Audit report, Thomaston-Upson County Board of Education, Thomaston, Georgia, year ended June 30, 1994

GA A80o .Rl
D~ IA G,
I r)q3-q4-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT THOMASTON-UPSON COUNTY BOARD OF EDUCATION
THOMASTON, GEORGIA YEAR ENDED JUNE 30, 1994

THOMASTON-UPSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

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

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

28

3 ACCOUNTS RECEIVABLE

29

4 DEBT SERVICE REQUIREMENTS TO MATURITY

30

SCHEDULE OF REVENUE

5

STATE FUNDS

31

6

LOCAL AND OTHER FUNDS

32

THOMASTON-UPSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

33

8

LOTTERY PROGRAMS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

37

10

BY PROGRAM

38

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

40

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

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

THOMASTON-UPSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Thomaston-Upson County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Thomaston-Upson County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
94ARL-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 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 Thomaston-Upson County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Thomaston-Upson County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Thomaston-Upson County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-13

THOMASTON-UPSON COUNTY BOARD OF EDUCATION - 1-

OARD OF EDUCATION SHEET UNTGROUP

Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 537,546.44 $ 159,933.59 $ 4,101,544.87

1,669,890.84

437,604.73

1,762,672.31

1,250.00

37,456.16 8,346.59

Total Assets

$ 2,208,687.28 $ 643,341.07 $ 5,864,217.18

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Loans Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Deficit Undesignated
Total Fund Equity

$ 510,939.96 $ 1,609,955.81
1,790.57

224,854.41 72,885.58 $ 390.07

1,750,000.00
926,671.81 1,137,161.00

$ 2,122,686.34 $ 298 130.06 $ 3 813,832.81

$

17,543.79

$

37,456.16

8,346.59

$

17,543.79 $

45,802.75

68,457.15

299 408.26 $ 2 050,384.37

$

86,000.94 $ 345,211.01 $ 2 050,384.37

Total Liabilities and Fund Equity

$ 2,208,687.28 $ 643,341.07 $

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

-2-

5,864,217.18

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onlll JUNE 30 1994 JUNE 30, 1993

$ 178,716.19 $

133.50

$ 4,977,874.59 $ 4,863,138.86

16,750.00

3,886,917.88

2,757,638.96

1,250.00

516.00

37,456.16 8,346.59

33,006.02 10,491.41

$

195,466.19

195,466.19

697,036.82

2,719,533.81

2 719 533.81

2,462,963.18

$ 195,466.19 $

133.50 $

2,915,000.00 $ 11,826,845.22 $ 10,824,791.25

$

735,794.37 $

482,069.55

1,682,841.39

1,640,616.85

1,750,000.00

1,640,000.00

2,180.64

926,671.81

703,719.06

1,137,161.00

164,024.40

$

2 915,000.00

2 915,000.00

3,160 000.00

$

2,915,000.00 $ 9 149,649.21 $ 7,790,429.86

$ 195,466.19
$ 195,466.19 0.00 $
$ 195,466.19 $ $ 195,466.19 $

133.50 133.50
133.50 $

$

195,466.19 $

697,036.82

17,543.79

10,417.26

37,456.16 8,346.59

33,006.02 10,491.41 137,233.14

$

258,812.73 $

888,184.65

2 418,383.28

-522,573.85 2,668,750.59

$ 2 677,196.01 $ 3,034,361.39

2,915,000.00 $ 11,826,845.22 $ 10,824,791.25

-3-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION
COMBINED STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FIIND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current lnstructk>n Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services other Support Services Food Services Operation other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOb!RCES (USES)
Operating Transfers In Operating Transfers Out
Total other Financing Sources (Uses)
Excess of Revenues and other Financing Sources over (under) Expenditures and other Financing Uses
FUND BAI ANCE JUl Y 1
Food Inventory Donated Commodities July! June 30 Purchased Food July1 June30
Residual Equity Transfer

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 12,886,987.81 $ 367,400.01 $

118,924.86

1,945,089.93

4,766,016.29

460703.84

9,990,849.61 168 597.39

$ 17 771 928.96 $ 2,773193.78 $ 10 159 447.00

$ 11,572,934.70 $

783,335.71

480,996.59 176,452.88 444,674.23 329,052.31 1,071,199.15 185,130.42 1,247,402.83 826,039.50 144,059.08
128,176.02 716.19

44,668.68 23,280.49 143,728.31 39,490.01
5,944.25 $
26,190.00

40,273.97

23,700.96 60,562.66 1,631,432.44

11, 133,032.32

16,606,833.90 $ 2 782 333.51 $ 11173306.29

$ 1 165,095.06 $

-9,139.73 $ -1 013,859.29

$ -621,079.49

$

-621,079.49 $

1,079.49 $

620,000.00

1 079.49 $

620,000.00

544,015.57 $ -512,156.59

-8,060.24 $ 405,107.89

-393,859.29 2,444,243.66

54141.96

-33,006.02 37,456.16
-10,491.41 8,346.59
-54141.96

FUND BALANCE JUNE 30

$

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

86000.94 $

345211.01 $ 2050384.37

EXHIBIT"B"

TYPES
DEBT SERVICE
FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS
{Memorandum OnlyJ YEAR ENDED
JUNE30 1994 JUNE30 1993

23,245,237.43

2,064,014.79

$

25464.39

5 420,781.91 $

$

25464.39 $ 30,730,034.13 $

23,245,237.43 $ 15,058,855.78

2,064,014.79

1,746,618.27

3.89

5 420,785.80

4489500.34

3.89 $ 30,730,038.02 $ 21 294 974.39

$ 12,356,270.41 $

525,665.27 199,733.37 588,402.54 368,542.32 1,0TT,143.40 225,404.39 1,273,592.83 826,039.50 167,760.04 60,562.66 1,631,432.44 128,176.02 11,133,748.51

$ 245,000.00 279,480.00 2555.02

245,000.00 279,480.00
2 555.02

$ 527035.02 $ 31 089,508.72 $

$ -501 570.63 $ -359 474.59 $

$

621,079.49

-621 079.49

$

0.00

$ -501,570.63 $ -359,474.59 $

697,036.82

3,034,231.78

-33,006.02 37,456.16
-10,491.41 B,346.59 0.00

$ 195466.19 $ 2 6n 062.51 $

0.00 $ 12,356,270.41 $ 11,699,541.75

525,665.27 199,733.37 588,402.54 368,542.32 1,0TT,143.40 225,404.39 1,273,592.83 826,039.50 167,760.04 60,562.66 1,631,432.44 128,176.02 11,133,748.51

440,407.10 147,610.22 420,609.26 384,881.62 1,038,366.84 196,971.94 1,193,802.60 801,648.70 195,521.02 17,869.42 1,515,780.63 119,597.42 2,992, 146.66

245,000.00 279,480.00
2,555.02

94,960.00 709.44

0.00 $ 31 089 508.72 $ 21,260,424.62

3.89 $ -359,470.70 $

34,549.n

621,079.49 $ 2,274,518.29 -621 079.49 -2 274,518.29

$

0.00 $

0.00

3.89 $ 129.61

-359,470.70 $ 3,034,361.39

34,549.n 3,011,963.63

-33,006.02 37,456.16.
-10,491.41 8,346.59 0.00

-44,631.34 33,006.02
-11,018.10 10,491.41

133.50 $ 2 6n 196.01 $ 3 034361.39 -5-

IllQMASTON-!.!PllQN !;Q!,!Nl)'. llQARQ QF ~Cl!.!!;:A!JQN !;QM!!INEQ STAil;M~NT OF RaV~NUaS ~llPaND[[!.!Ra AND !:;HANGas IN FUNQ !lt,LAN!:;~S
A!.J:UAL ANQ Bl,lDGJ;I - GQVERNM~NTAL FUNl;l TYP~S YEAR fNQEP JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~

State Funds Federal Funds Local and Other Funds

23,245,237.43 $ 2,064,014.79 5,420,781.91

0.00 $ 23,245,237.43 $ 24,043,301.00 $ 2,064,014.79 1,677,995.00 5,420,781.91 5,039,336.00

-798,063.57 386,019.79 381,445.91

Total Revenues

$ 30,730,034.13 $

0.00 $ 30,730,034.13 $ 30,760,632.00 $

-30,597.87

~XPgNDITURES

current ln&truction Support Services
Pupil Services Improvement of Instructional
Services
Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services Capital Outlay OebtSe!vice

12,356,270.41 $
525,665.27
199,733.37 588,402.54 368,542.32 1,077,143.40 225,404.39 1,273,592.83 826,039.50 167,760.04
60,562.66 1,631,432.44
128,176.02 11,133,748.51
527,035.02

0.00 $ 12,356,270.41 $ 12,411,402.88 $

525,665.27

431,067.00

199,733.37 588,402.54 368,542.32 1,077,143.40 225,404.39 1,273,592.83 826,039.50 167,760.04 60,562.66 1,631,432.44

187,757.00 442,853.00 362,408.00 1,047,287.00 225,436.00 1,020,656.00 875,840.00
98,053.00 131,774.00 1,436,475.00

128,176.02 11,133,748.51
527,035.02

170,274.00 11,575,617.00
310,920.00

55,132.47
-94,598.27
-11,976.37 -145,549.54
-8,134.32 -29,856.40
31.61 -252,936.83
49,800.50 "69,707.04 71,211.34 -194,957.44
42,097.98 441,868.49 -216,115.02

Total Expenditures

$ 31,089,508.72 $

0.00 $ 31,089,508.72 $ 30,727,819.88 $

-361,688.84

Excess of Revenues over (under) Expenditures

-359,474.59 $

0.00 $ -359,474.59 $

32,812.12 $

-392,286. 71

OTH~R FINANCIN!, l,OURCES (USES}

other Sources other Uses

$ 621,079.49 $ -621,079.49

0.00 $ 621,079.49 $ 402,721.00 $

"621,079.49

-402,721.00

218,358.49 -218,358.49

Total other Financing Sources (Uses) $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uaes

$

-359,474.59 $

FUNQ !at,! ANCE JULY 1 1993

3,034,231.78

0.00 $ -359,474.59 $ 32,812.12 $ -43,497.43 2,990,734.35 3,527,810.62

-392,286. 71 -537,076.27

AQJ!JTMF~

Prior Year (Net)

501.26

-501.26

FQQQ INVgNTORY

Donated Commodities

July 1, 1993

-33,006.02

33,006.02

0.00

0.00

June 30, 1994

37,456.16

-37,456.16

0.00

0.00

Purchased Food

July 1, 1993

-10,491.41

10,491.41

0.00

0.00

June 30, 1994

8,346.59

-8,346.59

0.00

0.00

FUND BAI.ANCE JUNE 30 1994

$ 2,677,062.51 $

-45,802.75 $ 2,631,259.76 $ 3,561,124.00 $

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

-7-

-929,864.24

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Thomaston-Upson County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant 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 Thomaston-Upson County Board ofEducation.
Based upon the application of the above criteria, the Thomaston-Upson County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Upson 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, 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-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the
acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the trust fund 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. This fund includes:
EXPENDABLE TRUST FUND Harold 0. Maguire Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students.
- 9-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined 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.
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 detennined 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.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
- 10 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE30 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Thomaston-Upson County Board ofEducation has a legally authorized nonappropriated budget which is fonnally 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.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings accounts and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
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 Upson County Board of Commissioners fixed the property tax levy for the I993 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 I, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70. l 03.
- 11 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Upson 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.

Tax millage rates levied for the 1993 tax year (calendar year) for the Thomaston-Upson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14 75 mills

INVENTORIES

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

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 1994, are recorded as prepaid items.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

- 12 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe 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 of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
- 13 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $7,678,966.84. 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.)

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

Risk Category

Bank Balance

$ 622,059.51

2

1,445,903.14

3

5 611 004.19

Total

$ 7 678 966 84

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$3,587.00 was paid in claims.

- 14 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1993

$3,160,000.00

Additions

0.00

Deletions

245 000.00

Balance June 30, 1994

$291500000

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

Fiscal Year Ended June 30

General Obligation
Bonds

1995 1996 1997 1998 1999 2000 and thereafter

$ 89,197.50 305,080.00 303,187.50 305,622.50 297,575.00
3 392 820.00

Total Principal and Interest

$4 693 482 50

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal years 1985 and 1992, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1994, $3,005,000.00 of bonds are outstanding and are considered defeased.

- 15 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

93/92-745-084 94-745-069 95/94S-745-059

$ 517,341.00 756,111.58
1 441 000.65

$ 1 351 467.65

$271445323 $135] 46765

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

Note 8: CONTINGENT LIABILITIES

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

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 16 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS

Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 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 $10,820,280.81; total payroll was $12,328,878.66.

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 $1,927,091.38, ofwhich $1,277,873.97 was made by the Board and $649,217.41 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

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

12 821 722 000.00
$ I 090 292 ooo oo

- 17 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994
Note 9: RETIREMENT PLANS
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 $1,277,873.97 was actuarially detennined and represented .2450% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia.
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 if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member tenninates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 147 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially detennined and approved and certified by the PSERS' Board of Trustees.
- 18 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1994 Note 9: RETIREMENT PLANS Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $4,888.00. 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. Frank L. Bates, is bonded in the amount of$25,000.00 with the Cincinnati Insurance Company, Cincinnati, Ohio, their Bond No. 8266140, on which premium was paid through September 15, 1995.
- 19 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE30 1994

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

SCHOOL DISTRICT
FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 298,832.39 $

0.00

7,151.93

$ 209,800.01 $

30,000.00 $

144,724.64

37,456.16 8,346.59

Total Assets

$ 351,787.07 $

0.00 $ 209,800.01 $

30,000.00 $

144,724.64

LIABILITIES AND FUND EQUITY

LIABILITIES

C-Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

$

1,436.56

5,139.50

Total Liabilities

$

6,576.06

FUND EQUITY

Fund Balances Reserved For Inventories Food Donated Cornmodtties Purchased Food

37,456.16 8,346.59

Unreserved Undesignated

$ 45,802.75 299,408.26 $

Total Fund Equtty

$ 345,211.01 $

$ 11,796.50 $ 198,003.51
209,800.01 $

24,857.34 $ 1,121.68 3,910.84 110.14
30,000.00 $

73,376.41 19,110.04 51,958.26
279.93
144,724.64

0.00 $

0.00 $

0.00 $

0.00

0.00 $

0.00 $

0.00 $

0.00

Total Liabiltties and Fund Equ~y

$ 351,787.07 $

0.00 $ 209,800.01 $

30,000.00 $

144,724.64

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE 11-

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

TOTALS

ACT

JUNE 30, 1994 JUNE 30, 1993

0.00

298,832.39 $ 242,881.15

8,819.66 $

10,762.22 $

21,597.15

$

4,749.12

437,604.73

191,240.06

37,456.16 8,346.59

33,006.02 10,491.41

$

8,819.66 $

10,762.22 $

21,597.15 $

0.00 $

4,749.12 $ 782,239.87 $ 477,618.64

8,819.66 $

9,270.38 $ 1,491.B4

6,029.39 3,690.78 11,876.98

$

8,819.66 $

10,762.22 $

21,597.15

$

4,749.12 $ 138,898.80

224,854.41 $

16,728.67

72,885.58

55,782.08

390.07

$

4,749.12 $ 437,028.86 $

72,510.75

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

8,819.66 $

10,762.22 $

21,597.15 $

0.00 $ 0.00 $

$ 0.00 0.00 $

37,456.16 $ 8,346.59
45,802.75 $ 299,408.26 345,211.01 $

33,006.02 10,491.41
43,497.43
361,610.46 405,107.89

0.00 $

4,749.12 $ 782,239.87 $ 477,618.64

-21-

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

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory Donated Commodities July1 June30 Purchased Food July1 June30
Residual Equity Transfer

SCHOOL FOOD
SERVICES FUND

SCHOOL DISTRICT
FUND

ELEMENTARY

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 111,666.00 $ 1,048,456.02 460,703.84
$ 1,620,825.86 $

0.00 $ 255,734.01 $
0.00 $ 255,734.01 $

29,889.86 $ 29,889.86 $

664,134.48 664,134.48

$
$ 1,628,886.1 o
1,628,886.10 $ $ -8,060.24 $

0.00 $ 124,784.01 $
105,000.00
25,950.00

0.00 $ 255,734.01 $

0.00 $

0.00 $

$ 29,889.86
29,889.86 $ 0.00 $

564,358.09
5,495.00 5,298.94
19,689.20 5,944.25 240.00
60,562.66 2,546.34
664,134.48
0.00

$ -8,060.24 $ 350,965.93

0.00 $ 54,141.96

-33,006.02 37,456.16
-10,491.41 8,346.59

-54,141.96

0.00 $ 0.00

0.00 $ 0.00

0.00 0.00

FUND BALANCE JUNE 30

$ 345,211.01 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-22-

EXHIBIT"F"

AND SECONDARY EDUCATION ACT

TITLEII-

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

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

38,819.66 $ 38,819.66 $

16,893.36 $ 125,091.62 $

12,464.00 $

16,893.36 $ 125,091.62 $

12,464.00 $

$ 367,400.01 $ 140,030.00

9,340.93 1,945,089.93 1,591,604.21

460,703.84

512,397.46

9,340.93 $ 2,773,193.78 $ 2,244,031.o/

$

84,245.95

9,947.66 $ 783,335.71 $ 522,832.51

$

38,728.31

91.35

17,356.58 9.54

9,283.82 624.97
19,699.92

11,236.96 $

12,464.00

44,668.68 23,280.49 143,728.31 39,490.01
5,944.25 26,190.00 23,700.96 60,562.66 1,631,432.44

1,693.28 10,668.94
46,093.54 17,250.60
97,077.10 17,869.42 1,515,780.63

$

38,819.66 $

17,366.12 $ 125,091.62 $

12,464.00 $

9,947.66 $ 2,782,333.51 $ 2,229,266.02

$

0.00 $

-472.76 $

0.00 $

0.00 $

-606.73 $

-9,139.73 $

14,765.65

472.76

606.73

1,079.49

21,880.00

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

~.060.24 $

36,645.65

0.00

0.00

0.00

0.00

0.00

405,107.89

380,614.25

-33,006.02 37,456.16
-10,491.41 8,346.59
-54,141.96

-44,631.34 33,006.02
-11,018.10 10,491.41

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 345,211.01 $ 405,107.89

-23-

THQMASTQN-UPSQN CQUNTV BOARD QF EDUCATION
CQMBIN1NG BAI ANCF SHEf;T GP.PITA! PROJECTS EUNP JUNE 30 1994

EXHIBIT"'G"

ASSETS Cash and Cash Equivalents Account& Receivable

REGULAR

GEORGIA STATE FINANCING AND

INVESThlENT 00!,f\AISSION

PROJECT

PROJECT

PROJECT

93/92$-745-084

94-745-069

95/94S-745-059

TOTALS JUNE 30 1994 JUNE 30 1993

3,800,384.37 $

231,899.96 $

69,260.54

4,101,544.87 $ 3,833,652.92

973 645.63

710311.68 $ _ _7~8~7~15"'.00"'- 17626n.31

978 334.20

Total Assets

$ 3 800 384.37 $ 1 205 545.59 $

7795n.22 $

78715.00 $ 5864217.18 $ 4811987.12

LIABILITIES AND fUNQEQLJITY
LIABILITIES
Loans Payable Contracts Payable Retainages Payable
Total LlabiliUes
FUNPEQUITY
Fund Balances Reserved For State Capital Outlay Projects Unl'8SeM>d Undesignalad
Total Fund Equity

1,750,000.00 $
1 750 000.00 $

397,854.39 $ 807 691.20
1 205 545.59 $

457,846.42 $ 321 725.80
7795n.22 $

$ 70,971.00
7 744.00

1,750,000.00 $ 926,671.81
1137161.00

1,500,000.00 703,719.06 164 024.40

78 715.00 $ 3 813 832.81 $ 2.367 743.6

137,233.14

2050384.37 $ _ _ _-'o"'.oo"'-$

o.oo $ _ _ _...,o"".oo"'- $ 2 050 384.37

2 307 010.52

2050384.37 $ _ _ _-'o"'.00""$ _ _ _-'o"'.00""$ _ _ _...,o"'.00""$ 2050384.37 $ 2Af4243.66

Total Liabilities and Fund Equity

$ 3,800 384.37 $ 1 205,545.59 $

779 572.22 $

78 715.00 $ 5 864 217.18 $ 4 811 987.12

See notes to the general purpose financial statements.

-24-

THOMASTON-UPSON COUNTY BQABD OF EDUCATION COMBINING STATEMENT Of REVflNUES EXPENDITURES AND CHANGES IN Fl JNO BALANCES
QAPITAI PROJECTS FUNP YEAR EM)E;D JUNE 30 1994

EXHIBIT"H"

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration Interest Expenses
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (YSES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenddures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND

INVESTMENT COM\1/SSION

PROJECT

PROJECT

PROJECT

93192S-745-084 94-745-069 95/945-745-059

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30, 1993

168 597.39

6,212,650.26 $ 3,654,600.00 $

168,597.39 $ 6 212 650.26 $ 3 654 600.00 $

123,599.35 $ 9,990,849.61 $ 1,969,615.32

168 597.39

149 298.55

123,599.35 $ 10 159 447.00 $ 2 118 913.87

40,273.97

2,023.84

68,550.99 6,595,143.69 $
365 222.53

3,969,351.92 $

42 297.81 $ 7 028 917.21 $ 3,969,351.92 $

40,273.97

132,739.35

68,550.99 $ 10,699,258.80
365 222.53

465,222.70 2,506,437.56
20486.40

132 739.35 $ 11173 306.29 $ 2 992 146.66

126 299.58 $ -816 266.95 $ -314 751.92 $

-9,140.00 $ -1 013 859.29 $ -873 232.79

-382.925.73

682,933.81 $ 310,851.92 $

-382 .925.73 $ 682 933.81 $ 310 851.92 $

9,140.00 $ 1,002,925.73 $ 2,252,638.29 -382 925.73

9 140.00 $

620 000.00 $ 2.252 638.29

-256,626.15 $ -133,333.14 $

2 307010.52

133 333.14

-3,900.00 $ 3,900.00

0.00 $ -393,859.29 $ 1,379,405.50

0.00

2 444,243.66

1064838.16

FUND ~~E JUNE 30

$ 2 050 384.37 $

0.00 $

0.00 $

0.00 $ 2 050 384.37 $ 2 444 243.66

See notes to the general purpose financial statements.

-25-

Il:!QMA!>IQ!:H.!eQN QQL!!:IIY aQI\BQ QE EQ!IQI\IIQ!:I
Ql:!El:!L!LE QF EERlaBI\L El!:11\!:IQIAL AlIl\!:IQE
YEAR ENPEP JUNf 30 1994

SCHEDULE "1

FUNDING AGENCY PRQGRAM/GRANI

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994Grant National School Lunch Program 1993 Grant 1994 Grant National Education and Training Program 1994 Contract Food Distribution Program (1)

10.553 $
10.555 10.555
10.564 10.550

206,940.50 $
711,749.22 5,000.00
124 766.30

206,940.50 $ 206,940.50

(2)

5,890.73 704,597.29

711,749.22 $ 1,504,119.80 (3)

5,000.00 N/A

5,000.00 124766.30

(2) 124766.30

Total U. S. Department of Agricutture

$ 1 048 456.02 $

922428.52 $ 1 048 456.02 $ 1628886.10

Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1992 Car,y-Over 1992 Car,y-Over (New) 1993 Regular 1993Summer 1993 Car,y-Over 1994 Regular 1994Summer Chapter2 Block Grant - Flow Through 1992 Car,y-Over 1994Regular Tillell Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act TrtleVl,B Flow Through 1993 Regular 1993 Car,y-Over 1994Regular Preschool Program 1993 car,y-Over 1994Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1993 Grant 1994 Grant Through Griffin Regional Educational Service Agency Drug-Free Schools and Communities Act 1994Grant

84.010 84.010 $ 84.010 84.010 84.010 84.010 84.010
84.151 84.151
84.164 84.164
84.027 84.027 84.027 84.173 84.173
84.048 84.048
84.186

$ 5,998.00 33,347.00 601,767.00 73,562.00
38,972.00
18,918.00
14,540.00 118,012.00
12,464.00 22,413.00
61,318.54
30000.00

3,120.00 5,998.00 $ 70,588.60 72,388.30 33,347.00 467,905.00

5,998.00 $
12,439.77 33,347.00 556,582.04 55,767.67

5,998.00
12,439.77 33,347.00 556,582.04 55,767.67

9,175.42 30,000.00

38,819.66

38,819.66

13,277.00

6,131.14 10,762.22

6,603.90 (3) 10,762.22

17,409.70 14,540.00 90,962.00
12,464.00

14,540.00 110,551.62
12,464.00

14,540.00 110,551.62
12,464.00

36,015.13

20,280.54

61,318.54

(4)

29889.86

29889.86

Total U. S. Department of Education

1 031 311.54 $

897470.69 $ 948611.52 $

887765.74

. 26.

THOMASTON-UPSON COUNTY BOARD OF FDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1994

SCHEDULE "1

FUNDING AGENCY PROGRAM/GRANT
Labor, U. S. Departmen1 of Through Griffin Regional Educational Service Agency Job Training Partnership Act 92-02-YCP-010 IIB-SPR-93-008
Total U. S. Department of Labor
OT!::!ER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Navy R.O.T.C. Program 1993 Grant 1994 Grant
Total U. S. Department of Defense

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250 17.250

$

9,513.07

13 039.96 $

9340.93

116.06 (3) 9831.60 (3)

22553.03 $

9,340.93 $

9947.66

$

12,365.79

$ 57 606.32

45121.78 $ 57606.32

(4)

57606.32 $

57 487.57 $ 57606.32

Total Federal Financial Assistance

$ 2 137 373.88 $

1 899 939.81 $ 2064014.79 $ 2526599.50

Major Programs are identified by an asterisk(") in front of the CFDA number.
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commod~ies received and/or consumed by the system during the current f,scal year.
(2) Expend~res for the School Breakfast Program and the National Education and Training Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expend~ures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expend~ures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 27 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS JUNE 30 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Bank of Upson, Thomaston, Georgia
West Central Georgia Bank, Thomaston, Georgia
INTEREST BEARING ACCOUNTS
Bank of Upson, Thomaston, Georgia
Certificates of Deposit No. 68890 (3.55%) No. 68891 (3.55%) No. 68892 (3.55%) No. 68893 (3.55%) No. 68894 (3.55%) No. 68895 (3.55%) No. 74455 (4.15%) No. 74457 (4.15%) No. 74458 (4.15%) No. 74485 (4.15%)
Money Market Account (3.00%) N.O.W. Account (2.50%)
Thomaston Federal Savings Bank, Thomaston, Georgia
Passbook Savings Account (3.00%)
West Central Georgia Bank, Thomaston, Georgia
Certificate of Deposit No. 22015 (3.25%) Money Market Account (3.00%)

$

23,548.56

761,195.83 $ 784,744.39

$

2,734.93

2,734.93

4,446.90

4,446.90

1,482.29

1,482.29

1,107,250.00

1,200,000.00

47,000.00

1,318,600.00

98,326.79

299,863.54

133.50

102,600.00 2,028.13

4,193,130.20

$ 4,977,874.59

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

THOMASTON-UPSON CO!,!NTY !lQARD OF ~QUC/ITION ACQQ~JNTQ R!;C!;IVAaLI; JUNE 30 1994

SCHEDULE"3"

Defense, U.S. Department of Department of the Navy R.O.T.C. Program
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries Food Services National School Lunch Program Vocational Education State Funds Federal Funds Lottery Funds Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant Federal Programs ESEA - Chapter 1 Education of Deprived Children ESEA - Chapter 2 Block Grant - Flow Through ESEA-nlell Eisenhower, Mathematics and Science Education Individuals with Disabilities Education Act Trtle VI, B. Flow Through
Georgia State Financing and Investment Commission Reimbur&ement on Construction Projects
Griffm Regional Educational Service Agency Drug-Free Schools and Commun~ies Act Job Training Partnership Act
Mercer University Rent and Energy
Pike County Board of Education Shared Services
Trust Company Bank Vendor Overpayment Refund
Upeon County Tax Commissioner County Wide School Tax
Various Sources Cred~ Memos Vendor Refund

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

--..!!!:!Q_

FUND

DEBT SERVICE
FUND

TOTAL

$

12,484.54

12,484.54

1,550,450.00 $ 7,151.93
1,178.19 41,038.00
2,315.01 70,535.00
6,000.00 105,000.00
25,950.00
144,724.64 8,819.66
10,762.22
19,589.62

1,550,450.00 7,151.93 1,178.19
41,038.00 2,315.01
70,535.00 6,000.00
105,000.00 25,950.00
144,724.64 8,819.66
10,762.22
19,589.62

$ 1,762,672.31

1,762,672.31

30,000.00 4,749.12

30,000.00 4,749.12

1,204.38

1,204.38

1,520.80

1,520.80

$ 16,750.00

16,750.00

59,545.22

59,545.22

2,469.71

2,007.53

2,469.71 2,007.53

See notes to the general purpose financial statements.

$ 1,669,890.84 $ ~ $ 1,762,672.31 $ 16750.00 $ 3,886,917.88 29

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999
2000 2001 2002 2003 2004
2005 2006 2007 2008 2009
2010 2011 2012

THOMASTON-UPSON COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30 1994

SCHEDULE "4"

TOTAL DEBT SERVICE

1992 ISSUE !*l

INTEREST

PRINCIPAL

$

89,197.50 $

89,197.50

305,080.00

175,080.00 $ 130,000.00

303,187.50

168,187.50

135,000.00

305,622.50

160,622.50

145,000.00

297,575.00

152,575.00

145,000.00

299,020.00 294,805.00 290,135.00 285,085.00 279,647.50

144,020.00 134,805.00 125,135.00 115,085.00 104,647.50

155,000.00 160,000.00 165,000.00 170,000.00 175,000.00

268,666.25 267,056.25 255,123.75 248,030.00 240,613.75

93,666.25 82,056.25 70,123.75 58,030.00 45,613.75

175,000.00 185,000.00 185,000.00 190,000.00 195,000.00

227,987.50 224,987.50 211,662.50

32,987.50 19,987.50
6 662.50

195,000.00 205,000.00 205 000.00

$ 4,693,482.50 $ 1,778,482.50 $ 2,915 000.00

(*) Interest and principal due July 1, 1994 was paid prior to June 30, 1994, and have been excluded from this schedule.

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period
Bonds Payable at June 30, 1994

1992 ISSUE $ 3,160,000.00
245,000.00
$ 2,915,000.00

MATURITY DATES Semi-Annual Interest Payment Oates Annual Debt Retirement Date

See notes to the general purpose financial statements.

- 30 -

JAN 1-JUL 1 JUL 1

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement In-School Suspension Mid-term Adjustment Local Fair Share Deferred Summer Salaries - FY 93 Deferred Summer Salaries - FY 94 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teach er Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Georgia Pubfac Telecommunica.tion Commission Lottery Program Distant Leaming
CONTRACTS Education, Georgia Department of Student Information Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

8,690,038.00 788,994.00 167,901.00 364,254.00 112,724.00
2,490,005.00
452,572.00 141,282.00 101,279.00 125,862.00 -1,647,265.00 -1,486,437.81 1,550,450.00 967,102.00
5,582.19
4,980.00 3,600.00 52,315.43

111,666.00

750.00

2,315.01 106,999.00
6,000.00 105,000.00
25,950.00

8,690,038.00 788,994.00 167,901.00 364,254.00 112,724.00
2,490,005.00
452,572.00 141,282.00 101,279.00 125,862.00 -1,647,265.00 -1,486,437.81 1,550,450.00 967,102.00 111,666.00
5,582.19
4,980.00 3,600.00 52,315.43
750.00
2,315.01 106,999.00
6,000.00 105,000.00
25,950.00

9,990,849.61

9,990,849.61

9,470.00

9,470.00

1,000.00

1,000.00

$ 12,886,987.81 $ 367,400.01 $ 9,990,849.61 $ 23,245,237.43

See notes to the general purpose financial statements.

- 31 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE"6"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

Taxes CoontyWide Bond Tax Coonty Wide School Tax Railroad Car Tax Real Estate Transfer Tax

$ 4,603,854.02 79.52
10,426.13

$ 14,804.00

$ 14,804.00 4,603,854.02 79.52 10,426.13

Other Antitrust Milk Companies Lawsuit Donations Community Enterprises Other Interest Earned Jury Duty Fees Rent Sales Meals School Assets Shared Service Contributions Griffin Regional Educational Service Agency Pike County Board of Education Tuition Other

$ 1,763.49

15,000.00 6,923.76 48,819.31 745.00 4,984.90

8,232.82 $ 116,912.42

29,649.08

450,358.93

51,684.97

10,660.39 $

4,545.00 15,653.58 24,000.00
1,335.99

348.60

1,763.49

15,000.00

6,923.76

3.89

184,628.83

745.00

4,984.90

450,358.93 81,334.05

4,545.00 15,653.58 24,000.00
1,684.59

$ 4,766,016.29 $ 460,703.84 $ 168,597.39 $ 25,464.39 $

3.89 $ 5,420,785.80

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 11,243,852.01 $ 1,085,026.65 $ 12,328,878.66

3,224,818.40

250,220.14

3,475,038.54

24,425.73

8,033.59

32,459.32

108,158.84

40,671.37

148,830.21

11,881.89

11,881.89

52,346.63

3,381.50

55,728.13

166,483.16

20,705.75

187,188.91

100,791.00

100,791.00

29,078.09

3,408.37

32,486.46

8,824.21

8,824.21

67,431.76

67,431.76

682.75

682.75

435,764.09

180,450.92

616,215.01

621,019.96

16.99

621,036.95

817,542.07

817,542.07

180,693.98

14,760.80

195,454.78

12,177.17

3,112.00

15,289.17

3,544.10

3,544.10

18,333.51

1,732.00

20,065.51

716.19 305,317.39

343,764.40

716.19 649,081.79

Total Expend~ures

$ 16,606,833.90 $ 2,782,333.51 $ 19,389,167.41

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

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

EXPENDITURES Operating Costs Supplies Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

GEORGIA
COMPUTERS IN
CLASSROOMS

$

2,31s.01 $_---'1-"-06"",9""9'-'-9""'.o-'--o

$

2,31 s.01 $ ===,;1=06=,s=s=s=.o=o

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

SCHEDULE "8"

DEPARTMENT OF EDUCATION

MEDIA CENTER

AND

DISTANT

LIBRARY

LEARNING

EQUIPMENT

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING

TOTAL

$

6,000.00

_____ $

105,000.00 $

$

6,000.00

25,950.00 $ _ _-'9'-'-,4:...:.7..::.0.~0.c..0

249,734.01

$

6,000.00 $

105 ,000 .00 $

25,950.00 .$

9.470.00 $==25=5="7=3=4.=01=

- 35 -

F3 (010 k

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 10,137,049.00 $

112,724.00

$ 11,056,852.18 566,798.46 $
$ 11,623,650.64 $

112,954.69 112,954.69

-77,741.04

$ 11,545,909.60 $

-7,779.98 105,174.71

$

0.00 $

7 549.29

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

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

IHQMASTQN.-PPON COUNTY BOARD Of fpt JCATIQN ANALYSIS Of '-4INIMUM fXPfNQITI.JRf BfQI IIRfMfNT - RV PROQRAM
GENERA[ Fl IND - QLJAI ITV BASIC fpt IQATIQN PRQGRAMS
YfAR ENQEQ HINE 30 1QQ4

GENERAi ANQ CAREER EP\JCATION PROGRAMS Kindergarten (") GradH1-3(1 Su~Total - K-3 GradH4-5(") GradH6-8 (1 GradH 9 - 12 (1 High School Laboratories (*} Vocational Education Laboratories (*} Total General and career Education Programs
SPECIAL Epur.ATION PROGRAMS Regular Programs Category I (1 Category II (1 Category Ill (1 Category IV (") Itinerant Supplemental Speech Su~Total - Regular Category V (Gilled) (1 Total Special EducatlOn Programs
REMfQIAI fQUCATION PROGRAM (*) MEDIA CFNTFR PRQGRAMS
Total Thirteen Weighted and Media Center
- ISTAFF PfYELOPMfNT PROGRAMS (1) Cost cl lnstructlOn Clewlopment
Total Slaff Clewlopment
("} Identifies Thirteen Weighted Programs. Note: (1) $13,100.85oftheallotmentfor~I
Oe\lelopment has been transferred to Cost of Instruction as authorized by OCGA 20-2-182
See notes to the general purpose financial statements

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

~

ORIGINAL

MID-TERM

TOTAL REQUIRED

872,878.00 2 276,169.00 3,149,047.00 1,104,on.oo 2,020,546.00 1,316,288.00
503,583.00 596,497.00 8 690,038.00

90 $ 90 90 90 90 90

785,590.20 $ 2,048 552.10 2,834,142.30 $
993,669.30 1,818,491.40 1,184,659.20
453,224.70 536,847.30 7,821 034.20 $

0.00 $ 0.00 0.00 $ 75,862.00 0.00 0.00 20,000.00 0.00 95 862.00 $

785,590.20 2 048 552.10 2,834,142.30 1,069,531.30 1,818,491.40 1,184,659.20
473,224.70 536,847.30 7 916896.20

722,539.00

650,285.10 $

30,000.00 $

680,285.10

722,539.00 66 455.00 788,994.00
167,901.00 364,254.00

90 $ 90
90 $ 90 $

650,285.10 $ 59 809.50
710 094.60 $ 151110.90 $ 327 828.60 $

30,000.00 $ 0.00
30 000.00 $ 0.00 $ 0.00 $

680,285.10 59 809.50
740 094.60 151110.90 327 828.60

$ 10,011,187.00

9,010,068.30 $

125,862.00 $ 9 135,930.30

38,485.85 100 $ 74,238.15 100

38,485.85 $ 74 238.15

0.00 $ 0.00

38,485.85 74,238.15

112,724.00

112,724.00 $

0.00 $

112,724.00

$ 10,123,911.00

9,122,792.30 $

125,862.00 $ 9,248,654.30

(2) Salary acorua~ (July and August 1994 De!erred
Salaries} reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply y,,jth program guidelines

- 38

SCHEDULE "1 O"

REQUIRED ALLOTMENT

SALARIES
ACTUAL (2) (3)

DlSlRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDlllJRE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDER EXPENDITURE
FOR REQUIRED ALLOTMENT

766,049.40 $

843,111.58

1986719.40

2 407169.39

2,752,768.80 $ 3,250,280.97 $

1,034,590.40

1,281,740.36

1,767,125.70

2,069,033.05

1,134,974.70

1,607 ,914.35

454,291.40

557,206.25

470 182.50

861 924.04

7 613 933.50 $ 9 628,099.02 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

19,540.80 $ 61 832.70 81,373.50 $ 34,940.90 51,365.70 49,684.50 18,933.30 66,664.80 302,962.70 $

19,680.34 88 933.80 108,614.14 $ 40,163.67 89,396.42 89,336.49 25,103.87 98,965.49 451,580.08 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

3,798.90 $ 201,000.60 437,144.70
20,256.30

1,785.05 199,910.17 602,226.12
11,509.53

662,200.50 $ 58 236.30
720 436.80 $ 148,579.20 $ 255,960.90 $

815,430.87 $ 63 493.41 $
878 924.28 193,079.20 $ 356 749.68 $

8 738,910.40 $ 11 056,852.18 $

0.00 0.00
0.00 0.00
0.00

184.50 4,082.40 $ 10,518.30
657.90 1,515.60 1,125.90
18,084.60 $
1,573.20
19,657.80 $
2 531.70 $
71 867.70 $

2,190.05 22,425.21
1,242.54
25,857.80 $ 1 574.00 $
27,431.80 2,541.22 $
85 245.36 $

397,019.90 $

566 798.46 $

0.00 0.00
0.00 0.00
0.00

$ 8 738,910.40 $ 11 056,852.18 $ _ _ _ _ _ _0._00_
(3) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial statements are included on this analysis as required by program guidelines.

38,485.85 $ 74 238.15

46,265.83 $ 66,688.86

0.00 7,549.29

112,724.00 $

112,954.69 $ _ _ _ _7.,5.4$=.29;;.

509,743.90 $

679,753.15 $ _ _ _..7.,..,54,_9_..29_

- 39 -

THOMASTON-UPSON COUN1Y BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "11"

BOARD MEMBER ADDRESS
Ms. Charlene Rogers, Chairperson () 31 O North Bethel Street Thomaston, Georgia 30286
Dr. Benjamin Brown () 103 Lakeside Drive Thomaston, Georgia 30286
Mr. Calvin Cunningham () 3649 Logtown Road Thomaston, Georgia 30286
Ms. Miriam Elsey () 109 Griffin Avenue Thomaston, Georgia 30286
Mr. Ralph English () P. 0. Box285 Thomaston, Georgia 30286
Mr. Leon Fowler () 42 Butts Road Thomaston, Georgia 30286
Ms. Jacqueline Hollis () 2879 Pickard Place Thomaston, Georgia 30286
Unidentifiable (1)

COMPENSATION

TRAVEL

$

1,200.00 $

608.24

900.00

950.00

513.15

950.00

1,136.80

950.00

490.56

1,350.00

408.20

950.00

454.34 1,020.60

$

7,250.00 $==,,,;4;.,;,6;,;;3,;.1-;;;;89;;,

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

(1) See Schedule of Findings and Improper or Questioned Costs.

See notes to the general purpose financial statements. - 40 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Thomaston-Upson 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 Thomaston-Upson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 22, 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 Thomaston-Upson County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
94CRL-10

The results of our tests indicate that, with respect to the items tested, the Thomaston-Upson County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
ff~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-10

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Thomaston-Upson 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 Thomaston-Upson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 22, 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 Thomaston-Upson 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:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-50

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Thomaston-Upson 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 Thomaston-Upson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 22, 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 Thomaston-Upson County Board of Education's compliance with the requirements governing:

( 1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Thomaston-Upson 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-90

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards. issued by the Comptroller General of the United States; and Office 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 Thomaston-Upson County Board ofEducation'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.

The results of our audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.

In our opinion, the Thomaston-Upson County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.

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

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

matter of public record.

Red::~

CLV:gp 94CRL-90

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 22, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the ThomastonUpson County Board ofEducation and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-130

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Thomaston-Upson County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
ff~~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-130

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Thomaston-Upson 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 Thomaston-Upson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 22, 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 Thomaston-Upson County Board ofEducation for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Thomaston-Upson County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofintemal control structure policies
94ICL-4

and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement .

(5) Expenditures/Liabilities/ Disbursements

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

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

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

(I) Accounting Controls (Overall)

(3) General Fixed Assets

(2) Expenditures/Liabilities/Disbursements

A material weakness is a reportable condition in which the design or operation of one or more ofthe 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-4

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above.

However, as described in the Schedule of Findings and Improper or Questioned Costs, the following aforementioned reportable conditions are also considered to be material weaknesses.

(1) Accounting Control (Overall)

(2) General Fixed Assets

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Thomaston-Upson County Board ofEducation's financial statements and this report does not affect our report thereon dated March 22, 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:gp 94ICL-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Thomaston-Upson County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 22, 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 Thomaston-Upson County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 22, 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 Thomaston-Upson 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 of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB
94ICL-7

Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 22, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Thomaston-Upson County Board of Education expended 67% of its total Federal financial assistance under major Federal financial assistance programs.

94ICL-7

We perfonned tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the nonnal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be perfonned in our audit ofthe Thomaston-Upson 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 March 22, 1995.
This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ohhis report which is a matter of public record.
Respectfully submitted,

CLV:gp 94ICL-7

~,/4~
Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
FINDINGS TRANSFERRED FROM THE CITY OF THOMASTON BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7451-93-01
The audit report for the year ended June 30, 1991, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $422.76 for the Staff Development Program. For the year under review, adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $19,421.44 Audit Control Number 7451-93-02
The audit report for the year ended June 30, 1991, disclosed that Mr. Wallace Rhodes, former school superintendent for the City of Thomaston Board of Education, received salary overpayments of$19,421.44 after his employment contract had expired. The Board's attention is called to the Georgia Constitution Article III, Section VI, Paragraph VI (a) (1) which states:
" ...the General Assembly shall not have the power to grant any donation or gratuity or to forgive any debt or obligation owing to the public..."
During the year under review, no collection was made for this overpayment. Refund of the $19,421.44 should be secured for deposit to the General Fund ofthe Thomaston-Upson County Board ofEducation.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $1,779.28 Audit Control Number 7451-93-03
The audit report for the year ended June 30, 1991, disclosed that the City of Thomaston Board of Education granted a pay increase to Dr. Yancey E. Morris, acting school Superintendent, of which $1,779.28 was retroactive to June 1, 1990.

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
FINDINGS TRANSFERRED FROM THE CITY OF THOMASTON BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $1,779.28 Audit Control Number 7451-93-03
The Board's attention is called to the Georgia Constitution Article III, Section VI, Paragraph VI (a) (2) which states:
"...the General Assembly shall not grant or authorize extra compensation to any public officer, agent or contractor after the service has been rendered or the contract entered into..."
During the year under review, no collection was made for this extra compensation. Refund of the $1,779.28 should be secured for deposit to the General Fund of the Thomaston-Upson County Board of Education.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $31,500.00 Audit Control Number 7451-93-04
The audit report for the six months ended December 31, 1991, disclosed that the City of Thomaston Board ofEducation paid $31,500.00 to Dr. Yancey E. Morris, Superintendent, for severance pay through June 30, 1992, as approved by motion at a called Board meeting on December 19, 1991. However, the City of Thomaston Board ofEducation was dissolved effective December 31, 1991.
The Board's attention is called to the Georgia Constitution Article III, Section VI, Paragraph (a) (1) which states:
" ...the General Assembly shall not have the power to grant any donation or gratuity or to forgive any debt or obligation owing to the public..."
During the year under review, no collection was made for this gratuity. Refund of the $31,500.00 should be secured for deposit to the General Fund ofthe Thomaston-Upson County Board ofEducation.

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
FINDINGS TRANSFERRED FROM UPSON COUNTY BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditures Financial Statements Amount: $24,059.34 Audit Control Number 7451-93-05
The audit report for the year ended June 30, 1991, disclosed improper expenditures of $24,059.34 made from the Upson County Board of Education's General Fund for equipment for school athletic programs. The Official Code of Georgia Annotated Section 20-2-411 provides, in part, as follows:
" ...school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses; for extracurricular and interscholastic activities, including literacy events, music, and athletic programs within individual schools and between schools in the same or different school systems when such activities are sponsored by local boards of education as an integral part of the total school program; and for no other purpose..."
An expenditure ofthis nature is considered to be beyond the customary scope of expenditures for "educational purposes". For the year under review, no action was taken to resolve this finding. Appropriate action should be taken to secure reimbursement ofthe $24,059.34 for deposit to the General Fund of the Thomaston-Upson County Board ofEducation.
AUDIT FOLLOW-UP/RESOLUTION Retroactive Salary Payment Financial Statements Amount: $750.00 Audit Control Number 7451-93-06
The audit report for the year ended June 30, 1991, disclosed that the Upson County Board of Education granted a pay increase of$750.00 to Mr. Frank L. Bates, Superintendent, retroactive to July 1, 1990. The Board's attention is called to the Georgia Constitution Article III, Section VI, Paragraph VI (a) (2) which states:
"...the General Assembly shall not grant or authorize extra compensation to any public officer, agent or contractor after the service has been rendered or the contract entered into..."
During the year under review, no collection was made for this extra compensation. Refund ofthe $750.00 should be secured for deposit to the General Fund ofthe Thomaston-Upson County Board ofEducation.

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

FINDINGS TRANSFERRED FROM UPSON COUNTY BOARD OF EDUCATION

AUDIT FOLLOW-UP/RESOLUTION Unearned Per Diem Payments Financial Statements Amount: $13,200.00 Audit Control Number 7451-93-07

The audit report for the six months ended December 31, 1991, noted that Upson County Board ofEducation made payments to Board members in excess of the amount provided for by Georgia Laws 1974, page 2026, which states:

"...The members ofthe Board ofEducation ofUpson County, including the Chairman, shall each receive $50.00 per month as compensation for their services..."

The following Board members received per diem payments in excess of amounts authorized by Law:

Board Members

Mr. Calvin Cunningham Mr. Sterling Farr Mr. Leon Fowler Mrs. Jacqueline Hollis Mr. James Reeves Mrs. Helen Salter Mr. Roosevelt Stackhouse Mr. James Wheeless

$ 1,700.00 1,700.00 2,250.00 600.00 1,700.00 2,350.00 1,100.00 1 800.00

$ 13 2QO 00

During the year under review, no collections were made for these excess payments. Reimbursement ofthe $13,200.00 should be secured from the individuals receiving the excess payments for deposit to the General Fund of Thomaston-Upson County Board ofEducation.

AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Funds Financial Statements Audit Control Number 7451-93-08

The audit report for the six months ended December 31, 1991, disclosed that the Upson County Board of Education's audit reports for the years ended 1986 through 1991 have reflected an audit adjustment of $65,641.72 representing proceeds from the 1985 bond refunding issue which were incorrectly deposited in the Capital Projects Fund rather than the Debt Service Fund.

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
FINDINGS TRANSFERRED FROM UPSON COUNTY BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Funds Financial Statements Audit Control Number 7451-93-08
The Attorney General's opinion dated February 25, 1994, cites a portion of Article IX, Section V, Paragraph III of the Constitution of the State of Georgia:
"The proceeds of the refunding issue shall be used solely to retire the original debt.
In his opinion, he further states:
"...the constitution and statutes do not provide any latitude to use bond proceeds for additional capital expenditures ... "
As ofDecember 31, 1991, the Upson County Board ofEducation had not made the required transfer of funds on their financial records. On December 31, 1991, the Upson County Board of Education ceased operations and the Thomaston-Upson County Board of Education was created. It is now the responsibility of the Thomaston-Upson County Board ofEducation to correct the balances ofthe Capital Projects and Debt Service Funds on the financial statements. As of June 30, 1993, the Thomaston-Upson County Board of Education had not made the required transfer offunds on their financial records; however, this amount has been corrected on the Board's financial statements by audit adjustment.
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $38.45 Audit Control Number 7451-93-12
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$38.45 for the Gifted 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 the underexpenditure as required. The underexpenditure of$38.45 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.

THOMASTON-UPSON 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: $9,956.05 Audit Control Number 7451-93-13
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $9,956.05 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. The underexpenditure of $9,956.05 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
AUDIT FOLLOW-UP/RESOLUTION Deficit Fund Balance Financial Statements Finding Resolved Audit Control Number 7451-93-15
The audit report for the year ended June 30, 1993, reported a $522,573.85 deficit in the General Fund. In the year under review, the deficit was funded and the Board ended the year with an unreserved, undesignated fund balance.
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Unearned Per Diem Payments Financial Statements Nonmaterial Noncompliance Amount: $1,900.00 Audit Control Number 7451-93-09
The audit report for the year ended June 30, 1993, disclosed that payments of$900.00 had been made to Mr. Leon Fowler, Chairman of the Thomaston-Upson County Board of Education, in excess of the amount allowed by law. For the year under review, it was noted that additional excessive payments of$1,000.00 were made to Mr. Fowler and other board members.
The Board's attention is called to the Official Code of Georgia Annotated Section 20-2-55 which provides, in part, as follows:

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

PRIOR YEAR/CURRENT YEAR

EXPENDITURES/1..IABILITIES/DISBURSEMENTS Unearned Per Diem Payments Financial Statements Nonmaterial Noncompliance Amount: $1,900.00 Audit Control Number 7451-93-09

"...In any county for which no local Act is passed, members of the local board shall, when approved by the local board affected, receive a per diem of$50.00 for each day of attendance at meetings of the board ... "

The following Board members received per diem payments in excess of amounts earned:

Board Members

Fiscal Year Ended June 30 1993

Excess Payments Fiscal Year Ended
June 30 1994

Total

Dr. Benjamin Brown Mr. Calvin Cunningham Ms. Miriam Elsey Mr. Leon Fowler Ms. Charlene Rogers

$

900.00

$

50.00 $

50.00

50.00

50.00

150.00

150.00

500.00

1,400.00

250.00

250.00

$

90QQQ

$ l 000 QQ $ l 2QQ QQ

These excessive payments occurred because the Board disregarded the specific limitations imposed upon them

by Georgia Laws.



Reimbursement of the $1,900.00 should be secured from the individuals involved for deposit to the Board's General Fund.

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7451-93-10

The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures. For the year under review, the Board made some improvements regarding separation of employee duties, but still did not achieve an adequate degree ofinternal control. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7451-93-10
periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7451-93-11
The audit report for the year ended June 30, 1993, noted that the management of the Thomaston-Upson County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
GENERAL LEDGER Outstanding Loans Financial Statements Nonmaterial Noncompliance Audit Control Number 7451-93-14
The audit report for the year ended June 30, 1993, noted that the General Fund and the Capital Projects Fund had unpaid loans outstanding at December 31, 1992. On December 31, 1993, the General Fund and the Capital Projects Fund again had unpaid loans outstanding in the amount of$140,000.00 and $1,500,000.00 respectively. Article IX, Section V, Paragraph V ofthe Constitution of the State of Georgia provides, in part, as follows:

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

PRIOR YEAR/CURRENT YEAR

GENERAL LEDGER Outstanding Loans Financial Statements Nonmaterial Noncompliance Audit Control Number 7451-93-14

"The governing authority of any county, municipality or other political subdivision ofthis state may incur

debt by obtaining temporary loans in each year to pay expenses.... Such loans shall be payable on or

before December 31, of the calendar year in which such loan is made...".



This condition occurred because the Board had insufficient funds at December 31, 1993 to repay the loan.

Repayment ofloans should be made in conformity with Constitutional requirements.

CURRENT YEAR

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $7,549.29 Audit Control Number 7451-94-01

For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $46,265.83 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) Program disclosed the Board expended more than 15 percent ofits initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program purposes resulting in an underexpenditure of$7,549.29 for the minimum required allotment of$74,238.15 for the Staff Development - Professional Development Stipends Program.

This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department of Education, resulting in a violation of the 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.

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Submit Individual Travel Expense Reports Financial Statements Reportable Condition Audit Control Number 7451-94-02
Board members ofthe Thomaston-Upson County Board of Education did not always submit individual travel expense reports for reimbursement. Instead, Board members' travel expense was prepaid by the Board and Board records do not indicate which individuals were in attendance. As a result of this practice, no allocation of$1,020.60 in expenses could be determined by individual. Procedures should be implemented to ensure that Board members submit individual travel expense reports for reimbursement.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Noll{llaterial Noncompliance Amount: $44.50 Audit Control Number 7451-94-03
An examination of travel vouchers revealed that the Board had prepaid the lodging expenditures for various employees to attend a conference. The prepaid lodging included $44.50 which was paid for a second room for an employee. An expenditure of this type is not in compliance with travel regulations of the Georgia Department ofEducation as set forth in Section V, Chapter 40 ofthe Financial Management for Georgia Local Units of Administration. This questioned cost occurred as a result of management's failure to adequately monitor travel expenditures.
Internal controls should be implemented by the Board to ensure that all travel expenditures are properly documented and reviewed prior to reimbursement. Reimbursement of the $44.50 should be secured from the individual involved and deposited to the Board's General Fund.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Reportable Condition Finding Resolved Audit Control Number 7451-94-04
For the year under review, it was noted that a bond interest payment in the amount of$16,750.00 was made for bonds which have been defeased. The defeased bond escrow agent is responsible for payment of all principal and interest due on the defeased bonds. This questioned cost occurred because of management's failure to insure that invoices for defeased bond issue costs are forwarded to the escrow agent for payment.

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Reportable Condition Finding Resolved Audit Control Number 7451-94-04
Internal controls should be implemented by the Board to ensure that expenditures are made only for principal and interest owed by the Board.
This questioned cost had not been resolved at June 30, 1994. However, a refund in the amount of$!6,750.00 was received in the subsequent fiscal period and this amount is included in accounts receivable as shown on the Combined Balance Sheet, Exhibit "A" of this report.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Overpayments for Travel Financial Statements Nonmaterial Noncompliance Amount: $103.38 Audit Control Number 7451-94-05
For the year under review, an examination ofthe Board member travel expenditures was performed to test the validity and accuracy ofthe expenditure transactions. The expenditures examined revealed that the Board did not comply with travel regulations ofthe Georgia Department of Education as set forth in Section V, Chapter 40 ofthe Financial Management for Georgia Local Units of Administration. The following exceptions were noted:
(a) Meal limitations were not adhered to.
(b) In some instances, double occupancy rates for lodging charges were claimed instead of applicable single rates.
(c) Reimbursement was paid to a Board member for lodging when the room had been prepaid by the Board.

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

CURRENT YEAR

EXPENDITURES/LIABILITIES/DISBURSEMENTS Overpayments for Travel Financial Statements Nonmaterial Noncompliance Amount: $103.38 Audit Control Number 7451-94-05

The following Board members received travel payments in excess of amounts allowed:

Mr. Calvin Cunningham Mr. Ralph English Mr. Leon Fowler Ms. Jacqueline Hollis Ms. Charlene Rogers

$

8.38

31.50

31.50

22.00

10.00

$ ]03 38

This questioned cost occurred as a result ofmanagement's failure to adequately monitor Board members travel expenditures.

Reimbursement of the $103.38 should be secured from the individuals that received the overpayments for deposit to the Board's General Fund.

Internal controls should be implemented by the Board to ensure that all travel expenditures are reviewed for proper documentation and compliance with travel regulations prior to payment and recording of such expenditures in the financial records.

ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $8,380.58 Audit Control Number 7451-94-06

A review of salaries charged to the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children Program (CFDA 84.010) revealed that expenditures for a split-funded individual were not supported by time and attendance records as required by Office ofManagement and Budget Circular A-87. Salary charges to Federal programs should be based on actual time worked by employees. This questioned cost resulted because the board charged salaries based on budgeted amounts rather than actual time worked.

1HOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $8,380.58 Audit Control Number 7451-94-06
Appropriate internal controls should be established by the Board to ensure that all salary charges of employees involved in Federal projects be based on actual hours worked. The Georgia Department ofEducation should review this matter to detennine if a reclaim of funds is appropriate.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Finding Resolved Audit Control Number 7451-94-07
The Board failed to submit on a timely basis, a copy of the 1993 audit report to the U. S. Department of Defense-Department of the Army from whom the Board received R.O.T.C. Program funds. Paragraph 13f ofOMB Circular A-128 requires that the recipients ofFederal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of these report distribution responsibilities by the Department of Audits, management indicated it was unaware of this audit distribution requirement for this program. In the subsequent period, a copy of the 1993 audit report was distributed as required.
ELIGIBILITY Free and Reduced Price Meal Application Federal Financial Assistance Major/Nonmajor Program Nonmaterial Noncompliance Amount: $107.16 Audit Control Number 7451-94-08
A review of applications for free and reduced price meals was made at one lunchroom for the National School Lunch (CFDA 10.555) and School Breakfast Programs (CFDA 10.553). An application which did not meet applicable compliance and eligibility requirements was questioned. This questioned cost resulted from an omission in the completion of the application. The amount of overreimbursement which was attributable to this questioned application is shown by lunchroom and category of exception as follows:

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

CURRENT YEAR

ELIGIBILITY Free and Reduced Price Meal Application Federal Financial Assistance Major/Nonrnajor Program Nonrnaterial Noncompliance Amount: $107.16 Audit Control Number 7451-94-08

Upson Middle School Lunchroom

National School Lunch
Program

School Breakfast Program

Applications Jacking a social security number

The Board should implement procedures to ensure that applications contain all information as required.

The Georgia Department ofEducation should review this matter to determine the amount of refund to be made as a result of the Board's failure to meet the prescribed compliance requirements.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Retroactive Salary Payment Financial Statements Amount, $750.00 Audit Control Number 7451-93-06
We concur with this finding. Subsequent to this audit report reimbursement of$750.00 was received from Mr. Bates and deposited to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Funds Financial Statements Audit Control Number 7451-93-08
We concur with this finding. Subsequent to this audit report $65,641.72 was transferred from Capital Projects Fund to Debt Service Fund.
ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial .Assistance Major Program Nonmaterial Noncompliance Amount: $8,380.58 Audit Control Number 7451-94-06
We disagree with the amount and reason stated for audit finding. The finding states that time records were not maintained as required by Office ofMa'nagement and Budget Circular A-87. The employee's salary in question worked 100% in the program for one month, which would be allowable for charge to the program. We agree that the second month's salary and benefits should not have been charged to the Federal program.
Note: The Thomaston-Upson County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.