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AUDIT REPORT WALKER COUNTY BOARD OF EDUCAnON
LAFAYETTE, GEORGIA YEAR ENDED JUNE 30, 1996

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

WALKER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXlllBITS

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

4

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

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

I

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

28

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

29

2 CASH AND CASH EQUIVALENTS

31

3 ACCOUNTS RECEIVABLE

32

SCHEDULE OF REVENUE

4

STATE

33

5

TAXES AND OTHER

35

WALKER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

37

7

LOTTERY PROGRAMS

38

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

41

9

BY PROGRAM

42

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

44

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

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

WALKER COUNTY BOARD OF EDUCAnON - TABLE OF CONTENTS -
SEcnONIV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 27, 1997

Honorable Zell Miller, Governor Members ofthe 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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on 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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
96ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the mdividual schools are not included in the general purpose
fmancial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department of Education for the State's share ofthese 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, 1995, were improperly recorded in the year ended June 30,1996. 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 of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material,respects, the financial position of the Walker County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated June 27, 1997, on our consideration of the Board's internal control structure and a report dated June 27, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Walker County Board of Education taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are mesented for purposes ofadditional analysis and are not a required part ofthe general purpose fmancial statements of the Walker County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
96ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:cm 96ARL-13

Claude L. Vickers State Auditor

WALKER COUNTY BOARD OF EDUCATION - 1-

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

WALKER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30.1996

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 2,598,430.13 $ 421,156.32 $ 3,272,905.04

81,010.06

452,913.04

288.090.81

71.558.29 27,753.31

$ 2,967,531.00 $ 973,380.96 $ 3,272,905.04

Total Liabilities and Fund Equity

$ 2,967,531.00 $ 973,380.96 $ 3,272,905.04

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

EXHIBIT"A"

FIDUCIARY FUND TYPE AGENCY FUNDS

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

$

4,564.10 $ 6,297,055.59 $ 4,312,150.75

533,923.10

534,974.05

71,558.29 27,753.31 288,090.81

66,531.12 27,103.73 170,129.00

$

4,564.10 $ 7,218,381.10 $ 5,110,888.65

$ 113,293.07 $

195,959.84

339,832.53

282,329.11

28,702.81

56,961.91

$

4,564.10

4,564.10

4,564.10

$

4,564.10 $ 486,392.51 $

539,814.96

$

83,471.87 $

145,855.08

5,049.72

3,301.90

80,459.13

237,521.83

13,423.74

4,588.69

71,558.29 27,753.31 288,090.81 2,548,992.46
$ 3,118,799.33 $
3,613,189.26
$ 6,731,988.59 $

66,531.12 27,103.73 170,129.00 1,051,060.94
1,706,092.29
2,864,981.40
4,571,073.69

$

4,564.10 $ 7,218,381.10 $ 5,110,888.65

-3-

WALKER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

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

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 27,760,755,26 $ 1,095,610,22 $

124,678.43

3,252,151,75

11,427,996.15

1,072,120.87

221 ,482.96 $ 397,253.26

29,077,848.44 $ 3,376,830.18
12,897,370.28

28,181,819,77 3,328,336.03
13,475,773,45

Total Revenues

$ 39,313,429.84 $ 5,419,882.84 $ 618,736.22 $ 45,352,048.90 $ 44,985,929.25

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

$ 24,501,522.70 $ 2,165,659,43

1,465,042.43 1,049,724,36 1;055,431.99
275,271.06 2,745,318.46
234,822.23 3,224,061,37 1,956,995.97
275,688.18 85,912.05
208,982.80

160,953.34 52,889.20
139,300.87
45,631.50 26,797.96
66,278.53 2,767,857.02
$

$ 26,667,182.13 $ 24,754,326,62

810,631.11

1,625,995.77 1,102,613.56 1,055,431.99
414,571.93 2,745,318.46
234,822.23 3,269,692.87 1,983,793.93
275,688.18 152,190.58 2,767,857.02 208,982.80 810,631,11

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 2,687,072.55 165,333,30 1,209,496.55

Total Expenditures

$ 37,078,773.60 $ 5,425,367.85 $ 810,631.11 $ 43,314,772.56 $ 41,765,551.44

Excess of Revenues over (under) Expenditures

$ 2,234,656.24 $

-5,485.01 $ -191,894.89 $ 2.037,276.34 $ 3,220,377.81

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ $ -2,052,517.84

13,789.49 $ 2,038,728.35 $ 2,052,517,84 $ 2,179,410.60

-2,052,517.84

-2,179,410.60

Total Other Financing Sources (Uses)

$ -2,052,517.84 $

13,789.49 $ 2,038,728.35 $

0.00 $

0.00

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

182,138.40 $

8,304.48 $ 1,846,833.46 $ 2,037,276.34 $ 3,220,377.81

FUND BALANCE JULY 1

2,633,545.51

511,456.60

1,426,071.58

4,571,073.69

1,383,329.59

Inventory - Net Change in Period Donated Commodities Purchased Food Supply

117,961,81

5,027,17 649.58

5,027.17 649.58
117,961.81

5,799.07 -784.98
-37,647.80

FUND BALANCE JUNE 30

$ 2,933,645.72 $ 525,437.83 $ 3,272,905.04 $ 6,731,988.59 $ 4,571,073.69

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

WALKER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 3D, 1996

EXHIBIT"C"

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

WALKER COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Walker County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception 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 governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Walker County Board of Education.
Based upon the application of the above criteria, the Walker County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial 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 EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the 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 educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 fmancial 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 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.
-7-

WALKER COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ifthey 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 of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. 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.
BUDGET
The Walker County Board of Education'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 of budget 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.
-8-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This fmal budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board 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" of this report:

General Fund

Special Revenue
Fund

FUND BALANCE JULY 1, 1995

$ 2,633,545.51 $ 511,456.60

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

-170,129.00

-66,531.12 -27,103.73

Fund Balance July 1, 1995 (Budget Basis)

$ 2,463,416.51 $ 417,821.75

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

182,138.40

8,304.48

FUND BALANCE JUNE 30,1996 (Budget Basis)

$ 2,645,554.91 $ 426,126.23

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 of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

-9-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant reimbursements due from 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 of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on October 20, 1995 (levy date). Taxes were due on December 20, 1995 (due date). The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.l03. 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 1995 tax year (calendar year) for the Walker County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

17.24 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food 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.

SUPPLY INVENTORIES Supply inventories are valued at cost (first - in, first - out) on the Combined Balance Sheet. 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.

- 10-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose fmancial 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.
FUND BALANCES Reserve for Local Funds - This reserve constitutes the balance of local donations attributable to the Special Revenue Funds - ESEA - Title I - Migrant Education and Safe and Drug-Free Schools programs.
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.
Note 2: DEPOSITS
COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond

- 11 -

WALKER COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 2: DEPOSITS

and the market value of securities shall be equal to not less than 110 percent ofthe public fimds being secured after the deduction of the amount of deposit insurance; OCGA Section 45-8-11 provides an officer holding public fimds may, in his discretion, waive the requirement for security in the case of operating fimds placed in demand deposit checking accounts.

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

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

the State of Georgia,

.

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

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

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

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $9,700,294.23. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

- 12 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

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

Risk Category

Bank Balance

1

$ 400,000.00

2

0.00

3

9,300,294.23

Total

$ 9,700,294.23

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

On January 2, 1996 the Walker County Board of Education entered into a contract with the City of Lafayette for the exchange ofreal estate, owned by the Board with a stated value of $434,700.00, for goods and services to be provided by the City of Lafayette, which are required for the construction of the new Lafayette High School.

On December 11, 1995, the Walker County Board of Education entered into a contract with Mr. Don Rogers for the exchange of real estate in order for the Board to acquire property adjacent to Chattanooga Valley Middle School.

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with torts and assets. 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.

For the current fiscal year, due to the costs of available coverage, the Board significantly reduced coverage for errors or omissions.

- 13 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

The Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

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

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$

0.00 $

23,882.84 $

23,882.84 $

0.00

$

0.00 $

3,537.70 $

3,537.70 $

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 of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Company to provide coverage for potential losses sustained by the Trust in excess of$250,000.00 loss per occurrence, up to $1,000,000.00.

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$816,159.90 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$681,838.39

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$14,144.51

- 14-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $120,177.00

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

746-001 96/96S-746-046

$11,929,006.07 $ 5,576,208.85 146,377.80 1,993,382.00

$12,075,383.87 $ 7,569,590.85

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

Note 7: CONTINGENT LIABILITIES

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

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

Note 8: SUBSEQUENT EVENTS

On March 18, 1997, the voters of Walker County voted in favor of a Special Purpose Local Option Sales Tax Referendum for education purposes. The imposition of the tax by the voters, as stated on the Official Ballot Walker County, is as follows:

- 15 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 8: SUBSEQUENT EVENTS
"Shall a one percent sales and use tax be imposed in Walker County for a period of time not to exceed twenty calendar quarters and for the raising of not more than $25,272,426 ... for the purposes ofmaking system-wide technology improvements, completing construction ofLafayette High School, construction ofa new elementary school on Johnson Road, a new North Lafayette Elementary School, and a new Rock Spring Elementary School, and adding to, modifying and/or renovating Chattanooga Valley Elementary School, Happy Valley Elementary School, Fairyland Elementary School, Rossville Elementary School, Lafayette Middle School, Rossville Middle School, Chattanooga Valley Middle School, and Ridgeland High School?
If imposition of the tax is approved by the voters, such vote shall also constitute approval of (i) the issuance of general obligation debt of the Walker County School District in the principal amount of $16,000,000 for the purpose of fmancing the costs of the capital outlay projects of the Walker County School District described above."
Note 9: ACCUMULATED EMPLOYEES' LEAVE
Twelve month employees earn annual leave at the rate often days per year. Employee leave policies of the Walker County Board of Education provide for payments to employees for a maximum often (l0) days leave at retirement or termination of employment at their current rate ofpay. See Note 1 - Compensated Absences
Note 10: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years ofservice and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 16-

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 10: RETIREMENT PLANS
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $23,661,478.10; total payroll was $27,277,742.10.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the 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 of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $3,977,495.06, of which $2,794,419.05 was made by the Board and $1,183,076.01 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

- 17 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 10: RETIREMENT PLANS

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585.541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $2,794,419.05 was actuarially determined and represented .4602% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number of years of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.

- 18 -

WALKER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Norel0: RETIREMENTPLANS
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 275 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees of the Board made during fiscal year 1996 amounted to $9,312.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 11: 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, 1996.

- 19-

WALKER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1996

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

GRANTS TO LOCAL
EDUCATIONAL AGENCIES

ELEMENTARY TITLE I STATE SCHOOL
IMPROVEMENT GRANTS

$ 585,060.63

$

236.83 $

32,188.95

18,932.41 $ 269,549.31

130,879.00 $

7,386.30

71,558.29 27,753.31

Total Assets

$ 703,304.64 $ 269,549.31 $

236.83 $ 163,067.95 $

7,;,.:, ; ,;38;,; 6;,;,; .3;,; .0

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

$ $ 44,979.74
151,360.53

230,486.70 9,482.90
28,347.62 1,232.09 $

$ 196,340.27 $ 269,549.31 $

$ 236.83 236.83 $

$ 34,662.97 124,345.22
4,059.76
163,067.95 $

7,386.30 7,386.30

$ 71,558.29 27,753.31

$ 99,311.60

407,652.77 $

0.00 $

0.00 $

0.00 $

0.00

$ 506,964.37 $

0.00 $

0.00 $

0.00 $

0.00

Total Liabilities and Fund Equity

$ 703,304.64 $ 269,549.31 $

236.83 $ 163,067.95 $

7,386.30

See notes to the general purpose financial statements.

- 20-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE VI

TITLE II

INNOVATIVE

EISENHOWER EDUCATION

MIGRANT PROFESSIONAL PROGRAM

EDUCATION DEVELOPMENT STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

TOTALS JUNE 30,1996 JUNE 30, 1995

$

8,344.54$

5,049.72 $

250.00 $ 16,700.88 $

6,274.23 $

4,923.54 $ 659,029.32 $ 637,685.50

2,793.52

20,138.50

3,234.00

452,913.04

325,216.58

71,558.29 27,753.31

66,531.12 27,103.73

$ 11,138.06 $

5,049.72 $

250.00 $ 36,839.38 $

6,274.23 $

8,157.54 $ 1,211,253.96 $ 1,056,536.93

$

723.14

1,914.92

$

2,638.06

$

9,477.14 $

27,362.24

$

250.00

$

250.00 $ 36,839.38 $

1,358.16 $ 3,496.66 1,419.41
6,274.23 $

$ 228.46 3,005.34
3,233.80 $

237,873.00 $ 100,912.51 339,832.53
7,198.09
685,816.13 $

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

$

$

8,500.00

$

8,500.00 $

0.00

$

8,500.00 $

$ 11,138.06 $

5,049.72

5,049.72 0.00 $
5,049.72 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$

$

4,923.74

5,049.72 $ 13,423.74

3,301.90 4,588.69

$ 0.00 0.00 $

4,923.74 $ 0.00
4,923.74 $

71,558.29 27,753.31
117,785.06 $ 407,652.77
525,437.83 $

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

5,049.72 $

250.00 $ 36,839.38 $

6,274.23 $

8,157.54 $ 1,211,253.96 $ 1,056,536.93

- 21 -

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

GRANTS TO LOCAL
EDUCATIONAL AGENCIES

ELEMENTARY TITLE I STATE SCHOOL
IMPROVEMENT GRANTS

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 209,402.00 $ 1,493,438.76 1,062,737.87

786,748.05 $

99,460.17 $ 1,185,819.24 $

31,386.30

Total Revenues

$ 2,765,578.63 $ 786,748.05 $

99,460.17 $ 1,185,819.24 $

31,386.30

EXPENDITURES

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

$ 702,334.65 $

34,620.21 1,073.20

$ 2,767,857.02

5,449.74 44,116.56
9,250.77 3,692.41

99,460.17 $ 1,003,840.41 $
183.01 10,723.21
107,883.82
602.67 62,586.12

16,751.24 14,635.06

Total Expenditures

$ 2,767,857.02 $ 800,537.54 $

99,460.17 $ 1,185,819.24 $

31,386.30

Excess of Revenues over (under) Expenditures

$

-2,278.39 $ -13,789.49 $

0.00 $

0.00 $

0.00

OTHER FINANCING SOURCES

Operating Transfers In

13,789.49

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-2,278.39 $

0.00 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1

503,566.01

0.00

0.00

0.00

0.00

Food Inventory - Net Change in Period Donated Commodities Purchased Food

5,027.17 649.58

FUND BALANCE JUNE 30

$ 506,964.37 $

0.00 $

0.00 $

0.00 $_~_....-O,;,;;'O.O..

See notes to the general purpose financial statements.

- 22-

EXHIBIT"F"

AND SECONDARY EDUCATION ACT

MIGRANT EDUCATION

TITLE II EISENHOWER PROFESSIONAL DEVELOPMENT

TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

TOTALS YEAR ENDED JUNE 30. 1996 JUNE 30. 1995

$ 16,164.36 $ 8.500.00

72.124.00 $

$ 24.664.36 $ _ _.-:..:72::.!,..1.:..:2:....:.4.:..:.0.;:..0 $

48.773.00 $ 313.138.50 $ 48,773.00 $ 313.138.50 $

54.580.59 $

$ 1,095,610.22 $ 36,727.00 3.252.151.75
883.00 1,072.120.87

1.835,080.35 3.195,583.93 1,097,495.69

54.580.59 $ 37,610.00 $ 5,419,882.84 $ 6,128,159.97

$ 16,164.36 $
$ 16,164.36 $ $ 8.500.00 $

48,533.00 $
21,780.28 62.90

48.773.00 $ 166,791.32 $
100,414.67 2,548.28
25,007.74 1,431.97
16,944.52

70,376.18 $ 1,747.82 $

48,773.00 $ 313,138.50 $

0.00 $

0.00 $

28,055.11 $ 25,735.45
12.00 695.06
82.97
54,580.59 $ 0.00 $

34,956.17 $ 2,165,659.43 $ 2,029,042.02

2,117.17 201.61

160,953.34 52,889.20
139,300.87 45.631.50 26,797.96 66,278.53
2,767,857.02

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

37.274.95 $ 5,425.367.85 $ 6.086,408.36

335.05 $

-5,485.01 $

41.751.61

$ 8,500.00 $ 0.00

1,747.82 $ 3,301.90

0.00 $ 0.00

0.00 $ 0.00

13,789.49

11,124.48

0.00 $ 0.00

335.05 $ 4,588.69

8.304.48 $ 511,456.60

52.876.09 453.566.42

5.027.17 649.58

5.799.07 -784.98

$ 8.500.00 $

5.049.72 $

0.00 $

0.00 $

...0....0...0.. $ 4,923.74 $ 525,437.83 $ 511,456.60

- 23-

WALKER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1996

ASSETS Cash and Cash Equivalents

REGULAR $ 723,912.58 $

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

746-001

96/96S-746-045

96/96S-746-046

2,271,442.46 $

167,033.00 $===1==10=,5=1==7=.0.0...

FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ $ 723,912.58

2,271,442.46 $ 0.00

167,033.00 $ 0.00

110,517.00 0.00

Total Fund Equity

$ 723,912.58 $ 2,271,442.46 $

167,033.00 $===1==10=,5=1==7=,0.0...

See notes to the general purpose financial statements.

- 24-

EXHIBIT"G"

TOTALS JUNE 30,1996 JUNE 30,1995
$ 3,272,905.04 $ 1,426,071.58

$ 2,548,992.46 $ 1,051,060.94

723,912.58

375,010.64

$ 3,272,905.04 $ 1,426,071.58

- 25-

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

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

746-001

96/96S-746-045

96/96S-746-046

REVENUES

State Funds Taxes and Other Funds

$ $ 212,827,69

221,482,96 $ 184,425,57

0,00 $

0.00

Total Revenues

$ 212,827,69 $

405,908.53 $

0.00 $

0.00

EXPENDITURES

Capital Outlay Land and Land Improvements BUilding and Building Improvements

$

850.00 $

225,748.89 $

149,920.50 $

0,00

6,490.00

427,621.72

Total Expenditures

$

7,340.00 $

653,370.61 $

149,920.50 $

0.00

Excess of Revenues over (under) Expenditures

$ 205,487.69 $

-247,462.08 $

-149,920.50 $

0.00

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 143,414.25 $ 1,467,843,60 $

316,953.50 $

110,517.00

Total Other Financing Sources (Uses)

$ 143,414.25 $ 1,467,843.60 $

316,953.50 $

110,517.00

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ 348,901.94 $

1,220,381.52 $

167,033.00 $

110,517,00

FUND BALANCE JULY 1

375,010.64

1,051,060.94

0.00

0.00

FUND BALANCE JUNE 30

$ 723,912.58 $ 2,271,442.46 $

167,033.00 $ ======11~0,5;,,;1=7.=0~0

See notes to the general purpose financial statements.

- 26-

EXHIBIT"H"

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30,1995

$

221,482.96 $

89,166.19

397,253.26

376,305.82

$

618,736.22 $ _ _4.:..::6.=..!5,....:.;47~2"-=.0:.:..1

$

376,519.39 $

442,602.21

434,111.72

765,084.34

$

810,631.11 $ 1,207,686.55

$

-191,894.89 $

-742,214.54

$ 2,038,728.35 $ 2,211,632.90 -43,346.78
$ 2,038,728.35 $ 2,168,286.12

$ 1,846,833.46 $ 1,426,071.58

1,426,071.58

0.00

$ 3,272,905.04 $ 1,426,071.58

- 27-

WALKER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30,1996

EXHIBIT "I"

LIABILITIES Funds Held for Others

$

150,00 $

300.00 $

300.00 $===1=5=0.=0",=0

HUGH CAMPBELL MEMORIAL FUND
ASSETS Cash and Cash Equivalents

$

150.00 $

0,00 $

0.00 $ ===1=5=0=.0",=0

LIABILITIES Funds Held for Others

$

150,00 $

0,00 $

0,00 $===1=5=0=.0",=0

SCHOLARSHIP FUND
ASSETS Cash and Cash Equivalents

$

4,264.10 $

5,000.00 $

5,000.00 $ ===4=,2=6=4.=1",=0

LIABILITIES Funds Held for Others

$

4,264.10 $

5,000.00 $

5,000.00 $ ===4,.;;,2;,;;6=4.=1=0

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

4,564.10 $

5,300.00 $

5,300.00 $===4,=,5=6=4=.1",=0

LIABILITIES Funds Held for Others

$

4,564.10 $

5,300.00 $

5,300.00 $ ===4;,;,;,5;,;;6=4,;";,.1,,,=0

See notes to the general purpose financial statements.

- 28-

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U, S, Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Grant Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1) Through Office of Treasury and Fiscal Services National Forest Reserve Funds

10.558 $

3,777.98

(2)

10.553
* 10.555 10.550
10,665

280,618,86
981,677.63 $ 227,364.29
8,923.32

(2)
2,540,492,73 (3) 227,364.29
(5)

Total U. S. Department of Agriculture

$ 1,502,362.08 $ 2,767,857.02

Education, U. S, Department of

Through Georgia Department of Education

Elementary and Secondary Education Act

Title I

Grants to Local Educational Agencies

1995 Regular

* 84.010 $

-7,338,82

1996 Grant

* 84.010

1,185,819.24 $

State School Improvement Grants

1996 Grant

84.218

31,386.30

Title II

Eisenhower Professional Development

1995 Regular

84,281

1996 Grant

84.281

23,624.00

1996 D and E Grant

84.281

48,500.00

Title VI

Innovative Education Program Strategies

1996 Grant

84.298

48,773.00

Individuals with Disabilities Education Act

Part B - Special Education

Flow Through

1996 Grant

* 84,027

313,138.50

Preschool

1996 Grant

84.173

54,580.59

Safe and Drug-Free Schools

1996 Grant

84.186

36,727,00

Goals 2000

State and Local Education Systemic Improvement Grants

1996 Grant

84,276

2,000.00

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1996 Grant

84.048

75,377.00

Tech-Prep Education

1996 Grant

84.243

7,124.00

1,185,819.24 31,386.30
3,301.90 18,574.28 48,500.00
48,773.00
313,138.50 54,580.59 36,727.00
2,000.00
75,377,00 7,124.00

- 29 -

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30.1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1996 Grant
Total U. S. Department of Education
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Air Force R.OTC. Program

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.011 $

16,164.36 $

$ 1,835,875.17 $

16,164.36 1,841,466.17

$

38,592.93

(4)

Total Federal Financial Assistance

$ 3,376,830.18 $ 4,609,323.19

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 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

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

WALKER COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30.1996

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. 19501 (5.15%) No. 19577 (5.30%) No. 19588 (5.30%) No. 19589 (5.25%) No. 19590 (5.15%)
OTHER
Petty Cash

$ -814,936.11
66,584.56 $ -748,351.55

$ 1,045,377.14

750,000.00 750,000.00 3,000,000.00 750,000.00 750,000.00

7,045,377.14

30.00 $ 6,297,055.59

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

WALKER COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Other State Program Apprenticeship Program Lottery Programs Distant Learning Instructional Technology Technology Installation Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies State School Improvement Grants Individuals with Disabilities Education Act Part B - Special Education Flow Through Safe and Drug-Free Schools Contract Implementation of Department's Elementary School Foreign Languages Model Program in Chattanooga Valley and Fairyland Elementary School
Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Northwest Georgia Region One Mental Health Reimbursement for Salaries and Employee Benefits
Northwest Georgia Services, Incorporated Reimbursements For Custodial Services For Utilities
Office of School Readiness Pre-Kindergarten Program
Various Schools Reimbursement for Salaries and Employee Benefits

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

7,607.57 $ 7,607.57

11,324.84

11,324.84

$

12,123.00

12,123.00

17,306.10

17,306.10

18,406.10 13,098.41
254.66

18,406.10 13,098.41
254.66

130,879.00 7,386.30

130,879.00 7,386.30

20,138.50 3,234.00

20,138.50 3,234.00

13,261.11

13,261.11

10,181.00

2,793.52

2,793.52

10,181.00

4,000.61 1,319.85
22,818.39

4,000.61 1,319.85
237,790.14 237,790.14
22,818.39

$

See notes to the general purpose financial statements.

- 32 -

81,010.06 $ 452,913.04 $ 533,923.10

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1996

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 Program Special Instructional Assistance In-School Suspension 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 Family Connection Health Insurance Governor's Emergency Funds (1) Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers'Retirement Technology Grant Lottery Programs Alternative School Program Instructional Technology Pre-Kindergarten Program Safe SC"'lols ("nt Technc JY Insaliation
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
1ffice of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 16,458,716.00 2,737,094.00 276,230.00 699,890.00 222,940.00 4,450,370.00
912,896.00 249,495.00 605,357.00 1,063,126.00 188,878.00
48,414.00 -3,336,901.00 1,837,907.00
$ 52,731.80
124,200.00 80,000.00 36,163.29 -124.19
681,838.39 2,000.00 2,628.51 18,135.00
10,201.00 14,144.51 103,060.00

209,402.00
99,460.17
44,406.52 247,880.39
37,306.00 40,348.00 160,000.00

$ 16,458,716.00 2,737,094.00 276,230.00 699,890.00 222,940.00 4,450,370.00
912,896.00 249,495.00 605,357.00 1,063,126.00 188,878.00 48,414.00 -3,336,901.00 1,837,907.00 209,402.00
52,731.80
124,200.00 80,000.00 36,163.29
-124.19 681,838.39
2,000.00 2,628.51 18,135.00 99,460.17 10,201.00 14,144.51 103,060.00
44,406.52 247,880.39
37,306.00 40,348.00 160,000.00

120,177.00

$ 221,482.96 256,807.14

221,482.96 256,807.14 120,177.00

- 33 -

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

CONTRACTS

Education, Georgia Department of

Implementation of Department's Elementary

School Foreign Languages Model Program

in Chattanooga Valley and Fairyland

Elementary School

$

99,060,00

$

Implementation of school-based leadership

development activities in those schools

represented in the 1994-1995 Governor's

School Leadership Institute (GSLI),

2,000,00

OTHER Education, Georgia Department of Reimbursement for Workshops

127,95

TOTAL
99,060,00 2,000.00 127.95

$ 27,760,755,26 $ 1,095,610,22 $ 221,482.96 $ 29,077,848,44 (1) Fairyland Elementary School 1996 Georgia School of Excellence

See notes to the general purpose financial statements,

- 34 -

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30.1996

SCHEDULE "5"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

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

$ 10,965,578.96 13,027.63 37,645.86

$ 10,965,578.96 13,027.63 37,645.86

Other Sources Donations Service Corps of Retired Executives Other Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Reimbursements Recreational Facilities Walker County Commissioner of Roads and Revenue Salaries and Employee Benefits Family Resource Agency Northwest Georgia Region One Mental Health Walker County Education Federal Credit Union Various Schools Revenue in Lieu of Taxes Tennessee Valley Authority Sales Adult Meals Contracted Meals Lunch and Breakfast Supplemental School Assets Tuition other

$
19,634.08 16,321.81
2,275.49 575.62

8,500.00 883.00 $

503.00

16,090.46 118.04

212,827.69

8,500.00 1,386.00
19,634.08 245,239.96
2,393.53 575.62

16,002.44 10,181.00 38,616.24 96,577.28 166,557.11
14,837.50 21,710.34
8,454.79

183,922.57
131,180.85 38,622.20
791,627.80 85,098.52

183,922.57
16,002.44 10,181.00 38,616.24 96,577.28
166,557.11
131,180.85 38,622.20
791,627.80 85,098.52 14,837.50 21,710.34 8,454.79

$ 11,427,996.15 $ 1,072,120.87 $ 397,253.26 $ 12,897,370.28

See notes to the general purpose financial statements.

- 35 -

THIS PAGE LEFT BLAHK

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 1996

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 Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 24,884,222.18 $ 2,393,519.92 $ 27,277,742.10

7,934,335.46

696,198.20

8,630,533.66

112,045.12

41,200.23

153,245.35

415,400.37

151,447.41

566,847.78

15,367.32

15,367.32

127,222.37

5,858.83

133,081.20

226,500.60

34,509.22

261,009.82

54,733.67

2,637.00

57,370.67

179,185.00

179,185.00

108,806.62

8,134.05

116,940.67

12,798.37

12,798.37

21,595.00

21,595.00

82,695.73

23,973.47

106,669.20

1,100,999.22

304,390.34

1,405,389.56

892,495.63

3,252.26

895,747.89

1,200,532.21

1,200,532.21

339,893.94

26,081.74

365,975.68

71,219.82

15,920.85

87,140.67

3,153.22

3,153.22

19,634.08

19,634.08

26,004.83

8,741.34

34,746.17

482,897.50

476,538.33

959,435.83

$ 37,078,773.60 $ 5,425,367.85 $ 42,504,141.45

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

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1996

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Repair and Maintenance Services Communications Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALTERNATIVE SCHOOL PROGRAM

INSTRUCTIONAL TECHNOLOGY

$

688.40

21,314.91 $

9,000.21

35,369.72

13,403.00

212,510.67

$

44,406.52 $======2=47=,8==:8=,=0=,:.3=9

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

SCHEDULE "7"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

196,249.95

$

196,249.95

61,682.45

61,682.45

1,931.92

1,931.92

87.00

87.00

688.40

262.05

262.05

8,408.21

8,408.21

26,229.15 $

40,348.00 $

54.80

123,316.58

3,252.26

3,252.26

3,534.20

3,534.20

4,564.12

13,564.33

1,624.86

1,624.86

160,021.66

385,935.33

$

307,826.17 $

40,348.00 $ 160,076.46 $ 800,537.54

- 39 -

THIS PAGE LEFT BLAHK

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

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

$ 20,171,930.00 $ _ _-=62=2=.5:..;,.7..:;;,;6':..;..00..;...

$ 21,876,704.11 794.375.77 $
$ 22.671.079.88

6. : . ;6:. ;.7....4..4.:. . :. : .;5.:. ;. 90. ;. .

-327.854.49 $ 22.343.225.39

$

0.00 $=====0='0==0

See notes to the general purpose financial statements. - 41 -

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category III (*) Category IV (*) Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*) 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

%

ORIGINAL

MID-TERM

$ 1,792,400,00 4,343,883.00
$ 6,136,283.00 2,169,877.00 3,686,990.00 2,181,992.00 1,358,438.00 925,136.00
$ 16,458,716.00

$ 1,613,160,00 $

3,909,494.70

90 $ 5,522,654.70 $

90

1,952,889.30

90

3,318,291.00

90

1,963,792.80

90

1,222,594.20

90

832,622.40

$ 14,812,844.40 $

0.00 0.00
0.00

$ 2,337,326.00

$ 2,103,593.40 $

0.00

$ 2,337,326.00

399,768.00

$ 2,737,094.00

$

276,230.00

$ 19,472,040.00

90 $ 2,103,593.40 $

90

359,791.20

$ 2,463,384.60 $

90 $

248,607.00 $

$ 17,524,836.00 $

$

560,453.00 90 $

504,407.70 $

139,437.00 90

125,493.30

$

699,890.00

$

629,901.00 $

$ 20,171,930.00

$ 18,154,737.00 $

0.00
0.00 0.00 0.00
0.00 0.00
0.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements.

$

55,014.00

167,926.00

$

55,014.00 $

167,926.00

0.00 0.00

$

222,940.00 100 $

222,940.00 $ =======0=.0=0

- 42 -

SCHEDULE "9"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,613,160.00 $

1,895,008.65 $

53,479.88 $ 1,948,488.53

3,909,494.70

4,336,907.78

106,837.58

4,443,745.36

$ 5,522,654.70 $ 6,231,916.43 $

160,317.46 $ 6,392,233.89 $

0.00

1,952,889.30

2,626,721.36

112,807.03

2,739,528.39

0.00

3,318,291.00

4,483,311.83

84,476.27

4,567,788.10

0.00

1,963,792.80

2,066,630.33

202,012.89

2,268,643.22

0.00

1,222,594.20

1,266,977.05

24,003.33

1,290,980.38

0.00

832,622.40

929,917.81

48,711.37

978,629.18

0.00

$ 14,812,844.40 $ 17,605,474.81 $

632,328.35 $ 18,237,803.16

$ 2,103,593.40 $

2.134.77 $ 330,920.75 2,111,725.05 236.222.31

5,388.29 $ 3,967.51 15,049.14 1,286.81

7,523.06 334,888.26 2,126,774.19 237,509.12

$ 2,103,593.40 $ 2,681,002.88 $

25,691.75 $ 2,706,694.63

0.00

359,791.20

366,888.04

8,410.07

375,298.11

0.00

$ 2,463,384.60 $ 3,047,890.92 $

34,101.82 $ 3,081,992.74

$

248,607.00 $

322,523.76 $

1,015.73 $

323.539.49

0.00

$ 17,524,836.00 $ 20,975,889.49 $

667.445.90 $ 21.643,335.39

$

504,407.70 $

900,814.62

$

900,814.62

0.00

125,493.30

$

126,929.87

126,929.87

0.00

$

629,901.00 $

900.814.62 $

126,929.87 $ 1,027.744.49

$ 18,154,737.00 $ 21,876.704.11 $

794,375.77 $ 22,671,079.88 $

0.00

$

55,014.00

167,926.00

$ ====2=22=,9==4=0=.0=0

$

151.719.64 $

151,719.64

71.240.34

71,240.34

$

222,959.98 $

222,959.98 $ =====....;:,O;,;;.O~O

- 43 -

WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30,1996

SCHEDULE "10"

BOARD MEMBER ADDRESS
Mr, Renn Hise, Chairman (*) 7970 Highway 157 Rising Fawn, Georgia 30738
Mrs, Jewel Campbell (*) P, O. Box 434 LaFayette, Georgia 30728
Mr. Charles Helton (*) 337 South Mission Ridge Drive Rossville, Georgia 30741
Mrs. Margaret Johnson (*) 3058 Chattanooga Valley Road Flintstone, Georgia 30725
Mrs. Patti Keown (*) 7709 Highway 151 LaFayette, Georgia 30728
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

1,650,00 $

1,963,11

1,850,00

1,662.47

1,600.00

1,535.63

1,850.00

1,031.06

1,500,00

725.05

$

8,450.00 $ ====6~,9=1=7.=32=

See notes to the general purpose financial statements.

- 44 -

SECTIONll COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 27, 1997

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 of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Walker County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Walker County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
96CRL-10

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

CLV:cm 96CRL-IO

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 27, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Walker County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Walker County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-UplResolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-50

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

CLV:cm 96CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 27, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Walker County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Walker County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Walker County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

96CRL-80

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

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 27,1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Walker County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1996 general purpose financial statements ofthe Walker County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Walker County Board of Education had not complied, in all material respects, with those requirements.

96CRL-120

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

CLV:cm 96CRL-120

Claude L. Vickers State Auditor

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 27, 1997

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 of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose fmancial statements ofthe Walker County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management of the Walker County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that
96ICL-3

procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit ofthe general purpose fmancial statements ofthe Walker County Board ofEducation for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report fmancial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule of Findings 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 of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable 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 of Education's financial statements and this report does not affect our report thereon dated June 27, 1997.
96ICL-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,

CLV:cm 96ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
June 27, 1997

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 of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Walker County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Walker County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 27, 1997.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Walker County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal fmancial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and
96ICL-7

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 June 27, 1997.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit-Follow-UplResolution (8) Administrative Requirements

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

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

During the year ended June 30,1996, the Walker County Board of Education expended 74% of its total Federal financial assistance under major Federal financial assistance programs.

96ICL-7

We perfonned tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal fmancial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted 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) Allowable Costs/Cost Principles
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in detennining the nature, timing, and extent of the procedures to be perfonned in our audit of the Walker County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated June 27, 1997.
96ICL-7

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

CLV:cm 96ICL-7

Claude L. Vickers State Auditor

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, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Audit Control Number 7461-93-03 Finding Deleted
The audit report for the year ended June 30, 1995, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 2 Block Grant - Flow Through (CFDA 84.151) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures 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, no funds were received for this program.
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 7461-93-04
The audit report for the year ended June 30, 1995, stated that a review of cash management procedures for the Individuals with Disabilities Education Act - Part B - Special Education - Preschool (CFDA 84.173) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures 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 revealed no excessive cash balance accumulations by the Bo? 1
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7461-93-05
The audit report for the year ended June 30, 1993, disclosed that the General and Career Education, Special Education and Remedial Education Programs had underexpenditures of Quality Basic Education (QBE) funds totaling $129,883.01 for the required minimum allotments. In the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund these underexpenditures as required.
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WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7461-93-06
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$27,179.69 for the Staff Development - Professional Development Program. In the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required.
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 Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $64,744.23 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: $14,953.79 Audit Control Number 7461-95-01
The audit report for the year ended June 30, 1995, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$14,953.79 for the Operation's portion of the Thirteen Weighted Programs. 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$14,953.79 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.
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WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $761.11 Audit Control Number 7461-95-02
The audit report for the year ended June 30, 1995, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$761.11 for the Staff Development Programs. 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 $761.11 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 Time and Attendance Records Not Utilized Federal Financial Assistance Finding Resolved Audit Control Number 7461-95-03
The audit report for the year ended June 30, 1995, stated that a review of salary and benefits charged to the Elementary and Secondary Education Act - Title I, Grants to Local Educational Agencies program (CFDA 84.010) revealed that expenditures of $7,338.82 were not supported by time and attendance records as required by Chapter 41 ofthe Financial Management for Georgia Local Units of Administration (FMGLUA). During the year under review, the Board instituted internal control procedures to ensure that time and attendance reports are maintained for each employee as required by FMGLUA. A refund of $7,338.82 was made to the Georgia Department of Education in the subsequent fiscal period.
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, 1995, noted that the management ofthe Walker County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board
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WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30,1996
PIDORYE~CURRENTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7461-93-02
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.
CURRENT YEAR
CIVIL IDGHTS Failure to Appoint a Civil Rights Compliance Officer Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7461-96-01
As of June 30, 1996, the Board had not appointed a new civil rights compliance officer to fill the position created by the retirement of the previous officer. Appropriate action should be taken by the Board to designate an individual to oversee the Board's civil rights policy as required by 34 CFR 104.7 and 106.8.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 7461-96-02
A review of cash management procedures for the Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies program (CFDA 84.010) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirements for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1996, the program had excessive ending monthly cash balances in five 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.
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WALKER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR
ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $4,607.94 Audit Control Number 7461-96-03
A review of salaries and benefits charged to the Elementary and Secondary Education Act - Title I, Grants to Local Educational Agencies program (CFDA 84.010) revealed that salary and benefit expenditures in the amount of $4,607.94 for one administrative staffwas based on budgeted amounts rather than actual time and attendance records as required by Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). This condition occurred because of the Board's failure to utilize time and attendance records maintained by the administrative staff. Appropriate internal controls should be established by the Board to ensure that all salary and benefit charges for employees involved in split - funded projects are based on actual hours worked. The Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7461-96-04
Property management records maintained by the Board for the Elementary and Secondary Education Act Title I - Grants to Local Education Agencies program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). A sample of the inventory records as presented for audit contained items which could not subsequently be located. This condition occurred because management did not review and reconcile property records on an annual basis as required. An inventory system should be implemented that provides for the identification of all equipment as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.
Note: The Walker County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
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