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1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT WALKER COUNTY BOARD OF EDUCATION
LAFAYETTE, GEORGIA YEAR ENDED JUNE 30, 1995

WALKER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

FIDUCIARY FUND TYPE

I

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

24

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

25

2 CASH AND CASH EQUIVALENTS

27

3 ACCOUNTS RECEIVABLE

28

WALKER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

STATE

29

5

LOCAL AND OTHER

30

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

31

7

LOTTERY PROGRAMS

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

35

9

BYPROGRAM

36

10 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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Walker County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) ofthe Walker County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perfonn the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

95ARL-13*

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statem~nts of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the , year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material,
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe 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 Walker County Board ofEducation as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated July 19, 1996, on our consideration ofthe Board's internal control structure and a report dated July 19, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Walker County Board ofEducation taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through IO which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Walker County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
95ARL-13*

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available
to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~-
Claude L. Vickers State Auditor
CLV:gp 95ARL-13*

WALKER COUNTY BOARD OF EDUCATION - 1-

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

WALKER CQUNJY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND IXPES JUNE 3Q 1995

EXHIBITA

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

TOTALS (Memorandum Only) JUNE 301 1995 JUNE 301 1994

$ 2,362,282.04 $ 519,233.03 $ 1,426,071.58 $

4,564.10 $ 4,312,150.75 $ 1,044,733.93

209,757.47

325,216.58

534,974.05 1,444,778.89

170,129.00

66,531.12 27,103.73

66,531.12 27,103.73 170,129.00

60,732.05 27,888.71 207,778.80

$ 2,742,168.51 $ 938,084.46 $ 1,426,071.58 $

4,564.10 $ 5,110,888.85 $ 2,785,910.38

UABfLJifES AND FUNDEQUIIX
LIAB!LIIl!i:S
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others
Total Liabilities
fUN(;2EQUIIX
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Expired Grant Balances/ Questioned Costs For Local Funds For Inventories Food Donated Commodities Purchased Food Supply For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 84,405.06 $ 111,554.78

282,329.11

24,217.94

32,743.97

$

$ 108,623.00 $ 426,627.86

$

$ 145,855.08 $
237,521.83

3,301.90 4,588.69

170,129.00

66,531.12 27,103.73

$ 1,051,060.94

$ 553,505.91 $ 101,525.44 $ 1,051,060.94

2,080,039.60 409,931.16

375,010.64

$ 2,633,545.51 $ 511.456.60 $ 1,426,071.58

$
4,564.10 4,564.10 $

$ 195,959.84 282,329.11 56,961.91
4,564.10

137,179.95 397,863.38 282,819.92 71,918.02 199,558.92 309,102.00
1,124.50 3,014.10

539,814.96 $ 1,402,580.79

$ 145,855.08 $ 184,948.16

3,301.90

5,140.31

237,521.83 4,588.69

221,806.93 4,270.37

66,531.12 27,103.73 170,129.00

60,732.05 27,888.71 207,776.80

1,051,060.94

$ 1,706,092.29 $ 692,563.33

2,864,981.40

690,766.26

$ 4,571,073.69 $ 1,383,329.59

Total Liabilities and Fund Equity

$ 2,742,168.51 $ 938,084.46 $ 1,426,071.58 $

4,564.10 $ 5,110,888.65 $ 2,785,910.38

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

WALKER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES VEAR ENDED JUNE 30, 1995

EXHIBIT e-

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues

$ 26,257,573.23 $ 132,752.10
12,001,971.94
$ 38,392,297.27 $

1,835,080.35 $ 3,195,583.93 11097A95.69
6,128,159.97 $

s 89,166.19 $ 2e,181,81s.n 27,926,263.32

3,328,336.03

3,213,380.42

376,305.82 13,475,773.45 12,785,102.50

465,472.01 $ 44,985,929.25 $ 43,924,746.24

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of lnstructlonal Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services
Food SeMces Operation
other Operations of Non-Instructional
Services Capital Outlay

$ 22,725,284.60 $ 2,029,042.02

1,247,535.66 922,752.14
1,017,530.19 380,685.46
2,386,394.66 195,210.22
3,171,625.29 1,836,685.31
281,900.63 138,709.07

,146,343.15 158,972.14 314,001.35 146,044.58
491,401.93 59,211.32
54,319.32 2,687,072.55

165,333.30 1,810.00

_____ $

$ 24,754,326.62 $ 24,222,112.38

1,393,878.81 1,081,724.28 1,331,531.54
526,730.04 2,386,394.66
195,210.22 3,663,027.22 1,895,896.63
281,900.63 193,028.39 2,687,072.55

1,173,619.15 907,2n.10
1,040,734.94 491,288.01
2,317,696.00 258,098.43
3,041,516.67 1,967,444.96
199,525.75 248,665.70 2,601,592.70

1,207,686.55

165,333.30 1,209,496.55

141,028.73 4,052,876.71

Total Expenditures

s 34,471,456.53 s 6,086,408.36 s 1,207,686.55 s 41,765,551.44 s 42,663,4n.23

Excess of Revenues over (under)
Expenditures

$ 3,920,840.74 $

41 751.61 $ -742,214.54 $ 3,220,3n.81 $ 1,261,269.01

OTHER FINANCING SOURCES <USES>

Operating Transfers In Operating Transfers Out

$ $ -2,179,410.60

11,124.48 $ 2,168,286.12 $ 2,179,410.60 $ 1,743,812.27 -2,179i410.60 -1,743,812.27

Total other Financing Sources (Uses)

$ -2,179,410.60 $

11,124.48 $ 2,168,286.12 $

0.00 $ _ _ _ _0_.0_0_

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

$ 1,741,430.14 $

52,876.09 $ 1,426,071.58 $ 3,220,3n.81 $ 1,261,269.01

FUND BALANCE JULY 1

929,763.17

453,566.42

0.00

1,383,329.59

99,295.70

Inventories - Net Change in Period Food Donated Commodities Purchased Food Supply

-37,647.80

5,799.07 -784.98

5,799.07 -784.98 -37,647.80

-18,292.74 4,044.98 37,012.64

FUND BALANCE JUNE 30

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

B lq_,~" L
f5,

WALKEB COUt:ITY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
- BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUt:IDS YEAR ENDED JUNE 30, 1995

EXHIBIT c-

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Local and Other Funds

$ 26,593,081.00 $ 26,257,573.23

111,136.00

132,752.10

1011171048.00 1210011971.94

Total Revenues

$ 3618211265.00 $ 3813921297.27

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay

$ 23,1TT,279.78 $ 22,725,284.60

1,375,235.18 932,818.67
1,020,466.00 423,787.03
2,499,802.00 255,324.00
3,373,707.55 1,974,598.61
287,n5.oo 57,974.99

1,247,535.66 922,752.14
1,017,530.19 380,685.46
2,386,394.66 195,210.22
3,171,625.29 1,836,685.31
281,900.63 138,709.07

178,756.00

165,333.30 11810.00

Total Expenditures

$ 3515571524.81 $ 34,471,456.53

Excess of Revenues over (under) Expenditures

$ 1,263,740.19 $ 3,920,840.74

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 1,100,000.00 -2,2561483.00 $ -21179,410.60

Total Other Financing Sources (Uses)

$ -11156,483.00 $ -21179,410.60

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

107,257.19 $ 1,741,430.14

FUND BA!,,ANCE JULY 1, 1994

851,991.84

721,986.37

Adjustments

-64,226.27

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 289,594.00 $ 1,835,080.35 2,798,715.00 3,195,583.93 111491841.00 110971495.69
$ 412381150.00 $ 611281159.97

$ 1,455,126.00 $ 2,029,042.02

128,391.00 18,850.00
149,354.00

146,343.15 158,972.14 314,001.35 146,044.58

4,500.00 18,110.00
64,585.00 2,458,310.00

491,401.93 59,211.32
54,319.32 2,687,072.55

$ 41297,226.00 $ 610861408.36 $ -591076.00 $ 41z751.61

$ 11,124.48

$ 111124.48

$ -59,076.00 $ 52,876.09

489,716.95

364,945.66

-331595.69

FUND BALANCE JUNE 30, 1995

$ 895,022.76 $ 2,463,416.51

$ 397,045.26 $ 417,821.75

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

WALKER COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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

- 6-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor capital facilities.
FIDUCIARY FUND TYPE - the agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and
- 7-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities 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 departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, l 994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and . liabilities.

- 8-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

JUNE 30, 1995

Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

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

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

The Statement ofRevenues, Expenditures and 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" ofthis report:

General Fund

Special Revenue
Fund

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$1,741,430.14 $ 52,876.09

Fund Balance July l, l 994

929,763.17

453,566.42

Adjustments: Inventories July l, 1994 Food Donated Commodities Purchased Foods Supply

-207,776.80

-60,732.05 -27,888.71

Fund Balance June 30, 1995 (Budget Basis)

$2,463,416.51 $ 417 821.75

- 9-

WALKER COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

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

RECEIVABLES

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

PROPERTY TAXES

The Walker County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on October 20, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Walker County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1994 tax year (calendar year) for the Walker Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

.1L2imills

INVENTORIES

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

- 10 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUPPLY INVENTORIES Supply inventories are valued at cost on the Combined Balance Sheet. The purchases method is used to account for supply inventories. Under the purchases method, the supply inventories are recorded as expenditures when purchased. The supply inventories reported on the balance sheet are equally offset by reservation of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable :from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
RESERVED FUND BALANCES
Reserve for Local Funds - This reserve constitutes the balance oflocal donations attributable to the Special Revenue Fund - Drug-Free Schools and Communities Act Program.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate :financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 11 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination ofthe following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the coutities or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $7,318,693.22. 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.
- 12 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1995, as follows:

Risk Category

Bank Balance

1

$ 400,000.00

2

0.00

3

6,918,693.22

Total

$7,318,693.22

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions, however the policy excludes coverage for discrimination claims. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster in the past three years.

- 13 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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 expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994 1995

$

0.00 $

5,014.00 $

5,014.00 $

0.00

$

0.00 $ 23,882.84 $ 23,882.84 $

0.00

The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Continental Insurance Company to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to $1,000,000.00.

Note 5: CONTINGENT LIABILITIES

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

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.

Note 6: ACCUMULATED EMPLOYEES' LEAVE

Twelve month employees earn annual leave at the rate often days per year. Employee leave policies ofthe Walker County Board ofEducation provide for payments to employees of a maximum often (10) days salary at their current rate of pay, for accumulated leave at retirement or termination of employment. See Note 1 -
Compensated Absences

- 14 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: 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

ofage, or after 10 years of service and attainment ofage 60. A member is eligible for early retirement after

25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to

members are equal to 2% of the average of the member's two consecutive highest paid years of service

multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is

payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced

rate to a designated beneficiary on the member's death.



Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time ofdisability or death.

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $22,205,888.94~ total payroll was $25,622,026.35.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $3,732,818.77, ofwhich $2,622,510.12 was made by the Board and $1,110,308.65 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

- 15 -

WALKER COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS

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

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of$2,622,510.12 was actuarially determined and represented .4641% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after IO years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between

- 16 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
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 ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 280 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $9,336.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 8: SURETY BONDS
The School Superintendent, Dr. Truman T. Atkins, is bonded in the amount of$50,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 68320211, on which premium was paid through July 1, 1995.

- 17 -

WALKER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1995

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FYND 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 Local Funds For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

CONSORTIUM TO
RESTRUCTURE SECONDARY SCHOOLS

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 563,033.73 $

0.00 $

0.00

$

4,588.69

57,865.94

$ 125,894.64

66,531.12 27,103.73

$ 714,534.52 $

0.00 $

0.00 $ 125,894.64 $

4,588.69

$ 63,659.80 147,308.71
$ 210,968.51

$ 118,452.47 7,334.52 107.65
$ 125,894.64

$ 66,531.12 27,103.73
$ 93,634.85 409,931.16 $
$ 503,566.01 $
$ 714,534.52 $

0.00 $ 0.00 $
0.00 $

$

4,588.69

0.00 $ 0.00 $

$ 0.00 0.00 $

4,588.69 0.00
4,588.69

0.00 $ 125,894.64 $

4,588.69

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

MIGRANT

BLOCK GRANT AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

16,802.93 $

9,275.34 $

147.13 $

3,301.90 $ 35,732.22 $

4,803.56 $ 637,685.50 $ 635,575.05

136,158.00

5,298.00

325,216.58

205,662.42

66,531.12 27,103.73

60,732.05 27,888.71

$

152,960.93 $

9,275.34 $

147.13 $

3,301.90 $ 41,030.22 $

4,803.56 $ 1,056,536.93 $ 929,858.23

$

30,399.71 $

1,021.08 $

108,797.76

3,445.86

13,763.46

4,808.40

$

152,960.93 $

9,275.34 $

147.13 147.13

$

7,643.30 $

19,396.60

13,990.32

$ 41,030.22 $

$ 1,349.24 3,380.18
74.14
4,803.56 $

.118,452.47 $ 111,554.78 282,329.11 32,743.97
545,080.33 $

5,426.49 115,002.88 282,819.92 71,918.02
1,124.50
476,291.81

$

0.00 $

0.00 $

$

0.00 $

0.00 $

$

152,960.93 $

9,275.34 $

$

3,301.90

$ 0.00 0.00 $

3,301.90 0.00 $
3,301.90 $

0.00 $ 0.00 $

$

3,301.90 $

5,140.31

4,588.69

4,270.37

$ 0.00 0.00 $

66,531.12 27,103.73 101,525.44 $
409,931.16 511,456.60 $

60,732.05 27,888.71 98,031.44
355,534.98
453,566.42

147.13 $

3,301.90 $ 41,030.22 $

4,803.56 $ 1,056,536.93 $ 929,858.23

19

WALKER CQUNJY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND VEAR ENDED JUNE 30 1995

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services PupilServlces Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SQURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory Net Change In Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

CONSORTIUM TO
RESTRUCTURE SECONDARY SCHOOLS

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 181,768.00 $ 1,483,124.25 1.010.185.05
$ 2.744.077.'JO $

111,518.00 $ 111.518.00 $

85,000.00 $ 1,456,794.35 $
16.994.64
101.994.64 $ 11456.794.35 $

i,437.00 1.266.00
46.703.00

$

94,399.50

17,118.50 $

$ 2,687,072.55

$ 216811012.ss s $ 57,004.75 $

111.518.00 $ 0.00 $

$ 589,159.76 $

105,947.77

24,278.28 5,200.20 314,001.35 6,670.03 486,953.93 40,184.60
126.12

105.947.77 $ 1.486.574.27 $ -3,953.13 $ -9,779.92 $

43,045.76 3,207.26
131.66
46.384.68 318.32

$ 57,004.75 $ 441,547.17
5,799.07 -784.98

0.00 $ 0.00

1.344.56

e.779.92

-2,608.57 $ 2,608.57

0.00 $ 0.00

318.32 4,270.37

$ 503,566.01 $

0.00 $

0.00 $

0.00 $

4,588.69

See notes to the general purpose financial statements.

-20-

EXHIBITP-

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2 MATHEMATICS

DEPRIVED

MIGRANT BLOCK GRANT AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

s 1,224,889.54 S 26,855.60 $
50.00
s 1~4.939.54 S 26,855.60 $

50,547.00 S 50,547.00 $

22,220.00 $ 288,056.68 S 22,220.00 $ 288,056.68 $

s
54,453.86

1,835,080.35 S 668,405.34
3,195,583.93 3,044,254.23 1,097,495.69 1,132,638.15

54,453.86 S 6,128,159.97 S 4,845,297.n

s 1,031,092.11 $ 26,855.60 $
2,950.18 16,637.41
117,313.14 2,753.50
54,193.20

s 1,224,939.54 $ 26,855.60 S

s

0.00 $

0.00 $

50,420.82
s
126.18
50,547.00 $ 0.00 S

s
23,930.43 127.98

164,195.34 $
79,801.98 2,403.55
20,934.59 1,694.50
1e.02s.n

24,058.41 $ -1,838.41 $

288,056.68 S 0.00 S

29,873.13 S 2,029,042.02 $ 1,598,32925

22,194.21 1,645.52
741.00

146,343.15 1sa,sn.14 314,001.35 146,044.58 491,401.93 59,211.32 54,319.32 2,681,on.ss

152,577.67 117,041.46
120,299.88 16,091.69 21,750.76
105,684.67 2,601,592.70
4,600.00

54,453.86 $ 6,086,408.36 S 4,737,968.08

0.00 S

41,751.61 S 107,329.64

s

0.00 S

0.00 S

0.00

0.00

s

0.00 S

0.00 S

0.00 S 0.00

-1,838.41 S
5,140.31

0.00 $

3,301.90 $

0.00 S 0.00
0.00 $

11,124.48

660.26

0.00 $ 0.00

52,876.09 $ 453,566.42

107,989.90 359,824.28

5,799.07 -784.98

-18,292.74 4,044.98

0.00 $ 511,456.60 $ 453,566.42

-21

WALKER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE30 1995

EXHIBIT G"

ASSETS
Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94-746-070

746-001

TOTALS JUNE 301 1995 JUNE 301 1994

$ 375,010.64 $

0.00 $ 1,051,060.94 $ 1,426,071.58 $ 411,571.27

251.392.80

Total Assets

s 375,010.64 s _ _ _ _o_.oo_ s 1,os1,oeo.94 s 1,4251011.ss s 662,964.07

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 154,303.15 199,558.92 309.102.00
$ 662.964.07

$ 1,051,060.94 $ 1,051,060.94

s 3751010.64 s _____o_.oo_

s 3751010.64 s

o.oo s

o.oo 11os1 1oeo.94 s

375 010.64 s _ _ _..;;o;.;.;;.oo= 1
1,4261011.ss s _ _ _..;;o;.;.;;.oo=

Total Liabilities and Fund Equity

s s 375,010.64 s _ _ _ _o_.oo_ s 1,os1,060.94 s 1,426,011.ss

662,964.07

See notes to the general purpose financial statements.

-22-

WALKER COUNTY BOARD OF EDUCATION COMBINING STATEMENT Of REVENUES. EXPENDITURES ANO CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 1995

EXHIBIT H"

REVENUES
State Funds Local and other Funds

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94-746-070

746-001

TOTALS YEAR ENDED
JUNE 3011995 JUNE 301 1994

$ $ 801964.67

0.00 $

89,166.19 $ 89,166.19 $ 2,370,987.44

295.341.15

3761305.82

1571058.18

Total Revenues

$ 801964.67 $

0.00 $ 384.507.34 $ 4651472.01 $ 215281045.62

EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements

$ 1,000.00

$

-6?28.75 $ 6671233.27

441,602.21 $ 442,602.21 $

1,000.00

1041579.82

7651084.34 410471276.71

Total Expenditures Excess of Revenues over (under) Expenditures

$ -5?28.75 $ 6671233.27 $ $ 861693.42 $ -6671233.27 $

5461182.03 $ 112071686.55 $ 410481276.71 -161,674.69 $ -7421214.54 $ -11520.231.09

OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$ 331,664.00 $ -431346.78
$ 288z317.22 $
$ 375,010.64 $

667,233.27 $ 667,233.27 $
0.00 $

1,212,735.63 $ 2,211,632.90 $ 1,891,692.83

-43.346.78

-1481540.82

11212?35.63 $ 2.1681286.12 $ 1z7431152.01

1,051,060.94 $ 1,426,071.58 $ 222,920.92

FUND BALANCE JULY 1

0.00

0.00

0.00

0.00

-2221920.92

FUND BALANCE JUNE 30

$ 375,010.64 $ _ _ _0_.00_ $ 1,051,060.94 $ 1,426,071.58 $ _ _ _ _0_.00_

See notes to the general purpose financial statements.

-23-

WALKER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE -AGENCY FUNDS YEAR ENDED JUNE 30, 1995

EXHIBrrr

ELBERT CAMPBELL MEMORIAL FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
HUGH CAMPBELL MEMORIAL FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
SCHOLARSHIP FUND ASSETS
Cash and Cash Equivalents

BALANCE JULY 1, 1994

ADDITIONS

DEDUCTIONS

BALANCE JUNE 301 1995

$

0.00 $

150.00 $

----- 0.00 $

150.00

$

0.00 $

150.00 $

----- 0.00 $

150.00

$

0.00 $

150.00 $

----==- 0.00 $

150.00

$

0.00 $

150.00 $

----- 0.00 $

150.00

$

3,014.10 $

5,000.00 $

3,750.00 $ _ _ _4,,..26_4=.1_0

LIABILITIES Funds Held for Others

$

3,014.10 $

5,000.00 $

3,750.00 s_ _ _4.=26=4_.1_0

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

3,014.10 $

5,300.00 $

3,750.00 $-=======4'=56=4=.1=0

LIABILITIES

Funds Held for Others

$

See notes to the general purpose financial statements.

3,014.10 $ -24-

5,300.00 $

3,750.00 $ ===4'=56=4=.1=0

WALKER COUNTY BOARD OF EDUCATION SCHEDULE Of FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1995

FUNDING AGENCY
PROGRAM/GRANJ

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture. U. S. Department of

Direct

Food and Nutrition Program

Food Services

Summer Food Service Program for

Children

1994Grant

10.559

Through Georgia Department of Education

Food and Nutrition Program

Child and Adult Care Food Program

1994 Contract

10.558

1995 Contract

10.558 $

Food Services

School Breakfast Program

1994Grant

10.553

1995 Grant

10.553

National School Lunch Program

1994 Grant

* 10.555

1995 Grant

* 10.555

Food Distribution Program (1)

10.550

Through Office of Treasury and Fiscal Services

National Forest Reserve Funds

10.665

$
2,481.37
295,021.45 9n.695.13 207,926.30
71260.36

-3.165.27

235.70

2,481.37 $

2,481.37

(2)

65.16 277,950.49
9,166.45 936,900.15 N/A
71260.36

295,021.45

(2)

9n.695.13 $ 2,479,146.25 (3)

207,926.30

207,926.30

71260.36

{5)

Total U.S. Department of Agriculture

$ 114901384.61 $

112301894.41 $ 114901384.61 $ 21687.072.55

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1994Grant 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of. Deprived Children 1993 Regular 1994 Regular 1994 Carry-Over 1995 Regular State Program Improvements 1994 Regular Chapter2 Block Grant - Flow Through 1995 Regular Tlllell Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act TrtleVl,B Flow Through 1993 Regular 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular

84.186 84.186 $

$ 45,437.00

* 84.010 * 84.010 84.010 * 84.010
84.218

221,653.00 1,071,891.00

84.151

50,547.00

84.164 84.164

22,220.00

84.027 84.027 84.027 84.027
84.173 84.173 84.173 84.173

30,047.00 320,182.00
34,528.00 43,400.00

-0.90 45,437.00 $

45,437.00 $

45,437.00

-25.00 133,058.49 221,653.00 880,842.00
-3,347.00

221,653.00 1,003,236.54

221,653.00 1,003,236.54

50,547.00

50,547.00

50,547.00

5,909.00 22,220.00

22,220.00

5,140.31 18,918.10

-59.02 -891.85 24,749.00 272,000.00
12,726.00 -19,655.64 34,528.00 20,000.00

30,047.00 258,009.68
34,528.00 19,925.86

30,047.00 258,009.68
34,528.00 19,925.86

- 25 -

WALKER COUNTY BOARD OF EDUCATION
SCHEDULE Of FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1995

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of Through Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1994Grant 1995 Grant Tech-Prep Education 1994 Grant 1995 Grant Through Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1994 Regular 1995 Regular

84.048 84.048 $ 84.243 84.243
84.011 84.011

$ 74,813.45 9,742.29
311664.00

14,907.99

57,395.42 $ 74,813.45

(4)

30,000.00

9,742.29

(4)

-175.50 311664.00

261855.60 $

261855.60

Total U. S. Department of Education

$ 119561124.74 $ 118331481.99 $ 1.7971015.42 $ 1.7141298.09

OTHER FEQERAL ASSISTANCE

Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program 1994 Grant 1995 Grant

$

8,312.60

$ 401936.00

251253.02 $ 401936.00

(4)

Total U. S. Department of Defense

$ 401936.00 $

331565.62 $ 401936.00

Total Federal Financial Assistance

$ 314871445.35 $ 310971942.02 $ 313281336.03 $ 414011370.64

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

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary
assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

- 26 -

WALKER COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995

SCHEDULE "2

NONINTEREST BEARING ACCOUNTS
Bank of LaFayette, LaFayette, Georgia
Cohutta Banking Company, Chatsworth, Georgia
INTEREST BEARING ACCOUNTS
Bank of LaFayette, LaFayette, Georgia
Money Market Accounts (3.00%)
Cohutta Banking Company, Chatsworth, Georgia
Certificates of Deposit No. 20643 (5.60%) No. 20644 (5.82%) No. 20645 (5.625%) No. 20648 (5.60%)
OTHER
Petty Cash

$ -609,957.08
76,390.77 $ -533,566.31

$ 1,845,702.06

750,000.00 750,000.00 750,000.00 750,000.00

4,845,702.06

15.00

$ 4,312,150.75

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

WALKER COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "3"

Defense, U. S. Department of R.O.T.C. Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds other State Programs Apprenticeship Program At-Risk Summer School Program Family Connection Remedial Summer School Program Lottery Programs Applied Technology Labs Distant Learning lnstructior1al Technology Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act Title VI, B - Flow Through Contract Implementation of Department's Elementary School Foreign Languages Model Program
Northwest Georgia Services, Incorporated Reimbursement for Utilities Reimbursement for Custodial Services
Various Sources Reimbursement for Supplies
Walker County Tax Commissioner County Wide School Tax
Zurich Insurance Company Bus Damage Settlement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

15,682.98

$

15,682.98

$
27,160.32
31,106.51 27,640.61 13,972.00
5,652.46

17,070.96 40,794.98
99,210.54 18,406.10
8,278.00

136,158.00 5,298.00

20,270.26

2,293.34 3,418.00

8,125.63

43,924.72

10,510.64

17,070.96 40,794.98 27,160.32 31,106.51 27,640.61 13,972.00
5,652.46 99,210.54 18,406.10
8,278.00
136,158.00 5,298.00
20,270.26
2,293.34 3,418.00
8,125.63
43,924.72
10,510.64

$ 209,757.47 $ 325,216.58 $ 534,974.05

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

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE 4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Family Connection Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Algebra Classrooms Alternative School Program AppUed Technology Labs Distant Leaming Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant Consortium for Restructuring Secondary Schools
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
CONTRACT Education, Georgia Department of Implementation of Department's Elementary School Foreign Languages Model Program
OTHER Education, Georgia Department of Reimbursement for Workshop Expenses

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 15,813,515.00 2,415,796.00 309,235.00 674,874.00 211,927.00 4,540,875.00
889,278.00 237,543.00 621,416.00 1,015,784.00 176,466.00 39,872.00 -3,042,420.00 1,867,470.00
$ 66,651.00
123,782.06 69,993.51 27,640.61
2,000.00 82,554.00
2,600.00 17,250.00
5,652.46 13,687.08

181,768.00
111,518.00
1,124.50 125,397.00 99,210.54 36,406.10 202,385.60 312,663.27 166,751.00 512,856.34 85,000.00

$ 15,813,515.00 2,415,796.00 309,235.00 674,874.00 211,927.00 4,540,875.00
889,278.00 237,543.00 621,416.00 1,015,784.00 176,466.00 39,872.00 -3,042,420.00 1,867,470.00 181,768.00 66,651.00
123,782.06 69,993.51 27,640.61
2,000.00 82,554.00
2,600.00 17,250.00 111,518.00 5,652.46 13,687.08
1,124.50 125,397.00 99,210.54
36,406.10 202,385.60 312,663.27 166,751.00 512,856.34
85,000.00

$ 89,166.19

89,166.19

73,545.00 586.51

73,545.00 586.51

See notes to the general purpose financial statements.

s 261257p3.23 s 11a35:0ao.35 s 29 -

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1995

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Reimbursements Architect Fees Walker County Board of Commissioners Medical Testing Salaries and Employee Benefits Credit Union Fairyland School Northwest Georgia Services, Incorporated Revenue in Lieu of Taxes Tennessee Valley Authority Sales Lunches and Breakfast School Assets Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 10,466,287.27 13,322.50 32,524.31

$ 10,466,287.27 13,322.50 32,524.31

1,000,000.00 $
20,243.00
1,282.34 410.51

1,316.00 $ 30,050.00

14,626.05 203.06

80,964.67

1,000,000.00 31,366.00
20,243.00 95,590.72
1,485.40 410.51

2,935.14
36,877.44 44,382.07 42,438.43
142,177.81
133,879.32 51,430.00 13,781.80

1,062,188.19 2,085.75
17,076.64

25,453.88 239,837.27

25,453.88 2,935.14
36,877.44 44,382.07 42,438.43
142,177.81
1,062,188.19 375,802.34 51,430.00 30,858.44

$ 12,001,971.94 $ 1,097,495.69 $ 376,305.82 $ 13,475,773.45

See notes to the general purpose financial statements.

- 30 -

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

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

GENERAL
FUND

SPECIAL REVENUE
FUND

TOTAL

$ 23,454,806.98 $
6,798,747.30 101,631.18 463,460.17 18,296.44 96,473.34 252,508.28 18,800.94 318,717.17 93,621.77
22,070.00 64,985.60 996,676.76 806,407.49
300,054.85 69,358.25 19,097.92
55,241.38

2,167,219.37 $
647,224.32 45,137.33 91,994.45
4,896.00 21,796.68
7,484.23 12,081.80
5,479.57 439,157.13
183.84 1,222,574.77
12,125.53 14,503.69
20,243.00 105,947.14

25,622,026.35 7,445,971.62 146,768.51 555,454.62 18,296.44 101,369.34 274,304.96 18,800.94 318,717.17 101,106.00 12,081.80 22,070.00 70,465.17 1,435,833.89 806,591.33 1,222,574.77 312,180.38 83,861.94 19,097.92 20,243.00 161,188.52

450.00 520,050.71

1,268 ,359 .51

450.00 1,788,410.22

Total Expenditures

$ 34,471,456.53 $ 6,086,408.36 $ 40,557,864.89

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

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS
YEAR ENDED JUNE 30, 1995

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Repair and Maintenance Services Communications other Purchased Services Supplies Books, Textbooks and Periodicals other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

ALTERNATIVE SCHOOL PROGRAM

APPLIED TECHNOLOGY
LABS

$

1,124.50 $ 79,709.29 $

6,805.00

461378.00

921405.54

$

1,124.50 $ 126,087.29 $ ___99_,2_1_0_.54_

See notes to the general purpose financial statements.

- 32 -

SCHEDULE"7"

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

9,184.00

27,222.10 $

25,826.80 $

$ 7,885.89

1761607.55

306,115.46

$ 36,406.10 $

202,434.35 $ 314,001.35 $

108,232.39 31,469.74 4,427.83
174.80 126.12 10,583.60 2,034.88 667.47

$ 108,232.39 31,469.74 4,427.83 9,184.00 174.80 126.12
159,157.18 2,034.88 667.47

16.]36.97 $ 5121856.34

111511099.86

174,453.80 $

512,856.34 $ 1A661574.27

- 33 -

13 Lc-v\_k
~) ~4

WALKER COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30.1995

SCHEDULE "8"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 19,213,420.00 $

6231466.00

$ 20,892,177.38 736,751.67 $ _ _ _6_0..;.,,8,_51=2=.2_1_
$ 21,628,929.05

-317 ,656.19 $ 21,311,272.86

$

0.00 $===1=4=,9=5=3=79...

See notes to the general purpose financial statements. - 35 -

WALKER COUNTY BOARD Of EQUCATIQN
ANALYSIS Of MINIMUM EXPENP!IVRE REOUIBEMENJS - BY PROGRAM GENERAL FUND- OUALIJY BASIC EQUCATIQN PROGRAMS )'EAR ENDED JUNE 3Q 1995

GENERAL AND CAREER EQUCATION PROGRAMS Kindergarten (") Grades 1 - 3 (") Sub-Total - K-3 Grades 4 - 5 (") Grades 6 - 8 (") Grades 9 - 12 (") High School Laboratories (") Vocational Education Laboratories (") Total General and career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs category I (") category II (")
,> category UI (")
category r.J Sub-Total - Regular
Category V (Gifted) (") Total Special Education Programs
Rl;;MEQIAL t:O!.!CAIIQN PROGRAM C:l
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

'16

ORIGINAL

MID-TERM

$ 1,565,438.00

$ 1,408,894.20 $

4,159,417.00

3,743,475.30

$ s,n4,ass.oo 90 $ 5,152,369.50 $

2,126,642.00 90

1,913,977.80

3,667,014.00 90

3,300,312.60

2,204,642.00 90

1,984,177.80

1,207,359.00 90

1,086,623.10

883,003.00 90

794,702.70

$ 15,813,515.00

$ 14,232,163.50 $

0.00 0.00
0.00

$ 2,150,293.00

$ 1,935,263.70 $

0.00

$ 2,150,293.00 90 $ 1,935,263.70 $

0.00

265,503.00 90

238,952.70

$ 2,415,796.00

$ 2,174,216.40 $

0.00

$

309,235.00 90 $

278,311.50 $

0.00

$ 18,538,546.00

$ 16,684,691.40 $

0.00

$

532,522.00 90 $

479,269.80 $

0.00

142,352.00 90

128,116.80

$

674,874.00

$

607,386.60 $

0.00

$ 19,213,420.00

$ 17,292,078.00 $

0.00

SIAFE DEVELQPMENI PROGRAMS Cost of Instruction Professional Development
Total Staff Development (") Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements.

$

49,918.00

$

49,918.00 $

0.00

162,009.00

162,009.00

0.00

$

211,927.00 100 $

211,921.00 s _................o.=.oo-=

36

SCHEDULE"9"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

s s s 1,408,894.20

1,744,435.29

s 28,212.68

1,m,641.s1

3,743,475.30

4,219,805.49

68,341.49

4,288,146.98

s s s 5,152,369.50

5,964,240.78

s s 96,554.17

6,060,794.95

0.00

1,913,977.80

2,421,3n.17

56,560.10

2,477,937.27

0.00

3,300,312.60

4,332,748.85

130,745.47

4,463,494.32

0.00

1,984,1n.80

2,103,323.04

138,252.31

2,241,575.35

0.00

1,086,623.10

1,232,099.18

28,789.78

1,260,888.96

0.00

794,702.70

955,068.66

126,731.36

1,081,800.02

0.00

s s s 14,232,163.50

17,008,857.68

s 577,633.19

17,586,490.87

s 1,935,263.70 s

s 366,641.42
322,312.17
1,454,925.50
157,393.17

s 8,115.57
4,349.40
9,414.92
231.19

374,756.99 326,661.57 1,464,340.42 157,624.36

s s s 1,935,263.70

2,301,2n.2e

s 22,111.08

2,323,383.34

0.00

238,952.70

333,790.64

7,058.84

340,849.48

0.00

s s s 2,174,216.40

2,635,062.90

s 29,169.92

2,664,232.82

s s 278,311.50

s 383,966.07

s 1,709.10

385,675.17

0.00

s s 16,684,691.40 -S 20,027,886.65

s 608,512.21

20,636,398.86

s s 479,269.80

864,290.73

s

864,290.73

0.00

128,116.80

s

128,239.46

128,239.46

0.00

s s 607,386.60

s 864,290.73

s 128,239.46

992,530.19

$ 17,292,078.00 $ 20,892,177.38 $

s 736,751.67

21,&2s.s2s.os s .....==========o=.oo

s

49,918.00

162,009.00

s- = 2.1..1....s=2=1=.oo=

s

167,190.36 $

167,190.36

43,975.53

43,975.53

s

211,165.89 $

211,165.89 $======7==6=1==.1==1

37

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1995

SCHEDULE "1 (J'

BOARD MEMBER ADDRESS
Mr. Renn Hise, Chairman (*)
7970 Highway 157 Rising Fawn, Georgia 30738
Ms. Jewel Campbell (*) P. 0. Box434
LaFayette, Georgia 30728
Mr. Arnold W. Eaves
4022 Happy Valley Road Flintstone, Georgia 30725
Mr. Charles Helton(*)
337 South Mission Ridge Drive Rossville, Georgia 30741
Ms. Margaret Johnson (*)
3058 Chattanooga Valley Road Flintstone, Georgia 30725
Ms. Patti Keown (*)
7709 Highway 151 LaFayette, Georgia 30728
(*) Denotes Board Members Serving as of June 30, 1995

COMPENSATION

TRAVEL

$

1,700.00 $

2,053.62

1,800.00

3,358.47

800.00

259.04

1,750.00

1,725.10

850.00

2,263.85

1,450.00

286.36

$

8,350.00 $ =========9=,=9=4=6=.=4=4=

See notes to the general purpose financial statements.
- 38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Walker County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Walker County Board ofEducation as ofand for the year ended June 30, 1995, and have issued our report thereon dated July 19, 1996. 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, 1995, 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 Walker County Board ofEducation 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.

95CRL-10

The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This report is intended for the information of management, the Federal cognizant audit agency and other
Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a
matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 95CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Walker County Board ofEducation as ofand for the year ended June 30, 1995, and have issued our report thereon dated July 19, 1996. 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 Walker County Board ofEducation's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

95CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Walker County Board ofEducation had not complied, in all material respects, with those requirements. However, the results ofour procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 95CRL-50

CLAUDE L. VICKERS
STATE AUDITOR ("4) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Walker County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 19, 1996. 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 Walker County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Walker County Board ofEducation 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.

95CRL-80

Except as discussed in the following paragraph, we conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Walker 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, 1995, 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 Walker County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1995.

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

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

matter of public record.



Respectfully submitted,
~
Claude L. Vickers State Auditor

CLV:gp 95CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Walker County B_oard ofEducation as ofand for the year ended June 30, 1995, and have issued our report thereon dated July 19, 1996. 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 1995 general purpose financial statements ofthe Walker County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(I) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Walker County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp
95CRL-120

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Walker County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general pwpose financial statements of the Walker County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 19, 1996. 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, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe Walker County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation

95ICL-3

ofgeneral purpose :financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.
In planning and perfonning our audit ofthe general purpose financial statements ofthe Walker County Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose 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 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 ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions ofmanagement in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would .be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration ofthe internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed 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 Walker County Board ofEducation's financial statements and this report does not affect our report thereon dated July 19, 1996.
95ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
ff~
Claude L. Vickers State Auditor
CLV:gp 95ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Walker County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Walker County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 19, 1996. 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 Walker County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 19, 1996.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Walker County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, 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, 1995, 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 major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB
95ICL-8

Circular A-128. This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 19, 1996.

The management ofthe Walker County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with 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 ofany evaluation ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

95ICL-8

During the year ended June 30, 1995, the Walker 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 O:MB 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 ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted 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 Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Cash Management
(2) Allowable Costs/Cost Principles
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, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
Allowable Costs/Cost Principles
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Walker County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated July 19, 1996.
95ICL-8

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
CLV:gp 95ICL-8

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $129,883.01 Audit Control Number 7461-93-05

The audit report for the year ended June 30, 1993, reported that the Board had underexpenditures of Quality Basic Education (QBE) funds of $129,883.01 for the following programs:

Salaries

Operations

Total

GENERAL AND CAREER EDUCATION PROGRAMS
High School Laboratories

$74,357.28

$ 15,921.92 . $ 90,279.20

SPECIAL EDUCATION PROGRAMS Regular Programs Category V (Gifted)

34,057.69 1,416.42

34,057.69 1,416.42

REMEDIAL EDUCATION PROGRAM

4,129.70

4,129.70

$74,357.28 $55,525.73 $129 883,01

For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund these underexpenditures as required. The underexpenditures of $129,883.01 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for
the QBE programs in a subsequent fiscal period.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $27,179.69 Audit Control Number 7461-93-06

The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$27,179.69 for the StaffDevelopment - Professional Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $27,179.69 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

-1-

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Failure to Expend Local Matching Funds Federal Financial Assistance Finding Resolved Audit Control Number 7461-93-11

The audit report for the year ended June 30, 1993, stated that the Board received a grant award for Juvenile Justice and Delinquency Prevention (CFDA 16.540) through the Office of the Governor. The special terms and conditions ofthe grant agreement signed by the Board to receive this funding required the Board to match a portion of the total approved budget. Accounting records did not support the expenditure of required matching funds in the amount of $2,500.00. In the year under review, the required matching funds were not expended nor were grant funds returned. The Office of the Governor - Children and Youth Coordinating Council, in a letter dated June 6, 1996, waived this matching requirement for the Walker County Board of Education's 1992 Grant.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $64,744.23 Audit Control Number 7461-94-01

The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$64,744.23 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$64,744.23 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

AUDIT FOLLOW-UP/RESOLUTION

Failure to Submit Corrective Action Plan

Federal Financial Assistance



Finding Resolved

Audit Control Number 7461-94-02

The audit report for the year ended June 30, 1994, reported that the Board failed to submit a copy of the 1993 Corrective Action Plan to the Office of the Governor and Coosa Valley Regional Development Center from whom the Board received Juvenile Justice and Delinquency Prevention Grant (CFDA 16.540) and Job Training Partnership Act (CFDA 17.250) funds, respectively. During the year under review, the Board submitted a copy of the 1994 Corrective Action Plan to all Federal grantor agencies in accordance with distribution requirements.

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WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7461-93-02
The audit report for the year ended June 30, 1994, noted that the management ofthe Walker County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7461-93-03
The audit report for the year ended June 30, 1994, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 2 Block Grant - Flow Through Program (CFDA 84.151) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures again revealed excessive cash balance accumulations by the Board. During fiscal year 1995, the program had an average cash balance of $4,758.35 with excessive ending monthly cash balances in four (4) months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Board.
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WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7461-93-04
The audit report for the year ended June 30, 1994, stated that a review of cash management procedures for the Individuals with Disabilities Education Act - Title VI, B - Preschool Program (CFDA 84.173) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests of cash management procedures again revealed excessive cash balance accumulations by the Board. During fiscal year 1995, the program had excessive ending monthly cash balances in six (6) months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Minimum Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $14,953.79 Audit Control Number 7461-95-01
For the year under review, the Board had underexpenditures of Quality Basic Education (QBE) funds of $14,953.79 for the Operation's portion of the Thirteen Weighted Programs. QBE regulations require that Operational Cost (expenditures) for all Thirteen Weighted Programs equal or exceed 100% of the original allotment for Operational Cost plus 100% of the mid-term allotment allocated to operational cost for the Thirteen Weighted Programs. This underexpenditure occurred because management expended less than the minimum expenditure requirements for operations ofthe QBE programs. Theunderexpenditure of $14,953.79 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
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WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Minimum Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $761.11 Audit Control Number 7461-95-02
For the year under review, the Walker County Board of Education reported to the Georgia Department of Education on DE form 0420 an underexpenditure of Quality Basic Education (QBE) funds of $761.11 for the StaffDevelopment Programs. This underexpenditure occurred because the Board expended less than the minimum expenditure requirement for this QBE Program. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $7,338.82 Audit Control Number 7461-95-03
A review of salaries and benefits charged to the Elementary and Secondary Education Act - Chapter 1, Education ofDeprived Children Program (CFDA 84.010) revealed that salary and benefit expenditures in the amount of $7,338.82 for one employee were not supported by time and attendance records as required by Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). This condition occurred because management based the 1995 charges on the employee's 1994 time activity records. Appropriate internal controls should be established by the Board to ensure that all salary and benefit charges for employees involved in split-funded projects be supported by current personnel activity reports or equivalent documentation. The Georgia Department ofEducation should review this matter to determine if a reclaim of funds is appropriate.
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SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

WALKER COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Acc.ount Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7461-93-02
Due to funding limitations and current inadequate accounting staff to maintain system-wide fixed assets, this finding cannot be resolved at this time.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7461-93-03
Resolution of finding to be completed with procedures designed to eliminate excessive cash draws. Instructions to Federal programs accountant.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7461-93-04
Resolution of.finding same as audit control number 7461-93-03.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Minimum Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $14,953.79 Audit Control Number 7461-95-01
Due to internal accounting procedures, the underexpenditure resulted in posting of QBE operations funds as a 11reduction11 of school operations expenditures. This reduction of expenditures occurred when schools were notified of over - budget of expenditures by the Superintendent. The 11revenue11 sent back by the schools should have been posted as 11 199511 revenue - not as reductions of QBE expenditures.
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WALKER COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Minimum Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $761.11 Audit Control Number 7461-95-02 We concur with this finding. ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $7,338.82 Audit Control Number 7461-95-03 We concur with this finding.
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