Audit report, Whitfield County Board of Education, Dalton, Georgia, year ended June 30, 1995

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1994-95

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

AUDIT REPORT WIDTFIELD COUNTY BOARD OF EDUCATION
DALTON, GEORGIA YEAR ENDED JUNE 30, 1995

WHITFIELD 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

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 CASH AND CASH EQUIVALENTS

26

3 INVESTMENTS

27

4 ACCOUNTS RECEIVABLE

28

SCHEDULE OF REVENUE

5

STATE

29

6

LOCAL AND OTHER

30

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

31

8

LOTTERY PROGRAMS

32

WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

35

10

BY PROGRAM

36

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

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

SECTION 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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Whitfield County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Whitfield County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these :financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, 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:
95ARL-13*

The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

* School activity accounts maintained at the individual schools are not included in the general purpose :financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.

The aggregate effects on the general purpose financial statements of these variances or omissions have not

been determined, but are believed to be material.



In our opinion, except for the effects ofsuch adjustments, ifany, on the Special Revenue Fund, as might have been detennined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Whitfield County Board ofEducation as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated June 4, 1996, on our consideration ofthe Board's internal control structure and a report dated June 4, 1996, on its compliance with laws and regulations.

Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Whitfield County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules I through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose :financial statements ofthe Whitfield County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
~~

Claude L. Vickers State Auditor

CLV:cm 95ARL-13*

WHITFIELD COUNTY BOARD OF EDUCATION - 1-

WHITFIELD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES ANO ACCOUNT GROUP JUNE 30, 1995

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreements
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

525,613.41 $

738,378.73

$ 2,805,610.98

3,772,551.55

584,377.24

46,604.42 24,260.71

$ 615781162.53 $ 1,1801855.78 $

738,378.73

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Designated for Self-Insurance Programs Undesignated
Total Fund Equity

$

377,641.55

1,155,560.81 $

4,302,457.56

64,199.42 236,651.32
1,750.20 82.02

$ 5,835,659.92 $

302,682.96

$

441.10

46,604.42 24,260.71
$

738,378.73

$

71,306.23 $

738,378.73

$

213,767.02

528,735.59

806,866.59

0.00

$

742,502.61 $

878,172.82 $

738,378.73

Total Liabilities and Fund Equity

$ 6,578,162.53 $ 1,180,855.78 $ ===7=3=81=37=8=.7=3

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

EXHIBIT"A"

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$ 1,263,992.14 $ 2,704,518.70

2,805,610.98

4,356,928.79

3,839,692.92

$ _ _ _1..:..,,066__.,"""25'-7-7.;;;..2

46,604.42 24,260.71
1,066,257.72

57,417.05 18,122.64
1,423,006.93

$

1,066,257.72 $ 9,563,654.76 $ 8,042,758.24

$

377,641.55

1,219,760.23 $ 1,203,812.18

4,539,108.88

3,682,535.96

1,750.20

2,126.83

82.02

200,934.54

$

1,066,257.72

1,066,257.72

1,423,006.93

$

1,066,257.72 $ 7,204,600.60 $ 6,512,416.44

$

441.10

46,604.42 $ 24,260.71 738,378.73

57,417.05 18,122.64

$

809,684.96 $

75,539.69

213,767.02 1,335,602.18

1,454,802.11

$ 2,359,054.16 $ 1,530,341.80

$

1,066,257.72 $ 9,563,654.76 $ 8,042,758.24

-3-

WHITFIEIJ2 cou,:m: aQ~P QE EDUCATION
.COMEIINEP SI!IEMEHI Qf B~N!.!ES, EXPENl:!II!.!BES ~ p ~HANGES IN E!.!NP BALANCES & ~llEBNMEfil&. E!.!NP D'.fES
YEAB ENQEP JUNE 30, 1995

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS
(Memorandum Onb'.} YEAR ENDED
JUNE 30, 1995 JUNE 30, 1994

REVENUES
State Funds Federal Funds Local and Olhar Funds
TolalRevenues

s 29,505,871.38 S
201,860.22
15~56,007.91

1,101,332.75 S
2,660,312.87 1~16,355.76

s 44,963,739.51 S 4,978,001.38 S

0.00 S

30,607,204.13 S
2,862,173.09 16,472,363.67

28,619,340.49 2,769,512.20 15,122,887.73

0.00 S 49,941,740.89 S 46,511,740.42

EXPENptTURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adminis1ration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Olher Support Services Food Services Operation Community Service Operations Olher Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent F -
Tolal Expenditures
Excess of Revenues over (under) Expenditures

s 28,297,441.53 S 1,246,422.35

1,903,271.57 1,184,985.97 1,423,864.90
262,178.55 3,533,756.57
382,173.55 3,485,847.30 1,n6,958.93
504,397.41
1,131.68 46,159.94 562,690.23 602,084.55

206,702.07 97,759.58 94,224.22 70,891.59
44,672.00 37,217.83
49,820.83 2,867,275.27
8,624.98 S

94,163.93 40,428.07

268,091.28 121.18

s 44,101,534.68 S 4,991,823.18 S s 862.204.83 S -13,821.80 S

s 29,543,863.88 S 29,439,263.27

20,502.11

2,109,973.64 1,282,745.55 1,518,089.12
333,070.14 3,533,756.57
382,173.55. 3,530,519.30 1,814,176.76
504,397.41 49,820.83
2,868,406.95 46,159.94
562,690.23 631,211.64

1,810,479.51 1,316,995.45 1,602,466.24
390,159.58 2,906,954.64
257,497.68 3,524,522.83 1,789,972.48
427,860.35 47,140.66
2,706,268.39
545,898.16 1,136,414.20

362,255.21 40,549.25

645,075.59 147,096.05
698.00

20,502.11 S 49,113,859.97 S 48,696,763.06

-20,502.11 S

827,880.92 $ -2,185,022.66

QIHEB EINANCIN~ SQYRCES (!.!SES}
Capital Leases Operating Transfers In Operating Transfers Out
Tolal Other Financing Sources (Uses)

s

5,506.00

s

-760,478.05

s -754,972.05 S

1,597.21 S

s
758,880.84

1,597.21 $ 758,880.84 S

5,506.00 S
760,478.05 -760,478.05
5,506.00 $

1,441,636.52 744,280.66 -744,280.66
1,441,636.52

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

107,232.78 $

-12,224.59 $ 738,378.73 $

833,386.92 $ -743,386.14

FUND BALANCE JULY 1
Food Inventory ; Net Change in Period Donated Commodities Purchased Food

635,269.83

895,071.97
-10,812.63 6,138.07

0.00

1,530,341.80

2,281,468.81

-10,812.63 6,138.07

-7,127.10 -613.n

FUND BALANCE JUNE 30

$ 742.502.61 $ 8781172.82 $ 7381378.73 $ 213591054.16 $ 115301341.80

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

WHITFIELD COUNTY BOARD OF EDUCATION IATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
auDGET AND ACTUAL - (NON-GAAP BASI) gENERAL AND SPE~IAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Local and Other Funds

$ 29,248,119.00 $ 29,505,871.38

175,233.00

201,860.22

13,733,750.00 15,256,007.91

Total Revenues

$ 4311571102.00 $ 4419631739.51

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 Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay
Debt Service

$ 27,278,545.83 $ 28,297,441.53

1,636,580.00 1,235,639.00 1,516,236.50
274,157.60 3,045,352.00
340,802.00 3,604,113.00 1,770,582.00
381,700.00

1,903,271.57 1,184,985.97 1,423,864.90
262,178.55 3,533,756.57
382,173.55 3,485,847.30 1,776,958.93
504,397.41

50,000.00 534,801.00 788,780.00

1,131.68 46,159.94 562,690.23 602,084.55 134,592.00

Total Expenditures

$ 42,457,288.93 $ 44,101,534.68

Excess of Revenues over (under) Expenditures

$ 699,813.07 $ 862,204.83

OTHER FINANCING SOURCES (USES}

Other Sources Other Uses

$

2,000.00 $

5,506.00

-940,000.00

-760,478.05

Total Other Financing Sources (Uses)

$ -938,000.00 $ 0754,972.05

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -238, 186.93 $

107,232.78

FUND BALANCE JULY 1, 1994

1,778,800.25

635,269.83

Adjustments

45,831.86

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 922,184.43 $ 1,101,332.75 2,520,031.()0 2,660,312.87 1,442,770.00 1,216,355.76
$ 4,884,985.43 $ 4,978,001.38

$ 1,551,920.43 $ 1,246,422.35

261,008.66 101,759.46
5,167.00 77,583.00 97,562.00

206,702.07 . 97,759.58
94,224.22 70,891.59

4,587.99

44,672.00 37,217.83

50,652.00

49,820.83

2,633,293.00 2,867,275.27

8,638.00

8,624.98 268,212.46

$ 4,792,171.54 $ 4,991,823.18

$ 92,813.89 $ -13,821.80

$ 190,000.00 $

1,597.21

$ 190,000.00 $

1,597.21

$ 282,813.89 $ -12,224.59

927,766.00

819,532.28

-15,930.17

FUND BALANCE JUNE 30, 1995

$ 1,586,445.18 $ 742,502.61

$ 1,194,649.72 $ 807,307.69

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

WIIlTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEI\IBNTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Whitfield County Board ofEducation (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 gen~rally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Whitfield County Board ofEducation.
Based upon the application ofthe above criteria, the Whitfield County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Whitfield County, Georgia, excluding that area encompassed by the City ofDalton. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set ofaccounts. 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.
- 7-

WIIlTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 ofthese accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general 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 of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities of GSFIC Project No. 96-755-070/Lottery Project No. 96/95-755-069.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for 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 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.

- 8-

WlilTFIELD COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds 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 of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Whitfield County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school

- 9-

WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

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

Excess ofRevenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, 1994
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)

Special Revenue
Fund
$ -12,224.59 895,071.97
-57,417.05 -18,122.64 $ 807,307.69

CASH AND CASH EQUIVALENTS

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

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,
- 10 -

WHITFIEW COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation ofthe 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 ofthe State of Georgia.

RECEIVABLES

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

PROPERTY TAXES

The Whitfield County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar

year) on September 21, 1994 Qevy date). Taxes were due on December 20, 1994. The lien date for property

taxes was January l, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are

reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section

P70.103. The Whitfield County Tax Commissioner bills and collects the property taxes for the Board of

Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes

collected to the Board.



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

School Operations

17.10 mills

- 11 -

WHITFIELD COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported oi:i the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligationrelates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 12 -

WIIlTFIELD COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State ofGeorgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations 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, 1995, the bank balances were $4,494,230.25. The amounts of the total bank balances are classified into three categories of credit risk:

- 13 -

WHITFIELD COUNTY BOARD OF EDUCATION

EXfllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

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, 1995, as follows:

Risk Categozy
1 2 3
Total

Bank Balance $ 200,000.00
4,294,230.25 0.00
$ 4,494,230.25

CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount of the Board's total investments was $2,805,610.98 and consisted entirely offunds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific
identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar
investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

- 14 -

WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

The Board has established a limited risk management program for workers' compensation clail)ls. A premium is charged by the General Fund to each user fund on the basis ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims 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. These losses include an estimate of claims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of $200,000.00 loss per occurrence, up to the statutory limit.

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

1994 1995

Beginning ofYear Liability

Claims and Changes in Estimates

$

0.00 $ 169,160.71 $

$

0.00 $ 143,000.61 $

Claims Paid

EndofYear Liability

169,160.71 $

0.00

143,000.61 $

0.00

The Board is self-insured with regard to unemployment compensation claims. A premium is charged by the General Fund to each user fund on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditures and liability being reported when it is probable t~at a loss has occurred, and the amount of that loss can be reasonably estimated. During the past two years, the Board has paid no unemployment compensation claims.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Whitfield County Board of Education has entered into various lease agreements as lessee for office equipment and an integrated learning system. 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 oftheir inception.

- 15 -

wmTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

Balance July 1. 1994 Additions Deductiorui Balance June 30, 1995

Capital Leases $ 1,423,006.93
5,506.00 362,255.21
S 1 066,257 72

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year
Ended June 30
1996 1997
1998 1999 2000
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases
$ 446,918.10 446,918.10 142,622.88 109,509.12 9,125.76
$ 1,155,093.96
88,836.24
S 1 066,257 72

Note 6: CONTINGENT LIABil..ITIES

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

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

- 16 -

WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: ACCUMULATED EMPLOYEES' LEAVE
Individuals employed for a minimum of 240 days of work within a fiscal year are eligible for annual leave. Leave is earned at a rate often (10) days per year. Unused days may be accumulated and carried forward to the next fiscal year subject to a maximum of fifteen (15) days. In the event of retirement, resignation or termination, individuals employed for,a minimum oftwenty-four consecutive months are eligible for payment ofearned but unused annual leave at their current rate of pay, limited to twenty-five (25) days. See Note I Compensated Absences
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment ofage 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable servic~ (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 withless than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $27,578, I 06.60~ total payroll was $32,366,122.84.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year
- 17 -

WlflTFIELD COUNTY BOARD OF EDUCATION

ExmBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS

1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $4,636,010.63, ofwhich $3,257,080.21 was made by the Board and $1,378,930.42 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

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

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058.958.000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. 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, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of$3,257,080.21 was actuarially determined and represented .5764% oftotal contributions made by all participating employers.

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

- 18 -

WIIlTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
PUBLIC SCHOOL EMPWYEES 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 ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to .$8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 305 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $9,936.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Walter Terry Cullifer, is bonded in the amount of $25,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B701754, on which premium was paid through June 30, 1995.

- 19 -

~ Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
ToCalAssets

coum WHITFIELJ:!

BQ~l2 QE EDUCATION

COME!!NI~ BALANCE S!:!EEI

S~CIAL. BE~!.!E FUND

J!,!NE 30 1995

ELEMENTARY AND

SCHOOL
FOOD SERVICES
FUND

STATE
PRESCHOOL
HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

EDUCATION OF CHILDREN IN STATE SCHOOLS

CHAPTER1 EDUCATION OF
DEPRIVED CHILDREN

$ 945,690.07 $

0.00

22,732.34

$ 20,023.54 $

5,819.72 $

279,338.08

46,604.42 24,260.71

$ 1,039,287.54 $

0.00 $ 20,023.54$

5,819.72 $

279,338.08

LIABII.II!ES~PFUNQEQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Tcal Liabilities
FUNDEQ!.!IJY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Teal Fund Equity

$ 31,125.98 130,429.84
$ 161,555.82
$ 46,604.42 24,260.71
$ 70,865.13 806,866.59 $
$ STT,731.72 $

$ 19,381.08 $ 19.34
100.00
82.02 -
$ 19,582.44 $

5,819.72 $ 5,819.72 $

178,430.31 22,346.70 76,825.88
1,735.19
279,338.08

$

441.10

$ 0.00 0.00 $

441.10 0.00 $
441.10 $

0.00 $

0.00

0.00 $

0.00

Total Liabilities and Fund Equity

$ 1,039,287.54 $

0.00 $ 20,023.54 $

5,819.72 $

279,338.08

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

SECONDARY EDUCATION ACT

MIGRANT PROGRAM

CHAPTER2
BLOCK GRANT FLOW THROUGH

mLEHEISENHOWER MATHEMATICS ANDSCIENCE EDUCATION

INDIVIDUALS WITH

DISABIUTIES EDUCATION ACT

mLEVl,B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 30, 1995 JUNE 30, 1994

s 1,755.34 S

0.00

s

0.00 S 947,445.41 S 1,315,158.50

s

s 18,675.88 S 211,n4,1s

26,063.53

584,3TT24

316,911.73

s 1i755.34 S

0.00 S

s 18,675.88 S 211.n4.1s

26,063.53 S

46,604.42 24,260.71

57,417.05 18,122.64

0.00 S 1,602,687.78 S 1,707,609.92

s

522.18

1,233.16

s 1,755.34

s

0.00 S

s

0.00 S

s 1,755.34 S

s

18,675.88 $ 178,925.76 S

20,599.25

7,769.49

2,415.73

25,024.84

3,037.60

4.06

10.95

s

s 18,675.88 $ 211,n4.1s

26,063.53

s

421,832.00 $

127,398.68

64,199.42

234,753.25

236,651.32

247,324.65

1,75020

2,126.83

82.02

200,934.54

s 724,514.96 S 812,537.95

0.00 S 0.00 S

0.00 S 0.00 S

0.00 $
0.00 S

0.00 S 0.00 S

0.00 S

s 18,675.88 S 211.n4.15

26,063.53 S

s

441.10

s
0.00 0.00 $

46,604.42 $ 24,260.71
71,306.23 S
806,866.59
s 878,1n.82

57,417.05 18,122.64
75,539.69 819,53228 895,071.97

0.00 S 1,602,687.78 S 1,707,609.92

-21 -

Wl::!IIEIELC! COUNTY lilQ~I:! QE EDUCATION COMa!NI~ SI~IEMENI QE Bli.llEN!.!ES, EXPENDITUBES ~I:! CHANGES It! FUN!:! BALANCES
SPECIAL REVENUE FUNQ
YEM ENC!EC! JUNE 3Q 1995

BEllEN!.!E
StaleFunds Federal Funds Local and Other Funds
Tolal Revenues
EXPEN[)fTl.!BES
Current
Instruction Support Services
Pupil Services Improvement d Instructional Services EductionI Media Services General Adminlslration Mintllnnce and Operation d Plant Student Transporlalion Services Other Support Services Food Services Operation Capital 0ully Debt Service Principal . Interest
Tolal Expenditures
Excess d Revenues over (under) Expenditures
QIBEB FINANCING SOURCE
capitalLeues Operating Transfers In
Tolal Other Financing Sources
Excess d Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchasd Food
FUNQ BALANCE JUNE ~

SCHOOL FOOD
SERVICES FUND

ELEMENTARY AND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER1 EDUCATION OF
DEPRIVED CHILDREN

$ 208,812.00 $ 1,428,945.45 1,216,355.76
$ 2,854,113.21 $

126,633.42 $ 765,887.33 $
126,633.42 $ 765,887.33 $

12,140.91 $ 12,140.91 $

678,014.37 678,014.37

$
s 2,866,n8.90 s $ 2,866,n8.90
$ -12,665.69 $

107,259.83 $ 287,267.60 $

19,373.59

23,399.42 2,035.04
94,224.22 1,873.29
44,en.oo 35,528.32
709.74 496.37 8,624.98

268,091.28 121.18

126,633.42 $ 767,043.44 $

0.00 $ -1,156.11 $

11,315.13 $

564,652.n

103.33 722.45

64,050.51 49,111.09

12,140.91 $ 0.00 $

678,014.37 0.00

$ -12,665.69 $ 895,071.97
-10,812.63 6,138.07
s $ 8n,731.n

$ 1,597.21 $ 1,597.21

0.00 $ 0.00

441.10 $ 0.00

0.00 $

441.10 $

0.00 $

0.00

0.00

0.00

0.00 $

0.00

See notes to the general purpose financial statements.

-22-

EXHIBIT "F"

SECONDARY EDUCATION ACT

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLCN/ THROUGH

TITLE UEISENHOWER MATHEMATICS AND SCIENCE EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI B

FLCN/

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 10,094.78 $ $ 10,094.78 $

51,991.00 $ 51,991.00 $

32,430.56 $ 355,893.60 $ 73,595.53 $ 32,430.56$ 355,893.60 $ 73,595.53 $

$ 17,206.67
17,206.67 $

1,101,332.75 $ 2,660,312.87 1,216,355.76

804,739.38 2,603,196.43 1,219,302.71

4,978,001.38 $ 4,627,238.52

$ $ 10,094.78

$ 10,094.78 $

$

0.00 $

$

0.00 $

0.00

$

0.00 $

51,734.69 $
256.31
51,991.00 $ 0.00 $

$
32,366.78 63.78

223,267.95 $
79,482.35 48,302..78
3,873.46
967.06

n4.38
57,145.26 $ 15,054.98
670.91

32,430.56 $ 0.00 $

355,893.60 $ 0.00 $

73,595.53 $ 0.00 $

$ 17,206.67
17,206.67 $ 0.00 $

1,246,422.35 $ 2,116,922.63

206,702..07 97,759.58 94,224.22 70,891.59 44,&n.oo 37,217.83 49,820.83
2,867,275.27 8,624.98

145,02.5.30 92,821.26 202.,668.45 69,820.84
3,325.17 46,315.98 2,708,268.39

268,091.28 121.18

119,883.15 2,916.85

4,991,823.18 $ 5,507,968.02.

-13,821.80 $ -880,729.50

$ 873,111.n

$

1,597.21

604.51

$

1,597.21 $ 873,ne.23

0.00 $ 0.00
0.00 $

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00 $

0.00 $

0.00 $ 0.00

-12,224.59 $ 895,071.97

-6,953.27 909,766.11

-10,812.63 6,138.07

-7,127.10 -613.n

0.00 $

s 878,1n.82

895,071.97

-23-

WHITFIELD COUNTY BOARD OF EDUCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 3Q 1995

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT

CFDA

AWARDS

NUMBER IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of

Through Office of Treasury and Fiscal Services

National Forest Reserve Funds

10.665 $

Through Georgia Department of Education

Food and Nutrition Program

Food Services

School Breakfast Program

1994Grant

10.553

1995Grant

10.553

National School Lunch Program

1994Grant

10.555

1995 Grant

10.555

Food Distribution Program (1)

10.550

4,532.02 $
242,820.68 971,290.11 214.834.66

TotalU.S.DepartmentofAgriculture

s $ 1143314n.47

Education, U. S. Department of

Through Georgia Department of Education

Elementary and Secondary Education Act

Chapter 1

Education of Children In State Schools

1994 carry-Over

84.009 $

1995 Regular

84.009

Education of Deprived Children

1993 carry-Over

84.010

1994 Regular

84.010

1994 carry-Over

84.010

1995 Regular

84.010

Chapter2

Block Grant - Flow Through

1993 Carry-Over

84.151

i 994 carry-Over

84.151

1995 Regular

84.151

ritlell

Eisenhower Mathematics and Science

Education

1994 Regular

84.164

1995 Regular

84.164

Individuals with Disabilities Education Act

n1ev1, B

Flow Through

1993 Carry-Over

84.027

1994 Regular

84.027

1994 Carry-Over

84.027

1995 Regular

84.027

Preschool Program

1994 Regular

84.173

1995 Regular

84.173

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1994 Grant

84.048

1995 Grant

84.048

Community Based Organizations

Vocational Educational Support Program

1994 Contract

84.174

1995 Contract

84.174

Consumer and Homemaking Education

1995 Contract

84.049

Tech-Prep Education

1994Grant

84.243

1995 Grant

84.243

8,485.00 $ 8,586.00 89,062.00 60,950.00 584,012.00
1,007.00 50,984.00
26,319.00
105,664.00 327,294.00 n,100.00
75,278.82
15,000.00 23,045.00 36,031.00 - 24 -

4,532.02 $

4,532.02

(5)

3,983.88 240,132.13

242,820.68

22,688.62 951,246.32 N/A

971,290.11 $ 214.834.66

1.222.582.97 $ 1.433.477.47 $

(2)
2,651,944.24 (3) 214.834.66
218661n8.90

5,971.19 $ 350.00
86,380.52 156,798.23
314,030.96

8,485.00 $ 3,655.91
86,380.52
58,087.83 533,546.02

8,485.00 3,655.91
86,380.52
58,087.83 533,546.02

661.00 1,007.00 50,984.00

1,007.00 50,984.00

1,007.00 50,984.00

27,538.24

13,754.68 18,675.88

13,754.68 18,675.88

-6.41 96,104.24
144,173.51
21,615.79 47,542.95

105,664.00 250,229.60
73,595.53

105,664.00 250,229.60
73,595.53

27,072.00

48,426.51

75,278.82

(4)

5,000.00

10,300.00

15,000.00

(4)

23,045.00

(4)

63,969.00

6,060.41

36,031.00

(4)

WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCJAL ASSISTANCE
YEAR ENDED JUNE 30, 1995

FUNDING AGENCY PROGRAM/GRANT

CFDA

AWARDS

NUMBER IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of Through HaU County Board of Education d/bla Piedmont Migrant Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1995 Regular

84.011 $

10.211.65 $

10.094.78 $ 10.094.78 $

10.094.78

TotalU.S.DepartmentofEducation

$ 1.499.629.47 $ 1.124.073.92 $ 1.363.515.57 $ 1.214.160.75

Labor, U. S. Department of Through North Georgia Private Industry Council Job Training Partnership Act Contract No. 94012811 Contract No. 95040106

17.250 17.250 $

$ 18.645.30

17,206.67 $ 17,206.67 $

17,206.67

Total U. S. Department of Labor

$ 18.645.30 $

17.206.67 $ 17.206.67 $

17.206.67

OTHER FEDERAL ASSISTANCE
Appalachian Regional Commission Direct Apprenticeship Program

23.012 $ 48.000.00 $

30.082.15 $ 47.973.38 $ 2991261.77 (3)

Total Federal Financial Assistance

$ 2,999,752.24 $ 2,393,945.71 $ 2,862,173.09 $ 4,397,408.09

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 nonrnonetary assistance for donated commodities received and/or consumed by the system during the current flSC81 year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

- 25 -

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

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Dalton/Whitfield Bank and Trust, Dalton, Georgia
Commercial Checking (3.69%)
Wachovia Bank of Georgia, Dalton, Georgia
Money Market Account (1.53%) Commercial Checking (Variable)

$ -72,623.13

$ 13,283.65 945,690.07

958,973.72

$ 886,350.59

See notes to the general purpose financial statements.
- 26 -

WHITFIELD COUNTY BOARD OF EDUCATION
INVESTMENTS JUNE 30.1995
INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (6.032%)

SCHEDULE "3" $ 2,805,610.98

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

WHITFIELD COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE
JUNE 30, 1995

SCHEDULE "4"

Appalachian Regional Commission Apprenticeship Program
Education Georgia Department of Quality Basic Education
Deferred Summer Salaries - FY 95
Food Services School Breakfast Program National School Lunch Program
Vocational Education State Funds Federal Funds
Other State Program At-Risk Summer School Program
Lottery Programs Applied Technology Labs Instructional Technology
Federal Programs ESEA - Chapter 1 Education of Children in State Schools Education of Deprived Children ESEA-Tdlell Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act TdleVI, B Flow Through Preschool Program
Fannin County Board of Education Shared Service
United States Treasury Overpayment of Payroll Withholdings
Various Sources Returned Check
Whitfield County Tax Commissioner County Wide Bond Tax County Wide School Tax

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

17,891.23

$

17,891.23

3,440,707.00
$
55,494.53 84,567.90 34,610.72

2,688.55 20,043.79
7,357.34 12,666.20

3,440,707.00
2,688.55 20,043.79
55,494.53 84,567.90
34,610.72
7,357.34 12,666.20

5,819.72 279,338.08
18,675.88

5,819.72 279,338.08
18,675.88

211,724.15 26,063.53

211,724.15 26,063.53

1,100.00

1,100.00

10.61

10.61

48.00

48.00

558.72 137,562.84

558.72 137,562.84

$ 3,772,551.55 $ 584,377.24 $ 4,356,928.79

See notes to the general purpose financial statements.

- 28 -

WHIIFJELD COUNTY BOARD OF EDUCATJON SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1995

SCHEDULE s-

AGENCY/FUNDING
GRANTS Education. Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Umited English Speaking Middle School lncenwe Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 Mid-term Adjustment Local Fair Share Deferred Summer Salaries - FY 94 Deferred Summer Salaries - FY 95 Educational Equalization Funding Grant Food Services Vocational Education other State Programs Apprenticeship Program At-Risk Summer School Program Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Algebra Classrooms Applied Technology Labs Distant Leaming Instructional Technology Media Center and Ubrary Equipment Pre-Kindergarten Program Safe Schools Grant Technology Installation
Brenau University Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification
Shorter College Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification
West Georgia College Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 18,084,569.00 2,664,813.00 361,107.00 780,256.00 238,407.00 5, 151,552.00
980,661.00 295,209.00 120,087.00 668,045.00 954,518.00 213,432.00
47,104.00 496,552.00 -3,762,641.00 -3, 174,700.00 3,440,707.00 1,815,453.00
$ 56,015.33
14,925.30 30,056.69
4,998.07 11,040.00
10,604.99

$ 18,084,569.00 2,664,813.00 361,107.00 780,256.00 238,407.00 5, 151,552.00

208,812.00

980,661.00 295,209.00 120,087.00 668,045.00 954,518.00 213,432.00
47,104.00 496,552.00 -3,762,641.00 -3,174,700.00 3,440,707.00 1,815,453,00 208,812.00
56,015.33

126,633.42

14,925.30 30,056.69
4,998.07 11,040.00 126,633.42 10,604.99

1,162.70 99,135.07 36,532.93 251,398.87 94,224.22 87,065.08 78,156.00 118,212.46

1,162.70 99,135.07 36,532.93 251,398.87 94,224.22 87,065.08 78,156.00 118,212.46

250.00

250.00

100.00

100.00

2,750.00

2,750.00

See notes to the general purpose financial statements.

- 29 -

$ 29,505,871.38 $ 1,101,332.75 $ 30,607.204.13

WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

Taxes County Wide Bond Tax (Delinquent) County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Contributions to Self-Insured Employee Benefit Fund from Other Funds For Unemployment Compensation For Workers' Compensation Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Reimbursements for Salaries Rents Revenue in Lieu of Taxes Tennessee Valley Authority Sales Adult Meals Contracted Meals Lunches and Breakfast School Assets Supplemental Shared Service Contributions Catoosa County Board of Education City of Dalton Board of Education City of Rome Board of Education Fannin County Board of Education Floyd County Board of Education Gordon County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

5,691.82

13,849,160.35

12,079.80

61,698.41

$

5,691.82

13,849,160.35

12,079.80

61,698.41

14f),992.90 264,678.91
2,769.00
10,037.25
262,699.66 $
4,593.70 2,775.16 53,498.97 4,610.00
8,362.47
20,500.66
2,200.00 143,607.50
3,600.00 3,600.00 1,000.00 3,600.00 48,410.19 339,841.16

52,432.62
103,987.70 36,988.60
983,745.27 36,066.66
3,134.91

146,992.90 264,678.91
2,769.00
10,037.25 315,132.28
4,593.70 2,775.16 53,498.97 4,610.00
8,362.47
103,987.70 36,988.60
983,745.27 20,500.66 36,066.66
2,200.00 143,607.50
3,600.00 3,600.00 1,000.00 3,600.00 48,410.19 342,976.07

$ 15,256,007.91 $ 1,216,355.76 $ 16,472,363.67
See notes to the general purpose financial statements. - 30 -

WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

SCHEDULE "7"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

EXPENDITURES

Operating Costs

Salaries

$ 30,312,608.16 $ 2,053,514.68

Employee Benefits

8,275,072.23

576,TT0.91

Travel of Employees

100,851.27

28,808.19

Professional and Technical Services

460,180.13

55,624.10

Compensation and Travel of Board Members

3,631.26

Water, Sewer and Cleaning Services

73,901.48

17,324.80

Repair and Maintenance Services

239,092.19

31,783.01

Rents

21,065.56

Property Services

64,415.31

Insurance

90,433.00

Communications

116,714.83

671.03

Commodity HauUng

15,824.76

Other Purchased Services

4,706.32

6,027.35

Supplies

1,232,261.70

342,463.76

Energy

1,095,079.55

42,089.04

Food Usage

438.54 1,210,119.13

Books, Textbooks and Periodicals

251,267.42

5,382.16

Dues and Fees

28,530.73

3,681.90

Interest Expense

92,054.80

Federal Indirect Costs

10,037.25

Other Expenditures

18,327.76

2,248.95

$ 32,366,122.84 8,851,843.14 129,659.46 515,804.23 3,631.26 91,226.28 270,875.20 21,065.56 64,415.31 90,433.00 117,385.86 15,824.76 10,733.67 1,574,725.46 1,137,168.59 1,210,557.67 256,649.58 32,212.63 92,054.80 10,037.25 20,576.71

Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

134,592.00 57,505.00 544,579.55 884.225.89

268,212.46 8,624.98 $
312.614.72

20,502.11

402,804.46 66,129.98
565,081.66 1.1961840.61

Total Expenditures

$ 44,101,534.68 $ 4,991,823.18 $ 20,502.11 $ 49,113,859.97

See notes to the general purpose financial statements.

- 31 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Other Purchased Services Supplies Food Usage Dues and Fees Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Equipment
Total Expenditures

ALGEBRA CLASSROOMS

APPLIED TECHNOLOGY
LABS

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

1,162.70

$

3,177.52 $

20,430.43

1,441.64 35,118.96

$

99,135.07

8,624.98 4,300.00

150,000.00 64,382.17

$

1,162.70 $

s_ _ 99,135.07 $ 36,532.93

...,.250-,.9..4..2._.n_

See notes to the general purpose financial statements.

- 32 -

SCHEOULE8"

MEDIA CENTER
AND LIBRARY
EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

$

46,980.72

47,243.50

$

94,224.22 $

58,806.28 16,887.62
1,527.28 253.00 685.74
4,625.45 $ 56.10 56.90 248.95
4,653.97

51,246.00
$ 27,786.00

$

58,806.28

16,887.62

1,527.28

253.00

5,304.90

159,564.26

56.10

56.90

248.95

118,212.46

268,212.46 8,624.98
247,500.71

87801.29 $

79,032.00 $

118,212.46 $ 767,043.44

- 33 -

WHITFIELD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1995

SCHEDULE "9"

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

THIRTEEN WEIGHTED ANO MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 22,2741673.00 $

7021484.00

___ _____ $ 24,795,276.73 1,065,050.60 $

91_3.:,.;260.53

$ 25,860,327.33

-602,445.33 $ 25,257,882.00

Amount of Underexpenditure for Total Allotment

$

Note: (1) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guideHnes.

0.00 $ =====0.=00

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

WHITFIELD COUNJY BOARD OF EDUCATION ANAL)'.SIS OF MINIMUM EXf'ENDITURE REQUIREMENTS BY PBQGRAM
GENERAL FUND QUALITY BASIC EDUCATION PBQGRAMS YEAR ENDED JUNE 30 1995

GENERAL At::jQ ~BEl;B EDUCATION ffiOGRAMS
Kindergarten C, Grades 1 3 C,
SUb-Tolal K-3 Grades 4 5 C, Grades 6 8 C, Grades 9 - 12 (") High School Laboratories C, Vocational Education Laboratories (")
Total General and career Education Programs SPEQ1AL EDUCATION PROGRAMS
Regular Programs category I (") category II (") category Ill (") category IV (") SUb-Tolal Regular category V (Gifted) (") Total Special Education Programs
REMEDIAL EDUCATION PROGRAM 11 Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF C>EVELOPMENT PROGRAMS Cost d Instruction Prcfessional Dellelopment
Total Staff Dellelopment (") Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _!_

ORIGINAL

MID-TERM

$ 2,005,412.00

$ 1,804,870.80 $

5,032,227.00

4,529,004.30

$ 7,037,639.00 90 $ 6,333,875.10 $

2,531,402.00 90

2,278,261.80

3,STT,793.00 90

3,490,013.70

2,795,844.00 90

2,516,259.60

940,829.00 90

846,746.10

901,062.00 90

810,955.80

$ 18,084,569.00

$ 16,276,112.10 $

0.00 365,387.00 365,387.00
0.00 0.00 0.00 0.00 0.00 365,387.00

$ 2,227,010.00

$ 2,004,309.00 $

0.00

$ 2,227,010.00 90 $ 2,004,309.00 $

437,803.00 90

394,022.70

$ 2,664,813.00

$ 2,398,331.70 $

$

361,107.00 90 $

324,996.30 $

$ 21,110,489.00

$ 18,999,440.10 $

0.00 0.00 0.00 0.00 365,387.00

$

618,368.00 90 $

556,531.20 $

161,888.00 90

145,699.20

$

780,256.00

$

702,230.40 $

14,634.00 3,907.00
18,541.00

$ 21,890:745.00

$ 19,701,670.50 $

383,928.00

$

56,189.00

182,218.00

$

56,189.00 $

182,218.00

1,431.00 0.00

$

238,407.00 100 $

238,407.00 $

1,431.00

(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements.

36

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDlTURE
FOR REQUIRED ALLOTMENT

$ 1,804,870.80 $ 2,311,542.21 $

54,096.13 $ 2,365,638.34

4,894,391.30

5,488,642.03

186,167.07

5,674,809.10

$ 6,699,262.10 $ 7,800,184.24 $

240,263.20 $ 8,040,447.44 $

0.00

2,278,261.80

2,909,355.80

92,934.16

3,002,289.96

0.00

3,490,013.70

4,158,425.94

170,413.47

4,328,839.41

0.00

2,516,259.60

3,211,627.10

126,583.50

3,338,210.60

0.00

846,746.10

868,885.19

25,680.52

894,565.71

0.00

810,955.80

1,044,031.92

222,169.94

1,266,201.86

0.00

$ 16,641,499.10 $ 19,992,510.19 $

878,044.79 $ 20,870,554.98

$ 2,004,309.00 $

300,180.76 $ 351,743.85 1,920,507.15 174,654.24

17,359.94 $ 1,349.08 4,108.52 2,506.50

317,540.70 353,092.93 1,924,615.67 177,160.74

$ 2,004,309.00 $ 2,747,086.00 $

25,324.04 $ 2,772,410.04

0.00

394,022.70

403,489.51

8,313.98

411,803.49

0.00

$ 2,398,331.70 $ 3,150,575.51 $

33,638.02 $ 3,184,213.53

$

324,996.30 $

402,738.77 $

1,577.72 $

404,316.49

0.00

$ 19,364,827.10 $ 23,545,824.47 $

913,260.53 $ 24,459,085.00

$

571,165.20 $ 1,249,452.26

$ 1,249,452.26

0.00

149,606.20

$

151,790.07

151,790.07

0.00

$

720,771.40 $ 1,249,452.26 $

151,790.07 $ 1,401,242.33

$ 201085,598.50 $ 24,795,276.73 $ 1,065,050.60 $ 25,860,327.33 $

0.00

$

57,620.00

182,218.00

$

239,838.00

$

77,307.26 $

77,307.26

188,831.25

188,831.25

$

266,138.51 $

266,138.51 s_ _ _ _ _ _o_.oo_

- 37 -

WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1995 .

SCHEDULE 11"

BOARD MEMBER ADDRESS
Mr. Mark Fidler, Chairman (") 4103 Country Way Cohutta, Georgia 30710
Mr. Patrick Henry(*) 350 East Broadacre Road, N. E. Dalton, Georgia 30721
Mr. Jerry Nealy(*) 2159 Landfill Road Rocky Face, Georgia 30740
Mr. Chuck Oliver(*) 3801 Edwards Circle Dalton, Georgia 30721
Mr. Charles Rogers 449 Bettis Road Chatsworth, Georgia 30705
Mr. Terry Ross(*) 126 Golfview Drive Cohutta, Georgia 30710

COMPENSATION

TRAVEL

$

481.17

1,050.00 $

58.59

431.17

50.00

479.16

550.00

531.17

(*) Denotes Board Members Serving as of June 30, 1995

$

3,093.51 $ ====5=37=.7=5

See notes to the general purpose financial statements.

- 38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Whitfield County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Whitfield County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 4, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Whitfield County Board ofEducation is the responsibility ofthe 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 ofour 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 ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
95CRL-10

This report is intended for the information of management, the Federal cogniz.ant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 95CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Whitfield County Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Whitfield County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 4, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Whitfield County Board ofEducation's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits 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 ofan opinion on the Whitfield County Board ofEducation's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

95CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Whitfield County Board ofEducation had not complied, in all material respects, with those requirements. However, the results ofour 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 ofpublic record.



Respectfull submitted,

Claude L. Vickers State Auditor

~

CLV:cm 95CRL-50

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Whitfield 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 ofthe Whitfield County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 4, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Whitfield County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Whitfield County Board ofEducation is responsible for the Board's compliance with those requirements. Our . responsibility is to express an opinion on compliance with those requirements based on our audit.

95CRL-80

Except as discussed in the following paragraph, we conducted our audit 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 (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Whitfield County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our op1nton.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as
inventories through alternative procedures. However, this matter has no affect on the Board's compliance with
the requirements listed in the second paragraph ofthis report.
In our opinion, the Whitfield County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance
programs for the year ended June 30, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm 95CRL-80

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Whitfield County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 4, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1995 general purpose financial statements of the Whitfield County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective ofwhich is the expression ofan opinion on the Whitfield County Board ofEducation'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 Whitfield County Board of Education had not complied, in all material respects, with those requirements.

95CRL-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 ofpublic record.
Respectfully submitted,

CLV:cm 95CRL-120

Claude L. Vickers State Auditor

SECTION ID INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Whitfield County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Whitfield County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 4, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe Whitfield County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan 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 ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that
95ICL-3

procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation ofpolicies and procedures may deteriorate.

In planning and performing our audit of the general purpose financial statements of the Whitfield County

Board ofEducation for the year ended June 30, 1995, we obtained an understanding of.the internal control

structure. With respect to the internal control structure, we obtained an understanding of the design of

relevant policies and procedures and whether they have been placed in operation, and we assessed control risk

in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose

financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not

express such an opinion.



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

As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:

General Fixed Assets

A material weakness is areportable condition in which the design or operation ofone or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

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

This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Whitfield County Board ofEducation's financial statements and this report does not affect our report thereon dated June 4, 1996.

95ICL-3

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

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Whitfield County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Whitfield County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 4, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Whitfield County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 4, 1996.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and the provisions ofOffice ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Whitfield County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OlvIB Circular A-128. This report addresses our consideration of internal control structure policies and
95ICL-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 ofthe general purpose financial statements in a separate report dated June 4, 1996.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

For all of the internal control structure categories listed above, we obtained an understanding ofthe 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, 1995, the Whitfield County Board ofEducation expended 70% of its total Federal financial assistance under major Federal financial assistance programs.

95ICL-7

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the 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:
Allowable Costs/Cost Principles
A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Whitfield County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated June 4, 1996.
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 ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 95ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

WIDTFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition -Material Weakness Audit Control Number 7551-93-01
The audit report for the year ended June 30, 1994, noted that the management of the Whitfield County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance 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 Assets Account Group.
CURRENT YEAR
CASH MANAGEMENT Excessive Lottery Cash Balance Financial Statements Nonmaterial Noncompliance Audit Control Number 7551-95-01
A review of cash management procedures for the 1994 Lottery Instructional Technology - Computers in Classrooms and 1995 Lottery Distant Learning programs disclosed that cash draws were made in excess of actual expenditures. At June 30, 1995, these reimbursement basis programs had a cash balance of $441.10 and $82.02 respectively. Procedures should be implemented to ensure that excess funds are not retained in these programs at year end. The Georgia Department ofEducation should review these matters to determine if a reclaim offunds is appropriate.
-I-

WIIlTFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR ALLOWABLE COSTS/COST PRINCIPLES
Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $2,781.17 Audit Control Number 7551-95-02 A review of salaries and benefits charged to the Elementary and Secondary Education Act, Chapter 1 Education of Deprived Children Program (CFDA 84.010) revealed that an employee's salary and benefit expenditures of$2,781.17 were not supported by time and attendance records as required by Chapter 41, of the Financial Management for Georgia Local Units ofAdministration (FMGLUA). Salary and benefit charges to Federal programs should be based on actual time worked by employees. These improper expenditures occurred because the salary of a split-funded employee was charged to the program based on the budgeted amount rather than the actual percentage oftime worked as supported by time records. Appropriate internal controls should be established by the Board to ensure that all salary and benefit charges of employees involved in Federal and/or State projects are based on actual hours worked. The Georgia Department ofEducation should review this matter to determine if a reclaim offunds is appropriate.
-2-

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

WIIlTFIELD COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7551-93-01
We concur with this recommendation. Due to current staffing limitations and budgetary considerations the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements.
CASH MANAGEMENT Excessive Lottery Cash Balance Financial Statements Nonmaterial Noncompliance Audit Control Number 7551-95-01
We concur with this finding. This finding will be resolved by submitting a check in the amount of $441.10. A check in the amount of$82.02 has already been submitted.
ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $2, 781.17 Audit Control Number 7551-95-02
We concur with this finding. This finding will be resolved by submitting a check in the amount of $2,781.17. Appropriate internal controls have been established in the following manner. Monthly time sheets are submitted to verify the actual ratio of time spent in the federal program and in non-federal programs. Salary will be charged on the basis ofactual hours worked in each area.