GA A8oo .RI E2b W1c,q f qC,Lj - ,q5 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 AUDIT REPORT WILKINSON COUNTY BOARD OF EDUCATION IRWINTON, GEORGIA YEAR ENDED JUNE 30, 1995 WILKINSON 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 3 -C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 4 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 5 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 22 2 CASH AND CASH EQUIVALENTS 23 3 INVESTMENTS 24 4 ACCOUNTS RECEIVABLE 25 SCHEDULE OF REVENUE 5 STATE , 26 6 LOCAL AND OTHER 27 SCHEDULE OF EXPENDITURES BY OBJECT 7 GOVERNMENTAL FUND TYPES 28 8 LOTTERY PROGRAMS 29 WILKINSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 9 OVERALL 31 10 BY PROGRAM 32 11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 34 SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS WILKINSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR . (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 15, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Wilkinson County Board of Education 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 Wilkinson County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 95ARL-13* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. The Board did not report the deferred compensation plan assets and liabilities within the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be included in the general purpose financial statements. The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Wilkinson County Board of Education as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 15, 1996, on our consideration ofthe Board's internal control structure and a report dated March 15, 1996, on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Wilkinson County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) 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 Wilkinson 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 effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 95ARL-13* A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, CLV:gp 95ARL-13* Claude L. Vickers State Auditor WILKINSON COUNTY BOARD OF EDUCATION - 1- WILKINSO!::I COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET Al!. F!,!NQ TYPES AND ACCOUN! GROUP JUNE 30. 1995 EXHIBIT"A" ~ Cash and Cash Equivalents Investments Accounts Receivable Notes Receivable Prepaid Items 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 GENERAL REVENUE FUND FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum On!Y} JUNE 30, 1995 JUNE 30, 1994 $ 208,621.52 $ 360,315.83 $ 568,937.35 $ 459,113.99 907,119.05 907,119.05 885,577.53 197,097.11 89,666.00 286,763.11 205,215.58 667.00 67,416.46 100,000.00 167,416.46 3,878.99 1,478.19 $ $ 1,380,254.14 $ 555,339.01 $ 819,817.01 3,878.99 1,478.19 5,06821 772.76 819,817.01 1,006,170.81 819817.01 $ 2,755,410.16 $ 2,562,585.88 LIAILITIES AND FUND EQUITY L!AILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreements Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Expired Grant Balances/Questioned Costs For Inventories F:ood Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 827.39 $ 593.01 $ 1,420.40 $ $ 49,939.08 13,781.13 $ $ 63,720.21 $ 1,315,113.53 $ 1,378,833.74 $ 19,610.23 80,130.78 69.18 100,000.00 $ 199,810.19 $ 3,878.99 1 478.19 5,357.18 350,171.64 355,528.82 Total Liabilities and Fund Equity $ 1,380,254.14 $ 555,339.01 $ $ 819 817.01 20,437.62 $ 80,130.78 662.19 100,000.00 819,817.01 33,596.82 64,890.81 346.08 1,006, 170.81 819,817.01 $ 1,021,047.60 $ 1,105,004.52 $ 49,939.08 13,781.13 $ 13,781.13 3,878.99 1 478.19 5,068.21 772.76 $ 69,077.39 $ 19,622.10 1,665,285.17 1,437,959.26 $ 1,734,362.56 $ 1,457,581.36 819,817.01 $ 2,755,410.16 $ 2,562,585.88 The notes to the general purpose financial statements are an integral part of this statement. 2 WILKINSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995 EXHIBIT"B" REVENUES State Funds Federal Funds Local and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services Capital Outlay Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Capital Leases Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND TOTALS {Memorandum Onl:i'.l YEAR ENDED JUNE 30 1995 JUNE 30, 1994 1 $ 5,830,368.37 $ 23,474.00 3,605,090.21 337,573.72 $ 977,831.33 137,261.01 6,167,942.09 $ 1,001,305.33 3,742,351.22 5,552,508.83 914,251.51 3,328,069.90 $ 9,458,932.58 $ 1,452,666.06 $ 10,911,598.64 $ 9,794,830.24 $ 5,693,093.97 $ 505,718.42 $ 6,198,812.39 $ 6,795,808.73 276,772.94 355,618.53 174,681.74 158,238.02 572,201.43 114,090.61 850,851.86 656,048.28 10,513.09 2,909.02 73,901.25 196,717.64 78,507.57 25,879.74 19,488.43 6,408.75 532.59 9,105.62 618,268.95 9,367.96 355,280.51 381,498.27 174,681.74 177,726.45 572,201.43 114,090.61 857,260.61 656,580.87 19,618.71 621,177.97 73,901.25 206,085.60 256,526.75 387,888.81 206,342.71 151,702.70 525,528.25 115,585.36 897,191.05 701,542.93 17,234.95 676,449.07 70,186.51 217,689.78 81,9_93.45 33,923.79 104,360.35 5,139.65 186,353.80 39,063.44 25,000.00 $ 9,251,555.62 $ 1,382,778.03 $ 10,634,333.65 $ 11,044,677.60 $ 207,376.96 $ 69,888.03 $ 277,264.99 $ -1,249,847.36 $ 1,006,170.81 69,872.67 -69,872.67 $ 1,006,170.81 $ 207,376.96 $ 1,171,456.78 69,888.03 $ 286,124.58 277,264.99 $ 1,457,581.36 -243,676.55 1,704,836.28 -1,189.22 705.43 -1,189.22 705.43 -2,776.04 -802.33 FUND BALANCE JUNE 30 $ 1,378,833.74 $ 355,528.82 $ 1,734,362.56 $ 1,457,581.36 The notes to the general purpose financial statements are an integral part of this statement. -3- WILKINSON 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. 1995 EXHIBITc REVENUES State Funds Federal Funds Local and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 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. 1994 GENERAL FUND ACTUAL (BUDGET BUDGET BASIS} $ 5,663,510.00 $ 5,830,368.37 23,474.00 3,408,325.00 3,605,090.21 $ 9,071,835.00 $ 9,458,932.58 $ 5,884,260.00 $ 5,693,093.97 294,229.00 474,881.00 181,708.00 144,947.00 545,961.00 117,162.00 855,9n.oo 712,230.00 10,000.00 74,480.00 176,000.00 276,TT2.94 355,618.53 174,681.74 158,238.02 572,201.43 114,090.61 850,851.86 656,048.28 10,513.09 2,909.02 73,901.25 196,717.64 115,917.24 $ 9,471,835.00 $ 9,251,555.62 $ -400,000.00 $ 207,376.96 $ 0.00 $ 0.00 0.00 0.00 $ 0.00 $ 0.00 $ -400,000.00 $ 207,376.96 0.00 1,171,456.78 FUND BALANCE JUNE 30. 1995 $ -400,000.00 $ 1,378,833.74 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS} $ 44,394.00 $ 337,573.72 923,290.00 9TT,831.33 152,885.00 137,261.01 $ 1,120,569.00 $ 1,452,666.06 $ 384,543.00 $ 505,718.42 37,008.00 21,453.00 78,507.57 25,879.74 17,965.00 19,488.43 1,000.00 8,749.00 659,256.00 6,408.75 532.59 9,105.62 618,268.95 9,367.96 109,500.00 $ 1,129,974.00 $ 1,382,TTS.03 $ -9,405.00 $ 69,888.03 $ 0.00 $ 0.00 0.00 0.00 $ 0.00 $ 0.00 $ -9,405.00 $ 69,888.03 0.00 280,283.61 $ -9,405.00 $ 350,171.64 The notes to the general purpose financial statements are an integral part of this statement. -4- WILKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Wilkinson County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. The more significant of the Board's accounting policies are described below. REPORTING ENTITY In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Wilkinson County Board of Education. Based upon the application of the above criteria, the Wilkinson County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Wilkinson County, Georgia. 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, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid 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. 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. - 5- WILKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances 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, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities. 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 (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. - 6- WILKINSON COUNTY BOARD OF EDUCATION EXI-IlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS JUNE 30, 1995 Note 1: SillvfMARY 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 of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fu~d teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Wilkinson 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. - 7- WILKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper 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 of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report: Excess of Revenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses Fund Balance July 1, 1994 Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods Fund Balance June 30, 1995 (Budget Basis) Special Revenue Fund $ 69,888.03 286,124.58 -5,068.21 -772.76 $ 350,171.64 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including N.O.W. 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 the following: - 8- WILKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist 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 Wilkinson County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar year) on November 23, 1994 (levy date). Taxes were due on January 23, 1995. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Wilkinson County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board. Tax millage rates levied for the 1994 tax year (calendar year) for the Wilkinson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 17 0 mills - 9- WILKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. PREPAID ITEMS Payments made to vendors for services that will benefit periods subsequent to June 30, 1995, are recorded as prepaid items. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 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 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. - 10 - WILKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 2: DEPOSITS AND INVESTMENTS Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as . to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $1,199,917.85. 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.) - 11 - WILKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS JUNE 30, 1995 Note 2: DEPOSITS AND INVEST1\1ENTS The Board's deposits are classified by risk category at June 30, 1995, as follows: Risk Category Bank Balance 1 $ 200,000.00 2 484,939.00 3 514,978.85 Total $ 1 199,917.85 CATEGORIZATION OF INVEST1\1ENTS At June 30, 1995, the carrying amount ofthe Board's total-investments was $907,119.05 and consisted entirely offunds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments. Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGE1\1ENT The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation. The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions. 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 is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. - 12 - WILKINSON COUNTY BOARD OF EDUGATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note4: RISKMANAGEMENT Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 1994 1995 Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability $ 0.00 $ 691.00 $ 691.00 $ 0.00 $ 0.00 $ 156.00 $ 156.00 $ 0.00 The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss. Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Wilkinson County Board ofEducation has entered into various lease agreements as lessee for computers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows: Capital Leases Balance July 1, 1994 $1,006,170.81 Deletions 186,353.80 Balance June 30, 1995 $ 819 817 01 At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows: - 13 - WILKINSON COUNTY BOARD OF EDUCATION EXI-llBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS JUNE 30, 1995 Note 5: GENERAL LONG-TERM DEBT Fiscal Year Ended June 30 Capital Leases 1996 1997 1998 1999 $ 234,125.08 234,125.08 234,125.08 234,125.08 Total Principal and Interest Deduct: Imputed Interest $ 936,500.32 116,683.31 Net Present Value ofFuture Minimum Lease Payments $ 819,817.01 Note 6: 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. Note 7: DEFERRED COMPENSATION PLAN The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The Board has designated an independent plan administrator to operate and maintain the plan. The assets and liabilities of the plan are not reflected in these financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements. - 14 - WILKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution 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. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $5,765,131.47; total payroll was $6,639,792.21. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%. Total contributions made during fiscal year 1995 amounted to $969,121.97, of which $680,864.11 was made by the Board and $288,257.86 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll. - 15 - WILKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 8: RETIREMENT PLANS TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. Total unfunded pension benefit obligation of TRS as of.June 30, 1994, was as follows: Total pension benefit obligation $15,313,743,000.00 Net assets available for benefits, at cost 14,254,785,000.00 Unfunded pension benefit obligation $ 1,058 958.000 00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $680,864.11 was actuarially determined and represented 0.1205% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with IO 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 - 16 - WILKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 8: RETIREMENT PLANS $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. Members become fully vested after ten years of service. 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 67 employees covered under PSERS for the year ended June 30, 1995. PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $2,332.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00. Note 9: SURETY BONDS The School Superintendent, Ms. Marlene Tompkins, is bonded in the amount of$20,000.00 with the Hartford Insurance Company ofthe Southeast, Hartford, Connecticut, their Bond No. 4635198, on which premium is paid through December 31, 1996. - 17 - WILKINSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995 ASSETS Cash and Cash Equivalents Accounts Receivable Prepaid Items Inventories Food Donated Commodities Purchased Food Total Assets ELEMENTARY SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS DRUG-FREE SCHOOLS AND COMMUNITIES ACT CHAPTER 1 EDUCATION OF DEPRIVED CHILDREN $ 370,440.09 $ 826.06 20,891.34 $ 5,205.72 $ 201.54 48,598.84 100,000.00 3,878.99 1,478.19 $ 396,688.61 $ 105,205.72 $ 201.54 $ _ _ _4_9_,4_24_._90_ 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 Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ $ 7,511.75 33,648.04 5,205.72 $ 100,000.00 $ 41,159.79 $ 105,205.72 $ $ 3,878.99 1,478.19 $ 5,357.18 350, 171.64 $ $ 355,528.82 $ 0.00 $ 0.00 $ Total Liabilities and Fund Equity $ 396,688.61 $ 105,205.72 $ See notes to the general purpose financial statements. - 18 - 201.54 $ 10,153.34 39,271.56 201.54 $ 49,424.90 0.00 $ 0.00 $ 0.00 0.00 ------- 201.54 $ 49,424.90 EXHIBIT"E" AND SECONDARY EDUCATION ACT TITLE II - EISENHOWER CHAPTER 2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION INDIVIDUALS WITH DISABILITIES EDUCATION ACT TITLE VI, B FLOW PRESCHOOL THROUGH PROGRAM TOTALS JUNE 30, 1995 JUNE 30, 1994 $ 0.00 $ 0.00 $ 1,005.78 $ 372,271.93 $ 299,921.73 8,150.54 $ 6,618.02 89,666.00 109,791.11 100,000.00 3,878.99 1,478.19 5,068.21 772.76 $ 0.00 $ 0.00 $ 9,156.32 $ 6,618.02 $ 567,295.11 $ 415,553.81 $ 6,548.84 $ 11,956.10$ 31,238.20 $ 1,945.14 19,610.23 32,954.14 7,211.18 80,130.78 64,890.81 69.18 69.18 346.08 100,000.00 $ 9,156.32 $ 6,618.02 $ 211,766.29 $ 129,429.23 $ 3,878.99 $ 5,068.21 1,478.19 772.76 $ 5,357.18 $ 5,840.97 $ o.oo $ _ _ _ _0._00_$ _ _ _ _0_.o_o $ _ _ _ _0._00_ 350,171.64 2ao,2a3.61 $ o.oo $ _ _ _ _0._00_$ _ _ _ _0_.o_o $ _ _ _ _o._o_o $ 355,528.82 $ 286,124.58 $ 0.00 $ 0.00 $ 9,156.32 $ 6,618.02 $ 567,295.11 $ 415,553.81 - 19 - WILKINSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995 ELEMENTARY SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS DRUG-FREE SCHOOLS AND COMMUNITIES ACT CHAPTER 1 EDUCATION OF DEPRIVED CHILDREN REVENUES State Funds Federal Funds Local and Other Funds $ 45,676.00 $ 291,897.72 504,716.09 $ 137,261.01 10,342.54 $ 348,127.64 Total Revenues $ 687,653.10 $ 291,897.72 $ 10,342.54 $ 348,127.64 EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Debt Service Principal Interest $ 130,817.30 $ 617,765.07 40,203.44 3,075.96 $ 1,240.05 5,569.00 128.19 1,223.24 140.54 104,360.35 5,139.65 $ 10,186.31 156.23 295,584.74 12,622.69 3,217.68 17,844.70 839.75 404.40 7,882.38 363.34 9,367.96 Total Expenditures $ 617,765.07 $ 291,897.72 $ 10,342.54 $ 348,127.64 Excess of Revenues over (under) Expenditures $ 69,888.03 $ 0.00 $ 0.00 $ 0.00 OTHER FINANCING SOURCES Capital Leases Operating Transfers In Total Other Financing Sources Excess of Revenues and Other Financing Sources over (under) Expenditures $ 69,888.03 $ 0.00 $ 0.00 $ 0.00 FUND BALANCE JULY 1 286,124.58 0.00 0.00 0.00 Food Inventory - Net Change in Period Donated Commodities Purchased Food -1,189.22 705.43 FUND BALANCE JUNE 30 $ 355,528.82 $ See notes to the general purpose financial statements. -20- 0.00 $ ------ 0.00 $ 0.00 EXHIBIT"F" AND SECONDARY EDUCATION ACT TITLE II - EISENHOWER CHAPTER 2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION INDIVIDUALS WITH DISABILITIES EDUCATION ACT TITLE VI, B FLOW PRESCHOOL THROUGH PROGRAM TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 337,573.72 $ 204,750.77 $ 14,552.00 $ 8,482.00 $ 82,893.22 $ 8,717.84 977,831.33 895,154.14 137,261.01 152,694.40 $ 14,552.00 $ 8,482.00 $ 82,893.22 $ 8,717.84 $ 1,452,666.06 $ 1,252,599.31 $ 14,533.50 $ 56,065.04 $ 8,717.84 $ 505,718.42 $ 985,891.52 $ 18.50 8,482.00 25,681.44 917.79 228.95 78,507.57 25,879.74 19,488.43 6,408.75 532.59 9,105.62 618,268.95 9,367.96 39,994.65 34,125.18 6,229.21 36,527.09 3,192.87 7,949.70 676,449.07 20,114.00 104,360.35 5,139.65 $ 14,552.00 $ 8,482.00 $ 82,893.22 $ 8,717.84 $ 1,382,778.03 $ 1,810,473.29 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 69,888.03 $ -557,873.98 $ 515,005.49 11,425.30 $ 526,430.79 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 69,888.03 $ -31,443.19 0.00 0.00 0.00 0.00 286,124.58 321,146.14 -1, 189.22 705.43 -2,776.04 -802.33 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 355,528.82 $ 286,124.58 - 21 - WILKINSON COUNTY BOARD OF EDUCATION SQHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1995 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER AWARDS IN PERIOD FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS} FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1995 Contract Food Services School Breakfast Program 1994 Grant 1995 Grant National School Lunch Program 1994 Grant 1995 Grant Food Distribution Program (1) 10.558 $ 2,843.89 $ 10.553 10.553 .. 10.555 10.555 10.550 111,368.81 342,703.30 47,800.09 2,716.96 $ 2,843.89 3,168.86 102,510.53 13,915.96 330,867.52 NIA 111,368.81 342,703.30 $ 47,800.09 (2) (2) (2) 569,964.98 (4) 47,800.09 Total U. S. Department of Agriculture $ 504,716.09 $ 453,179.83 $ 504,716.09 $ 617765.07 Education, U.S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1994 Grant 84.186 $ 1995 Grant 84.186 Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Regular * 84.010 1994 Carry-Over * 84.010 1995 Regular * 84.010 Chapter2 Block Grant - Flow Through 1994 Regular 84.151 1995 Regular 84.151 Title II Eisenhower Mathematics and Science Education 1995 Regular 84.164 Individuals with Disabilities Education Act Title VI, B Flow Through 1994 Regular 84.027 1994 Carry-Over 84.027 1995 Regular 84.027 Preschool Program 1994 Regular 84.173 1994 Carry-Over 84.173 1995 Regular 84.173 Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant 84.048 1995 Grant 84.048 3,285.00 $ 11,763.00 39,133.00 309,821.00 14,552.00 8,482.00 6,949.00 76,950.00 2,169.00 10,500.00 23,474.00 3,285.00 $ 6,856.00 3,285.00 $ 7,057.54 3,285.00 7,057.54 33,400.36 39,133.00 260,395.80 17,553.00 14,552.00 39,133.00 308,994.64 14,552.00 39,133.00 308,994.64 14,552.00 8,482.00 8,482.00 8,482.00 15,589.06 6,949.00 67,793.68 4,941.46 2,169.00 6,949.00 75,944.22 2,099.82 6,618.02 6,949.00 75,944.22 2,099.82 6,618.02 19,097.37 23,474.00 {3} Total U.S. Department of Education $ 507,078.00 $ 500,196.73 $ 496,589.24 $ 473,115.24 Total Federal Financial Assistance $ 1,011,794.09 $ 953,376.56 $ 1,001 ,305.33 $ Major Programs are identified by an asterisk(*) in front of the CFDA number. (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program and the Child and Adult Care Food Program were not maintained separately and are included in the 1995 National School Lunch Program. (3) Expenditures on this program were not maintained by fund source. (4) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. See notes to the general purpose financial statements. 1,090,880.31 - 22 - WILKINSON COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995 INTEREST BEARING ACCOUNTS The Gordon Bank, Gordon, Georgia N.O.W. Account (2.65%) Wilkinson County Bank, Irwinton, Georgia N.O.W. Account (2.40%) OTHER Petty Cash SCHEDULE "2" $ 198,497.26 370,420.09 $ 568,917.35 20.00 $ 568,937.35 - See notes to the general purpose financial statements. - 23 - WILKINSON COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995 INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (6.032%) SCHEDULE 3 $ 907,119.05 See notes to the general purpose financial statements. - 24 - WILKINSON COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995 SCHEDULE "4" Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Child and Adult Care Food Program Vocational Education State Funds Federal Funds Lottery Programs Instructional Technology Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act Title VI, B Flow Through Preschool Program Wilkinson County Commissioners Reimbursement for Meals Wilkinson County Tax Commissioner County Wide School Tax GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ $ 100,000.00 23,474.00 73,623.11 8,858.28 $ 11,835.78 126.93 5,205.72 201.54 48,598.84 8,858.28 11,635.78 126.93 100,000.00 23,474.00 5,205.72 201.54 48,598.84 8,150.54 6,618.02 8,150.54 6,618.02 70.35 70.35 73,623.11 $ 197,097.11 $ 89,666.00 $ ====2=86='=76=3=.1=1 See notes to the general purpose financial statements. - 25 - WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1995 SCHEDULE "5" AGENCY/FUNDING GRANTS Community Affairs, Georgia Department of Local Assistance Grant Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension School Counselors Grades 4 - 5 Superintendent Base Salary Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Program Innovative Programs Preschool Handicapped Program Remedial Summer School Program Lottery Programs Distant Leaming Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Human Resources. Georgia Department of Through Baldwin County Department of Health Peer Teen Counseling Program Technical and Adult Education, Georgia Department of Through Heart of Georgia Technical Institute Program Development CONTRACTS Education, Georgia Department of Student Information Project Georgia Statewide Academic and Medical System Through Georgia Department of Administrative Services Academic Programming OTHER Education, Georgia Department of Reimbursement for Distant Learning Equipment GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 22,000.00 $ 22,000.00 3,522,257.00 610,434.00 122,713.00 149,481.00 50,613.00 1,053,256.00 379,429.00 120,110.00 139,798.00 226.167.00 67,950.00 19,971.00 11,260.00 -1,081,718.00 209,183.00 $ 100,000.00 25,000.00 10,499.44 4,800.00 20,995.00 4,007.43 45,676.00 8,400.00 57,973.72 52,732.00 172,792.00 3,522,257.00 610,434.00 122,713.00 149,481.00 50,613.00 1,053,256.00 379,429.00 120,110.00 139,798.00 226,167.00 67,950.00 19,971.00 11,260.00 -1,081,718.00 209,183.00 45,676.00 100,000.00 25.000.00 10,499.44 4,800.00 20,995.00 4,007.43 8,400.00 57,973.72 52.732.00 172,792.00 6,000.00 6,000.00 15.000.00 15,000.00 1,000.00 1,000.00 20,000.00 162.50 20,000.00 162.50 See notes to the general purpose financial statements. - 26 - $ 5,830,368.37 $ 337,573.72 $ 6,167,942.09 WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1995 SCHEDULE "6" Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax Other Interest Earned Sales Meals School Assets Tuition Other GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 3,478,807.24 13,404.36 2,508.78 $ 3,478,807.24 13,404.36 2,508.78 47,068.69 $ 17,185.16 39,880.00 6,235.98 7,958.74 129,302.27 55,027.43 129,302.27 17,185.16 39,880.00 6,235.98 $ 3,605,090.21 $ 137,261.01 $ 3,742,351.22 See notes to the general purpose financial statements. - 27 - WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995 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 Insurance Communications Tuition Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 6,030,546.56 $ 1,618,051.83 38,772.11 61,777.84 19,187.63 4,902.67 84,710.21 34,641.60 27,269.92 10,327.00 18,331.76 431,460.79 237,210.57 2,787.61 76,669.34 26,846.17 5,983.80 609,245.65 $ 158,397.33 10,364.79 9,863.88 775.42 17,010.03 317.00 1,579.83 13,164.00 3,159.50 3,646.28 85,116.34 40,837.78 277,159.98 7,400.40 5,082.59 1,218.15 6,639,792.21 1,776,449.16 49,136.90 71,641.72 19,187.63 5,678.09 101,720.24 34,958.60 28,849.75 13,164.00 3,159.50 10,327.00 21,978.04 516,577.13 278,048.35 279,947.59 84,069.74 31,928.76 7,201.95 115,917.24 35,000.00 155,717.64 215,443.33 109,500.00 28,939.08 225,417.24 35,000.00 155,717.64 244,382.41 Total Expenditures $ 9,251,555.62 $ 1,382,778.03 $ 10,634,333.65 - See notes to the general purpose financial statements. - 28 - WILKINSON CQ!,!NTY !;!CARO QF EQ!,!QATIQt:I SQHEQ!JLE QF EXPENDITURES ~ Ql;!,!EQI LOTTERY PBOGRAMS YEAR ENDED ,!UNE 30 1995 SCHEDULE"S- EXPENQIT!,!RES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Repairs and Maintenance Insurance Communications Other Purchased Services Supplies Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures Nonoperating Costs Principal and Interest Equipment DISTANT LEARNING INSTRUCTIONAL TECHNOLOGY MEDIA CENTER AND LIBRARY EQUIPMENT PRE-KINDERGARTEN PROGRAM $ $ 4,400.00 $ 1,556.60 4,000.00 52,768.00 $ 3 647.12 52,732.00 111,156.12 $ 26,882.51 3,710.64 750.00 317.00 217.10 1,223.24 16,852.42 140.54 2,079.66 1,107.77 130.00 8 225.00 TOTAL 111,156.12 26,882.51 3,710.64 -1so.oo 4,400.00 317.00 217.10 1,223.24 18,411.02 140.54 2,079.66 1,107.77 130.00 109,500.00 11 872.12 Total Expenditures $ 8.400.00 $ 57,973.72 $ 52.732.00 $ 172.792.00 $ 291,897.72 See notes to the general purpose financial statements. - 29 - ~ 7 'Wt)) ~ WILKINSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995 SCHEDULE "9" Minimum Expenditure Requirements {Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment THIRTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS $ 4,404,885.00 $ 146,685.00 ____ __ $ 4,764,952.56 403,261.01 $ 373,.0_4_2.89 $ 5,168,213.57 -25,200.74 $ 5,143,012.83 $ 0.00 $=====0.=00= See notes to the general purpose financial statements. - 31 - WILKINSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1995 ~ENERAb AND CAREEB EDUCATION PROGRAMS Kindergarten C-) Grades 1 - 3 () Sub-Total - K-3 Grades 4 - 5 () Grades 6 - 8 c) Grades 9 - 12 c) High School Laboratories c) Vocational Education Laboratories (") Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category II c) Category Ill c) _ Category IV (") Sub-Total- Regular Category V (Gifted) () Total Special Education Programs REMEDIAL EDUCATION PROGRAM () Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Thirteen Weighted and Media Center Programs ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 313,741.00 $ 282,366.90 $ 908,859.00 817,973.10 $ 1,222,600.00 90 $ 1,100,340.00 $ 452,553.00 90 407,297.70 800,587.00 90 720,528.30 204,898.00 90 184,408.20 695,094.00 90 625,584.60 146,525.00 90 131,872.50 $ 3,522,257.00 $ 3,170,031.30 $ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 592,990.00 $ 533,691.00 $ 0.00 $ 592,990.00 90 $ 533,691.00 $ 17,444.00 90 15,699.60 $ 610,434.00 $ 549,390.60 $ $ 122,713.00 90 $ 110,441.70 $ $ 4,255,404.00 $ 3,829,863.60 $ $ 116,775.00 90 $ 105,097.50 $ 32,706.00 90 29,435.40 $ 149,481.00 $ 134,532.90 $ $ 4,404,885.00 $ 3,964,396.50 $ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development c) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements. $ 14,605.00 36,008.00 $ 14,605.00 $ 36,008.00 0.00 0.00 $ 50,613.00 100 $ 50,613.00 $=====0=.00= - 32 - SCHEDULE 10 TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 282,366.90 $ 353,775.99 $ 5,713.30 $ 359,489.29 817,973.10 1,041,103.49 33,611.25 1,074,714.74 $ 1,100,340.00 $ 1,394,879.48 $ 39,324.55 $ 1.434 ,204 .03 $ 0.00 407,297.70 535,197.43 20,572.99 555,770.42 0.00 720,528.30 733,921.30 50,678.30 784,599.60 0.00 184,408.20 210,050.31 35,461.82 245,512.13 0.00 625,584.60 720,361.70 162,183.09 882,544.79 0.00 131,872.50 188,679.88 25,750.60 214,430.48 0.00 $ 3,170,031.30 $ 3,783,090.10 $ 333,971.35 $ 4,117,061.45 $ 533,691.00 $ 330,282.68 $ 307,453.21 51,818.22 2,520.44 $ 30,580.91 3,032.63 332,803.12 338,034.12 54,850.85 $ 533,691.00 $ 689,554.11 $ 36,133.98 $ 725,688.09 0.00 15,699.60 35,650.28 1,830.58 37,480.86 0.00 $ 549,390.60 $ 725,204.39 $ 37,964.56 $ 763,168.95 $ 110,441.70 $ 112,194.45 $ 1,106.98 $ 113,301.43 0.00 $ 3,829,863.60 $ 4,620,488.94 $ 373,042.89 $ 4,993,531.83 $ 105,097.50 $ 144,463.62 $ 144,463.62 0.00 29,435.40 $ 30,218.12 30,218.12 0.00 $ 134,532.90 $ 144,463.62 $ 30,218.12 $ 174,681.74 $ 3,964,396.50 $ 4,764,952.56 $ 403,261.01 $ 5,168,213.57 $ 0.00 $ 14,605.00 36,008.00 $ ===50=,6=1=3=.00= $ 25,877.15 $ 25,877.15 36,008.69 36,008.69 $ 61,885.84 $ s s1.ees.e4 =======o.=o=o - 33 - WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30, 1995 SCHEDULE "11" BOARD MEMBER ADDRESS Mr. Dan Dixon, Chairman (*) P. 0. Box362 Gordon, Georgia 31031 Mr. Frank Eady Route 1, Box 2040 McIntyre, Georgia 31054 Mr. Dell Mason (*) 117 Brookwood Drive Irwinton, Georgia 31042 Mr. Stanley R. Semmler (*) Route 1, Box 2227 Gordon, Georgia 31031 Mr. Arthur Watson (*) P. 0. Box2 Irwinton, Georgia 31042 Ms. Mary Ann Whipple-Harris (*) P. 0. Box32 Gordon, Georgia 31031 Mr. John W. Young P. 0. Box 125 Gordon, Georgia 31031 COMPENSATION TRAVEL $ 4,200.00 $ 47.39 1,200.00 85.00 2,400.00 1,264.62 1,200.00 1,185.18 2,400.00 1,377.53 1,200.00 1,342.91 1,200.00 85.00 (*) Denotes Board Members Serving as of June 30, 1995 $ 13,800.00 $ ====5=,3=87=.6=3 See notes to the general purpose financial statements. - 34 - SECTION II COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 15, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Wilkinson County Board of Education COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Wilkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accept~d accounting principles, as identified in the auditor's report on the general purpose financial statements. 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. Compliance with laws, regulations, contracts, and grants applicable to Wilkinson 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. 95CRL-10 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:gp 95CRL-10 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 15, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Wilkinson County Board of Education SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Wilkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified 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 Wilkinson County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995: ( 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 of which is the expression of an opinion on the Wilkinson County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 95CRL-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 Wilkinson 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 of public record. Respectfully submitted, CLV:gp 95CRL-40 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 15, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Wilkinson County Board of Education SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Wilkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified 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 Wilkinson County Board of Education's compliance with the requirements govemmg: ( 1) Types of Services Allowed or Unallowed (5) Applicable Special Tests and Provisions (2) Eligibility (3) Matching, Level of Effort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements (4) Reporting These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Wilkinson County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 95CRL-80 We conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to' obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Wilkinson County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1995. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. R~spectfully submitted, CLV:gp 95CRL-80 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 15, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Wilkinson County Board of Education SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements of the Wilkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit of the fiscal year 1995 general purpose financial statements of the Wilkinson County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as.required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govemmg: (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 Wilkinson County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion. 95CRL-120 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Wilkinson 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 of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:gp 95CRL-120 SECTION III INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 15, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members of the Wilkinson 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 Wilkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 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. The management ofthe Wilkinson County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 95ICL-4 In planning and performing our audit of the general purpose financial statements of the Wilkinson County Board of Education for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure 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 certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report 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, reportable conditions were noted in the following control categories: (1) Accounting Controls (Overall) (2) Cash and Cash Equivalents (3) General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses: (1) Accounting Controls (Overall) (2) General Fixed Assets These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Wilkinson County Board of Education's general purpose financial statements and this report does not affect our report thereon dated March 15, 1996. 95ICL-4 This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:gp 95ICL-4 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 15, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Wilkinson County Board of Education SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Wilkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 15, 1996. This report was quaijfied 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 Wilkinson County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 15, 1996. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Wilkinson County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB 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 March 15, 1996. 95ICL-7 The management ofthe Wilkinson County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation 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 of Effort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Audit Follow-Up/Resolution (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 of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1995, the Wilkinson County Board of Education expended 69% of its total Federal financial assistance under major Federal financial assistance programs. We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which 95ICL-7 are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations. As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category: Administrative Requirements A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively tow level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness. This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Wilkinson County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated March 15, 1996. This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:gp 95ICL-7 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $4,909.33 Audit Control Number 7581-93-04 The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Program had an underexpenditure of Quality Basic Education (QBE) funds of $4,909.33 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. The underexpenditure of $4,909.33 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal year. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,815.90 Audit Control Number 7581-94-01 The audit report for the year ended June 30, 1994, disclosed that the operations portion of the Remedial Education Program had an underexpenditure of Quality Basic Education (QBE) funds of$1,815.90 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. The underexpenditure of $1,815.90 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal year. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $7,055.90 Audit Control Number 7581-94-02 The audit report for the year ended June 30, 1994, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure of Quality Basic Education (QBE) funds of $7,055.90 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. Theunderexpenditure of$7,055.90 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 year. WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 7581-94-03 The audit report for the year ended June 30, 1994, reported that the Board failed to submit copies of the 1993 audit report to various entities that provided Federal financial assistance. During the year under review, copies of the 1993 and 1994 audit reports were distributed as required. AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 7581-94-04 The audit report for the year ended June 30, 1994, stated that the Board's property management records maintained for the Elementary and Secondary Education Act - Chapter 1, Education of Deprived Children Program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 8 of part 1, of the Georgia Financial Accounting Handbook for Local School Systems (GFAH). For the year under review, it was noted that property management records were correct and maintained as required. PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7581-93-01 The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, no improvement in separation of employee duties was noted. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff Note: All Federal Financial Assistance Programs listed in the Schedule of Federal Financial Assistance, Schedule "l" of this report are affected by this finding. WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7581-93-03 The audit report for the year ended June 30, 1994, noted that the management of the Wilkinson County Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board, and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. CURRENT YEAR CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7581-95-02 At June 30, 1995, the Board failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows: "The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public as set forth in this code section... The aggregate of the face value ofsuch surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance" This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement adequate procedures to monitor the collateralization of bank balances to ensure compliance at all times with State Laws governing deposits and investments. SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS WILKINSON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7581-93-01 We are a small school system and funds are not available to segregate duties any further than we currently do. This would mean hiring more personnel. As soon as more funds for accounting are available, all efforts will be made to correct this finding. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7581-93-03 There is not adequate staff at this time to establish a General Fixed Assets Account Group within the formal accounting records. This would require extra time and personnel, and funds are not available at this time. CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7581-95-02 The superintendent has contacted the bank and notified them of the problem that occurred. They are to keep a more accurate check on our funds to be sure they are fully collaterized. Note: The Wilkinson County Board of Education has elected not to provide comments for inclusion in this report other than the above.