Audit report, Thomaston-Upson County Board of Education, Thomaston , Georgia, year ended June 30, 1996

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AUDIT REPORT THOMASTON-UPSON COUNTY BOARD OF EDUCAnON
THOMASTON, GEORGIA YEAR ENDED JUNE 30,1996
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

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

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

STATEMENT OF REVENVES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

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 CASH AND CASH EQUIVALENTS

28

3 ACCOUNTS RECEIVABLE

.

29

4 DEBT SERVICE REQUIREMENTS TO MATURITY

30

SCHEDULE OF REVENUE

5

STATE

31

6

TAXES AND OTHER

32

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

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

33

8

LOTTERY PROGRAMS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

35

10

BY PROGRAM

36

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

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 STRUCTU~ 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
SECTION V PERTINENT VIEWS OF RESPONSIDLE OFFICIALS PERTINENT VIEWS OF RESPONSIDLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w', Suite 214 Atlanta, Georgia 30334-8400
May 19, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomaston-Upson County Board of Education
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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
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 OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on atest 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, 1996, 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:
96ARL-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
fmancial 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 of such 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, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated May 19, 1997, on our consideration of the Board's internal control structure and a report dated May 19, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the 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 fmancial statements of the Thomaston-Upson County Board of Education. 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 of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Re~

CLV:dt 96ARL-13

Claude L. Vickers State Auditor

THOMASTON-UPSON COUNTY BOARD OF EDUCATION
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THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1996

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,081,271.70

$

1,873.29

1,930,266.70 $ 310,141.66

41,292.16 8,581.22

$ 5,011,538.40 $

360,015.04 $===1;,;,,8;;;7=3,;;;;,2==9

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ $ 537,298.33
1,868,760.33 200,000.00

57,261.87 45,136,23 173,565.08

$ 2,606,058.66 $_-=-27:...::5:...:,9:..:::6::::.;3'c.:..18~

$

7,549.29

$

$

7,549.29 $

2,397,930.45

$ 2.405,479.74 $

41,292.16 8,581.22
49,873.38
34,178.48 $
84,051.86 $

$ 5,011,538.40 $

360,015.04 $

1,873.29 1,873,29
1,873.29

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30,1996 JUNE 30, 1995

$

12,725.20 $

141.65

$ 3,096,011.84 $ 3,848,689.48

2,240,408.36

2,750,096.77

41,292.16 8,581.22

34,817.40 10,484.63

$

12,725.20

12,725.20

138.00

2,637,274.80

2,637,274.80

2,784,862.00

$

12,725.20 $

141.65 $

2,650,000.00 $ 8,036,293.58 $ 9,429,088.28

$

57,261.87 $

13,714.04

582,434.56

840,630.27

2,042,325.41

1,883,371.16

200,000.00

2,000,000.00

803.51

161,502.26

147,772.80

16,414.00

$

2,650,000.00

2,650,000.00

2.185,000.00

$

2,650,000.00 $ 5,532,021.84 $ 7,849,208.04

$

12,725.20

$

12,725.20

0.00 $

$

12,725.20 $

$

12,725.20 $

141.65 141.65
141.65 $

$

15,803.93

$

12,725.20

138.00

7,549.29

17,543.79

41,292.16 8,581.22

34,817.40 10,484.63

$

70,147.87 $

78,787.75

2,434,123.87

1,501,092.49

$ 2,504,271.74 $ 1,579,880.24

2,650,000.00 $ 8,036,293.58 $ 9,429,088.28

-3-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30,1996

FUND BALANCE JUNE 30

$ 2,405,479.74 $

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

84,051.86 $ ====1=,8=7=3.:=29,:

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 15,672,353.89

2,188,555.09

$

674.00

6,463,900.69 $

$

674.00 $ 24,324,809.67 $

$ 4.14

15,672,353.89 $ 2,188,555.09 6,463,904.83

15,632,176.47 2,159,672.74 6,091,230.88

4.14 $ 24,324,813.81 $ 23,883,080.09

$ 14,790,512.09 $

783,172.40 277,839.16 480,664.89 427,708.11 1,389,367.26 353,373.19 1,420,788.86 1,010,565.62 184,463.53
72,164.98 1,603,468.84
167,450.77 135,367.16

$ 135,000.00 171,765.00 1,321.80

135,000.00 171,765.00
1,321.80

$ 308,086.80 $ 23,404,993.66 $

$ -307,412.80 $

919,816.01 $

0.00 $ 14,790,512.09 $ 13,335,795.08

783,172.40 277,839.16 480,664.89 427,708.11 1,389,367.26 353,373.19 1,420,788.86 1,010,565.62 184,463.53
72,164.98 1,603,468.84
167,450.77 135,367.16

633,412.19 213,084.52 480,914.51 442,174.89 1,196,009.01 296,911.24 1,289,195.98 974,316.25 169,405.02 122,682.83 1,698,756.22
92,362.36 3,725,094.84

135,000.00 171,765.00
1,321.80

130,000.00 178,395.00
1,385.20

0.00 $ 23,404,993.66 $ 24,979,895.14

4.14 $

919,820.15 $ -1,096,815.05

$ 320,000.00 $

658,079.02

-658,079.02

$ 320,000.00 $

0.00

$

12,587.20 $

919,816.01 $

138.00

1,579,742.73

6,474.76 -1,903.41

$

658,079.02 $

370,824.21

-658,079.02

-370,824.21

$

0.00 $

0.00

4.14 $ 137.51

919,820.15 $ -1,096,815.05

1,579,880.24

2,677,196.01

6,474.76 -1,903.41

-2,638.76 2,138.04

$

12,725.20 $ 2,504,130.09 $===1;,,:4=1=.6,;,,5 $ 2,504,271.74 $ 1,579,880.24

- 5-

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

EXHIBIT"C"

The notes to the general purpose financial statements are an integral part of this statement. - 6-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Thomaston-Upson County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Thomaston-Upson County Board of Education.
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.

-7-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 ofthese 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, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
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 of resources 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 O. Maguire Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students.

-8-

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities 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 1995 and ending in early June 1996. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts 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.

-9-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Thomaston-Upson County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement of Revenues, Expenditures ~d Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

Special Revenue
Fund

FUND BALANCE JULY 1, 1995

$ 95,524.05

Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods

-34,817.40 -10,484.63

Fund Balance July 1, 1995 (Budget Basis)

$ 50,222.02

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

-16,043.54

FUND BALANCE JUNE 30,1996 (Budget Basis)

$ 34.178.48

- 10-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

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

RECEIVABLES

Receivables consist of grant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose fmancial 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 1995 tax year (calendar year) on October 9, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.1 03. 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 oftaxes collected to the Board.

The tax millage rate levied for the 1995 tax year (calendar year) for the Thomaston-Upson County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15.75 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 (first-in, first-out). 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

- 11 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1996
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial 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
COLLATERALIZATlON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent ofthe public funds being secureci 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.
- 12 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS
Acceptable security for deposits consists of anyone of or any combination of the following:
(l) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds,bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $7,046,728.65. 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 fmancial institution, or by its trust department or agent but not in the Board's name.)

- 13 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

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

Risk Category
1 2 3
Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance
$ 613,091.82 6,433,636.83 0.00
$ 7,046.728.65

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

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1995 1996

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

0.00 $

$

0.00 $

216.00 $

Claims Paid

End of Year Liability

0.00 $

0.00

216.00 $

0.00

- 14 -

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1992

5.30% - 6.50% $ 2,650,000.00

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

Balance July 1, 1995
Deductions Payments
Balance June 30, 1996

General Obligation
Bonds $ 2,785,000.00
135,000.00 $ 2,650,000.00

At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
1997 1998 1999 2000 2001 2002 and thereafter
Total Principal and Interest
Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

General Obligation
Bonds
$ 82,305.00 305,622.50 297,575.00 299,020.00 294,805.00
2,798,995.00
$ 4,078,322.50

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, 1996, $2,665,000.00 of bonds are outstanding and are considered defeased.

- 15 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 7: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of$320,656.78 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of $257,428.78
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $63,228.00
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 in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's
- 16 -

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

. NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS

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 tenninates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $12,810,148.11; total payroll was $14,538,342.57.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $2,153,387.77, of which $1,512,877.71 was made by the Board and $640,510.06 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

- 17 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$I,512,877.71 was actuarially detennined and represented .2491 % of total contributions made by all participating employers.
Ten year historical trend infonnation is presented in the 1996 TRS Component Unit Financial Report. This infonnation is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the PubliC School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for nonnal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number of years of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member tenninates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 149 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make
- 18 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996 Note 9: RETIREMENT PLANS employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $4,960.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80. Note 10: SURETY BONDS The School Superintendent, Mr. Frank King, is bonded in the amount of $25,000.00 with the Cincinnati Insurance Company, Cincinnati, Ohio, their Bond No. B-80 327551, on which premium is paid through September 15, 1997.
- 19 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1996

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE II

INNOVATIVE

LOCAL

EISENHOWER

EDUCATION

EDUCATIONAL PROFESSIONAL

PROGRAM

AGENCIES

DEVELOPMENT STRATEGIES

$ 136,339.36

6,655.68 $ 25,010.00 $ 165,650.80 $

12,131.90 $

124.00

41,292.16 8,581.22

Total Assets

$ 192,868.42 $ 25,010.00 $ 165,650.80 $

12,131.90 $===1=2=4.=00=

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

$ 25,010.00 $ $ 20,402.32
88,414.24
$ 108,816.56 $ 25,010.00 $

$ 41,292.16 8,581.22
$ 49,873.38 34,178.48 $
$ 84,051,86 $

0.00 $ 0.00 $

84,527.05 $ 18,557.55 62,566.20 165,650.80 $
0.00 $ 0.00 $

12,131.90 $ 12,131.90 $
0.00 $ 0.00 $

124.00 124.00
0.00 0.00

Total Liabilities and Fund Equity

$ 192,868.42 $ 25,010.00 $ 165,650.80 $

12,131.90 $===1;,;;;2;,,;,4=.0,;,,0

See notes to the general purpose financial statements.

- 20-

EXHIBIT"E"

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL JOB TRAINING

EDUCATION PARTNERSHIP

TOTALS

FEDERAL

ACT

JUNE 30, 1996 JUNE 30, 1995

$

0.00

$ 136,339.36 $ 153,975.51

$ 20,477.00

$ 19,135.00 $ 37,389.53 $

23,567.75

310,141.66

325,610.56

41,292.16 8,581.22

34,817.40 10,484.63

$ 20,477.00 $

0.00 $ 19,135.00 $ 37,389.53 $

23,567.75 $ 496,354.40 $ 524,888.10

$

5,701.32

3,156.44

11,619.24

$ 20,477.00

$ 12,044.16 $ 30,495.05 $

1,521.18

1,498.74

5,569.66

5,395.74

$ 19,135.00 $ 37,389.53 $

23,567.75 $ 23,567.75 $

193,601.23 $ 45,136.23 173,565.08
412,302.54 $

167,689.55 76,280.61
168,176.38 803.51
16,414.00
429,364.05

$

0.00 $

$

0.00 $

$ 20,477.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$

15,803.93

$
$ 0.00 0.00 $

41,292.16 8,581.22
49,873.38 $ 34,178.48
84,051.86 $

34,817.40 10,484.63 61,105.96 34,418.09 95,524.05

0.00 $ 19,135.00 $ 37,389.53 $

23,567.75 $ 496,354.40 $ 524,888.10

- 21 -

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE"

INNOVATIVE

LOCAL

EISENHOWER

EDUCATION

EDUCATIONAL PROFESSIONAL

PROGRAM

AGENCIES

DEVELOPMENT STRATEGIES

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 123,470,00 $ 208,424.00

1,040,303,69

$

437,427,20

756,186,66 $

12,131,90 $

32,755.00

Total Revenues

$ 1,601,200.89 $ 208,424,00 $ 756,186.66 $

12,131.90 $

32,755.00

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation

$ 251,104.10 $
379,27
7,555.96 7,772.63 14,414,00
$ 1,601,440.50

667,408.25
5,339,47 3,092,23 $
24,723,43 7,006.62 1,495,00
60,897.25 2,028,34

$

15,430.00

12,131.90

17,383,31 92.86

Total Expenditures

$ 1,601,440,50 $ 281,225,96 $ 771,990,59 $

12,131,90 $

32,906.17

Excess of Revenues over (under) Expenditures $

-239,61 $ -72,801,96 $ -15,803.93 $

0,00 $

-151.17

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 72,801,96

$

151.17

Total Other Financing Sources (Uses)

$ 72,801.96

$

151,17

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

$

-239,61 $

0,00 $ -15,803,93 $

0.00 $

0.00

FUND BALANCE JULY 1

79,720,12

0,00

15,803,93

0,00

0,00

Food Inventory - Net Change in Period Donated Commodities Purchased Food

6,474.76 -1,903.41

FUND BALANCE JUNE 30

$ 84,051.86 $

0.00 $

0,00 $

0.00 $ =====,=0'=,=00,=

See notes to the general purpose financial statements.

- 22-

EXHIBIT"F"

INDIVIDUALS WITH

blSABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL JOB TRAINING

EDUCATION PARTNERSHIP

FEDERAL

ACT

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$ 144,407.00 $ $ 144,407.00 $

25,200.00 $

$ 19,135.00

7,416.71 65,243.27 $

25,200.00 $ 19,135.00 $ 72,659.98 $

$ 33,774.67

339,310.71 $ 2,129,137.19
437,427.20

274,842.74 1,990,223.31
440,230.03

33,774.67 $ 2,905,875.10 $ 2,705,296.08

$ 104,379.30 1,473.46
23,538.39
4,663.60 10,352.25 $

$ 144,407.00 $

$

0.00 $

$ 82,347.29 $ $ 42,891.84

25,200.00

25,200.00 $ 42,891.84 $ 0.00 $ -23,756.84 $

82,347.29 $ -9,687.31 $

33,956.41 $ 1,154,625.35 $ 853,892.82

49,704.77 15,603.40 17,383.31 48,354.68 14,562.58
9,267.63 19,077.60 35,552.25 60,897.25 1,603,468.84

52,786.27 30,209.66 33,652.99 -41,257.16
6,222.03 3,373.75
30,961.11 63,617.26 1,698,756.22

33,956.41 $ 3,028,497.66 $ 2,814,729.27

-181.74 $ -122,622.56 $ -109,433.19

$ 23,756.84 $

9,687.31 $

$ 23,756.84 $

9,687.31 $

181.74 $ 181.74 $

106,579.02 $

60,246.95

-200,000.00

106,579.02 $ -139,753.05

$

0.00 $

0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

-16,043.54 $ -249,186.24

95,524.05

345,211.01

6,474.76 -1,903.41

-2,638.76 2,138.04

$

0.00 $ =====0=.0=,=0 $

0.00 $ =====0,;,,;.0,;,,0 $

0.00 $

84,051.86 $

95,524.05

- 23-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1996

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 95/94S-745-059

TOTALS JUNE 3D, 1996 JUNE 30,1995

$

1,873,29 $

0,00 $

1,873.29 $ 1,998,474.62

527,126.70

$

1,873.29 $

0.00 $

1,873.29 $ 2,525,601.32

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Notes Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities qnd Fund Equity

$

1,873.29 $

$

1,873,29 $

$

277,762.12

1,750,000.00

161,502.26

147,772.80

$ 2,337,037.18

0.00 $

1,873.29 $

188,564.14

0.00 $

1,873.29 $ 2,525,601.32

See notes to the general purpose financial statements.

- 24-

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

EXHIBIT "H"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 95/94S-745-059

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ $ 277,536,23

0,00 $

$ 277,536.23

1,354,920.65 32,113.00
342,405.34

Total Revenues

$ 277,536,23 $

0,00 $ 277,536.23 $ 1,729,438.99

EXPENDITURES

Current Support Services Business Administration Interest Costs
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$ 97,359.92
59,677.16 11,100.00 $

$ 64,590.00

97,359.92 $

66,164.38

59,677.16 75,690.00

499,090.20 2,838,365.03
387,639.61

Total Expenditures

$ 168,137.08 $

64,590.00 $ 232,727.08 $ 3,791,259.22

Excess of Revenues over (under) Expenditures

$ 109,399.15 $

-64,590.00 $

44,809.15 $ -2,061,820.23

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ $ -296,090.00

64,590.00 $

64,590.00 $ 2,334,236.01

-296,090.00

-2,134,236.01

Total Other Financing Sources (Uses)

$ -296,090.00 $

64,590.00 $ -231 ,500,00 $ 200,000.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ ;186,690.85 $

0.00 $ -186,690.85 $ -1,861,820.23

FUND BALANCE JULY 1

188,564.14

0.00

188,564.14

2,050,384.37

FUND BALANCE JUNE 30

$

1,873.29 $

0.00 $

1,873.29 $ ==1=88=,5=6=4==.1=4

See notes to the general purpose financial statements.

- 25-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U, S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1995 Summer 1996 Grant 1996 Summer Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Through Griffin Regional Educational Service Agency Safe and Drug-Free Schools 1996 Grant
Total U. S. Department of Education
Labor, U. S. Department of Through West Central Georgia Private Industry Council Job Training Partnership Act 95-SYP-07 96-SYP-07
Total U. S. Department of Labor

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 $ 233,233.78

* 10.555 10.550

687,348.06 $ 119,721.85

$ 1,040,303.69 $

(2)
1,481,718.65 (3) 119,721.85
1,601,440.50

* 84.010 $ * 84.010 * 84.010

9,059.86 $ 682,687.48
64,439.32

24,863.79 682,687.48
64,439.32

84.281

12,131.90

12,131.90

84.298

32,755.00

32,906.17 (3)

84.027 84.173

144,407.00 25,200.00

144,407.00 25,200.00

84.048

65,243.27

82,347.29 (3)

84.186

19,135.00

$ 1,055,058.83 $

42,891.84 (3) 1,111,874.79

17.250 $ 17.250
$

10,206.92 $ 23,567.75
33,774.67 $

10,388.66 (3) 23,567.75
33,956.41

- 26 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30,1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Navy R.OTC. Program

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ _---:;;;59:;.z.,4..:...:1~7:.=9..~0

(4)

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

$ 2,188,555.09 $ 2,747,271.70

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

See notes to the general purpose financial statements.

- 27 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30. 1996

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 (5.55%) No. 68891 (5.55%) No. 68892 (5.55%) No. 68893 (5.55%) No. 68894 (5.55%) No. 68895 (5.55%) No. 76748 (5.10%)
Money Market Accounts (Variable) N.O.W. Account (2.50%)
Thomaston Federal Savings Bank, Thomaston, Georgia
Passbook Savings Account (3.25%)
West Central Georgia Bank, Thomaston, Georgia
N.O.W. Account (2.00%)

$

4,075.82

-9,339.53 $

-5,263.71

$

2,992.03

2,992.03

4,864.93

4,864.93

1,621.63

1,621.63

11,500.00

2,835,878.19

177,192.82

141.65

343.84 3,044,013.68

$ 3,038,749.97

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

THOMASTON-UPSON COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Defense, U, S, Department of Department of the Navy R.O.T.C,
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries Food Services National School Lunch Program Vocational Education State Funds Federal Funds Other State Programs Altemative Programs Remedial Summer School Program Lottery Program Applied Technology Labs Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Individuals with Disabilities Education Act Part B - Special Education Flow-Through
Griffin Regional Educational Service Agency Safe and Drug-Free Schools
Pike County Board of Education Shared Services
Upson County Tax Commissioner County Wide School Tax
West Central Georgia Private Industry, Incorporated Job Training Partnership Act

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

12,905.21

$

12,905.21

1,812,484.00 $
9,559,38

6,655,68 2,155,71 35,233,82 24,500,00
510.00

1,812,484,00
6,655,68
2,155,71 35,233.82
24,500,00 9,559.38
510.00

5,381.36 89,936.75

165,650.80 12,131.90 124.00 20,477.00 19,135.00
23,567,75

165,650.80 12,131.90 124.00 20.477.00 19,135.00 5,381.36 89,936.75 23,567.75

$ 1,930,266,70 $

310,141.66 $ ===2,=24=0=.4=0=8=.3:=6

See notes to the general purpose financial statements.

- 29 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30,1996

SCHEDULE "4"

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

TOTAL DEBT SERVICE

1992 REFUNDING ISSUE (*)

INTEREST

PRINCIPAL

$

82,305.00 $

82,305.00

305,622.50

160,622.50 $ 145,000.00

297,575.00

152,575.00

145,000.00

299,020.00

144,020.00

155,000.00

294,805.00

134,805.00

160,000.00

290,135.00 285,085.00 279,647.50 268,666.25 267,056.25

125,135.00 115,085.00 104,647.50
93,666.25 82,056.25

165,000.00 170,000.00 175,000.00 175,000.00 185,000.00

255,123.75 248,030.00 240,613.75 227,987.50 224,987.50

70,123.75 58,030.00 45,613.75 32,987.50 19,987.50

185,000.00 190,000.00 195,000.00 195,000.00 205,000.00

211,662.50

6,662.50

205,000.00

$ 4,078,322.50 $ 1,428,322.50 $ 2,650,000.00

(*) Interest and principal due July 1,1996, was paid prior to June 30,1996, and have been excluded from this schedule.

CHANGES IN GENERAL LONG-TERM DEBT

1992 REFUNDING
ISSUE

Bonds Payable at July 1, 1995

$ 2,785,000.00

Bonds Retired During Period

135,000.00

Bonds Payable at June 30, 1996

$ 2,650,000.00

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

JAN 1 - JUL 1 JUL 1

See notes to the general purpose financial statements.

- 30 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1996

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program In-School Suspension Counselors Grades 4 and 5 Mid-term Adjustment Technology Training Local Fair Share Deferred Summer Salaries - FY95 Deferred Summer Salaries - FY96 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Alternative School Program Applied Technology Labs Instructional Technology Safe Schools Grant Technology Installation
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Leadership Development Program Student Information System Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 9,465,347.00 1,161,343.00 328,987.00 398,196.00 124,946.00 2,602,780.00
570,421.00 140,923.00 285,605.00 113,486.00 27,845.00 247,439,00 25,765.00 -1,773,599.00 -1,651,386.00 1,812,484.00 1,037,031.00
$
24,857.02 500.00
257,428.78 4,095.00
53,762.00 9,559.38

$ 9,465,347.00 1,161,343.00 328,987.00 398,196.00 124,946.00 2,602,780.00

123,470.00 7,416.71

570,421.00 140,923.00 285,605.00 113,486.00 27,845.00 247,439.00 25,765.00 -1,773,599.00 -1,651,386.00 1,812,484.00 1,037,031.00 123,470.00
7,416.71

62,500.00

62,500.00 24,857.02
500.00 257,428.78
4,095.00 53,762.00
9,559.38

29,000.00 510.00
60,000.00 16,414.00 40,000.00

29,000.00 510.00
60,000.00 16,414.00 40,000.00

63,228.00

63,228.00

1,000.00 1,000.00

1,000.00 1,000.00

$ 15,333,043.18 $ 339,310.71 $ 15,672,353.89

See notes to the general purpose financial statements.

- 31 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE YEAR ENDED JUNE 30.1996

SCHEDULE "6"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

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

$ 5,381,582.35 3,503.14
13,386.01

$

674.00

$

674.00

5,381,582.35

3,503.14

13,386.01

Other Sources Compensation for Loss of Assets Donations Community Enterprises Other Interest Earned Jury Duty Fees Lost and Damaged Books Recovery of Prior Year Questioned Cost Board Member Per Diem Sales Adult Meals Breakfast Lunches Supplemental School Assets Shared Service Contributions Pike County Board of Education Tuition Upson County Commissioners Paving Project Other

32,082.42

100,000.00 2,790.00
122,294.61 $ 1,250.00 3,633.84

4,705.44 $ 19,699.98

50.00

40,911.61

61,702.97 39,870.64 310,489.01 19,262.59

76,702.00

21,980.01 20,204.74

4,594.53

1,396.55

181,134.25

32,082.42

100,000.00

2,790.00

$

4.14

146,704.17

1,250.00

3,633.84

50.00

61,702.97 39,870.64 310,489.01 19,262.59 117,613.61

21,980.01 20,204.74

181,134.25 5,991.08

$ 5,748,263.26 $ 437,427.20 $ 277,536.23 $

674.00 $====4.~14,;, $ 6,463,904.83

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 13,178,475.55 $ 1,359,867.02 $ 14,538,342.57

4,069,291.67

335,825.04

4,405,116.71

30,470.28

13,626.92

44,097.20

113,835.11

46,346.44

160,181.55

12,632.23

12,632.23

42,077.83

630.00

42,707.83

266,405.01

19,406.10

285,811.11

16,036.00

16,036.00

83,942.00

83,942.00

38,604.79

3,353.96

41,958.75

8,045.60

8,045.60

80,003.00

80,003.00

43.20

43.20

485,074.53

190,403.94

675,478.47

564,546.41

564,546.41

761,096.19

761,096.19

254,883.54

7,380.81

262,264.35

23,831.52

6,271.11

30,102.63

11,046.57

11,046.57

19,670.98

3,384.16

23,055.14

544,855.10

272,817.17

817,672.27

Total Expenditures

$ 19,835,682.12 $ 3,028,497.66 $ 22,864,179.78

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, 1996

SCHEDULE "8"

ALTERNATIVE SCHOOL
PROGRAM (1)

APPLIED TECHNOLOGY
LABS

INSTRUCTIONAL TECHNOLOGY

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

EXPENDITURES

Operating Costs

Salaries

$

Employee Benefits

Travel of Employees

Professional and Technical Services

Supplies

Dues and Fees

106,632,08 27,996,28
37,00 200,00 11,741,58 $
40.00

519,95

$ 16,414,00

$ 106,632,08 27,996,28 37,00 200.00 28,675,53 40,00

Nonoperating Costs Equipment

17,638,72

$

60,002,57

$

40,003,78

117,645,07

Total Expenditures

$

164,285,66 $

519,95 $

60,002,57 $ 16,414.00 $

40,003.78 $ 281,225,96

(1) This program also includes state and locally funded Altemative School Program Expenditures in the amount of $135,301,96.

See notes to the general purpose financial statements.

- 34 -

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 11,601,312.00 $ _ _--'-37....;;8""-7',....;;;,8.,;..6.-'-00"-

$ 12,523,300.66 617,671.50 $ _ _--'-544--"-,0;;..;,7_6_.2_0
$ 13,140,972.16

-56,454.16 $ 13,084,518.00

Amount of Underexpenditure for Total Allotment

$

0.00 $=====0=.0=0

Note: (1) Salary accruals (July and August 1996 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 1995 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. - 35 -

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

See notes to the general purpose financial statements.

- 36 -

SCHEDULE 10

"RETQOUTIARLED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

860,442.30 $

1,005,721.52 $

27,483.64 $ 1,033,205.16

2,177,904.60

2,655,135.54

93,418.24

2,748,553.78

$ 3,038,346.90 $ 3,660,857.06 $

120,901.88 $ 3,781,758.94 $

0.00

1,124,719.20

1,464,155.88

53,819.06

1,517,974.94

0.00

1,874,260.80

2,127,023.12

104,427.72

2,231,450.84

0.00

1,183,528.80

1,451,955.61

101,000.18

1,552,955.79

0.00

672,709.50

812,273.54

29,402.14

841,675.68

0.00

625,247.10

891,409.51

80,127.94

971,537.45

0.00

$ 8,518,812.30 $ 10,407,674.72 $

489,678.92 $ 10,897,353.64

$ 1,196,765.30 $

55,989.04 278,017.09 $ 953,947.30
8,399.26

$ 7,806.06 35,880.63 1,462.00

55,989.04 285,823.15 989,827.93
9,861.26

$ 1,196,765.30 $

1,296,352.69 $

45,148.69 $ 1,341 ,501.38

0.00

95,882.40

113,597.79

4,199.95

117,797.74

0.00

$ 1,292,647.70 $

1,409,950.48 $

49,348.64 $ 3,459,299.12

$

296,088.30 $

324,620.60 $

5,048.64 $

329,669.24

0.00

$ 10,107,548.30 $ 12,142,245.80 $

544,076.20 $ 12,686,322.00

$

286,479.00 $

381,054.86

$

381,054.86

0.00

71,897.40

$

73,595.30

73,595.30

0.00

$

358,376.40 $

381,054.86 $

73,595.30 $

454,650.16

$ 10,465,924.70 $ 12,523,300.66 $

617,671.50 $ 13,140,972.16 $

0.00

$

30,851.00

94,095.00

$ =~1,;;;24;:;,9~4;;;;6::;::.0~0

$

53,126.88 $

53,126.88

81,046.73

81,046.73

$

134,173.61 $

134,173.61 $=======O::;::.O~O

- 37 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30.1996

SCHEDULE "11"

BOARD MEMBER ADDRESS
Ms. Charlene Rogers, Chairman (*) 319 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. Leon Fowler (*) 42 Butts Road Thomaston, Georgia 30286
Ms. Jacqueline Hollis (*) 38 Bell Drive Thomaston, Georgia 30286
Mr. Jim Wheeless (*) 208 Shields Drive Thomaston, Georgia 30286
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

1,250.00 $

701.10

1,100.00

382.35

1,250.00

712.85

1,250.00

505.20

1,250.00

771.29

1,250.00

716.44

1,150.00

343.00

$

8,500.00 $ ===4=,1=3=2.:=2=3

See notes to the general purpose financial statements.

- 38 -

SECTIONll COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 19, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomaston-Upson County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated May 19, 1997. 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, 1996, 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.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
96CRL-10

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

CLV:dt 96CRL-IO

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 19, 1997

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

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 19, 1997. 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 of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-UplResolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not test~d, nothing came to our attention that caused us to believe that Thomaston-Upson County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:dt 96CRL-40

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
May 19, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 19, 1997. 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 of Effort, and!or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

96CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General. of the United States; and Office of Management and Budget (OMB) Circular A-128, "Audits of State and LocaI Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Thomaston-Upson County Board of Education'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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
In our opinion, the 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 fmancial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 96CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 19, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 19, 1997. 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 ofthe fiscal year 1996 general purpose financial statements of the ThomastonUpson County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular 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, 1996. As required by OMB 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.

96CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Thomaston-Upson County Board of Education had not 'complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 96CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street,S.w., Suite 214 Atlanta, Georgia 30334-8400
May 19, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomaston-Upson County Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 19, 1997. 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, 1996, nor could we satisfY ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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 of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may
96ICL-3

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 effe,ctiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the Thomaston-Upson County Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Thomaston-Upson County Board of Education's financial statements and this report does not affect our report thereon dated May 19, 1997.
96ICL-3

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

CLV:dt 96ICL-3

Claude 1. 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
May 19, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomaston-Upson County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose fi.nancial statements of the Thomaston-Upson County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 19, 1997. 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 May 19, 1997.
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 of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the 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, 1996, 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, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to
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major Federal fmancial assistance programs and to report on the internal control structure in accordance with OMB Circular A-l28. 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 May 19, 1997.

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 ofthe design and operation ofpolicies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

96ICL-7

During the year ended June 30, 1996, the Thomaston-Upson County Board of Education expended 66% of its total Federal financial assistance under major Federal financial assistance programs.
We 'performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule of Federal 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 of the internal control struCture that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Thomaston-Upson County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated May 19, 1997.
96ICL-7

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 of this report which is a matter of public record.
Respectfully submitted,
~
Claude 1. Vickers State Auditor
CLV:dt 96ICL-7

SECTION IV FINDINGS ANI? IMPROPER OR QUESTIONED COSTS

THOMASTON-UPSON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1996
GENERAL LEDGER Outstanding Loans Financial Statements Nonmaterial Noncompliance Audit Control Number 7451-93-14
The loan was repaid in full on June 29, 1996 in conformity with constitutional limitations.
Note: The Thomaston-Upson County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.

SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
FINDINGS TRANSFERRED FROM THE CITY OF THOMASTON BOARD OF EDUCATION
AUDIT FOLLOW-UPIRESOLUTION Improper Expenditures Financial Statements Finding Deleted 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. This improper cost had not been resolved at June 30, 1996. Reimbursement of$19,421.44 should be secured for deposit to the General Fund of the Thomaston-Upson County Board of Education.
Reference to this finding will be deleted from audit reports in subsequent years. However, the Board is not relieved of their responsibility to secure reimbursement for this improper expenditure.
AUDIT FQLLOW-UPIRESOLUTION Improper Expenditures Financial Statements Finding Deleted 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. This improper cost had not been resolved at June 30,1996. Reimbursement of $1,779.28 should be secured for deposit to the General Fund of the Thomaston-Upson County Board of Education.
Reference to this finding will be deleted from audit reports in subsequent years. However, the Board is not relieved of their responsibility to secure reimbursement for this improper expenditure.
AUDIT FOLLOW-UPIRESOLUTION 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 of Education 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 of Education was dissolved effective December 31, 1991.
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THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
FINDINGS TRANSFERRED FROM THE CITY OF THOMASTON BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $31,500.00 Audit Control Number 7451-93-04
The Board's attention is called to the Georgia Constitution Article III, Section VI, Paragraph (a)(l) which states:
"...the General Assembly shall not have the power to grant any donation or gratuity or to forgive any debt of 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 of the Thomaston-Upson County Board of Education.
FINDINGS TRANSFERRED FROM THE UPSON COUNTY BOARD OF EDUCATION
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Finding Deleted 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 ofEducation's General Fund for equipment utilized by extracurricular school athletic programs. This improper cost had not been resolved at June 30, 1996. Reimbursement of $24,059.34 should be secured for deposit to the General Fund of the Thomaston-Upson County Board of Education.
Reference to this finding will be deleted from audit reports in subsequent years. However, the Board is not relieved of their responsibility to secure reimbursement for this improper expenditure.
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 of Educatio.n made payments to Board members in excess of the amount provided for by Georgia Laws 1974, page 2026, which states:
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THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

FINDINGS TRANSFERRED FROM THE UPSON COUNTY BOARD OF EDUCATION

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

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

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 Ms. Jacqueline Hollis Mr. James Reeves Ms. 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

$13.200.00

During the year under review, no collections were made for these improper payments. Reimbursement of the $13,200.00 should be secured for deposit to the General Fund of Thomaston-Upson County Board of Education.

PRIOR YEAR

AUDIT FOLLOW-UPIRESOLUTION Unearned Per Diem Payments Financial Statements Amount: $2,600.00 Audit Control Number 7451-93-09

The audit report for the year ended June 30, 1995, called attention to $2,650.00 of unearned per diem payments to Board Members for the years ended June 30, 1993, 1994 and 1995. For the year under review, a repayment of $50.00 was received to reduce the questioned amount. The balance of overpayments to Board Members are as follows:

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THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Unearned Per Diem Payments Financial Statements Amount: $2,600.00 Audit Control Number 7451-93-09

Board Members

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

$ 100.00 50.00
1,450.00 50.00
950.00

$2,600.00

The Board should obtain reimbursement of $2,600.00 for deposit in the Board's General Fund.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved 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, 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 Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7451-93-13

The audit report for the year ended June 30, 1993, reported 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, adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as r e q u i r e d . '

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THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $7,549.29 Audit Control Number 7451-94-01
The audit report for the year ended June 30, 1994, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $7,549.29 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $7,549.29 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent year.
AUDIT FOLLQW-UP/RESOLUTION Inadequate Leave Policy Financial Statements Finding Resolved Audit Control Number 7451-95-02
The audit report for the year ended June 30, 1995, noted that the Board did not have a annual leave policy for certain twelve month employees. For the year under review, it was noted that the Board established an annual leave policy for all employees.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Leave Records Financial Statements Finding Resolved Audit Control Number 7451-95-03
The audit report for the year ended June 30, 1995, noted that the Board failed to maintain sick leave records for certain personnel of the Board. For the year under review, the Board developed procedures to ensure that employee leave records are maintained for all employees.
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THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PIDORYEAWCURRENTYEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 7451-93-10
The audit report for the year ended June 30, 1995, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, the Board made some improvement regarding separation of employee's duties, but still did not achieve an adequate degree of internal control. This condition was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal Financial Assistance Programs listed in the Schedule of Federal Financial Assistance, Schedule "1 " of this report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7451-93-11
The audit report for the year ended June 30, 1995, noted that the management of the Thomaston-Upson County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
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THOMASTON-UPSON COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PIDORYENVCURRENTYEAR GENERAL LEDGER Outstanding Loans Financial Statements Nonmaterial Noncompliance Audit Control Number 7451-93-14
The audit report for the year ended June 30, 1995, noted that the General Fund and Capital Projects Fund had unpaid loans outstanding at December 31, 1994. On December 31, 1995, the Capital Projects Fund again had an unpaid loan of$350,000.00. Article IX, Section V, Paragraph V ofthe Constitution ofthe State of Georgia provides, in part, as follows:
"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 did not have adequate cash available to make loan payments on December 31, 1995. Repayment of loans should be made in conformity with constitutional limitations. REVENUES/RECEIVABLES/RECEIPTS Failure to Levy Bond Millage Financial Statements Nonmaterial Noncompliance Finding Resolved Audit Control Number 7451-95-01 The audit report for the year ended June 30, 1995, noted that the Debt Service Fund did not have sufficient funds to cover required interest and principal payments due on the 1992 Bond Issue as required by the Official Code of Georgia Annotated Section 20-2-457. For the year under review, the Board continued to have insufficient funds to cover required interest and principal payments. However, subsequent to fiscal year end, it was noted that the Board levied the required separate property tax to cover future debt service payments.
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