELOPMENT PROGRAMS (1) Co6t d Instruction Prdessional Dellelopment
Total Staff Dellelopment
(*) Identifies Thirteen Weighted Programs.
Note: (1) $432.24 a the allotment for Professional
Dellelopment has been transferred to Cost of Instruction as authorized by OCGA 20-2-182. See notes to the general purpose financial statements.

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

%

ORIGINAL

MID-TERM

TOTAL REQUIRED

$

199,316.00

$

179,384.40 $

510,692.00

459,622.80

$

710,008.00 90 $

639,007.20 $

296,244.00 90

266,619.60

549,756.00 90

494,780.40

354,386.00 90

318,947.40

94,722.00 90

85,249.80

134 880.00 90

121 392.00

$ 2,139,996.00

$ 1,925,996.40 $

15,819.00 $

195,203.40

459,622.80

15,819.00 $

654,826.20

266,619.60

-5,171.00

489,609.40

318,947.40

85,249.80

5,171.00

126,563.00

15 819.00 $ 1 941 815.40

$

279,487.00

$

251,538.30 $

0.00 $

251,538.30

$

279,487.00 90 $

251,538.30 $

0.00 90

0.00

$

279,487.00

$

251,538.30 $

$

61,625.00 90 $

55,462.50 $

$

91,974.00 90 $

82,776.60 $

0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $

251,538.30 0.00
251,538.30 55,462.50 82,776.60

$ 2,573,082.00

$ 2,315,773.80 $

15,819.00 $ 2,331,592.80

$

7,190.24 100 $

7,190.24 $

22,856.76 100

22,856.76

$

30,047.00

$

30,047.00 $

0.00 $

7,190.24 22,856.76

0.00 $

30,047.00

$ 2,603,129.00

$ 2,345,820.80 $

15,819.00 $ 21361,639.80

- 32 -

SCHEDULE"9''

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDmJRE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

190,626.00 $

275,622.83

$

4,STT.40 $

5,725.67

445 387.50

483 726.61

14,235.30

15,568.39

$

636,013.50 $

759,349.44 $

0.00

$

18,812.70 $

21,294.06 $

0.00

258,588.00

301,481.13

0.00

8,031.60

11,352.47

0.00

475,178.80

479,242.16

0.00

14,430.60

15,434.64

0.00

305,136.00

351,581.65

0.00

13,811.40

32,309.21

0.00

81,572.40

97,803.57

0.00

3,677.40

10,751.80

0.00

111,041.60

115,703.44

0.00

15,521.40

69,650.31

0.00

$ 1,867,530.30 $ 2,105,161.39 $

0.00

$

74,285.10 $

160,792.49 $

0.00

$

3,673.80 $

3,329.39

85,894.20

116,380.93

135,171.00

137,576.70

19,590.30

$

184.50

1,803.60 $

3,188.23

3,610.80

4,028.58

657.90

476.10

476.10

$

244,329.30 $

257,287.02 $

0.00

$

7,209.00 $

7,216.81 $

0.00

0.00

24,222.06 $

0.00

0.00

32.30 $

0.00

$

244 329.30 $

281,509.08

$

7,209.00 $

7 249.11

$

54,509.40 $

79,690.96 $

0.00

$

953.10 $

1143.68 $

0.00

$

64 051.20 $

135,350.01 $

0.00

$

18,725.40 $

24141.83 $

0.00

$ 2,230,420.20 $ 2,601,711.44 $

0.00

$

101,172.60 $

193,327.11 $

0.00

$

7,190.24 $

7,202.57 $

0.00

22,856.76

22,856.76

0.00

$

30,047.00 $

30,059.33 s _______o_.oo_

s 2,230,420.20 s 2,601,111.44 s _______o_.oo_

$

131,219.60 $

223,386.44 s _______o_.oo_

- 33 -

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

SCHEDULE "10"

BOARD MEMBER ADDRESS
Mr. James Hutcheson, Chairman(*) P. 0. Box586 Soperton, Georgia 30457
Mr. Wade Clark (*) 109 Woodland Drive Soperton, Georgia 30457
Mr. Richard Dennard (*) 119 Second Street Soperton, Georgia 30457
Mrs. Charlene Peterson (*) Route 2 Soperton, Georgia 30457
Mr. Timothy Spikes(*) Route 3 Soperton, Georgia 30457

COMPENSATION

TRAVEL

$

2,900.00

3,000.00 $

42.00

2,800.00

699.63

3,000.00

2,900.00

==----= $

14,600.00 $

741.63

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

See notes to the general purpose financial statements. - 34 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Treutlen 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 Treutlen County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Treutlen County Board of Education is the responsibility ofthe 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.

94CRL-10

The results ofour tests indicate that, with respect to the items tested, the Treutlen County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
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 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Treutlen 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 Treutlen County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Treutlen 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 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

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

SINGLE AUDIT OPINION ON CO1\.1PLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Treutlen County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Treutlen County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed.

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance program, which is identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994. The management of the Treutlen County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
In our opinion, the Treutlen County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance program for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Rz:~

CLV:gp 94CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Treutlen County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year i994 general purpose financial statements of the Treutlen
County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular 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, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

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

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Treutlen 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 Treutlen County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we.conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit ofthe general purpose financial statements of the Treutlen County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Treutlen County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute,
94ICL-3

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.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

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

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all

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reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all ofthe 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 ofthe Treutlen County Board of Education's financial statements and this report does not affect our report thereon dated March 17, 1995.

This report is intended for the information of management, the Federal cognizant audit agency and other

Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a

matter of public record.

Rex~

CLV:gp 94ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Treutlen 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 ofthe Treutlen County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Treutlen County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance program and have issued our opinion thereon dated March 17, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Treutlen County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to a major Federal financial assistance program and to report on the internal control structure in accordance with 0MB
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Circular A-128. This report addresses our consideration ofinternal 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 March 17, 1995.

The management of the Treutlen County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives ofan 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) Audit Follow-Up/Resolution (7) Administrative Requirements

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

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

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During the year ended June 30, 1994, the Treutlen County Board of Education expended 77% of its total Federal financial assistance under one major Federal financial assistance program and the following nonmajor Federal financial assistance program:
Food and Nutrition Program Food Services National School Lunch Program
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 Board's major Federal financial assistance program, identified in the Schedule ofFederal Financial Assistance, and the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Treutlen County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance program for the year ended June 30, 1994, and this report does not affect our report thereon dated March 17, 1995.
94ICL-11

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 94ICL-11

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 7401-93-04
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Board.
AUDIT FOLLOW-UP/RESOLUTION Failure to Perform Physical Inventory Federal Financial Assistance Finding Resolved Audit Control Number 7401-93-05
The audit report for the year ended June 30, 1993, reported that the Board had not performed a physical inventory of property used in the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children (CFDA 84.010) Program. Chapter 8 ofthe Georgia Financial Accounting Handbook for Local School Systems (GFAH) requires the Board to perform an annual physical inventory of all equipment. During the year under review, the Board implemented procedures to ensure that a physical inventory is taken annually.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7401-93-01
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.

TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL)-Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7401-93-01
Note: Federal financial assistance programs affected by this finding are as follows: Food and Nutrition Program (CFDA 10.550, 10.553, and 10.555) Elementary and Secondary Education Act Chapter 1 Program (CFDA 84.010)
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7401-93-02
The audit report for the year ended June 30, 1993, noted that the Board had chosen not to maintain a systemwide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the management of Treutlen County Board of Education did not establish a system-wide General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Note: The Treutlen County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.