Audit report, Whitfield County Board of Education, Dalton, Georgia, year ended June 30, 1996

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AUDIT REPORT WHITFIELD COUNTY BOARD OF EDUCAnON
DALTON, GEORGIA YEAR ENDED JUNE 30, 1996

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

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

28

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

29

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

30

2 CASH AND CASH EQUIVALENTS

32

3 INVESTMENTS

33

4 ACCOUNTSRECENABLE

34

SCHEDULE OF REVENUE

5

STATE

35

6

TAXES AND OTHER

36

WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNI?S

37

8

LOTTERY PROGRAMS

38

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

41

10

BY PROGRAM

42

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

44

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

SECTIONllI
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
SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR , (4Q.4) 6562174

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

February 27, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Whitfield County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Whitfield County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have
been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from
generally accepted accounting principles. These variances are described as follows:
96ARL-13

The general purpose financial ~tatements 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, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Whitfield County Board ofEducation as of June 30, 1996, 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 February 27, 1997, on our consideration of the Board's internal control structure and a report dated February 27, 1997, 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 through H) and the financial schedules (Schedules 1 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 of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 96ARL-13

WHITFIELD COUNTY BOARD OF EDUCAnON - 1-

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

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

$ 752,008,63 $ 1,378,913,00

$ 4,498,875,47

4,069,168,32

357,328,70

424,872,60

44,132.23 22,530.23

$ 8,568,043.79 $ 1,175,999.79 $ 1,803,785.60

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements
Total Uabilities
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 Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 1,621,720.00 1,249,880.39 $ 4,655,036.04 194.26

64,751,23 253,265.31
5,514.30 $

346,893.60 37,471.00

$ 7,526,830.69 $

323,530.84 $

384,364.60

$

5,076.68 $

90.30

$

5,076.68 $

185,304.16 850,832,26

$ 1,041,213.10 $

44,132.23 22,530.23
$
66,752.76 $

1.419,421.00 1,419,421.00

785,716,19 852,468.95 $

0.00 1.419.421.00

$ 8,568,043.79 $ 1,175,999.79 $ 1,803,785.60

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, 1996 JUNE 30, 1995

$ 2,130,921.63 $ 1,263,992.14

4,498,875.47

2,805,610.98

4,851,369.62 4,356,928.79

44,132.23 22,530.23

46,604.42 24,260.71

$

655,458.n

655,458.n 1,066,257.72

$

655,458.n $ 12,203,287.95 $ 9,563,654.76

$ 1,621,720.00 $ 3n,641.55

1,314,631.62 1,219,760.23

4,908,301.35 4,539,108.88

5,708.56

1,750.20

346,893.60

37,471.00

82.02

$

655,458.n

655,458.n 1.066,257.72

$

655,458.n $ 8,890,184.90 $ 7,204,600.60

$

5,166.98 $

441.10

44,132.23 22,530.23 1,419,421.00

46,604.42 24,260.71 738,378.73

$ 1,491,250.44 $ 809,684.96

185,304.16 1.636.548.45

213,767.02 1.335,602.18

$ 3,313,103.05 $ 2,359,054.16

$

655,458.n $ 12,203,287.95 $ 9,563,654.76

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

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

EXHIBITC

REVENUES
Slate Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Sc:hooI 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
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1995
Adjustments

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 31,838,186.00 $ 32,984,285.75

430,000.00

114,838.54

15,165,492,00 17,227,265.91

$ 47,433,678.00 $ 50,326,390.20

$ 30,404,995,50 $ 31 ,836,109.29

1,843,907.00 1,401,302.00 1,499,034.00
263,885.00 3,333,946.00
363,429,00 3,834,050.70 2,019,272,00
333,607.00
400,000.00 315,943.00 . 914,370.00

1,946,468.32 1,378,997.80 1,514,556.29
261,422.22 3,394,326,12
423,722.40 3,936,603.43 2,404,629.28
637,634.10 10,682,13 255.15
364,761,43 385,674.21 320,368,05 446,918.10

$ 46,927,741.20 $ 49,263,128,32

$ 505,936.80 $ 1,063,261 ,88

$ -940,000.00 $ -764,551.39 $ -940,000,00 $ -764,551.39

$ -434,063.20 $ 2,537,895,81 33,973,58

298,710.49 742,502,61

FUND BALANCE JUNE 30, 1996

$ 2,137,806,19 $ 1,041,213.10

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,026,512.76 $ 603,830.80 2,472,114.00 2,788,116.66 1,326,930.50 1.225,057.52
$ 4,825,557.26 $ 4,617,004.98

$ 2,001,052.00 $ 1,247,513.86

194,128.80 108,838.90 61,174.00
63,527.22 127,218.00

157,871.58 99,797.59 49,915,14 49,913.78
308.23

28,929.00 3,723.00

62,146,40 1,711.86

7,990.00 2,785,230.00

2,130.31 2,972,132,76

$ 5,381,810,92 $ 4,643,441,51 $ -556,253.66 $ -26,436.53

$ 190,000.00 $

4,935.33

$ 190,000.00 $

4,935.33

$ -366,253,66 $ 873,458,65 3,110.38

-21,501,20 807,307.69

$ 510,315.37 $ 785,806.49

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

WInTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

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 generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Whitfield County Board ofEducation.
Based upon the application of the above criteria, the Whitfield County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in 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 of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

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WIDTFIELD COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control 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 educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
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WIDTFIELD COUNTY BOARD OF EDUCATION

EXlllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofaccounting 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 1995 and ending in early June 1996. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
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 of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

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WIDTFIELD COUNTY BOARD OF EDUCATION

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

FUND BALANCE JULY 1,1995 Adjustments
Inventories - July 1, 1995 Food Donated Commodities Purchased Foods
Fund Balance July 1, 1995 (Budget Basis) Excess ofRevenues and Other FinancinKSources
over (under) Expenditures and OtherFinancing Uses FUND BALANCE JUNE 30, 1996 (Budget Basis)
CASH AND CASH EQUIVALENTS

Special Revenue
Fund $ 878,172.82
-46,604.42 -24,260.71 $ 807,307.69
$ -21.501.20 $ 785,806.49

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 of deposit is limited to financial institutions located within this State.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

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

(2) Obligations issued by the United States government,

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

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WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(4) Obligations of any corporation of the United States government,

(5) Prime bankers acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables cOnsist 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 1995 tax year (calendar year) on September 19, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The 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 1995 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

17.10 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (weighted average). 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

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WIllTFIELD COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

commodities and for purchased foods are equally offset by reservations 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 obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from

future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also

deemed to be immaterial to the fair presentation ofthese financial statements.

.

INTERFUND TRANSACTIONS

The Board has the following types of interfund 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.

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 of the face value of such surety bond
and the market value ofsecurities shall be equal to not less than 11 percent of the public funds being secured

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WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS AND INVESTMENTS
after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone ofor any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(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 of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $4,818,966.55. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
- 12 -

WIDTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS

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

Risk Category 1 2 3 Total

Bank Balance $ 300,000.00
1,129,854.86 3.389.111.69 $ 4,818,966.55

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $4,498,875.47 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 ofTreasury and Fiscal Services for the LocaI 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 illness or injuries to employees; natural disaster; and unemployment compensation.

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

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

The Board has established a limited risk management program for workers' compensation claims. A premium is charged by the General Fund to each user fund on the basis of the 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 expenditure and liability being reported when it is proba~le

- 13 -

WIllTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT
;
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:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$

0.00 $ 143,000.61 $ 143,000.61 $

0.00

$

0.00 $ 261.243.84 $ 261.243.84 $

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 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 expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. During the past two years, the Board has not incurred any unemployment compensation claims.

Note 5: GENERALLONG-TERMDEBT

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 ofthe future minimum lease payments as of the date oftheir inception.

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

Capital Leases

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

$ 1,066,257.72
410,798.95 $ 655458.77

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

- 14 -

WInTFIELD COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: GENERAL LONG-TERM DEBT
Fiscal Year Ended June 30
1997 1998 1999 2000
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments
Note 6: ON-BEHALF PAYMENTS

Capital Leases
$ 446,918.10 142,622.88 109,509.12 9,125.76
$ 708,175.86
52,717.09
$ 655.458.77

The Board has recognized revenues and expenditures in the amount of $802,680.86 for health insurance and
retirement contributions paid on the Board's behalfby the following State Agencies.

.Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of $674,880.86

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$127,800.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project
96-755-070 Eastbrook Middle Renovations

Unearned .Executed Contracts
$ 2,902,629.75 54.395.00
$ 2.957.024.75

Fundinfc Availab e From State $ 1,431,210.40
$ 1431.210 40

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

- 15 -

WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 9: 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 of employment, individuals employed for a minimum of twenty-four consecutive months are eligible for payment of earned but unused annual leave at their current rate of pay, limited to a maximum of twenty-five (25) days. See Note 1- Compensated Absences
Note 10: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
- 16 -

WIDTFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 10: RETIREMENT PLANS

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $30,010,282.76; total payroll was $34,583,323.98.

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

Total contributions made during fiscal year 1996 amounted to $5,044,737.00, of which $3,544,214.29 was made by the Board and $1,500,522.71 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) ofcovered payroll.

TRS FUNDING STATUS AND PROGRESS The amount ofthe 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, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585.541.000.00

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

- 17 -

WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 10: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$3,544,214.29 was actuarially determined and represented .5836% oftotal contributions made by all participating employers.
Ten year historical trend information is p~esented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment 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 ofcreditable 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. If there are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 308 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $9,980.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.

- 18 -

WHITFIELD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 11: 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, 1996.

- 19 -

WHITFIELD COUNTY BOARD OF EDUCATION COMBINING' BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 948,283,38

13,180.89 $ 25,669.43 $

52,169.72

44,132.23 22,530.23

$ 1,028,126.73 $ 25,669.43 $

5.2..,_16_9..7...2..

$ 16,804.89 $

$ 32,941.48

2,3n.48

142,716.30

6,487.06

52,169.72

$ 175,657.78 $ 25,669.43 $

52,169.72

$

90.30

44,132.23 22,530.23

$ 66,752.76

785,716.19 $

0.00 $

0.00

$ 852,468.95 $

0.00 $

0.00

- _ $ 1,028,126.73 $ 25,669.43 $ 5...2..,.1..6..9.....7..2...

See notes to the general purpose financial statements.

- 20-

EXHIBIT"E"

EDUCATION OF CHILDREN WITH
DISABILITIES

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

GRANTS TO

PROGRAM FOR

TITLE II

LOCAL

NEGLECTED AND EISENHOWER

EDUCATIONAL MIGRANT

DELINQUENT PROFESSIONAL

AGENCIES EDUCATION

CHILDREN

DEVELOPMENT

TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES

$

0.00

$

0.00

$

5,254.00 $ 110,767.72

$

2,197.00 $

22,889.38

$

5,254.00 $ 110.767.72 $

0.00 $

2,197.00 $

22.889.38 $

o._o0_

$

5,254.00 $ 17,674.04

19,595.06

68,229.44

5,269.18

$

5,254.00 $ 110,767.72

$

2,197.00 $

22,889.38

$

2.197.00 $

22,889.38

$

--.;;;O.;.;;.O~O $

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

$

----"0,;;.;;.0..;..0 $

0.00 $

0.00 $

..;;.;O.;.;.OO~ $ ..;;,;0.;.;;.00;;:..$

0.00 $ 0.00 $

$

5,254.00 $ 110,767.72 $

0.00 $ _ _....2....1.9._7..0..0.. $

22,889.38 $

. .::;,0;.;;. 0.;;. 0 . ;:;0;.;;. 0.;;. 0
0..0....0..

- 21 -

WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

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

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$

5,414.65

$ 58,855.26

174.99

$ 58,855.26 $ _ _--.:5,.5..8..9._..64.

LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food' Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 22,354.16 8,427.40 $
28,073.70
$ 58,855.26 $

1,138.06 4,206.46
245.12
5,589.64

$

0.00 $

$

0.00 $

0.00 0.00

$ 58,855.26 $ _ _--.:5,.5..8..9._.6.4.

See notes to the general purpose financial statements.

- 22-

EXHIBIT"E"

VOCATIONAL JOB TRAINING

EDUCATION PARTNERSHIP

TOTALS

FEDERAL

ACT

JUNE 30,1996 JUNE 30,1995

$

0.00$ 953,698.03 $ 947,445.41

$ 66,170.31

357,328.70

584,3n.24

$ 66,170.31 $

44,132.23 22,530.23

46,604.42 24,260.71

0.0...0.. $ 1,3n,689.19 $ 1,602,687.78

$ 62,346.21 271.75
3,552.35
$ 66,170.31

$ 201,689.40 $ 421,832.00

64,751.23

64,199.42

253,265.31

236,651.32

5,514.30

1,750.20

82.02

$ 525,220.24 $ 724,514.96

$

0.00 $

$

0.00 $

$ 66,170.31 $

$

90.30 $

441.10

$ 0.00 0.00 $

44,132.23 22,530.23
66,752.76 $
785,716.19
852,468.95 $

46,604.42 24,260.71
71,306.23
806,866.59 878,172.82

0.0.._0 $ 1,3n,689.19 $ 1,602,687.78

-23 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 223,854.00 $ 252,510.80 $ 1,501,896.64 1,225,057.52
$ 2,950,808.16 $ 252,510.80 $

127,466.00 127,466.00

$ 176,712.55 $

12,613.39 641.79

$ 2,971,868.26

1,193.32 308.23
62,146.40 175.16 765,52 264.50

111,199.25 16,266,75

$ 2,971,868.26 $ 254,820.86 $ $ -21,060.10 $ -2,310.06 $

127,466.00 0,00

1,868.96

$ -21,060.10 $ 877,731.72

-441.10 $ 441.10

-2,472.19 -1,730.48

$ 852,468.95 $

0.00 $

0.00 0.00
0....0...0...

See notes to the general purpose financial statements.

- 24-

EXHIBIT"P'

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

GRANTS TO

PROGRAM FOR TITLE II

EDUCATION OF 'LOCAL

NEGLECTED AND EISENHOWER

CHILDREN WITH EDUCATIONAL

MIGRANT

DELINQUENT PROFESSIONAL

DISABILITIES AGENCIES

EDUCATION

CHILDREN DEVELOPMENT

TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES

$

5,254.00 $ 616,730.25 $

$

5.254.00 $ 616,730.25 $

4,741.00 $
4:.:.;.7....;4..;.;1.~00;;..$

2,197.00 $ 29,858.84 $

50,463.20

2,197.00 $ 29,858.84 $ _ _-=50;.:..4.;.;;;6.=.;3';;;;.20;;..

$

3,260.18 $ 568,319.78

1,878.33

$ 2,530.48

115.49

44,515.20

1,364.79

$ 4,741.00

2,197.00

$

$ 29,797.26 61.58

548.06 49,'915.14

$

5,254.00 $ 616,730.25 $

$

0.00 $

0.00 $

4,741.00 $ 0.00 $

2,197.00 $ 0.00 $

29,858.84 $ _ _......;.50~.4..;.;6;...;;3,;;;;;.2;.;;..0

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

$

0...0...0.. $

0.00 $

0..0._0 $

0.00 $

0_,0.0. $

-25 -

0.,.0..0..

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

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

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

$ 394,445.70 $ 64,304.87 $ 394,445.70 $ 64,304.87

$ 258,539.07 $
81,613.10 49,314.85
3,441.98

21,875.03
24,330.42 17,513.21
586.21

1,536.70

$ 394,445.70 $

$

0.00 $

64,304.87 0.00

$

0.00 $

0.00

0.00

0.00

$

0.00 $

0...0...0..

See notes to the general purpose financial statements.

- 26-

EXHIBIT"F"

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING

TOTALS

PARTNERSHIP

YEAR ENDED

ACT

JUNE 30,1996 JUNE 30,1995

$ 101,796.57 $ $ 101,796.57 $

$ 603,830.80 $ 1,101,332.75 16,428.59 2,788,116.66 2,660,312.87
1,225,057.52 1,216,355.76
16,428.59 $ 4,617,004.98 $ 4,978,001.38

$ 104,862.94 $

$ 104,862.94 $

$

-3,066.37 $

$ 1,247,513.86 $ 1,246,422.35

16,428.59;

157,871.58 99,797.59 49,915.14 49,913.78 308.23 62,146.40 1,711.86 2,130.31
2,972,132.76

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

268,091.28 121.18

16,428.59 $ 4,643,441.51 $ 4,991,823.18

0.00 $ -26,436.53 $ -13,821.80

3,066.37

$

0.00 $

0.00

4,935.33

1,597.21

0.00 $ 0.00

-21,501.20 $ 878,172.82

-12,224.59 895,071.97

-2,472.19 -1,730.48

-10,812.63 6,138.07

$

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

...,;0.-.0.0.. $ 852,468.95 $ 878,172.82

-27 -

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

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 96-755-070

LOTTERY PROJECT 96195-755-069

TOTALS JUNE 30,1996 JUNE 30.1995

$

1,378,913.00

$ 1,378,913.00 $ 738.378.73

204,265.60 $ _--=22O=,60=.:..7.~00=-

424,872.60

$

1,583,178.60 $

220,607,00 $ 1,803,785,60 $ 738,378.73

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

$

126,286.60 $

220,607.00 $ 346,893.60

37,471.00

37.471.00

$

163,757.60 $

220,607.00 $ 384,364.60

$

1,419,421.00

0.00 $

$

1,419,421.00 $

$ 1,419,421,00 $

0.00

0.00

0.00 $ 1,419,421.00 $

738,378,73 0.00
738,378.73

$

1,583,178.60 $

220,607.00 $ 1,803,785.60 $ 738,378.73

See notes to the general purpose financial statements.

- 28-

WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30.1996

EXHIBITMH"

FUND BALANCE JUNE 30

$

1.419,421.00 $

._0,;;;..00. $ 1,419,421.00 $ _....7..-383-.7.-8.73..

See notes to the general purpose financial statements.

- 29-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Office of Treasury and Fiscal Services National Forest Reserve Funds Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Appalachian Regional Commission Through Georgia Department of Community Affairs Apprenticeship Program
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children with Disabilities in State Operated or Supported Schools 1996 Grant Grants to Local Educational Agencies 1995 RegUlar 1996 Grant Program for Neglected and Delinquent Children 1996 Grant Title II Eisenhower Professional Development 1995 RegUlar 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.665 $

5,570.06

(4)

10.553

241,056.21

* 10.555 10.550

1,009,897.58 $ 250,942.85

$ 1,507,466.70 $

(2)
2,720,925.41 (3) 250,942.85
2,971 ,868,26

23.012 $ 45,535,97 $

45,535.97

84.009 $
* 84.010 * 84.010

5,254,00 $
-2,781.17 616,730.25

5,254.00 616,730.25

84.013

2,197.00

2,197.00

84.281 84,281

6,969.46 22,889.38

6,969.46 22,889.38

84.298

50,463.20

50,463.20

* 84.02784.173

394,445.70 64,304.87

394,445.70 64,304.87

84.048 84.243

71,796.57 30,000.00

74,862,94 (3) 30,000.00

See notes to the general purpose financial statements.

- 30 -

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

SCHEDULE "1"

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

$ 2,902,955.20 $ 4,373,204.30

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

See notes to the general purpose financial statements.

- 31 -

WHITFIELD COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30. 1996

SCHEDULE ''2''

INTEREST BEARING ACCOUNTS
DaltonlWhitfield Bank and Trust. Dalton. Georgia
Commercial Checking (3.54%)
Wachovia Bank of Georgia. Dalton. Georgia
Money Market Account (1.53%) Commercial Checking (Variable)

$ -453,169.18

$ 14,087.43 948.283.38

962.370.81

$ 509.201.63

See notes to the general purpose financial statements. - 32 -

WHITFIELD COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 3D, 1996
INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5.321%)

SCHEDULE "3" $ 4.498,875.47

See notes to the general purpose financial statements. - 33 -

WHITF!ELP couNTY BOARP OF EpucAT!ON ACCOUNTS RECEIVABLE JUNE 30.1996

SCHEDULE "4"

Catoosa County Board of Education Shared Service
City of Dalton Board of Education Shared Service
Community Atrairs, Georgia Department of Apprenticeship Program
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries FY 96 Food ServIces National School Lunch Program Vocational Education State Funds Federal Funds Other State Programs Apprenticeship Program At-Risk Summer School Program Mentor Teacher Program Remedial Summer School Program Preschool Handicapped Program Lottery Programs Exceptional Growth Capital Outlay Pre-Kindergarten Program Federal Programs Elementary and Secondary Education Act Tille I Education of Children with Disabilities in State Operated or Supported Schools Grants to Local Educational Agencies Program for Neglected and Delinquent Children Title II Eisenhower Professional Development Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Reimbursement for Directories
Fannin County Board of Education Shared Service
Floyd County Board of Education Shared Service
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Gilmer County Board of Education Shared Service
Human Resources. Georgia Department of Child Development Block Grant
Whitfield County Tax Commissioner CountyWide School Tax
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PRCWECTS

FUND

FUND

FUND

TOTAL

$

1.450.00

$

1,450.00

20,000.00

20,000.00

45,535.97

45,535.97

3,773,729.00

$ 13,180.89

21,370.68

66,170.31

8;1.77.71 40,343.84
4,232.55 10,308.22

52,169.72

$ 220,607.00 25,669.43

3,773,729.00
13,180.89
21,370.68 66,170.31
8;1.77.71 40,343.84 4,232.55 10,30822 52,169.72
220,607.00 25,669.43

5,254.00 110,767.72
2,197.00
22,889.38

5,254.00 110.767.72
2,197.00
22,889.38

266.00

58,855.26 174.99

58,85526 174.99 266.00

1,650.00

1,650.00

1,200.00

1,200.00

204,265.60

204,265.60

9,032.00

9,032.00

7,654.04

7,654.04

124.118.31

124,118.31

$ 4.069,168.32 $ 357.328.70 $ 424.872.60 $ 4.851.369.62

- 34

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

SCHEDULE -5"

AGENCYIFUNDING
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 Technology Training Umited English Speaking Middle School Incentive Program SpeciallnstructionaJ Assistance In-SchooI Suspension School Counselors Grades 4 and 5 Mid-tenn Adjustment Local Fair Share Deferred Summer Salaries - FY 95 Deferred Summer Salaries - FY 96 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance
Innovative Programs
Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Applied Technology Labs Exceptional Growth - Capital Outlay Instructional Technology Pre-Kindergarten Program Technology Installation
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Georgia School-Age Care Association Chilcl Care Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 19,649,094.00 2,913,725,00 399,904.00 848,010.00 260,042.00 5,228,491.00

$ 19,649,094.00 2,913,725.00 399,904.00 848,010.00 260,042.00 5,228,491,00

986,324.00 305,299.00 128,825.00 167,187.00 713,384.00 1,088,155.00 228,254.00
62,520.00 515,145.00 -3,905,059.00 -3,440,707.00 3,n3,729.oo 1,951,999.00
$ 167,653.13

223,854:00

986,324.00 305,299.00 128,825.00 167,187.00 713,384.00 1,088,155.00 228,254.00
62,520.00 515,145,00 -3,905,059.00 -3,440,707.00 3,n3,729.oo 1,951,999.00 223,854.00 167,653.13

56,188.41 40,343.84
2,000.00 674,880.86
4,805.74 21,9n.55
10,308.22

127,466.00

56,188.41 40,343.84
2,000.00 674,880.86
4,805.74 21,9n.55 127,466.00 10,308.22

864.93 $
119,558.90 70,299.43 61,787.54

220,607.00

864.93 220,607.00 119,558.90
70,299.43 61,787.54

127,800.00

204,265.60

204,265.60 127,800,00

4.007.00

4,007.00

See notes to the general purpose financial statements.

$ 32,984,285.75 $ 603,830.80 $ 424.872.60 $ 34,012.989.15 - 35 -

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

SCHEDULE-6'

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Sources Contributions to self-Insurance from Other Funds For Unemployment Compensation For Workers' Compensation Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Reimbursements for Salaries Rents Revenue in Lieu of Taxes Tennessee Valley Authority Sales Adult Meals Contracted Meals
Lunches Supplemental School Assets 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 Gilmer County Board of Education Gordon County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAl

$ 15,674,406.66 10,090.58 61,902.88

$ 15,674,406.66 10,090.58 61,902.88

37,863.00 277,782.00
1,125.00

8,875.96 292,406.17 $
3,097.69 48,176.14
170.00

51,214.77

16,209.48

53,911.26

111,489.09 55,857.10
967,424.03 33,166.06

3,100.00 184,514.16
3,600.00 3,300.00 1,200.00 9,032.00 3,600.00 349,439.72 183,463.21

5,906.47 $

300.00

37,863.00 277,782.00
1,125.00
8,875.96 343,620.94
3,097.69 48,176.14
170.00
16,209.48
111,489.09 55,857.10 967,424.03 33,166.06 53,911.26
3,100.00 184,514.16
3,600.00 3,300.00 1,200.00 9,032.00 3,600.00 349,439.72 189,669.68

$ 17,227,265.91 $ 1,225,057.52 $

300.00 $ 18,452,623.43

See notes to the general purpose financial statements.

- 36 -

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

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 32,506,347.93 $ 9,621,199.00 117,173.19 634,056.52 5,354.64 89,866.83 236,635.78 21,575.41 75,322.10 83,532.00 96,977.47
5,480.75 1,566,420.01 1,253,719.89
255.15 443,745.15 43,411.68
79,900.00
37,027.99

2,076,976.05 $ 574,442.89 32,286.39 63,571.48
16,220.80 14,809.38
537.76 16,850.44
1,108.52 239,505.03
42,892.05 1,247,474.12
3,670.23 1,236.75
8,875.96 15,057.45

34,583,323.98 10,195,641.89
149,459.58 697,628.00
5,354.64 106,087.63 251,445.16 21,575.41 75,322.10 83,532.00 97,515.23 16,850.44
6,589.27 1,805,925.04 1,296,611.94 1,247,729.27
447,415.38 44,648.43 79,900.00 8,875.96 52,085.44

446,918.10 90,089.74
223,736.19 1,584,382.80

62,146.40 225,779.81

446,918.10 90,089.74
285,882.59 1,810,162.61

Total Expenditures

$ 49,263,128.32 $ 4,643,441.51 $ 53,906,569.83

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

WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30.1996

.EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Other Expenditures
Nonoperating Costs Building and Building Improvements Equipment

APPLIED TECHNOLOGY
LABS

EXCEPTIONAL GROWTHCAPITAL OUTLAY

INSTRUCTIONAL TECHNOLOGY

$

27,662.96

$ 245,119.00

$

940.83

93,771.24

Total Expenditures

$

940.83 $ 245,119.00 $ =====1:=2:=1,=434===:;.2:=0

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

SCHEDULE "8"

PRE-KINDERGARTEN TECHNOLOGY

PROGRAM

INSTALLATION

TOTAL

$

45,080.41

12,770.44

845.36

843.00

681.52

4,152.87

78.28

264.50

731.25

487.80

$

45,080.41

12,770.44

845.36

843.00

681.52

31,815.83

78.28

264.50

731.25

487.80

$ 4,364.00

62,146.40

307,265.40 99,076.07

$

70,299.43 $

62,146.40 $ 499,939.86

- 39 -

THIS PAGE LEFT BLANK

WHITFIELD COUNTY BOARD OF EDUCATION

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

.

YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 24,325,878.00 $ _ _.....;7;...;1~2,~67::..;5=.0;.;;;..0

$ 27,406,983,47 1,827,861.36 $ _ _1.:.l,.;.:67;.;.7.l.,1;;'..;.4.;;.:3';.;:;.68~
$ 29,234,844.83

-629,662.61 $ 28,605,182.22

Amount of Underexpenditure for Total Allotment

$

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

Note: (1) Salary accruals (July and August 1996 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

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

. WHITfIELP COUNTY BOARD OF E[)UCATIQN ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAl FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1996

see notes to the general purpose. financial statements.

42

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

S 1,980,429.30 S 2,531,465.61 S

86,392.50 S 2,617,858.11

5,498,367.60

6,239,989.54

574.406.24

6,814,395.78

S 7,478,796.90 S 8,771,455.15 S

660,798.74 S 9,432,253.89 S

0.00

2,538,993.60

3,245,214.61

190,597.23

3,435,811.84

0.00

3,833,711.10

4,487,701.29

323,474.85

4,811,176.14

0.00

2,553,737.40

3,226,652.32

186,786.56

3,413,438.88

0.00

976,741.20

1,270,730.15

107,537.56

1,378,267.71

0.00

817,349.40

1,096,104.78

158,553.39

1,254,658.17

0.00

S 18,199,329.60 S 22,097,858.30 $ 1,627,748.33 $ 23,725,606.63

S 2,137,374.90
$
S 2,137,374.90 S 484,977.60
S 2,622,352.50 S S 359,913.60 S S 21,181,595.70 S

491,073.93 $ 378,897.72 2,053,495.54 187,993.28
3,111,460.47 $
467,528.16
3,578.988.63 $
403,181.61 $
26,080,028.54 $

21,422.09 $ 1,484.11 4,519.69 3,392.38

512,496.02 380,381.83 2,058,015.23 191,385.66

30,818.27 S 3,142,278.74

12.372.76

479,900.92

43,191.03 $ 3,622,179.66

6,204.32 $

409,385.93

1,677,143.68 S 27,757,172.22

0.00 5,076.68
0.00

$

613,993.50 S 1,326,954.93

$ 1,326,954.93

0.00

149,215.50

$

150,717.68

150,717.68

0.00

S

763,209.00 $

1,326,954.93 $

150,717.68 $ 1,477,672.61

S 21,944,804.70 $ 27,406,983.47 $ 1,827,861.36 $ 29,234.844.83 $

5,076.68

$

64,219.00

195,823.00

$

260,042.00

$

117,612.67 $

117,612.67

196,595.14

196,595.14

$

314,207.81 $

314.207.81 $

00..0.

- 43 -

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Mark Fidler, Chairman (*) 4103 Country Way Cohutta, Georgia 30710
Mr. Patrick Henry (*) 350 East Broadacre Drive Dalton, Georgia 30721
Mr. Jerry Nealey (*) 2159 Landfill Road Rocky Face, Georgia 30740
Mr, Chuck Oliver (*) 3801 Edwards Circle Dalton, Georgia 30721
Mr. Terry Ross (*) 126 Golfview Drive Cohutta, Georgia 30710
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION.

TRAVEL

$

1,000.00 $

361.39

1,000.00

143.25

950.00

950.00

950.00

$

4,850.00 $ ====504=.=.64=

See notes to the general purpose financial statements.

- 44 -

SECTIONll COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 27, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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, 1996, and have issued our report thereon dated February 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1996, nor could we satisfY ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Whitfield County Board of Education 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 of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
96CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tf~~
Claude L. Vickers State Auditor
CLV:dt 96CRL-IO

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 27, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the 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, 1996, and have issued our report thereon dated February 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the 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, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective ofwhich 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.

96CRL-40

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

CLV:dt 96CRL-40

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 27, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the 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 of the Whitfield County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated February 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the 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, 1996. 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.

96CRL-90

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Whitfield County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for ~ur opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as
inventories through alternative procedures. However, this matter has no affect on the Board's compliance with
the requirements listed in the second paragraph ofthis report.
The results of our audit procedures disclosed immaterial instances of noncompliance with the requirements referred to above which are described in the Schedule of Findings and Improper or Questioned Costs. We considered these instances ofnoncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
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, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 96CRL-90

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

~ J
DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 27, 1997

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 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, 1996, and have issued our report thereon dated February 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1996 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 (OMB) 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, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the 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

96CRL-120

came to our attention that caused u~ to believe that the Whitfield County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,

CLV:dt 96CRL-120

Claude L. Vickers State Auditor

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 27, 1997

Honorable Zell Miller, Governor Members ofthe 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 of the Whitfield County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated February 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfY ourselves as to the accuracy ofthe 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 of internal 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 of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and
96ICL-3

not be detected. Also, projection of any evaluation ofthe structure to future periods is subject to risk that procedures may become inadequate because of c~anges in conditions or that the effectiveness ofthe design and operation of policies 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, 1996, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of
relevant policies and procedures and whether they have been placed in operation, and we assessed control risk
In order to determine our auditing procedures for the purpose 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 of management in the

general purpose financial statements.

.

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

General Fixed Assets

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

Our consideration ofthe internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed a,?ove 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 February 27, 1997.

96ICL-3

This report is intended for the info~ation 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.

CLV:dt 96ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 303348400
February 27, 1997

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 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, 1996, and have issued our report thereon dated February 27, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Whitfield County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated February 27, 1997.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards~ Government Auditing Standards, issued by the Comptroller General of the United States~ and the provisions of Office ofManagement and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the 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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with
96ICL-8

OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 27, 1997.

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 of internal 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 firiancial 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 of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation 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) Audit Follow-UplResolution (7) 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, 1996, the Whitfield County Board of Education expended 70% of its total Federal financial assistance under major Federal financial assistance programs.

96ICL-8

We performed tests of controls, as required by OMB Circular A-128~ to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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:
Eligibility
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 the reportable condition described above is also considered to be a material weakness.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Whitfield County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated February 27, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other pwpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 96ICL-8

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30.1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Lottery Cash Balance Financial Statements Finding Resolved Audit Control Number 7551-95-01
The audit report for the year ended June 30, 1995, noted that a review of cash management procedures for the 1994 Lottery Instructional Technology - Computers in Classrooms and 1995 Lottery Distant Learning programs disclosed 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. During the year under review, $82.02 was refunded to the Georgia Department of Education. In addition, procedures were implemented to ensure that excess funds are not retained in lottery programs at year end. Subsequent to June 30, 1996, refund of $441.10 was made to the Georgia Department of Education and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", ofthis report.
AUDIT FOLLOW-UP/RESOLUTION Time and Attendance Records Not Utilized Federal Financial Assistance Finding Resolved Audit Control Number 7551-95-02
The audit report for the year ended June 30, 1995, stated that a review of salary and benefits charged to the Elementary and Secondary Education Act - Title I, Grants to Local Educational Agencies Program (CFDA 84.010) revealed that expenditures of $2,781.17 were not supported by time and attendance records as required by Chapter 41 ofthe Financial Management for Georgia Local Units of Administration. For the year under review, the Board established internal controls to ensure that all salary charges for employees involved in split funded projects are supported by personnel activity reports or equivalent documentation. Subsequent to June 30, 1996, refund of$2,781.17 was made to the Georgia Department ofEducation and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", ofthis report.
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, 1995, noted that the management of the Whitfield County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group withing the formal accounting records as required by generally accepted accounting principles. In the year under review,
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WI-llTFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

PRIOR YEAR/CURRENT YEAR

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7SS1-93-01

the Board did not establish a General Fixed Assets Account Group withing the formal accounting records.

This condition results in the general purpose financial statements of the Board being incomplete and not in

accordance with generally accepted accounting principles. Appropriate action should be taken by the Board

to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account

Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the

Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement

cost, location and description. Detailed records should be maintained of all additions and deletions to the

General Fixed Assets Account Group.

>

CURRENT YEAR

EXPENDlTURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount $S,076.68 Audit Control Number 7SS1-96-01

For the year under review, the Board had underexpenditures of Quality Basic Education (QBE) funds of $S,076.68 ~ the Category V (Gifted), Special Education Program. This underexpenditure offunds occurred because management failed to expend the required minimum allotment for the aforementioned QBE program. The underexpenditure of$S,076.68 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

ELIGffiILITY Failure to Document Verification Process Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7551-96-02

A review offree and reduced priced meal applications for the National School Lunch Program (CFDA 10.S55) disclosed that the applications for Antioch Elementary School were not verified as set forth by the Board's meal policy, in accordance with U. S. Department of Agriculture's "Eligibility for School Meals" manual and 7 CFR 245.6a. This condition occurred because management did not ensure that required documentation

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WlllTFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

CURRENT YEAR

ELIGIBILITY Failure to Document Verification Process Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7551-96-02

was maintained at each school. Procedures should be implemented to ensure that verification of the free and reduced priced meal application is documented and copies are kept on file in accordance with eligibility requirements. The Georgia Department of Education should evaluate the Board's compliance with the program requirements and determine amounts to be reclaimed, if any.

ELIGIBILITY Free and Reduced Price Meal Applications Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $90.30 Audit Control Number 7551-96-03

A review of applications for free and reduced price meals was made at two (2) lunchrooms for the National School Lunch (CFDA 10.555) and School Breakfast (CFDA 10.553) Programs. One application did not meet applicable compliance and eligibility requirements as set forth by the Board's meal policy, in accordance with U. S. Department of Agriculture's "Eligibility for School Meals" manual and 7 CPR 245.6a. This condition was the result ofa clerical error. The amount ofover reimbursement which was attributable to the questioned application is shown by lunchroom and category as follows:

North Whitfield Middle School Lunchroom

National School Lunch
Program

School Breakfast Program

Application approved for free meals but income amounts indicated on the application only qualified for reduced price meals

$_ _5",-,4:.:.:.0=0

$ 36.30

Care should be taken to ensure that free and reduced price meal applications are processed correctly.

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SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

WIDTFIELD COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30. 1996
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 finding. Due to current staffing limitations and budgetary considerations the Board had decided not to pursue the reordering of general fixed assets on the financial statements.
EXPENDITURESILIABILITIESfDISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $5,076.68 Audit Control Number 7551-96-01
We concur with this finding. This will be resolved by a future increase by the Georgia Department of Education in our local fair share allotment. Further more stringent control and review of expenditures will preclude further occurrences of this nature.
ELIGIBILITY Failure to Document Verification Process Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7551-96-02
We concur with this finding. All local units have been instructed to maintain all proper records and verifications.
ELIGIBILITY Free and Reduced Price Meal Applications Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $90.30 Audit Control Number 7551-96-03
We concur with this finding. While this appears to have been a clerical error proper procedures will be emphasized at training sessions for food services personnel.