Audit report, Ware County Board of Education, Waycross, Georgia, year ended June 30, 1996

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AUDIT REPORT WARE COUNTY BOARD OF EDUCAnON
WAYCROSS, GEORGIA YEAR ENDED JUNE 30, 1996

STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA. GEORGIA 30334

WARE 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

EXIDBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

32

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

34

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

36

L

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

37

WARE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

38

2 CASH AND CASH EQUIVALENTS

40

3 INVESTMENTS

41

4 ACCOUNTS RECEIVABLE

42

5 DEBT SERVICE REQUIREMENTS TO MATURITY

43

SCHEDULE OF REVENUE

6

STATE

44

7

TAXES AND OTHER

45

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

46

9

LOTTERY PROGRAMS

47

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

49

11

BY PROGRAM

50

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

52

SECTIONll
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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Ware County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Ware 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 inisstatement. 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 individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 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 Ware County Board of Education as of June 30, 1996, and the results ofits operations and the cash flows of its nonexpendable trust fund 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 April 11, 1997, on our consideration of the Board's internal control structure and a report dated April 11, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Ware County Board ofEducation taken as a whole. The combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Ware 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 of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
96ARL-13

A copy ofthis report has been filed as a pennanent 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

WARE COUNTY BOARD OF EDUCAnON - 1-

WARE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1996

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,134,839.66 $

14,545.42 $ 3,035,869.17

315,857.22

215,003.66

918,945.39

551,372.25

59,152.00 31,859.18

$ 1,349,843.32 $ 1,024,501.99 $ 3,903,098.64

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable
Tolal Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Continuation of State Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue For Slate Capital Outlay Projects
Unreserved Designated for Self-Insurance Undesignaled
Total Fund Equity
Total Liabilities and Fund Equity

$

234,457.72 $

157,796.12 $

49,787.58

12,250.00

384,974.66

1.39

13,336.98

336,064.72

195,176.68

$

246,709.11 $

556,107.76 $

581,028.98

$

3,812.76

$

8,862.10

377.00

59,152.00 31,859.18
$

2,876,392.68 425,078.72

$

4,189.76 $

99,873.28 $ 3,301,471.40

72,014.21 1,026,930.24

368,520.95

20,598.26

$ 1,103,134.21 $

468,394.23 $

3,322,069.66
"

$ 1,349,843.32 $ 1,024,501.99 $ 3,903,098.64

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

EXHIBIT "A"

DEBT " SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

313,854.96 $

8,381.70

18,988.36

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30,1996

JUNE 30, 1995

$ 4,507,490.91 $ 12,225,953.12

315,857.22

1,704,309.66

1,714,794.73

224.09

59,152.00 31,859.18

54,722.66 25,551.33

$

332,843.32

332,843.32

67,369.39

11,632,156.68 1,128,545.95

11,632,156.68 1,128,545.95

11,897,630.61 654,106.61

$

332,843.32 $

8,381.70 $

13,093,545.95 $ 19,712,214.92 $ 26,640,352.54

$

284.93

$

442,326.35 $

838,753.00

397,224.66

335,967.87

13,338.37

6,883.91

336,064.72

862,150.00

195,176.68

337,877.23

854.15

4,918.78

4,918.78

426.97

$

1,128,545.95

1,128,545.95

654,106.61

11,965,000.00

11,965,000.00

11,965,000.00

$

5,203.71 $

13,093,545.95 $ 14,482,595.51 $ 15,002,019.74

$

332,843.32

$

$

332,843.32 $

0.00

$

332,843.32 $

$

332,843.32 $

3,000.00
3,000.00 177.99
3,177.99

$

3,812.76

8,862.10 $

377.00

332,843.32

3,000.00

48,221.82
67,369.39 3,000.00

59,152.00 31,859.18 2,876,392.68 425,078.72

54,722.66 25,551.33 10,220,824.88

$ 3,741,377.76 $ 10,419,690.08

72,014.21 1,416,227.44

45,379.87 1,173,262.85

$ 5,229,619.41 $ 11,638,332.80

8,381.70 $

13,093,545.95 $ 19,712,214.92 $ 26,640,352.54

-3.

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

EXHIBIT"B"

TYPES ) DEBT SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,1996

JUNE 30,1995

$ 25,672,634.69 $

3,643,378.26

$

756,326.59

9,607,804.31

$

756,326.59 $ 38,923,817.26 $

0.00 $ ...::;o.;.;;.O~O $

25,672,634.69 $ 3,643,378.26 9,607,804.31
38,923,817.26 $

27,574,583.28 4,378,046.33 8,380,976.04
40,333,605.65

$ 22,230,482.26 $

1,386,335.72

921,095.70

827,596.03

337,005.96

1,904,368.53

240,158.26

3,161,124.98

1,269,399.81

374,577.15

78,414.58

2,597,553.06

$

11.36

718,658.37

9,204,295.25

490,841.30

198,605.06 566,n5.19

$

490,852.66 $ 46,016,445.91 $

$

265,473.93 $ -7,092,628.65 $

$

673,044.40

167,627.43

-167,627.43

$

673,044.40

$

265,473.93 $ -6,419,584.25

67,369.39

11,635,288.20 $

4,429.34 6,307.85
0.28

$

332,843.32 $ 5,226,441.42 $

0.00 $ 22,230,482.26 $ 22,365,368.89

1,386,335.72 921,095.70 827,596.03 337,005.96
1,904,368.53 240,158.26
3,161,124.98 1,269,399.81
374,577.15 78,414.58
2,597,553.06 718,658.37
9,204,295.25

1,276,405.62 990,738.23 882,556.21 411,780.09
1,8n,108.15 410,501.27
3,804,064.52 1,2n,780.61
332,668.39 70,792.41
2,4n,457.31 454,834.27
7,890,896.68

198,605.06 566,n5.19

66,508.26 32,305.58

0.00 $ 46,016,445.91 $ 44,621,766.49

0.00 $ -7,092,628.65 $ -4,288,160.84

$

67,263.43

11,965,000.00

$

673,044.40

530,710.93

167,627.43

164,197.26

-167,627.43

-164,197.26

$

673,044.40 $ 12,562,974.36

$ 0.28

-6,419,584.25 $ 11,635,288.48

8,274,813.52 3,370,017.80

-0.28

4,429.34 6,307.85
0.00

-6,339.46 -3,203.38
0.00

~=O=,O_O $

5,226,441.42 $ 11,635,288.48

-5-

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

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 21,822,759.79 $ 22,372,558.78

61,900.00

33,175.16

6,715,857.00

7,687,462,75

Total Revenues

$ 28,600,516.79 $ 30,093,196,69

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 Debt Service

$ 18,917,275.27 $ 19,580,997.42

1,034,412,00 879,613.25 761,024.80 225,799.00
1,926,982.00 216,370.00
2,703,889.50 1,230,707.00
354,947.00

1,067,096,74 884,457.54 826,741.88 228,775,62
1,902,352.56 239,237.00
3,144,442,70 1,238,932,33
374,577.15

362,216.00 25,000.00

698,128.53 2,595.42
274,538.95

Total Expenditures

$ 28,638,235.82 $ 30,462,873,84

Excess of Revenues over (under) Expenditures

$

-37,719,03 $ -369,677.15

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

15,000.00 $ 832,220.92

-5,466.00

-8,450.91

Total Other Financing Sources (Uses)

$

9,534.00 $ 823,770.01

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

-28,185.03 $

454,092.86

FUND BALANCE JULY 1,1995

434,819.51

649,041.07

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food Residual Equity Transfer

11,272.77

0.28

FUND BALANCE JUNE 30,1996

$ 417,907,25 $ 1,103,134.21

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,003,060.00 $ 1,445,328.21

3,418,597.00 3,610,203.10

673,000.00

647,569.73

$ 5,094,657.00 $ 5,703,101.04

$ 2,624,414,01 $ 2,649,484.84

317,583.00 55,065.00 5,595.00
119,598.00

319,238.98 36,638.16 854.15
108,230.34 2,015.97

12,230.00 27,951.00

16,682.28 30,467.48

124,040.00 2,377,612.00

78,414.58 2,597,553.06
20,518.48

$ 5,664,088.01 $ 5,860,098.32 $ -569,431.01 $ -156,997.28

$

18,633,00 $

8,450.91

-15,000.00

-15,000.00

$

3,633.00 $

-6,549,09

$ -565,798.01 $ -163,546,37

636,386.71

621,203.41

33,133.35

4,429.34 6,307.85

"-
$ 103,722.05 $ 468,394.23

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

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 1996

OPERATING REVENUE None Recorded
OPERATING EXPENSES Current Field Trips Operating Income (Loss)
NONOPERATING REVENUE Interest Earned Total Income (Loss)
FUND BALANCE JULY 1

ENDOWMENT FUND GILCHRIST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 3D, 1996 JUNE 3D, 1995

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

1,414.74

$

0.00 $

0.00 $

-1,414.74

133.67

133.67

219.94

$

133.67 $

133.67 $

-1,194.80

3,044.32

3,044.32

4,239.12

FUND BALANCE JUNE 30

$

3,177.99 $

3,177.99 $ ===3=,0=4=4.=32=

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

WARE COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30.1996

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Field Trips
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND GILCHRIST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 3D, 1995

$

0.00 $

0.00 $

-1,414.74

133.67

133.67

219.94

$

133.67 $

133.67 $

-1,194.80

3,044.32

3,044.32

4,239.12

$

3,177.99 $

3,177.99 $ ===3==,0=4=4=.3=2

The notes to the general purpose financial statements are an integral part of this statement. - 8-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Ware 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 Ware County Board of Education.
Based upon the application of the above criteria, the Ware 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 Ware County, Georgia.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid 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. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
-9-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

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 and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the trust and 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. These funds include:
NONEXPENDABLETRUSTFUND Gilchrist Fund- the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used for expenditures on behalf of Gilchrist Park Elementary School at the discretion of the school principal.
EXPENDABLE TRUST FUND Monroe Fund - the fund used to account for the principal and earnings which may be expended fm: vocational purposes at the discretion of the Board.
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
- 10-

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their report~d fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A 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
- 11 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Ware 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 function level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once iIi a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more
- 12 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

- 13 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Ware County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on September 28, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The Ware County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1995 tax year (calendar year) for the Ware County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

16.28 mills 1.80 mills

18.08 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.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major

capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year

bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital

project expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of

the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account

Group.

"

INTF.,RFUND TRANSACTIONS

The Board has the following types of interfund transactions:

- 14 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by
surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond
and the market value of securities shall be equal to not less than 11 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of 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,

- 15 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $5,448,695.36. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Risk Category
1 2 3
Total

Bank Balance
$ 102,100.00 5,346,595.36 0.00
$ 5.448,695.36

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $315,857.22 and this entire amount consisted ofU. S. Government Obligations which was insured or registered, or securities held by the Board or the Board's agent in the Board's name. The market value ofthese investments was $315,513.33.

- 16 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks 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; unemployment compensation and dental claims.

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

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund 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 ofYear Liability

1995 1996

$

0.00 $

908.25 $

908.25 $

0.00

$

0.00 $

13,811.75 $

10.301.75 $

3,510.00

Additionally, the Board is self-insured with regard to employee and dependent dental claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. This program is funded through a combination of employer and employee contributions.

- 17 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

Changes in the dental claims liability during the past two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1995 1996

$

0.00 $ 142,918.88 $ 142,918.88 $

0.00

$

0.00 $ 319,388.23 $ 319,388.23 $

0.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of$250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 of loss.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Ware County Board ofEducation has entered into various lease agreements as lessee for security systems, building energy management systems and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1995

4.35% - 5.85% $11.965,000.00

- 18 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: GENERAL LONG-TERM DEBT

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

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

Capital Leases

General Obligation
Bonds

Total

$ 654,106.61 $11,965,000.00 $12,619,106.61

673,044.40

673,044.40

198,605.06

198,605.06

$ 1.128545.95 $11 965,00000 $13,093 545 95

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

Fiscal Year Ended June 30
1997 1998 1999 2000 2001 2002 and thereafter
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments

Capital Leases

General Obligation
Bonds

Total Debt

$ 182,681.28 $ 804,454.95 $ 987,136.23

182,681.28

832,930.00 1,015,611.28

168,990.89

869,605.00 1,038,595.89

158,594.76

909,025.00 1,067,619.76

156,742.92

945,865.00 1,102,607.92

591.140.22 16,1 79,695.00 16,770,835.22

$ 1,440,831.35 $20541.57495 $2198240630

312,285.40

$ 1.128 545.95

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$517,565.38 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 $394,840.09

- 19-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 6: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $29,005.29

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 $93,720.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Memorial Drive Elementary Reroofing 95/94S-748-060 95/94S-748-061 95/94S-748-064

$ 81,947.83 112,454.14 72,003.00 17,717.00

$ 284.121.97

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

Note 8: CONTINGENT LIABILITIES

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

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.

- 20-

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's 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 $19,784,946.76; total payroll was $22,702,159.33.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $3,325,604.89, of which $2,336,426.05 was made by the Board and $989,178.84 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.

- 21 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS

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

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1,585,541,000.00

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 $2,336,426.05 was actuarially determined and represented .3847% 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

- 22-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 9: RETIREMENT PLANS
$8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member 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 210 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 ofthe Board made during fiscal year 1996 amounted to $7,040.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 10: SURETY BONDS
Dr. B. Donald Dial, School Superintendent through June 30,1996, was bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60235019.
The School Superintendent, Dr. Richard A. Brantley, effective July 1, 1996, is bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 68598214, on which premium is paid through April 10, 1998.

- 23 -

WARE 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

FAMILY CONNECTION
FUND

LOTTERY PROGRAMS

$ 437,720.60 $

6,237.55

94,872.55

1,250.00 $ 427,800.00

59,152.00 31,859.18

Total Assets

$ 623,604.33 $

7,487.55 $ 427,800.00

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

$ 48,885.22 $ 115,186.98
$ 164,072.20 $
$ 59,152.00 31,859.18
$ 91,011.18 368,520.95 $
$ 459,532.13 $

Total Liabilities and Fund Equity

$ 623,604.33 $

See notes to the general purpose financial statements.

- 24-

$ 7,487.55

319,488.51 30,181.41 78,130.08

7,487.55 $ 427,800.00

0.00 $ 0.00 $

0.00 0.00

7,487.55 $

... 427,800.00

EXHIBIT"G" Page 1

STATE PRESCHOOL HANDICAPPED
PROGRAM

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE II

INNOVATIVE

LOCAL

EISENHOWER

EDUCATION

EDUCATIONAL

MIGRANT

PROFESSIONAL

PROGRAM

AGENCIES

EDUCATION DEVELOPMENT STRATEGIES

$

0.00

$

2,387.87

$

2,884.71

$

283,840.70

344.99 $

18,558.00

$

0.00 $

283,840.70 $

2,732.86 $

18,558.00 $ _ _,.;;2;,:,;,8;,.;8,.,;,,4.7..,;,.1

$

88,894.99

$

48,387.44 $

700.86

144,952.72

2,032.00

1,605.55

$

283,840.70 $

2,732.86 $

1,446.92 1,598.34 6,650.64
$
9,695.90 $

2,884.71 2,884.71

$

8,862.10

$

8,862.10

$

0.00 $

0.00 $

..;.0.....;;.0.;;..0 _ _ _ _ _ _ $

--=-0.....;;.0.;;..0

$

0.00 $

0..;..0_0 $

0.00 $

8,862.10 $

0_.0_0

$

,;,.;0.,;,,00;,. $

283,840.70 $

2,732.86 $

18,558.00 $ _ _,.;;20:..;,8;,,;,8..,;,,;4._7,;,.1

- 25-

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 3D, 1996

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

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

$

4,903.52

$ 59,343.00

10,007.99 $ 16.215.16

Total Assets

$ 59,343.00 $

14,911.51 $ 16,215,16

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

$ 15,677.61 8,257.05 $
26,561.62 8,846.72
$ 59,343,00 $

$

0.00 $

$

0.00 $

Total Liabilities and Fund Equity

$ 59,343.00 $

See notes to the general purpose financial statements.

- 26-

$ 3,450.89 11,460.62

15,830.16 385.00

14,911.51 $ 16,215.16

0,00 $ 0.00 $
14,911.51 $

0.00 0.00
... 16,215.16

EXHIBIT"G" Page2

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

HEAD START PROGRAM

HIGH RISK YOUTH
PROGRAM

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

1,749.36 $

0.00 $

0.00 $

0.00 $

455,883.61 $

477,866.46

6,713.00

918,945.39

637,281.49

59,152.00 31,859.18

54,722.66 25,551.33

$

8,462.36 $

0.00 $

0...0.._0 $

.0.._0.0.. $ 1,465,840.18 $ 1,195,421.94

$

8,462.36

$

8,462.36

$

441,338.19 $

102,532.17

157,796.12

171,234.02

384,974.66

292,718.43

13,336.98

6,879.76

854.15

$

997,445.95 $

574,218.53

$

0.00 $

$

0.00 $

$

8,462.36 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$

8,862.10 $

1,507.17

$ 0.00 0.00 $

59,152.00 31,859.18 99,873.28 $
368,520.95 468,394.23 $

54,722.66 25,551.33 81,781.16
539,422.25 621,203.41

0.00 $_====0=='0==0 $====0'=00=$ 1,465,840.18 $ 1,195,421.94

- 27-

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

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer
FUND BALANCE JUNE 30
See notes to the general purpose financial statements.

- 28-

SCHOOL FOOD
SERVICES FUND

FAMILY CONNECTION
FUND

LOTIERY PROGRAMS

$ 173,646.00 $ 1,605,436.03 647,569.73
$ 2,426,651.76 $

50,000.00 $ 1,152,654.21 50,000.00 $ 1,152,654.21

$
$ 2,597,553.06 $ 2,597,553.06 $ $ -170,901.30 $

$ 30,510,13

950,394.58 174,550.97
854.15

4,489.87

12,230.00 20,850.00

35,000.00 $ 1,158,879.70 15,000.00 $ -6,225.49

$

$

-15,000.00

$

-15,000.00 $

6,225.49 6,225.49

$ -170,901.30 $ 619,696.24

0.00 $

0.00

0.00

0.00

4,429.34 6,307.85
$ 459,532.13 $

..

0.00 $

0.00

EXHIBIT"H" Page 1

STATE PRESCHOOL HANDICAPPED
PROGRAM

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE II

INNOVATIVE

LOCAL

EISENHOWER

EDUCATION

EDUCATIONAL

MIGRANT

PROFESSIONAL

PROGRAM

AGENCIES

EDUCATION DEVELOPMENT STRATEGIES

$

69,028.00

$ 1,348,839.48 $

16,486.27 $

$

69,028.00 $ 1,348,839.48 $

16,486.27 $

32,358.00 $ 32,358.00 $

51,741.29 51...:.,7_4_1_.2_9

$

44,174.67 $ 1,172,944.80

24,853.33

7,400.00 $ 1,084.50

16,486.27 $

80,370.90 2,015.97 1,481.12 9,617.48

73,924.71

$
24,949.20 53.87

50,648.00
905.86 187.43

$

69,028.00 $ 1,348,839.48 $

16,486.27 $

$

0.00 $

0.00$

0.00 $

25,003.07 $ _ _..=.5-'-"1,,;...74.:....:1.:;;;.2~9

7,354.93 $

--'0_.0_0

$

0.00 $

0.00 $

0.00 $

7,354.93 $

0.00

0.00

0.00

0.00

1,507.17

0.00

$

0.00 $

0.00 $

0.00 $

8,862.10 $_~_~O=.O_O

- 29-

WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 3D. 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer
FUND BALANCE JUNE 30
See notes to the general purpose financial statements.

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

$ 306,911.28 $ $ 306,911.28 $

72,907.99 $ 26,561.16 72,907.99 $ 26,561.16

$ 224,110.54 $
53,507.18 2,044.72
27,248.84

67,966.30 $ 4,941.69

12,556.44
359.77 2,846.00
76.30

$ 306,911.28 $

$

0.00 $

72,907.99 $ 0.00 $

10,722.65 26,561.16
0.00

$

0.00 $

0.00

0.00 $

0.00

0.00

0.00

$

0.00 $

- 30-

"-

0.00 $

0.00

EXHIBIT"H"
Page 2

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

HEAD START PROGRAM

HIGH RISK YOUTH
PROGRAM

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

96,887.00 $

$

96,887.00 $

22,619.42 $

19,895.63 $

22,619.42 $

19,895.63 $

$ 9,559.55
9,559.55 $

1,445,328.21 $ 3,610,203.10
647,569.73
5,703,101.04 $

1,678,328.66 3,608,947.29
549,699.41
5,836,975.36

$

93,696.29 $

4,807.88

$

98,504.17 $

$

-1,617.17 $

17,117.82 $ 2,237.44

15,875.40 4,392.20

293.00 2,971.16

22,619.42 $ 0.00 $

$ 20,267.60 $
-371.97 $

$
9,795.83 9,795.83 $
-236.28 $

2,649,484.84 $
319,238.98 36,638.16 854.15
108,230.34 2,015.97
16,682.28 30,467.48
78,414.58 2,597,553.06
20,518.48
5,860,098.32 $
-156,997.28 $

2,638,549.63
295,945.23 156,020.71
12,495.59 132,254.20
15,621.61 198,351.05
58,836.80 104.50
68,657.41 2,477,457.31
11,010.45
6,065,304.49
-228,329.13

$

1,617.17

$

1,617.17

$

0.00 $

0.00

$ $ 0.00 $ 0.00

371.97 $ 371.97 $
0.00 $ 0.00

236.28 $ 236.28 $

8,450.91 $ -15,000.00
-6,549.09 $

39,197.26 39,197.26

0.00 $ 0.00

-163,546.37 $ 621,203.41

-189,131.87 837,929.89

4,429.34 6,307.85

-6,339.46 -3,203.38 -18,051.77

$

0.00 $ -==-_~O~.O_O $

0.00 $ ~=_..;O.;.;'O~O $

468,394.23 $ _-.;6,;;,,21,;,,:,,2a0;.;,3..;.4~1

- 31 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated Total Fund EqUity
Total Liabilities and Fund Equity

REGULAR

1995 BOND ISSUE
FUND

PROJECT 95/94S-748-060

$ 92,020.70 $ 2,550,935.46 $

275,171.99

315,857.22

9,600.00

163,221.00

$ 92,020.70 $ 2,876,392.68 $-===4:::3=8,=39=:2=,9.9....

$ 65,731.72 5,690.72
$ 71,422.44

$

45,645.38

233,186.00

159,561.61

$

438,392.99

$ 2,876,392.68

$ 2,876,392.68

$ 20,598.26

0.00 $

$ 20,598.26 $ 2,876,392.68 $

0.00 0,00

$ 92,020.70 $ 2,876,392.68 $===43=8..,,3=9;;;;2=.9==9

See notes to the general purpose financial statements.

- 32-

EXHIBIT "I"

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

PROJECT

95/94S-748-061 95/94S-748-062 95/94S-748-063 95/94S-748-064

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

346,865.86 $

68,591.55 $ 3,333,585.56 $ 11,290,968.27

315,857.22

$

125,064.00 $ _ _;;;.23;.;8..:.6;,;.;;;3...;.1;;..;;.4~8

551,372.25

577,915.20

$

125,064.00 $

238,631.48 $

361,721.63 $

68,591.55 $ 4,200,815.03 $ 11,868,883.47

$

60,933.91 $

236,782.48

1,849.00 $

$

60,933.91 $

238,631.48 $

$ 773.00
773.00 $

$ 4,142.20 34,525.00 29,924.35
68,591.55 $

297,716.39 $ 49,787.58
336,064.72 195,176.68

142,972.30 228,209.61 862,150.00 337,877.23

878,745.37 $ 1,571,209.14

$

64,130.09

$

64,130.09

0.00 $

$

64,130.09 $

$

360,948.63

$

360,948.63

0.00 0.00 $

0.00 $ 360,948.63 $

$ 2,876,392.68 $ 10,220,824.88 425,078.72
$ 3,301,471.40 $ 10,220,824.88

0.00 0.00 $

20,598.26

76,849.45

3,322,069.66 $ 10,297,674.33

$

125,064.00 $

238,631.48 $

361,721.63 $

68,591.55 $ 4,200,815.03 $ 11,868,883.47

- 33-

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

REVENUES
State Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration Bond Issuance Cost Supplies Dues and Fees
Capital Outlay Supplies Purchased Professional Services Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

1995 BOND ISSUE
FUND

PROJECT 95/94S-748-060

$ 1,375,344.00

$

16,456,25 $

292,182.53

$

16,456.25 $

292,182.53 $ 1,375,344.00

$

$

179,932.78

25,782.00

21,926.75

620,542.67

565,070.60

$ 1,413,254.80 $

$ -1,396,798.55 $

839.32 33.08 48.86

$

99,178,60

56,959.00

3,463,574.37 2,451.65

921.26 $ 3,622,163.62

291,261.27 $ -2,246,819.62

$ 1,340,547.36

$

$ -7,635,693.47

$ 1,340,547.36 $ -7,635,693.47 $

2,246,819.62 2,246,819.62

$

-56,251.19 $ -7,344,432.20 $

76,849.45

10,220,824.88

0.00 0.00

FUND BALANCE JUNE 30

"

$

20,598.26 $ 2,876,392.68 $

0,00

See notes to the general purpose financial statements.

- 34-

EXHIBIT"J"

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

PROJECT

95/94S-748-061 95/94S-748-062 95/94S-748-063 95/94S-748-064

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

479,404.00 $

-0.30

$

103,903.24 $ _ _..;.10;..,;3.J.:,9;.,;.0.:;,.;3..,;;;;;22"'-

$

479,404.00 $

103,902.94 $

103,903.22 $

0.00 $ 0.00 $

1,854,747.70 $ 516,445.24
2,371,192.94 $

5,239,622.25 40,448.62
5,280,070.87

$

58,532.30 $

162,680.77 $

14,009.00

38,291.00

532,067.79

535,512.46

726,232.74

48,324.65

102,157.50

162,907.25 $ 26,217.00 262,425.20 584,541.92 104,609.15

$

656,378.41 $ 1,561,429.80 $

1,140,700.52 $

$

-176,974.41 $ -1,457,526.86 $ -1,036,797.30 $

$

839.32 $

257,710.00

33.08

48.86

52,929.03 13,045.00 581,694.00
160,104.65

716,160.73 174,303.00 1,398,113.74 5,930,404.16 982,718.20

492,578.00 410,307.52 6,568,208.38

807,772.68 $ 9,202,621.09 $ 7,728,803.90

-807,772.68 $ -6,831,428.15 $ -2,448,733.03

$

241,104.50 $ 1,457,526.86 $

1,397,745.93 $

$

241,104.50 $ 1,457,526.86 $

1,397,745.93 $

$

64,130.09 $

0.00

0.00 $ 0.00

360,948.63 $ 0.00

807,772.68 $

$ 7,491,516.95 -7,635,693.47

11,965,000.00 1,636,152.69 -1,511,152.69

807,772.68 $

-144,176.52 $ 12,090,000.00

0.00 $ -6,975,604.67 $

0.00

10,297,674.33

9,641,266.97 656,407.36

$

64,130.09 $

0.00 $

360,948.63 $

0.00 $ 3,322,069.66 $ 10,297,674.33

- 35-

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUNP TYPES JUNE 30,1996

EXHIBIT"K"

Cash and Cash Equivalents

NONEXPENDABLE TRUST FUND ENDOWMENT FUND GILCHRIST FUND

EXPENDABLE TRUST FUND
MONROE FUND

AGENCY FUNDS

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

3,1n.99 $

0.00 $

5,203.71 $

8,381.70 $

3;0,:.,,4.7.1..-.5.7..

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Funds Held for Others

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

Total Liabilities and Fund Equity $

$

284.93 $

284.93

4,918.78

4,918.78 $

$

5,203.71 $

5,203.71 $

426.97 426.97

3,000.00 177.99 $
3,1n.99 $
3,1n.99 $

0.00 $ 0.00 $

$ 0.00 0,00 $

3,000.00 $ 1n.99
3,1n.99 $

3,000.00 44.60
3,044.60

0.00 $

5,203.71 $

8,381.70 $====,3=,4=7=1=.5==7

See notes to the general purpose financial statements.

- 36-

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

EXHIBIT"L"

SPECIAL NEEDS FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY 1,1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30,1996

$

426,97 $

7,788.27 $

8,011.53 $

203.71

LIABILITIES Accounts Payable Funds Held for Others
Total Liabilities
PEPSI SCHOLARSHIPS ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
TOTALS-AGENCY FUNDS ASSETS
Cash and Cash Equivalents

$ $ _ _--'4c=26.::..;.~97~

284.93

$

7,503.34 $ _ _....::8..c.:;,0....;.1..;.;1.~53~

284.93 -81.22

$

426.97 $

7,788.27 $

8,011.53 $=====20=3=,7=1

$

0.00 $

5,000.00 $

0.00 $ ===5=,=00=0=.0=,=0

$

0.00 $

5,000.00 $

0.00 $ ==~5,=00=0,;;'0,;,,0

$

426.97 $

12,788.27 $

8,011.53 $ ===5=,2=0=3=.7==1

LIABILITIES Accounts Payable Funds Held for Others

$

284.93

$

284.93

$

4_2....;;6'....;;97_

12,503.34 $ _ _....;;8..,.0.._1_1....;.5"'-3

4,918.78

$

426.97 $

12,788.27 $

8,011.53 $ ===5=,2=0=3=.7";,,,,1

See notes to the general purpose financial statements.

- 37 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Georgia Department of Education Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant National Education and Training Program 1996 Contract Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1995 Regular 1995 Summer 1996 Grant 1996 Summer Title II Eisenhower Professional Development 1995 RegUlar 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Safe and Drug-Free Schools 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Consumer and Homemaking Education 1996 Grant Through Georgia Department of Human Resources Safe and Drug-Free Schools High Risk Youth Program 1995 Grant
Total U. S. Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 10.553 $ 361,197,79

* 10.555

1,040,036.67 $

10.564 10.550

5,000.00 199 201.57
1
$ 1,605,436.03 $

(2)
2,398,351.49 (3)
(2) 199,201.57 2,597,553.06

84.011 $ 16,486.27 $

16,486.27

* 84.010 * 84.010 * 84.010 * 84.010
84.281 84.281
84.298

3,140.12 35,464.21 1,303,142.78
7,092.37
32,358.00
51,741.29

3,140.12 35,464.21 1,303,142.78
7,092.37
1,507.17 23,495.90
51,741.29

* 84.027 84.173 84.186

306,911.28 72,907.99 26,561.16

306,911.28 72,907.99 26,561.16

- 38 -

84.048 84.049

88,887.00 8,000.00

90,504.17 (3) 8,000.00
"-

84.186

9,559.55

$ 1,962,252.02 $

9,795.83 (3) 1,956,750.54

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Through Concerted Services, Incorporated Head Start Program 1995 Grant
Labor, U. S. Department of Through Southeast Georgia Regional Development Center Job Training Partnership Act 95B-02
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program 1996 Grant
Total Federal Financial Assistance

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.600 $

19,895.63 $

20,267.60 (3)

17.250 $

22,619.42 $ _ _=22;;;.L.,6;..;1~9;..;..4~2

$ _---.::3..;;.3z....1;,~75.::..;....;..16.;..

(4)

$ 3,643,378.26 $ 4,597,190.62

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 School Breakfast Program and the National Education and Training Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 39 -

WARE COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Sun Trust Bank, Southeast Georgia, N. A., Brunswick, Georgia
INTEREST BEARING ACCOUNTS
Nations Bank of Georgia, Atlanta, Georgia
Certificate of Deposit No. 30247125 (4.85%) Business Interest Checking Accounts (Variable) Business Investment Accounts (Variable)
Sun Trust Bank, Southeast Georgia, N. A., Brunswick, Georgia
N.O.W. Account (2.00%)

$

2,000.00

$

3,134.96

3,153,295.24

1,348,960.71

100.00 4,505,490.91

$ 4,507,490.91

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

WARE COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30,1996
U."S. GOVERNMENT OBLIGATIONS
Nations Bank, N. A., Atlanta, Georgia
U. S. Treasury Note No. 912827Q54 due July 31, 1996 (6.125%) U. S. Treasury Note No. 912827Q96 due August 31,1996 (6.250%)

SCHEDULE "3"
$ 220,308.00 95,549.22
$ 315,857.22

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

WARE COUNTY BOARD OF EDUCATION ACCOUNTS RECErvABLE JUNE 30, 1996

SCHEDULE "4"

Apple Computers, Incorporated Vendor Overpayment
Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Defense, U. S. Department of Department of the Army R.O.T.C. Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Safe and Drug-Free Schools
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Human Resources, Georgia Department of Family Connection
Office of Planning and Budget Georgia Challenge Program
Office of School Readiness Pre-Kindergarten Program
Okefenokee Regional Educational Service Agency Gas Reimbursement
Ware County Board of Commissioners Reimbursement for Paving Contracted Meals
Ware County High School Summer School Tuition
Ware County Tax Commissioner County Wide Bond Tax County Wide School Tax
Various Sources Interest Earned Returned Checks
See notes to the general purpose financial statements.

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$

118.00

$

118.00

344.99

344.99

$ 8,389.26

9,484.00

20,056.72 14,572.60
6,713.00

8,389.26
20,056.72 14,572.60 9,484.00 6,713.00

283,840.70 18,558.00

283,840.70 18,558.00

59,343.00 10,007.99 16,215.16

59,343.00 10,007.99 16,215.16

$ 512,060.70

512,060.70

1,250.00

1,250.00

9,669.00

9,669.00

427,682.00

427,682.00

1,430.28

1,430.28

59,902.18

29,711.55

29,711.55 59,902.18

15,000.00

15,000.00

171,031.12

$ 18,988.36

18,988.36 171,031.12

341.05

9,600.00

9,600.00 341.05

$ 215,003.66 $ 918,945.39 $ 551,372.25 $ 18,988.36 $ 1,704,309.66

- 42 -

WARE COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1996

SCHEDULE "5"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1997 1998 1999 2000 2001
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014 2015

TOTAL DEBT SERVICE

1995 ISSUE

INTEREST

PRINCIPAL

$

804,454.95 $ 654,454.95 $

150,000.00

832,930.00

647,930.00

185,000.00

869,605.00

639,605.00

230,000.00

909,025.00

629,025.00

280,000.00

945,865.00

615,865.00

330,000.00

985,025.00 1,031,160.00 1,073,660.00 1,117,652.50 1,132,525.00

600,025.00 581,160.00 558,660.00 532,652.50 502,525.00

385,000.00 450,000.00 515,000.00 585,000.00 630,000.00

1,139,450.00 1,153,940.00 1,170,060.00 1,182,435.00 1,200,955.00

469,450.00 433,940.00 395,060.00 352,435.00 305,955.00

670,000.00 720,000.00 775,000.00 830,000.00 895,000.00

1,218,597.50 1,237,145.00 1,256,305.00 1,280,785.00

253,597.50 197,145.00 136,305.00
70,785.00

965,000.00 1,040,000.00 1,120,000.00 1,210,000.00

$ 20,541,574.95 $ 8,576,574.95 $ 11,965,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired in Period

$ 11,965,000.00 0.00

Bonds Payable at June 30, 1996

$ 11,965,000.00

MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date
See notes to the general purpose financial statements. - 43 -

FEB 1 -AUG 1
FEB 1

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

SCHEDULE "6"

AGENCYIFUNDING
GRANTS Education, Georgia Department of auality Basic Education General and Career Education Programs Special Education Program 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 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teacher Program Mentoring Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Distant Learning Instructional Technology Pre-Kindergarten Program Technology Installation
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Human Resources, Georgia Department of Family Connection
Morehouse School of Medicine Family Connection
Office of Planning and BUdget Georgia Challenge Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Leadership Development Program Governor's School Leadership Institute
OTHER Education, Georgia Department of Registration Refund

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 11,955,695.00 2,762,305.00 483,109.00 523,401.00 174,465.00 3,412,526.00
566,309.00 178,833.00 415,364.00 717,556.00 150,986.00 34,065.00 103,060.00 -1,772,232.00 1,866,226.00
$ 49,918.00
123,000.00 27,990.58
498.61 394,840.09
1,755.00 4,500.00
11,913.21 29.005.29

173,646.00
69,028.00
29,000.00 854.15
200,118.06 355,000.00 140,000.00

$ 11,955,695.00 2,762,305.00 483,109.00 523,401.00 174,465.00 3,412,526.00
566,309.00 178,833.00 415,364.00 717,556.00 150,986.00 34,065.00 103,060.00 -1,772,232.00 1,866,226.00 173,646.00 49,918.00
123,000.00 27,990.58
498.61 394,840.09
1,755.00 4,500.00 69.028.00 11,913.21 29,005.29
29,000.00 . 854.15
200.118.06 355,000.00 140,000.00

$ 1.854,747.70

1,854.747.70

50,000.00

50,000.00

40,000.00

40,000.00

17,700.00

17,700.00

427,682.00

427,682.00

93,720.00

93,720.00

5,000.00 1.000.00

5,000.00 1.000.00

50.00

50.00
"

$ 22,372,558.78 $ 1,445,328.21 $ 1,854,747.70 $ 25,672,634.69

See notes to the general purpose financial statements.

- 44 -

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE '7"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

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

$ 7,049,623.28 63,917.13 12,919.04

$ 751,341.35 $ 751,341.35 7,049,623.28 63,917.13 12,919.04

Other Sources Contributions to Self-Insured Employee Benefit Fund For Dental Insurance Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Rents Sales Adult Meals Banquets Contracted Meals Lunches and Breakfast School Assets Tuition Ware County Board of Commissioners Reimbursement for Paving Other

369,708.87 250.00 $

1,000.00

18,894.18 71,608.32
4,470.00 358.90
26,908.50

24,020.97 $ 308,638.78 310.00

13,284.47 35,001.50

109,189.94 20,115.12 134,728.41 356,375.08
1,105.00

20,518.56

725.21

207,806.46

4,985.24

369,708.87 1,250.00
18,894.18 409,253.31
4,780.00 358.90
26,908.50
109,189.94 20,115.12 134,728.41 356,375.08 14,389.47 35,001.50
207,806.46 21,243.77

$ 7,687,462.75 $ 647,569.73 $ 516,445.24 $ 756,326.59 $ 9,607,804.31

See notes to the general purpose financial statements.

- 45 -

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30.1996

SCHEDULE "8"

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 Principal and Interest Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 19,943,189.59 $ 2,758,969.74 $ 22,702,159.33

5,955,100.17

747,819.17

6,702,919.34

62,418.62

20,546.20

82,964.82

228,718.75

66,645.01

295,363.76

24,685.92

24,685.92

114,749.80

4,353.69

119,103.49

121,017.15

23,065.77

144,082.92

8,769.82

8,769.82

83,586.59

83,586.59

141,148.07

2,357.04

143,505.11

11,180.95

11,180.95

63,338.00

63,338.00

338,466.70

14,525.15

352,991.85

895,908.41

326,878.12

1,222,786.53

780,864.01

49,653.16

830,517.17

1,199,730.97

1,199,730.97

326,381.99

909.99

327,291.98

46,181.20

8,355.00

54,536.20

12,563.09

12,563.09

18,894.18

18,894.18

15,564.49

20,497.57

36,062.06

274,538.95 1,025,682.52

585,716.61

274,538.95 1,611,399.13

Total Expenditures

$ 30,462,873.84 $ 5,860,098.32 $ 36,322,972.16

See notes to the general purpose financial statements. - 46 -

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTIERY PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE .S"

ALTERNATIVE SCHOOL PROGRAM

DISTANT LEARNING

INSTRUCTIONAL PRE-KINDERGARTEN TECHNOLOGY

TECHNOLOGY

PROGRAM

INSTALLATION

EXPENDITURES

Operating Costs

Salaries

$

537.848.23

$

Employee Benefits

153.939,12

Travel of EmploYees

2,271.02

Purchase of Professional

Services

$

1.500.00

760,00

Communications

868,18

Supplies

$ 26,965.00 $

854.15

36,458.28

42.993.53

Energy

33.080.00

Dues and Fees

SO.OO

Nonoperating Costs Equipment

2,035.00

168.188.39

11,068,80 $ 140,000,00

TOTAL
537,848.23 153.939.12
2.271.02 2,260.00
868,18 107,270.96 33.080.00
SO.OO
321.292.19

Total Expenditures $

29.000,00 $

854.15 $

206,146.67 $

782.878,88 $ 140.000.00 $ 1.158.879,70

See notes to the general purpose financial statements.

47

THIS PAGE LEFT BLANK

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

SCHEDULE "10"

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

$ 15.724.510.00 $

4;. ;. 76,;;.:. .;.;46;. ; .9.; .; . 0"'"-0

$ 17,177.217.64 725.996.18 $
$ 17.903.213.82

63_0....:.,.9.....;0_0_.8_8

-270.791.40 $ 17.632.422.42

$

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

See notes to the general purpose financial statements. - 49 -

WARE 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 (0) Category II (0) Category III (") Category IV (*) Sub-Total- RegUlar Category V (Gifted) (0) 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

$ 1.299,720.00

$ 1,169.748.00 $

2,963,340.00

2,667,006.00

$ 4,263.060.00 90 $ 3.836,754.00 $

1,525.615.00 90

1,373,053.50

2,730,748.00 90

2,457,671,40

1,898,379.00 90

1,708,541,10

857,080,00 90

771,372.00

680,815,00 90

612,733.50

$ 11,955,695,00

$ 10,760,125.50 $

0.00 0,00
0,00

$ 2,494,920,00

$ 2,245,428,00 $

0.00

$ 2,494,920,00 90 $ 2,245,428,00 $

267,385.00 90

240,646.50

$ 2,762,305,00

$ 2,486,074.50 $

$

483,109,00 90 $

434,798,10 $

$ 15,201.109.00

$ 13,680,998.10 $

$

417,744.00 90 $

375.969.60 $

105,657.00 90

95,091,30

$

523,401.00

$

471,060.90 $

$ 15,724,510.00

$ 14,152,059,00 $

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 (0) Identifies Thirteen Weighted Programs.

$

107,226.01

67,238.99

$

107,226.01 $

67,238,99

$

174,465.00 100 $

174,465.00 $

0.00 0.00
.....;;0;,;.06~

See notes to the general purpose financial statements.

- 50

SCHEDULE "11"

" TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,169,748.00 $

1,388,640.99 $

35,334.22 $ 1,423,975.21

2,667,006.00

3,113,612.58

112,390.52

3,226,003.10

$ 3,836,754.00 $

4,502,253.57 $

147,724.74 $ 4,649,978.31 $

0.00

1,373,053.50

1,837,171.23

51,238.49

1,888,409.72

0.00

2,457,671.40

2,503,366.35

118,117.02

2,621,483.37

0.00

1,708,541.10

2,307,214.53

166,503.37

2,473,717.90

0.00

771,372.00

760,561.35

23,513.04

784,074.39

0.00

612,733.50

1,189,409.84

45,499.21

1,234,909.05

0.00

$ 10,760,125.50 $ 13,099,976.87 $

552,595.87 $ 13,652,572.74

$ 2,245,428.00 $

514,986.71 $ 1,128,513.44
817,589.24 122,292.91

19,498.47 $ 29,633.97 12,982.82
7,364.00

534,485.18 1,158,147.41
830,572.06 129,656.91

$ 2,245,428.00 $

2,583,382.30 $

69,479.26 $ 2,652.861.56

0.00

240,646.50

283,859.61

8,182.06

292,041.67

0.00

$ 2,486,074.50 $

2,867,241.91 $

77,66.1.32 $ 2,944,903.23

$

434.798.10 $

510,901.76 $

643.69 $

511,545.45

0.00

$ 13,680,998.10 $ 16,478,120.54 $

630,900.88 $ 17,109,021.42

$

375,969.60 $

699,097.10

$

699,097.10

0.00

95,091.30

$

95,095.30

95,095.30

0.00

$

471,060.90 $

699,097.10 $

95.095.30 $

794,192.40

$ 14,152,059.00 $ 17,177,217.64 $

725,996.18 $ 17,903,213.82 $

0.00

$

107.226.01

67,238.99

$ _ _1=74=,4=6=5=.0.0.

$

107,226.01 $

107,226.01

67,238.99

67,238.99

$

174,465.00 $

174,465.00 $ _ _~_ _..,;,O;,;,'OO~

- 51 -

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

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. John N. Fluker, Chairman (*) 611 Preston Street Waycross, Georgia 31502
Mr. Clarence E. Billups (*) 802 Dorothy Street Waycross, Georgia 31501
Mr. Talmadge Booth (*) P. O. Box 61 Manor, Georgia 31550
Mr. Bryant H. Bower, Jr. (*) 3150 Ash Drive Waycross, Georgia 31501
Mrs. Kathy Ganas (*) 4780 Jamestown Road Waycross, Georgia 31503
Mrs. Cheryl Lott (*) 2530 Central Avenue Waycross, Georgia 31501
Mr. David C. Tanner (*) 910 Atlantic Boulevard Waycross, Georgia 31501
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

2,400.00 $

1,542.61

2,400.00

1,975.26

2,400.00

1,438.88

2,400.00

302.90

2,400.00

1,172.67

2,400.00

526.55

2,400.00

927.05

$

16,800.00 $ =====7=:,8=8=5.=92=

See notes to the general purpose financial statements.

- 52 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Ware County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Ware County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 11, 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 Ware 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
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Ware 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 Ware County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated April 11, 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 Ware 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 Ware 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 Ware County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Ware County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated April 11, 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 Ware 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 ofFederal Financial Assistance, for the year ended June 30, 1996. The management of the Ware 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 perform the audit

to obtain reasonable assurance about whether material noncompliance with the requirements referred to above

occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those

requirements. We believe that our audit provides a reasonable basis for our opinion.

We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 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 Ware County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for
the year ended June 30, 1996.

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

Respectfully submitted,

CLV:cm 96CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Ware County Board ofEducation
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Ware County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 11, 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 of the fiscal year 1996 general purpose financial statements of the Ware County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Ware 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 Ware 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 III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Ware 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 of the Ware County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 11, 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 Ware 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 financial statements of the Ware County Board ofEducation for the year ended June 30, 1996, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report fmancial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(l) Accounting Controls (Overall)
(2) Cash and Cash Equivalents
(3) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Ware County Board of Education's fmancial statements and this report does not affect our report thereon dated April 11, 1997.
96ICL-3

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

CLV:cm 96ICL-3

Claude 1. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Ware 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 of the Ware County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 11, 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 [mancial statements. We have also audited the Ware County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated April 11, 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 Ware 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 financial 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 April 11, 1997.

The management of the Ware 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 of the design and operation ofpolicies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1996, the Ware County Board of Education expended 84% of its total Federal financial assistance under major Federal financial assistance programs.

96ICL-7

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as
des"cribed above that are applicable to each of the 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 a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal fmancial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Ware 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 April 11, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 96ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRI"OR YEAR
AUDIT FOLLOW-UP/RESOLUTION Unsupported Indirect Cost Rate Plan Federal Financial Assistance Audit Control Number 7481-93-05 Finding Resolved
The audit report for the year ended June 30, 1995, disclosed that the Board's indirect cost plan for fiscal year 1993 was not adequately supported by accounting records and other appropriate documentation. In the year under review, the Board obtained documentation from the Georgia Department of Education to support the Board's indirect cost plan for fiscal year 1993.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $10,249.00 Audit Control Number 7481-94-02
The audit report for the year ended June 30, 1995, noted expenditures of$lO, 249.00 were made from the Board's General Fund for drill team, majorette, color guard and marching band consultants. The Official Code of Georgia Annotated Section 20-2-411 provides, in part, as follows:
"...school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses; for extracurricular and interscholastic activities, including literary events, music, and athletic programs within individual schools and between schools in the same or different school systems when such activities are sponsored by local boards of education as an integral part of the total school program, and for no other purposes..."
Expenditures of this nature (Consultants) are considered to be beyond the customary scope of expenditures for "educational purposes". These expenditures occurred because management chose to pay consultants to coach the drill team, color guard and marching band rather than hire employees to perform these functions. Appropriate action should be taken by the Board to secure reimbursement for deposit to the Board's General Fund.
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WARE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Retroactive Salary Payment Financial Statements Audit Control Number 7481-95-01 Finding Resolved
The audit report for the year ended June 30, 1995, reported that the Ware County Board of Education approved a retroactive salary payment for the Superintendent in the amount of$I,458.35. During the year under review, the Board received a refund of$I,458.35.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7481-93-01
The audit report for the year ended June 30, 1995, noted that the management of the Ware County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa 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 Asset Account Group.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 7481-96-01
"-
Our audit disclosed that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. This condition was a result of management's decision to limit the number of administrative staffmade responsible for accounting functions.
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WARE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CU"RRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 7481-96-01
Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All federal fInancial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule" 1" of this report, are affected by this fInding.
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 7481-96-02
The Board's accounting procedures did not provide for adequate internal control over cash assets ofthe Board as follows:
(1) Journal entries were made without proper supporting documentation or explanation.
(2) Bank accounts were not reconciled to general ledger account balances. Audit adjustments were necessary to balance the accounting records with the reconciled bank accounts.
(3) At June 30, 1996, the bank reconciliation for the operating account included numerous checks totalling $5,959.47 that were outstanding in excess oftwelve (12) months. In some cases, checks were outstanding for as long as thirty-six (36) months.
(4) A review of the voided check fIle disclosed several checks which did not have the signatures removed.
(5) The Board issued a "stop payment" on a check that was listed as outstanding on the bank reconciliation but failed to make the appropriate entries to void this check on the accounting records. The replacement check that was issued was never entered in the formal accounting records.
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WARE COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30,1996
CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 7481-96-02
These conditions were a result of management's failure to adequately manage cash assets of the Board of Education. The Board should establish internal controls to ensure that monthly bank statements are reconciled with the accounting records, journal entries are documented and approved prior to posting, outstanding check list are reviewed monthly, checks are properly voided with signatures removed and lost checks are properly voided and re-issued in the system.
EXPENDITURESILIABILITIESIDISBURSEMENTS Improper Expenditures Financial Statements Nonmaterial Noncompliance Amount: $800.00 Audit Control Number 7481-96-03
Payments in the amount of $800.00 were made from the Board's General Fund for audit fees of school activity accounts. An opinion of the Attorney General, No. 76-72 provides, in part, as follows:
"...a county school board cannot expend county school funds for a private audit of funds derived from extracurricular activities and that any audit ofthese funds must be paid for from such funds themselves."
Expenditures ofthis nature are considered to be beyond the customary scope of expenditures for "educational purposes." These improper expenditures occurred because management neglected the specific limitations imposed upon the Board by Georgia Laws. Appropriate action should be taken by the Board to secure reimbursement of the $800.00 for deposit to the Board's General Fund.
DRUG-FREE WORKPLACE ACT Failure to Obtain Drug-Free Certification Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 741-96-04
According to provisions ofP. L. 100-690, all grantees are required to certify that a drug-free workplace is maintained. Such certification is a precondition of receiving a direct Federal grant. Specific requirements to be followed by grantees to assure compliance with the Act are provided in each agency's nonprocurement suspension and debarment regulations. Our audit disclosed that on July 1, 1995, the Board was awarded a
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WARE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CUtlirnNT YEAR
DRUG-FREE WORKPLACE ACT Failure to Obtain Drug-Free Certification Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 741-96-04
grant from the U. S. Department of Defense in support of the R.O.T.C. Program. However, the Board had not complied with U. S. Department of Defense nonprocurement suspension and debarment regulations as contained in 32 CFR 280 in order to certify a drug-free workplace.
The Board should implement procedures to ensure compliance with resolutions pertaining to a drug-free workplace.
SUBSEQUENT YEAR
PROCUREMENT Inadequate Bond Coverage Financial Statements Audit Control Number 7481-96-05 Finding Resolved
In the period subsequent to June 30, 1996, the Board failed to obtain bond coverage for the School Superintendent, for the period July 1, 1996 through April 10, 1997. Failure to provide surety bond coverage is a violation ofthe Official Code of Georgia Annotated Section 20-2-104 which provides, in part, as follows:
"Each county and independent system school superintendent must give bond with an approved surety company payable to the county or independent system board of education, the amount to be decided by the Board... "
On April 11, 1997, bond coverage was resumed in compliance with the above-mentioned code section.
Note: The Ware County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit fmdings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
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