Audit report, Union County Board of Education, Blairsville, Georgia, year ended June 30, 1994

GA A800 ,RI
O& Ll5 /qq3-")Cf
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT UNION COUNTY BOARD OF EDUCATION
BLAIRSVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

UNION COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

5

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

FIDUCIARY FUND TYPES

COMBINING BALANCE SHEET

24

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

25

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

27

3 ACCOUNTSRECEIVABLE

28

UNION COUNTY BOARD OF EDUCATION TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

STATE FUNDS

29

5

LOCAL AND OTHER FUNDS

30

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

31

7

LOTTERY FUNDS

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

33

9

BYPROGRAM

34

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

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

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
April 26, 1995

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

* 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 Union County Board ofEducation as of June 30, 1994, and the results ofits operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements of the Union County Board ofEducation taken as a whole. The combining statements (Exhibits G through I) and the financial schedules (Schedules 1 through IO which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the Union County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the 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 ofthe 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.
94ARL-13

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-13

UNION COUNTY BOARD OF EDUCATION - 1-

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

!.!f:..l!Qtj ~UNTY aQABQ OF E!;;!JCATIQtj
QQMe1NEQ aAI A ~ HEE!
al I BJt:..lQ MES ANQ A ~ INT ~BQ!.!P JUNE 30 1Q!U

EXH1BfTA11

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPES
TRUST FUNDS

$ 2,138,812.88 $ 2TT,326.56 $

36,950.47

44,880.82

102,557.29

491.93

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum On~ JUNE30 1994 JUNE 30 1993

$ 2,453,089.91 $ 1,871,868.87

147,930.04

204,938.81

21,284.29 6,619.03

21,284.29 6,619.03

23,982.12 5,12~.85

$ 2183 693.70 $ 407787.17 $

37 442.40 $

149 232.00

149 232.00

149 232.00 $ 2 n8 155.27 s 2105 914.65

L,IA!;!)!,,ITll;;S ANO F~ND EQUITY

~

Accounts Payable Salaries Payable Expired Grant Balances Payable
Deferred Revenue Capital Lease Agreements

Total Liabilities

~

Fund Balances Reserved For Continuation d Federal Programs For Endowment Corpus For Expired Grant Balances/ Questioned Costs For Inventories Food
Donated Commodities Purchased Food

51,143.95

Unreserved Undesignated

51,143.95 $ 2132 549.75

Total Fund Equity

$ 2183 693.70 $

70,598.54 73,336.96
5,129.02 313.82
149 378.34
1,351.75 $
21,284.29 6 619.03
29,255.07 $ 229153.76 258 408.83 $

31,390.78
31,390.78 6 051.62
37 442.40

149 232.00 149 232.00 $

70,598.54 $ 73,336.96
5,129.02 313.82
149 232.00
298 610.34 $

12,472.13 64,173.19
2.00
76 647.32

1,351.75 $ 31,390.78
51,143.95

1,755.48 31,109.56
23,757.14

21,284.29 6 619.03

23,982.12 5124.85

111,789.80 $

85,729.15

2 367 755.13

1943538.18

$ 2 479 544.93 $ 2029 267.33

Total Liabilities and Fund Equity $ 2 183 693.70 $ 407 787.17 $

37 442.40 S

149 232.00 $ 2 778 155.27 S 2105 914.65

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

UNION CQI.JNJY BQABQ OF EDL JCATIQN COMBINED STAJFMENI OF REVENt If$ EXPENPffiJRES ANQ CHANGES IN Fl lNQ BAt ANCFS
GOVfBNMENTAI Fl IND D'.PES ANQ FXPfNQABI ETRUST BJNP YEM ENPfP lllNf 30 1994

EXHIBIT"'B"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

~
state Funds Federal Funds Local and Other Funds
Total Revenues

$ 5,431,270.90 $ 440,901.34 $ 5,872,172.24

104,429.41 1,021,493.76 1,125,923.17

2 674397.69

306 409.78 2 980 807.47 $

s 8 210 098.00 $ 1 768 804.88 $ 9 978 902.88 $

s
2947.69

5,872,172.24 $ 1,125,923.17 2 983 755.16

5,499,865.63 1,174,350.30 2 774 929.90

2 947.69 $ 9 981 850.57 $ 9 449145.83

EXPENPlnJRfS

Current Instruction Support 8eMces PupilSeMces Improvement d Instructional Services EducatiOnal Media Services General Administration School Administration Business Administration Maintenance and Operation d Plant student Transportation Services Central Support Services Other Support Services Food 8eMces Operation Other Operations of Non-Instructional SeMCeS
capital outlay
Debt Service Principal

$ 5,093,570.60 $
233,623.14 122,747.50 157,351.44 252,606.58 506,722.39
69,321.00 629,768.37 524,826.08
15,576.20 466.67
8,652.00
63,903.20 66,691.13

989,657.39 $ 6,083,227.99 $

95,832.53 1,647.22
23,130.32 25,336.91 15,789.45
36,866.34 6,328.70
54,899.62 684,408.72

329,455.67 124,394.72 180,481.76 2TT,943.49 522,511.84
69,321.00 666,634.71 531,154.78
15,576.20 55,366.29 693,060.72

63,903.20 66,691.13

18 200.00

18 200.00

0.00 $ 6,083,227.99 $ 5,491,273.74

329,455.67 124,394.72 180,481.76 277,943.49
522,511.84 69,321.00
666,634.71 531,154.78
15,576.20 55,366.29 693,060.72

304,954.21 188,127.84 163,926.71 197,405.06 466,839.31
67,277.85 603,389.62 480,345.86 70,131.56
685,390.83

63,903.20 66,691.13

59,618.14 715,609.19

18 200.00

Total Expenditures

$ 7 745 826.30 $ 1952097.20 $ 9 697 923.50 $

0.00 $ 9 697 923.50 $ 9 494289.92

Excess of Revenues OYer (under) Expenditures

$ 464 271.70 $ -183 292.32 $ 280 979.38 $

2 947.69 $ 283 927.07 $ 45144.09

QTHER FINAt:IQINg ~ IBQE; {).f)

capital Leases
Operating Transfers In
Operating Transfers out

$ -12 093.05

167,432.00 $ 12,093.05

167,432.00 12,093.05 -12 093.05

167,432.00 12,093.05 $ -12 093.05

239,308.48 -239 308.48

Total Other Financing Sources (Uses)

12 093.05 $ 179 525.05 $ 167 432.00

167 432.00 $

0.00

Excess cl Revenues and Other Financing Soun:::es over (under) Expenditures and other Financing Uses $ 452,178.65 $

.:J,767.27 $ 448,411.38 S

2,947.69 S 451,359.07 $ -45,144.09

FUND BALANCE JUI Y 1

1,731,515.05

263,379.75 1,994,894.80

0.00 1,994,894.80 2,040,n4.86

Food lmoentory- Net Change In Period Donated Commodities Purchased Food

-2,697.83 1494.18

-2,697.83 1 494.18

-2,697.83 1494.18

-1,680.08 944.11

AJNQ BALANCE JUNf 3Q

$ 2 183 693.70 $ 258 408.83 $ 2 442 102.53 $

2 947.69 $ 2 445 050.22 $ 1994894.80

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

UNION COUNTY BQABP OF EDUCATION CQM~INED TAilMEtfi OE BE~ENU!;S EiPi;NQIIYBE .eNP Ct:tAN~E IN EUNQ ~LANCEi
6.C.IUAI 6NQ BU~~ - ~Q~EBNMl;NI61 EUNC IXEE YEAR ENDED JUNE 30 1994

EXHIBIT"C"

ACTUAL

ACTUAL

PER

PER

EXHIBIT"B" ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~
State Funds Federal Funds Local and Other Funds

$ 5,872,172.24 $ 1,125,923.17 2,980,807.47

0.00 $ 5,872,172.24 $ 5,498,623.00 $ 1,125,923.17 1,364,716.00 2,980,807.47 2,376,310.00

373,549.24 -238,792.83 604,497.47

Total Revenues

$ 9,978,902.88 $

0.00 $ 9 978,902.88 $ 9 239,649.00 $

739,253.88

E~PEHQIIl!BE~
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 Selvices Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Cepital Outlay Debt Service
Principal

$ 6,083,227.99 $
329,455.67 124,394.72 180,481.76 277,943.49 522,511.84 69,321.00 666,834.71 531,154.78 15,576.20 55,366.29 693,060.72 63,903.20 66,691.13
18,200.00

0.00 $ 6,083,227.99 $ 5,842,061.78 $

329,455.67
124,394.72 180,481.76 277,943.49 522,511.84 . 69,321.00 666,834.71 531,154.78 15,57620 55,366.29 693,060.72 63,903.20 66,691.13

352,438.00
174,901.00 188,280.00 271,981.00 497,852.00 67,841.00 702,103.50 564,206.70 14,584.00 57,982.00 696,975.00 46,573.00 122,784.00

18,200.00

-241,166.21
22,982.33 50,506.28
7,798.24 -5,962.49 -24,659.84 -1,480.00 35,468.79 33,051.92
-992.20 2,615.71 3,914.28 -17,33020 56,092.87
-18 200.00

Total Expenclnures

$ 9,697,923.50 $

0.00 $ 9,697,923.50 $ 9,600,562.98 $

-97,360.52

Excess of Revenues over (under) Expenditures

$ 280.979.38 $

0.00 $ 280,979.38 $ -360,913.98 $

641,893.38

QTH~B FltjANQIN!, Q!.!BQ~ll (!.!~l

Other Sources Other Uses
Total other Financing Sources (Uses)

$ 179,525.05 $ -12,093.05
$ 167,432.00 $

0.00 $ 179,525.05 $ -12,093.05
0.00 $ 167 432.00 $

10,100.00$ -10,100.00
0.00 $

169,425.05 1993.05
167,432.00

Excess of Revenues and other Fmancing Sources over (under) Expenditures and other Financing Uses $ 448,411.38 $

FUNQ ~I ANQE JULY l 1993

1,994,894.80

,!,C),!USTM~!illa

0.00 $ 448,411.38 $ -380,913.98 $ -29,106.97 1,965,787.83 1,887,530.99

809,325.38 78,256.84

Prior Year (Net)

-46,461.51

46,461.51

FOOQ IN'L!;t![ORY tl~T Qt:!AN!,~ ltl ~~BIQ!;!

Donated Commodities Purchased Food

-2,697.83

2,697.83

0.00

0.00

1,494.18

-1,494.18

0.00

0.00

EUNQ Ml.ANS.~ ,!IJN~ ~ 1~

$ 2.442,102.53 $ -27,903.32 $ 2,414,199.21 $ 1,480,155.50 $

934,043.71

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

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

YEAR ENDED JUNE 30 1994

OPERATING REVENUE Donations
OPERATING EXPENSES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUE Interest Earned Income
FUND BALANCE JULY 1

ENDOWMENT FUNDS

UNION COUNTY TONIA PARKER

SCHOOLS

TANNER

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ _ _ _ _1_7_5_.0_0$ _ _ _ _6_0._0_0$

235.oo $ _ _ _1_6_0_.o_o

$ _ _ _1~,3_5_0_.o_o $

$

-1,175.00 $

261.67 $ -201.67 $

1,611.67 $ _ _ _1~,6_9_5_.5_6

-1,376.67 $

-1,535.56

1,190.76

$

15.76 $

27,355.69

308.09 106.42 $ 7,016.84

1,498.85 122.18 $
34,372.53

1,793.87 258.31
34,114.22

FUND BALANCE JUNE 30

$

27,371.45 $

7,123.26 $ 34,494.71 $ _ _ _34_.,3_7_2_.5_3

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

UNION COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30 1994

EXHIBIT"E"

ENDOWMENT FUNDS

UNION COUNTY TONIA PARKER

SCHOOLS

TANNER

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

TOTALS !Memorandum Onlrl
YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

Cash Flows from Operating Activities: Cash Received from Donations cash Paid for Scholarships

175.00 $ -1,350.00

60.00 $ -261.67

235.00 $ -1,611.67

160.00 -1,695.56

Net Cash Provided (Used) by Operating Activities $

-1,175.00 $

-201.67 $

-1,376.67 $

-1,535.56

Cash Flows from Investing Activities: Interest Received on Investments

1,241.45 $

307.72 $

1,549.17 $

1,984.64

Net Increase in Cash

66.45 $

106.05 $

172.50 $

449.08

Cash and Cash Equivalents - July 1

27,093.94 $

6,736.34 $

33,830.28 $

33,381.20

Cash and Cash Equivalents - June 30

27,160.39 $

6,842.39 $

34,002.78 $

33,830.28

The notes to the general purpose financial statements are an integral part of this statement -7-

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Union County Board of Education (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 ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Union County Board of Education.
Based upon the application of the above criteria, the Union 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 Union County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

UNION COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department ofEducation 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.
FIDUCIARY FUND TYPES - the trust funds used to account for assets held by a government unit in a trustee capacity for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLE TRUST FUNDS Union County Schools Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to graduating seniors of the Union County School System.
Tonia Parker Tanner Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with 85% of the resultant income to be used to provide scholarship aid to graduating seniors of the Union County School System.

- 9-

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
EXPENDABLETRUSTFUND Self-Insured Employee Benefit Fund - the fund used to account for Unemployment Compensation Insurance contributions and expenditures for employees of Project Headstart.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available 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.

- 10 -

UNION COUNTY BOARD OF EDUCATION

EXlilBIT "F"

NOTES TO TI-IE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Union County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval 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 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.

- 11 -

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and Joan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Union County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 8, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria ofGASB codification section P70. 103. The Union County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

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

School Operations

U,2mills

INVENTORIES

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

- 12 -

UNION COUNTY BOARD OF EDUCATION

EXJilBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, 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.

- 13 -

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS
Acceptable security for deposits consists of any one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $3,013,111.09. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

- 14 -

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category 1 2 3 Total
Note3: NON-MONETARYTRANSACTIONS

Bank Balance
$ 200,100.91 0.00
2 813 010.18
$ 3 0)3 I 11 09

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the General Fund to cover Unemployment Compensation claims made during the fiss;al year with the exception of Project Headstart, for which a separate fund has been established. During fiscal year 1994, a total ofSl,298.52 was paid in claims.

Note5: GENERALLONG-TERMDEBT

CAPITAL LEASES The Union County Board ofEducation has entered into various lease agreements as lessee for the purchase of Josten Learning Labs. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.

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

Capital Leases

Balance July 1, 1993

$

0.00

Additions

167,432.00

Deductions

18 200.00

Balance June 30, 1994

$ ]49 232 00

- 15 -

UNION COUNTY BOARD OF EDUCATION

EXEilBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30

Capital Leases

1995 1996 1997 1998

$ 44,305.00 44,305.00 44,305.00 44 305.00

Total Principal and Interest

$ 177,220.00

Deduct: Imputed Interest

27 988.Q0

Net Present Value ofFuture Minimum Lease Payments

$ H2232QQ

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board.had encumbrances in the amount of$313.82 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery Funds 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:

Algebra Classrooms

$_ __,3~]~3..i,8!!!!2

The amount described in this note is not reflected in the general purpose financial statements.

Note 7: CONTINGENT LIABILITIES

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

The Board is a defendant in a legal proceeding pertaining to a matter incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements.

- 16 -

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30 1994

Note 8: ACCUMULATED El\.1PLOYEES' LEAVE
All certified personnel and bus drivers are eligible to receive sick leave with full pay computed on the basis of one and one-fourth working days for each completed school month of service with a maximum accumulation ofunused sick leave of 45 days. All noncertified personnel are eligible to receive 5 sick leave days annually with a maximum accumulation ofunused sick leave of20 days. Unused sick leave is paid upon retirement to certified personnel for a maximum of 45 days at the rate of$10.00 per day, bus drivers for a maximum of 45 days at the rate of$7.50 per day and noncertified personnel for a maximum of20 days at the rate of$7.50 per day. Any employee under the September, 1982 policy who accumulated more than 45 days of unused sick leave may carry those days forward and be paid for those additional days upon termination or retirement. See Note 1 - Compensated Absences
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 1Oyears of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $5,445,623.46; total payroll was $6,159,815.54.

- 17 -

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS

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 $969,865.82, ofwhich $643,128.60 was made by the Board and $326,737.22 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. S 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 Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo oo

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as 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 $643,128.60 was actuarially determined and represented .1233% oftotal 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 accuinulation of sufficient assets to pay pension benefits as they become due.

- 18 -

UNION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
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.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages 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 ifthe 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 contnoutions 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 ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 55 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contnoutions 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 $1,852.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 10: SURETY BONDS
The School Superintendent, Mr. Thomas L. Stephens, is bonded in the amount of$25,000.00 with the Fidelity and Deposit Company ofMaryland, Baltimore, Maryland, their Bond No. 30441107, on which premium was paid through January 1, 1995.

- 19 -

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

!ilt:1!.Qt:I g,Q!.!tm: ~BP QE e~ca~ QQMBl(ilt:f~ BALANCI; SHl;EI PEQI&. BMNUE E~lNP JUNE 199:4

ELEMENTARY ANO SECONDARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

ALTERNATIVE PROGRAMS

LOTTERY PROGRAMS

CHAPTER1

EDUCATION OF

STATE

DEPRIVED

PROGRAM

CHILDREN

IMPROVEMENT

242,006.04 $

335.32

7,792.75 $

18,657.39 $

0.00

3,069.40

4,918.95

49,487.00

30,315.00

21,284.29 6,619.03

$ 2n,91s.1a $

335.32 $

4,918.95 $ 57,279.75 $

48,9n.39 $

0.00

Ll811,,ITII;~ ~p E!.!t:lP l;QUIIY

LIABILmFs

Cash Overdrafts AccounlsPayable Salaries Payable Expired Grant Balances Payable Deferred Revenue

624.84 15,296.84
$

335.32

2,471.57 480.30 $
1,967.08

55,330.94 $
1,634.99 313.82

9,174.45 39,769.74
28,20

Total Liabilities

15,921.68 $

335.32 $

4,918.95 $ 57,279.75 $

48,sn.39

F!.!NPEOUITY

Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balance&/ QuestK>ll8d Costs For Inventories Food Donated Commodities
Pun:hased Food

21,284.29 5,619.03

Unreserved Undesignated

27,903.32 229,153.76 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

Total Fund Equity

257,057.08 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

Total Liabilities and Fund Equity $ 2n,91s.1a $

335.32 $

4,918.95 $ 57,279.75 $

49,9n.39 $

0.00

See notes to the general purpose financial statements.

-20-

EXHIBIT-o

EDUCATION ACT
CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE 11EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

0.00

710.39

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVl,B

FLOW

PRESCHOOL

THROUGH

PROGRAM

5,145.60 $

0.00

JOB TRAINING PARTNERSHIP
ACT
14,056.55

PROJECT HEAD START

TOTALS JUNE30 1994 JUNE 30, 1993

12,821.45 $

286,758.55 $

250,478.28

102,557.29

59,927.82

21,284.29 6,619.03

23,982.12 5,124.85

0.00 $

710.39 $

5,145.60 $

0.00 $

14,056.55 $

12,821.45 $

417,219.16 $

339,513.07

710.39 $

689.55 1,325.54 3,130.51

710.39 $

5,145.60

6,250.03 1,n1.1s $ 6,034.76
14,056.55 $

$ 2,526.70 8,943.00
11 469.70 $

9,431.99 70,598.54 $ 73,336.116 5,129.02
313.82
158,810.33 $

11,958.13 64,173.19
2.00
76,133.32

0.00 S 0.00 S
0.00 $

0.00 $ 0.00 S

0.00 $ 0.00 $

710.39 $

5,145.60 $

0.00$ 0.00 S

0.00 0.00 $

1,351.75 $

1,351.75 S

1,755.48 3,980.74

1,351.75 $ 0.00
1,351.75 $

21,284.29 6,619.03
29,255.07 $
229,153.76 258,408.63 S

23,982.12 5,124.85
34,843.19 228,536.56 263,379.75

0.00 S

14,056.55 S

12,821.45 $

417,219.16 $

339,513.07

-21

tJNIQN CQl nm BOABP OF EQlJCATIQN
COMBINING STATEMENT OF BEYfNt lfS EXPENPffiJBfS ANQ RfANGES IN BID BAI ANCfS SPECIAL REVENUE BIND VEAR ENPEP JUNE 1891

SCHOOL FOOD
SERVICES --8!:!Q_

STAlE PRESCHOOL HANDICAPPED
PROGRAM

AllERNATIVE PROGRAMS

ELEMENTARY AND

LOTTERY PROGRAMS

CHAPTER1

EDUCATION OF

STAlE

DEPRIVED

PROGRAM

0-IILOREN

IMPROVEMENT

State Funds Federal Funds Local and other Funds
Total Revenues
EXPfNQm.JRES
CUrrent Instruction SupportSeNices PupilSeNices Improvement of Instructional Services Educational Media Service6 General Administration School Administration Maintenance and Operation of Plant Student Transportation Service6 Central Support SeMoes Other Support Services Food Services Operation DeblSelvice Principal Retirement
Total Expenditure&
Excess cl Revenues owr (under) Expenditures
OTHER FINANC1NG SOURCFS
Capital Leases Operating Transfers In
Total Other Financing Sources

$ 46,944.00 $ 371,215.89 266 866.03
$ 685 025.92 $
$ 684,408.72 $ 684408.72 $
~ $

'"' Excess cl Revenues and Other Financing Sources (under) Expenditures
fUNQ BALANCF JULY 1
Food lrn,entory Net Change In Period Donated Commodities Pull:hased Food

617.20 $ 257,643.53
-2,697.83 ~

17,192.68 $ 17192.68 $

63,000.00 $ 245,161.19 $
39 543.75
102 543.75 $ 245161.19 $

383,283.80 S

8,449.00

383 283.80 s_~8~449=.oo~

17,192.68 $

72,301.20 $ 352,574.'19 S

26,876.24 50.00

764.85 12,074.05
4n.41

36,050.50 6,328.70

308,201.27 $ 1,368.56 868.41
17,945.94
54,899.62

17192.68 $ 0.00 $

18 200.00 112543.75 $ 413153.69 $ ;-10 000.00 $ -167 992.50 $

383 283.80 $ 0.00 $

8,449.00
8449.00 0.00

$ 167,432.00 10 000.00 ~
10 000.00 $ 167 992.50

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00

0.00

0.00

FtJNQ BAI ANCE JUNE 30

s 257 os1.oe s _ _ _ _ _o_._oo,..s _____o_.oo,..s ____,2;!l!!. s _ _ _ _ _o_.o_o,..s _____o_.oo_

See notes to the general purpose financial statements.

-22

EXHIBIT"H'

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

JOB TRAINING PARTNERSHIP
ACT

PROJECT HEAD
~

TOT
YEAR JUNE 30 1994

15,102.00 $ 15102.00 $

8,353.41 $ 8 353.41 $

62,417.49 $ 62 417.49 $

2,169.00 $ 2169.00 $

$ 68,603.47 $

80,221.21

90,281.96

80 221.21 $ 158 885.43 $

440,901.34 $ 1,021,493.76
306 409.78
1 768 804.88 $

57,681.00 1,061,565.32
272391.16
1 391 637.48

336.47
728.81 14,066.34 $
35.66 347.59 338.43
15 853.30 $ -751.30 $

9,063.98 9.49
9 073.47 $ -720.06 $

18,889.52 $ 36,947.00 6,580.97
62417.49 $ 0.00 $

366.61 $ 1,802.39
2169.00 $ 0.00 $

53,528.35 $ 157,817.80 $ 989,657.39 $ 546,338.92

28,836.34 3,367.81

95,832.53 1,647.22
23,130.32 25,336.91 15,789.45 36,866.34
6,328.70
54,899.62 684,408.72

41,199.72 24,417.84 7,993.61 27,624.05
68,066.50 675,351.83

18 200.00

85 734.50 $ 157 817.80 $ 1 952 097.20 $ 1 378 992.47

-5513.29 $ ~ $ -183 292.32 $

12 645.01

1 532.55 1 532.55

167,432.00 12 093.05
179 525.05

-751.30 $ 751.30

720.06 $ 720.06

0.00 $ 0.00

0.00 $ 0.00

-3,980.74 S 3,980.74

1,067.63 S 284.12

-3,767.27 S 263,379.75

12,645.01 251,470.71

-2,697.83 1 494.18

1,680.08 944.11

0.00 $

0.00 $

0.00 $

0.00 $

0 . 0 0 $ ~ $ 258 408.83 $ 263 379.75

.23.

UNION COLJNJY BQARP OE FPUCATION
COMBIN1NG BALANCE; SHFFT flPUCIARY fUNQ JYPfs JUNF 3Q 1994

EXHIBITT

6.m cash and cash Equivalent& Accounts Receivable

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

UNION COUNTY TONIA PARKER

SCHOOLS

TANNER

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

EXPENDABLE TRUST FUND SELF-INSURED
EMPLOYEE BENEFIT FUNDS UNEMPLOYMENT COMPENSATION
FUND

TOTALS JUNE30 1994 JUNE30 1993

$

27,160.39 $

6,842.39 $

2,947.69 $

36,950.47 $

33,830.28

211.06

280.87

491.93

542.25

Total Aosets

$

27371.45 $

7123.26 $

2 947.69 $

37442.40 $

34372.53

FUNQEOUIJY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated

$

25,767.31 $

1604.14

5,623.47 1499.79 $

Total Fund Equity

$

27371.45 $

7123.26 $

$ 2 947.69

31,390.78 $ 6051.62

31,109.56 3 262.97

2 947.69 $

37442.40 $

34372.53

See nolee to the general purpoee financial - - -

-24-

UNION QQUNIY ~QABl:2 QE 1;;1:2,1QAJ]QN
S~t!EQULE QE EEQEB61 EIM6N~l~I. 6~~1!6H~E YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDSl

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.665 $

46,106.41 $

10.553 10.553
10.555 10.555 10.550

73,986.52
251,838.34 45391.03

46,106.41 $

46,106.41

(5)

2,443.10 71,589.12
104.41 251,838.34 NIA

73,986.52
251,838.34$ 45391.03

(2)
639,017.69 (3) 45391.03

Total U.S. Department of Agriculture

417 322.30 $

372 081.38

417322.30 $

684408.72

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 1994 Regular State Program Improvements 1994Regular Chapter2 Block Grant Flow Through 1994 Regular Innovative Programs 1993 Regular Trtlell Eisenhower Mathematics and Science Education 1993Regular 1994Regular Individuals with Disabilities Education Act TrtleVl,B Flow Through 1992 Carry-Over 1993 Carry-Over 1994 Regular Preschool Program 1994Regular Vocational Education - Basic Grants to states High School Program Basic Grant 1993 Grant 1994 Grant Supplementary State Grants for Facilities 1994 Contract Tech-Prep Education 1993 Grant 1994 Grant
Total U. S. Department of Education

84.010 84.010 $ 84.010 84.218
84.151 84.151
84.184 84,184
84.027 84.027 84.027 84.173
84.048 84.048 84.253 84.243 84.243
$

$ 67,497.00 330,398.00
8,449.00 14,102.00
8,113.00
1,000.00 84,548.00
2,169.00
22,346.00 977.00
35000.00 554599.00 $

49,135.00 67,497.00$ 285,500.00
8,449.00

67,497.00$ 315,786.80
8,449.00

67,497.00 315,786.80
8,449.00

14,102.00 1,000.00

14,102.00 1,000.00

14,102.00 1,751.30

2,143.02 5,500.00

2,143.02 6,210.39

2,863.08 6,210.39

-2.00 1,000.00 84,548.00
2,169.00

1,000.00 61,417.49
2,169.00

1,000.00 61,417.49
2,169.00

4,256.08 21,894.82
977.00
16,140.22 23000.00
567309.14 $

22,346.00 977.00
35000.00 538097.70 $

(4) (4)
!4l 481246.06

- 25 -

UNION COUNJY BOARD Of EP\JCATION SCHEDULE OE 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

Health and Human Services, U. S. Department of Through Ninth District Opportunity, Incorporated Project Head Start 1993Regular 1994Regular

93.600 93.600 $

97495.00 $

90281.96 $

$ 90281.96

284.12 157 533.68 (3)

Total U. S. Department of Health and Human Services

$

97495.00 $

90281.96 $

90281.96 $

157817.80

Labor, U. S. Department of

Through Georgia Mountains Regional Development

Center

Job Training Partnership Act

JTPA-JT-92-09

17.250

JTPA-JT-93-15

17.250 $

Through North Georgia Private Industry Council

Job Training Partnership Act

93-123-101

17.250

93-123-102

17.250

$ 76,858.00
1,400.00 12599.25

8,175.31 $ 60,110.21

--471.02 $ 70,436.94

1,126.47 5399.00

1,400.00 8855.29

3,509.72 71,969.49
1,400.00 8855.29

Total U. S. Department of Labor

$

90857.25 $

74810.99 $

80221.21 $

85734.50

Total Federal Financial A-nee

$ 1160 273.55 $

1104483.47 $ 1125 923.17 $

The 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 nonrnonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994
National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and other Funds.
Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. (5) Funds eamed on this program do not require reporting of expenditures.

1409207.08

See notes to the general purpose financial statements.

- 26 -

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

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
First National Bank of Union County, Blairsville, Georgia
N.O.W. Account (3.20%)
Union County Bank, Blairsville, Georgia
N.O.W. Accounts (Various) Certificates of Deposit
No. 22441 (4.45%) No. 22753 (4.00%) No. 24253 (4.50%)

$ 242,006.04

$ 2,177,492.66
6,781.00 5,450.00 21,360.21

2,211,083.87

$ 2,453,089.91

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

UNION COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE TRUST FUND

TOTAL

Education, Georgia Department of Food Services School Breakfast Program Vocational Education State Funds Federal Funds Lottery Programs Computers in Classrooms Distant Learning Federal Programs ESEA Chapter 1 Education of Deprived Children Title II

$

2,397.40

$

3,494.68

12,451.18

44,487.00 5,000.00

30,315.00 710.39

$ 2,397.40 3,494.68
12,451.18 44,487.00
5,000.00
30,315.00 710.39

Georgia Mountains Regional Development Center Job Training Partnership Act

10,326.73

10,326.73

Gilmer County Board of Education Alternative School

3,556.25

3,556.25

Ninth District Opportunity, Incorporated Reimbursements for Meals

642.00

642.00

North Georgia Private Industry Council Job Training Partnership Act

3,729.82

3,729.82

Office of the Governor Alternative School

1,362.70

1,362.70

Union County Tax Commissioner County Wide Bond Tax County Wide School Tax

4.84 28,930.12

4.84 28,930.12

Various Sources Interest Earned Lamb-Weston Rebate

$ 30.00

491.93

491.93 30.00

$

44,880.82 $

102,557.29 $

491.93 $ 1471930.04

See notes to the general purpose financial statements.

- 28 -

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

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Govemots Emergency Fund (1) State Preschool Handicapped Program Mentor Teacher Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant
Children and Youth Coordinating Council Through Office of the Governor Alternative School
Health and Human Services, U. S. Department of Through Ninth District Opportunity, Incorporated Project Head Start
(1) The purpose of these funds are to establish a regional evening school for Union, Fannin and Towns Counties.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 3,454,564.00 557,913.00 54,625.00 147,738.00 47,603.00
1,012,926.00
267,205.00 77,066.00
247,806.00 120,540.00 241,804.00 101,550.00 102,646.00 -1, 157,553.00 122,496.00
$ 18,903.00
1,200.00

$ 3,454,564.00 557,913.00 54,625.00 147,738.00 47,603.00
1,012,926.00

46,944.00

267,205.00 77,066.00
247,806.00 120,540.00 241,804.00 101,550.00 102,646.00 -1, 157,553.00 122,496.00 46,944.00
18,903.00

30,000.00 17,192.68

30,000.00 1],192.68
1,200.00

250.00 11,988.90

4,313.99 105,968.00
5,000.00 87,500.00 42,379.20

250.00 11,988.90
4,313.99 105,968.00
5,000.00 87,500.00 42,379.20

33,000.00

33,000.00

68 603.47

68 603.47

$ 5,431,270.90 $ 440,901.34 $ 5,872,172.24

See notes to the general purpose financial statements.

- 29 -

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

SCHEDULE "5"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND SELF-INSURED EMPLOYEE BENEFIT FUND

TOTAL

Taxes County Wide Bond Tax County Wide School Tax Real Estate Transfer Tax

$

77.43

2,271,011.51

18,388.38

$

77.43

2,271,011.51

18,388.38

Other Donations Interest Earned Lawsuit Settlement Reimbursements for Salaries and Benefits Ninth District Opportunity, Incorporated Pioneer Regional Educational Service Agency Union County Elementary School Rent Revenue in Lieu of Taxes Tennessee Valley Authority Sales Breakfast and Lunch School Assets Shared Service Contributions Fannin County Board of Education Gilmer County Board of Education Pickens County Board of Education Towns County Board of Education Tuition Other

1,300.00 68,518.71 $
781.00

7,505.41

$

3,532.00 12,730.80
8,700.00

271,370.74

6,289.32

259,166.08

7,800.00 3,897.80

14,000.00 10,668.75
3,625.00 4,250.00 7,000.00
194.54

2,947.69

1,300.00 76,024.12
781.00
2,947.69
3,532.00 12,730.80
8,700.00
27j,370.74
259,166.08 6,289.32
14,000.00 10,668.75
3,625.00 4,250.00 14,800.00 4,092.34

$ 2,674,397.69 $ 306,409.78 $

2,947.69 $ 2,983,755.16

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

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,337,887.57 $ 1,274,264.75 19,198.75 43,738.12 5,914.50 33,079.48 25,323.40 20,592.15 22,898.18
30,690.35 4,322.11
274,392.39 258,878.57
70,481.00 16,514.85 46,893.63

821,927.97 $ 186,872.62
10,612.21 44,827.79
4,666.50
2,912.09 3,159.88
100,002.74
339,482.08 24,106.92 5,397.06

6,159,815.54 1,461,137.37
29,810.96 88,565.91
5,914.50 33,079.48 29,989.90 20,592.15 25,810.27
3,159.88 30,690.35
4,322.11 374,395.13 258,878.57 339,482.08
94,587.92 21,911.91 46,893.63

35,838.00 224,918.50

18,200.00 389,929.34

18,200.00 35,838.00 614,847.84

Total Expenditures

$ 7,745,826.30 $ 1,952,097.20 $ 9,697,923.50

See notes to the general purpose financial statements. 31

UNION CQUNJY BOARD OE gpuCAIJQN
SCHEPUI E OF EXPENDITURES BV OBJECT LOTTERY PBOOBAMS
VEAR ENPEP JUNE 30 1994

SCHEDULE "7"

EXPENDITURES
Operaling Costs Supplies
Nonoperafing Costs Principal Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER ANO
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

TOTAL

,313.99

18,200.00 87 769.50 (1) $

5 000.00 $

88059.00

39,00.50 $

3,354.8

3 338.70

18,200.00 18 167.20

Total Expenditures

4i!13.99 $

1osi222.so

5 000.00 $

88059.00 $

(1) This amount does not include $167,432.00 in equipment expenditures associated with the inception of a capital lease.

2i79.20 $

24Sn1.69

See notes to the general purpose financial statements.

32

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

SCHEDULE "8"

Minimum Expenditure Requireme_nts (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 ANO MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

4,317,136.00 $

47,953.00

$

4,413,551.54

212,404.13 $

$

4,625,955.67 $

49,579.88 49,579.88

-9,156.44

$

4,616,799.23 $

-32,994.43 16,585.45

$

0.00 $

31,367.55

See notes to the general purpose financial statements. 33 -

lJNIQN Q?I INJY RQARQ Of EQUCADQN
ANAi YS1SOF M1NIMUM EXPfNPffi !Bf BEQV1RfMFNTS BY PBOOBAM GENERAi B INP- QLJAI ITV BAS1C fpt JCATIQN PBOOBAMS VEABENPEP nNEM 1994

GENERAL AND QAREfR fQlJCATION PROGRAMS
Kindergarten(") Grades1-3(")
Sub-Total K-3 Grades4-5 (") Grades6-8 (") Grades 9 -12 (1 High School Laboratories (") Vocational Education Laboratories (i
Total General and Career Education Programs PfC1AI fQlJCAJIQN PBOGRAMS
Regular Programs categc,y I (") categc,y II (") categay Ill(") categay IV (") Itinerant Supplemental Speech Sub-Total Regular
Total Special Education Programs BEMfPIAI EQlJCATIQN ffiOGRAM C,
M5QIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF PEYEI PPM ENI PBQGRAMS (1) Cost of Instruction Professional Development
TotalstaffDENe-
r) Identifies Thirteen Weighted Programs. Note: (1) $5,534.45 of the allotment for Professional
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See note& to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDLICATION

REQUIRED

TOTAL

ORIGINAL _jL

ORIGINAL

MID-TERM

REQUIRED

299,635.00 942761.00 1,242,396.00 490,476.00 756,798.00 516,242.00 191,936.00 264 716.00 3 454 564.00

269,671.50 $

90 s

848484.90 1,118,156.40

90

432,428.40

90

682,918.20

90

484,617.80

90

172,742.40

90

238 244.40

$ 3 109 107.60 $

0.00 $ 269,671.50

848 484.90

0.00 $ 1,118,156.40

432,428.40

682,918.20

82,296.00

546,913.80

172,742.40

238 244.40

82 296.00 $ 3191 403.60

502,873.00

452,565.70 $

20,000.00 $

472,585.70

502,873.00 55040.00
557913.00 54625.00
147 738.00

90 $ 90
90 $ 90

452,565.70 $ 49 536.00 502121.70 $ 49162.50 S 132 964.20

20,000.00 S
20 000.00 $ 0.00 S 0.00 S

472,585.70 49 536.00
522121.70 49162.50
132 964.20

$ 4,214,840.00

3,793 356.00 $

102 296.00 $ 3,895,652.00

16,235.45 100 $ 31 367.55 100

16,235.45 $ 31 367.55

350.00 $

16,565.45 31 367.55

47,603.00

47,603.00 $

350.oo s_ _4""7"'95-3._.oo_

$ 4,262 443.00

3 940 959.00 $

102,646.00 $ 3 943,605.00

- 34 -

SCHEDULE 'V'

REQUIRED ALLOTMENT

SALARIES AcnJAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

AcnJAL

ALLOTMENT

262,9TT.30 $

327,409.97

6,694.20 $

9,690.91

822927.60

873 378.37

25 557.30

26112.30

1,085,904.90 $ 1,200,766.34 $

0.00

32,251.50 $

35,603.21 $

0.00

419,844.60

450,616.09

0.00

12,563.80

18,696.97

0.00

663,Bn.10

826,601.82

0.00

19,241.10

34,660.59

0.00

518,274.40

638,431.51

0.00

28,639.40

34,464.07

0.00

165,544.20

1n,219.84

0.00

7,198.20

7,215.75

0.00

208 728.90

382 333.38

0.00

29 515.50

29 604.68

0.00

$ 3 061 974.10 S 3 675 990.98 $

0.00

129 429.50 S

160 445.27 S

0.00

26,657.10 S 56,243.70 367,301.00 10,153.80

6,689.61 38,319.28 457,703.97 7,562.01

1,293.30 $ 1,139.40 8,948.70
328.50 260.10 260.10

215.76 1,824.63 16,049.33
250.67

460,355.60 $

510,274.87 $

0.00

12,230.10 $

18,340.39 $

0.00

48 236.40

50985.79 $

0.00

1 299.60

1 322.27 $

0.00

508 592.00 $

561 260.66

13 529.70 S

19 662.66

48 340.80 $

50 718.64 S

0.00

821.70 $

983.02 $

0.00

103923.90 $

125 581.26 $

0.00

29 040.30 $

31 313.18 S

0.00

$ 3,722,830.80 $ 4,-413,551.54 $

0.00

17.:2,821.20 S 212,404.13 $

0.00

$ 3,722,830.80 $ 4,413,551.54 $

16,585.45 $ 31 387.55

49,579.88 $ 0.00

0.00 31 367.55

47,953.00 $

49,579.66 $

31 387.55

0.00

220,n4.2D s

261,984.01 $

31 367.55

- 35 -

UNION COUNTY BOARD OF EDUCATION

SCHEDULE "10"

SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

YEAR ENDED JUNE 30 1994

BOARD MEMBER ADDRESS
Mr. Myron Turner, Chairman (*) P. 0. Box325 Blairsville, Georgia 30512
Mr. Larry Akins (*) 128 Foster Road Blairsville, Georgia 30512
Mr. Barry Collins (*) 1512 Murphy Highway Blairsville, Georgia 30512
Mr. Jerry Dyer (*)
P. 0. Box 1054
Blairsville, Georgia 30512
Mr. Jerry Gilbreath (*) 1463 Cooper Creek Road Suches, Georgia 30572

COMPENSATION

TRAVEL

$

1,300.00

1,250.00 $

96.50

750.00

84.00

1,100.00

84.00

1,250.00

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

5,650.00 $ =====2=64===.5=0

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 26, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Union 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 Union County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated April 26, 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 Union County Board ofEducation 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.
The results of our tests indicate that, with respect to the items tested, the Union County Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to
94CRL-10

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 granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
f~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-10

CIAUDE L. VICKERS
STATE AUDITOR {404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 26, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Union 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 Union County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 26, 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 Union County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

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

94CRL-50

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 26, 1995

Honorable Zell MilJer, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Union County Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Union County Board ofEducation as ofand for the year ended June 30, 1994, and have issued our report thereon dated April 26, 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 Union County Board ofEducation's compliance with the requirements governing:

(1) Types of Services AIJowed 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 ofthe Union 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 ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the 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 Union County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance 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.
Ro;iy:~

CLV:cm 94CRL-80

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
April 26, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Union County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 26, 1995. This report was qualified for a scope limitatiori 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 ofthe fiscal year 1994 general purpose financial statements ofthe Union County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing

94CRL-120

came to our attention that caused us to believe that the Union 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 ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION ill INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Union 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 Union County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated April 26, 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 of the general purpose financial statements of the Union County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Union County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estinlates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute,
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 ofpolicies 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 ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

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

(1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more 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.

'

94ICL-3

Our consideration ofthe internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all ofthe reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, tinling, and extent of the procedures to be performed in our audit ofthe Union County Board ofEducation's financial statements and this report does not affect our report thereon dated April 26, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Union 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 Union County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 26, 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 Union County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated April 26, 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 Union County Board of Education 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 ofexpressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to its major Federal financial assistance program and to report on the internal control structure in accordance with
94ICL-ll

0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit ofthe general purpose financial statements in a separate report dated April 26, 1995.

The management ofthe Union County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with nranagement'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 of Effort, 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 ofthe design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

94ICL-11

During the year ended June 30, 1994, the Union County Board ofEducation expended 60% of its total Federal financial assistance under a 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, which is identified in the Schedule of Federal Financial Assistance, and the aforementioned nonrnajor 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 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 corning to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control 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 all of the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Union County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated April 26, 1995.
94ICL-11

This report is intended for the information of management, the Federal cognizant audit agency and either Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
"2'.7~
Claude L. Vickers State Auditor
CLV:cm 94ICL-11

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

UNION COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $622.50 Audit Control Number 7441-93-03
The audit report for the year ended June 30, 1993, noted that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$622.50 for the operations portion of the Remedial Education Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $19,153.90 Audit Control Number 7441-93-04
The audit report for the year ended June 30, 1993, noted that the Board had an underexpenditure ofQuality Basic Education (QBE) funds of$19,153.90 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Procedures Financial Statements Federal Fmancial Assistance Finding Resolved Audit Control Number 7441-93-05
The audit report for the year ended June 30, 1993, noted that the Board's accounting procedures were insufficient to provide for adequate internal control over the journal entry process. For the year under review, procedures were implemented to ensure that all journal entries were supported by adequate documentation and descriptions, and that all journal entries made to the accounting records had proper authorization.

UNION 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 7441-_93-06
The audit report for the year ended June 30, 1993, stated that the cash management procedures for the E.S.E.A - Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) were deficient, resulting in the accumulation of excessive cash balances. In the year under review, procedures were implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 7441-93-09A
The audit report for the year ended June 30, 1993, noted that the property records maintained by the Board for the National School Lunch Program (CFDA 10.555) were incomplete. For the year under reveiw, the Board made sufficient changes to the inventory records such that these records meet Federal and State regulations.
AUDIT FOLLOW-UP/RESOLUTION Failure to Refund Unexpended Grant Balance Federal Financial Assistance Finding Resolved Audit Control Number 7441-93-07
The audit report for the year ended June 30, 1993, reported an unexpended grant balance of$3,980. 74 for the Job Training Partnership Act Program (CFDA 17.250). As of June 30, 1994, no action had been taken to refund this unexpended grant balance. However, subsequent to June 30, 1994, the Board filed an amended completion report reflecting additional expenditures of$3,509.72, which resulted in an adjusted unexpended grant balance of$471.02. The amended completion report was reviewed by the grantor and determined to be acceptable. The Board refunded the $471.02 to the Georgia Mountains Regional Development Center and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", ofthis report.

UNION COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Audit Control Number 7441-93-08
The audit report for the year ended June 30, 1993, noted that the Board failed to submit a copy ofthe 1992 audit report to the Office of the Governor from whom the Board received Target Schools and Hospitals Program funds. Paragraph 13f of 0MB Circular A-128 requires that the recipients of Federal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. During the year under review, the Board again failed to submit the required report. A copy of the 1992 audit report should be submitted to the Office ofthe Governor as required.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL} - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7441-93-01
The audit report for the year ended June 30, I993, 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, some improvements were made regarding separation of employee duties; however, the Board still did not achieve an adequate degree of internal control. This deficiency was a result of management not assigning employee duties in a manner to adequately safeguard assets and/or promote efficiency and accuracy in key accounting functions. The management of the Union County Board of Education should formulate and implement changes in personnel to achieve an adequate system of internal control of key accounting functions.
Note: The Federal financial assistance program affected by this finding is as follows: ESEA - Chapter I . Education of Deprived Children (CFDA 84.010}

UNION COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7441-93-02
The audit report for the year ended June 30, 1993, noted that the management of the Union County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose 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 of land, 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.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7441-93-09B
The audit report for the year ended June 30, 1993 noted that the property management records maintained by the Board for the ESEA - Chapter 1, Education of Deprived Children Program (CFDA 84.010) were incomplete and failed to rneet the property management standards as set forth in Chapter 8 of Part I of the Georgia Financial Accounting Handbook for Local School Systems (GFAH). Accounting records maintained by the Board and presented for examination did not contain the acquisition cost.
This condition occurred because management disregarded the provisions of GFAH. An inventory system should be implemented that provides for the identification of all equipment purchase as outlined in GFAH. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year, when applicable. Periodic physical inventory counts should be made and reconciled to the property records to ensure the accuracy ofthe Board's inventory records.

UNION COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED mNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $31,367.55 Audit Control Number 7441-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $49,579.88 for the Staff Development - Cost of Instruction Program. A review of the underlying source documentation for Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment Cost of Instruction program purposes resulting in an underexpenditure of $31,367.55 for the minimum required allotment of $31,367.55 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE Programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Finding Resolved Audit Control Number 7441-94-02
The Board failed to submit a copy of the 1993 audit report in a timely manner to the Georgia Mountains Regional Development Center from whom the Board received Job Training Partnership Act Program (CFDA 17.250) funds. Paragraph 13fofOMB Circular A-128 requires that recipients ofFederal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance within 30 days after the completion of the audit, but no later than one year after the end of the audit period. Even though formally notified in writing of these report distribution responsibilities by the Department of Audits, management claimed it was unaware ofthis audit distribution requirement. Subsequent to June 30, 1994, the Board submitted a copy ofthe 1993 report to the entity that was the source of the Federal financial assistance.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

UNION COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $622.50 Audit Control Number 7441-93-03
Concur with this finding.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $19,153.90 Audit Control Number 7441-93-04
Concur with this finding even though we were relying upon the State Department of Education to give us correct information.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Procedures Financial Statements Federal Financial Assistance Finding Resolved Audit Control Number 7441-93-05
Concur with this finding.
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 7441-93-06
Concur with this finding.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 7441-93-09A
Concur with this finding.

UNION COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Refund Unexpended Grant Balances Federal Financial Assistance Finding Resolved Audit Control Number 7441-93-07
Concur with this finding.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7441-93-08
Concur with this finding. In the future, reports will be submitted to all grantor agencies.
ACCOUNT CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7441-93-01
Concur with this finding. Central office personnel duties have been re-structured to hopefully be in compliance.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7441-93-02
Concur with this finding.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7441-93-09B
Concur with this finding. Our method of inventory control has been changed to be in compliance.

UNION COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED mNE 30 1994
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $31,367.55 Audit Control Number 7441-94-01
Concur with this finding.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Finding Resolved Audit Control Number 7441-94-02
Concur with this finding.