Audit report, Worth County Board of Education, Sylvester, Georgia, year ended June 30, 1996

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AUDIT REPORT WORTH COUNTY BOARD OF EDUCAnON
SYLVESTER, GEORGIA YEARENDED JUNE 30, 1996
~~~---~--

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

WORTH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS ANDSUPPLEMENTARY 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

ALLGOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

30

J.

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

32

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

34

2 CASH AND CASH EQUIVALENTS

36

3 ACCOUNTS RECEIVABLE

37

WORTH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

4 DEBT SERVICE REQUIREMENTS TO MATURITY

39

SCHEDULE OF REVENUE

5

STATE

40

6

TAXES AND OTHER

41

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

43

8

LOTTERY PROGRAMS

44

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

47

10

BY PROGRAM

48

11 SCHEDULE OF COMPENSATION OF BOARD MEMBERS

50

SECTION II
COMPLIANCE
COMPLIANCE REPORT BASED ONAN AUDIT OF THEFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THEGENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJORFEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

WORTH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THEINTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 3, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Worth County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Worth County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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:
* 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.
96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 Worth County Board of Education as of June 30, 1996, and the results of its operations and the cash flows of the nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated April 3, 1997, on our consideration ofthe Board's internal control structure and a report dated April 3, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Worth County Board of Education taken as a whole. The combining statements (Exhibits G through 1) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Worth County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the 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.
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 96ARL-13

Claude L. Vickers State Auditor

WORTH COUNTYBOARD OF EDUCATrON
- 1-

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,696,804.68 $

483,095.31 $ 2,151,151.36

1,742,238.68

463,037.70

2,545.39 12,065.53

$ 3,439,043.36 $

960,743.93 $ 2,151,151.36

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Program For Debt Service For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects
Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

429,620.28 $

1,775,573.12

6,648.59

$ 2,211,841.99 $

111,310.28 $ 230,015.44
12,539.34
353,865.06 $

13,165.79
247,451.66 338,756.05
599,373.50

$

3,478.78

101.16

$

10,671.47

$

10,671.47 $

53,402.85 1,163,127.05

$ 1,227,201.37 $

2,545,39 12,065.53
$
18,190.86 $

1,388,116.44 1,388,116.44

588,688.01 606,878,87 $

163,661.42
1,551,777.86
"-

Total Liabilities and Fund Equity

$ 3,439,043.36 $

960,743,93 $ 2,151,151.36

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

EXHIBIT "A"

~ DEBT SERVICE FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

$

185,635.51 $

1,457.44

10,161.58

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$ 4,518,144.30 $ 5,257,538.78

2,215,437.96

2,471,508.64

1,350.00

$

s 195,797.09

2,545.39 12,065.53

2,143.62 10,414.12

$

195,797.09

195,797.09

222,019.94

2,599,202.91

2,599,202.91

2,677,980.06

1,457.44 $

2,795,000.00 $ 9,543,193.18 $ 10,642,955.16

$

554,096.35 $

459,877.56

2,005,588.56

1,782,153.50

19,187.93

25,987.71

247,451.66

24,002.86

338,756.05

406,353.29

$

2,795,000.00

2.7 95,000.00

2,900,000.00

$

2,795,000.00 $ 5,960,080.55 $ 5,598,374.92

$

195,797.09

$

$

195,797.09 $

0.00

$

195,797.09 $

$

195,797.09 $

1,000.00
1,000.00 457.44
1,457.44

$

3,478.78 $

3,266.56

101.16

195,797.09

222,019.94

1,000.00

1,000.00

10,671.47

20,931.43

2,545.39 12,065.53
1,388,116.44

2,143.62 10,414.12 416,181.42 33,850.44

$ 1,613,775.86 $

709,807.53

53,402.85 1,915,933.92

4,334,772.71

$ 3,583,112.63 $ 5,044,580.24

1,457.44 $

2,795,000.00 $ 9,543,193.18 $ 10,642,955.16

-3-

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

WORTH COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30.1996

EXHIBITC

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1995
Adjustments Food Inventories - Net Change in Period
Donated Commodities Purchased Food

GENERAL FUND

BUDGET

ACTUAL

$ 14,033,945.00 $ 15,071,879.53 89,801.34
2,809,500.00 3,420,821.28
$ 16,843,445.00 $ 18,582,502.15

$ 10,976,798.00 $ 11,426,557.29

721,621.00 455,865.00 535,042.00 234,959.00 1,321,238.00 208,351.00 1,400,745.00 1,221,362.00 122,108.00
10,794.00

768,994.15 505,956.32 425,007.41 200,422.23 1,410,444.00 203,407.14 1,308,856.88 1,169,512.00 139,565,07 12,341.65

141,187.00

119,716.70

$ 17,350,070.00 $ 17,690,780.84

$ -506,625.00 $ 891,721.31

$

0.00

$ -3,493,838.36

$

0.00 $ -3,493,838.36

$ -506,625.00 $ -2,602,117.05 4,5n,604.71 3,829,318.42

FUND BALANCE JUNE 30,1996

$ 4,070,979.71 $ 1,227,201.37

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,631,027.00 $ 842,659.02

1,414,415.00 2,720,023.10

315,063.00

357,900.n

$ 3,360,505.00 $ 3,920,582.89

$ 1,338,937.00 $ 1,633,203.19

76,185.00 99,854.00

144,027.78 66,305.10

188,148.00

182,114.n

29,912.00 7,034.00
69,546.00 1,553,859.00
52,030.00

35,466,59 39,862.88 21,352.57 37,584.32 1,654,039.48 73,682.27 16,528.07

$ 3,415,505.00 $ 3,904,167.02

$ -55,000.00 $ 16,415.87

$

0.00 $ 46,664.04

$

0.00 $ 46,664.04

$ -55,000.00 $ 63,079.91

502,948.02

541,745.78

-12,557.74

401.n 1,651.41

$ 435,390.28 $ 606,878.87

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

WORTH COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1996

EXHIBIT "0"

OPERATING REVENUE None Recorded
OPERATING EXPENSES Current Other Expenditures Operating Income (Loss)
NONOPERATING REVENUE Interest Earned Total Income (Loss)
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
CHASE S. OSBORN
FUND

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

$

0.00 $

0.00 $

0.00

$

50.00 $

50.00 $

50.00

$

-50.00 $

-50.00 $

-50.00

43.20

$

-6,80 $

1,464,24

43.20 -6,80$ 1,464,24

43.34 -6.66 1,470.90

$

1,457.44 $

1,457.44 $ -===1=,46=4=.24=

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

WORTH COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 3D, 1996

EXHIBIT -E-

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

ENDOWMENT FUND
CHASE S. OSBORN
FUND

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

$

-50.00 $

-50.00 $

-50.00

43.20

43.20

43.34

$

-6.80 $

-6.80 $

-6.66

1,464.24

1,464.24

1,470.90

Cash and Cash Equivalents - June 30

$

1,457.44 $

1,457.44 $===1=,4=64=.2=4

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

THIS PAGE LEFT BLANK

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

,
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Worth 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 departuresfrom generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Worth County Board ofEducation.
Based upon the application of the above criteria, the Worth 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 Worth County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and FinancialReporting 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 accountabilityfor certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 9-

WORTH COUNTYBOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1996

Note 1: SUM:MARY 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 thesefinancial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in thesenotes. Fundsandthe account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND- the fund used to account for allfinancial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND- the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the trust fund usedto account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLETRUSTFUND Chase S. Osborn Fund - the fund usedto account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide an award to the Worth County School System spelling champion.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds" outstanding.

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WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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.
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of this fund are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptibleto 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 substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1995 and ending in early June 1996. Employment contracts for these employment periods typicallyspecify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by . nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred.

- 11 -

WORTH COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Worth 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 in accordance with generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulationin the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more 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.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosedfrom informationavailable. 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 Worth County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on September 29, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are

- 12 -

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The Worth 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 millagerates levied for the 1995 tax year (calendar year) for the Worth County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

11.85 mills 1.00 mills

12.85 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types ofinterfund transactions:

Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.

- 13 -

WORTH COUNTY BOARD OF EDUCATION

EXlllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitatefinancial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 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.

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

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

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

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

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

(5) Bonds of any public authority created by the laws 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

"

- 14 -

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "FI!

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $6,690,413.84. 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 pledgingfinancial institution, or by its trust department or agent but not in the Board's name.)

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

Risk Category
1 2 3

Bank Balance
s 300,000.00
6,390,413.84 0.00

Total

$ 6,690413.84

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

- 15 -

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 4: RISK MANAGEMENT

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

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$

0.00 $

141.00 $

141.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Companyto provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $1,000,000.00.

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1990

6.40% - 7.25% $ 2,795,00000

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

- 16 -

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 5: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1, 1995

$ 2,900,000.00

Deductions Payments

105,000.00

Balance June 30, 1996

$ 2,795 000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

1997 1998 1999 2000 2001 2002 and thereafter

$ 212,537.50 307,715.00 309,915.00 306,335.00 307,290.00
3,080.062.50

Total Principal and Interest

$ 4 523,855 00

Note 6: ON-BEHALF PAYMENTS

The Boardhas recognized revenues and expenditures in the amount of$402,452.61 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of $327,004. 13

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $11,772.48

- 17 -

WORTH COUNTY BOARD OF EDUCATION

EXlllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 6: ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$63,676.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

94/94S-759-067

$ 1.372,729.53 $ 30,248.47

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

Note 8: CONTINGENT LIABILITIES

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

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service" multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 18 -

WORTH COUNTY BOARD OF EDUCATIONEXlllBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

Note 9: RETIREMENT PLANS

Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on 'either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $12,030,530.79; total payroll was $14,025,649.36.

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 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $2,022,334.08, of which $1,420,805.69 was made by the Board and $601,528.39 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585 541 000 00

- 19 -

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 9: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$I,420,805.69 was actuarially determined and represented .2340% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multipliedby 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. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 155 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year." Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees.
- 20 -

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 9: RETIREMENT PLANS
Total contributionsfrom employees ofthe Board made during fiscal year 1996 amounted to $5,160.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 10: SURETY BONDS
The School Superintendent, Mr. Alan Kimbro, is bonded in the amount of$20,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60234486, on which premium was paid through January 1, 1997.

- 21 -

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

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

SCHOOL FOOD
SERVICES FUND

FAMILY CONNECTION
FUND

LOTIERY PROGRAMS

$ 477,564.27

$

15,649.83

237,092.63 $ 16,370.69

39,170.00

2,545.39 12,065.53
$ 729,267.82 $ 16,370.69 $ =====5=4=,"8"'1"=9=.8=3=

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

$ $ 57,023.40
68,945.49

16,269.53 $

10,411.73 44,408.10

$ 125,968.89 $ 16,269.53 $

54,819.83

$

101.16

$

2,545.39

12,065.53

$ 14,610.92 $

101.16

588,688.01

0.00 $

0.00

$ 603,298,93 $

101.16 $

0.00

~

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
-22 -

$ 729,267.82 $

16,370.69 $

54,819.83

EXHISIT"G" Page 1

$

3,042.11 $

120,458.17

3,476.03 $

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTS SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

0.00

$

4,934.65

$ 12,675.00

$ 123,500.28 $ -=======3..,4.=.=7==6.==03== $ -=====0,==00== $ 12,675.00 $ --====4=,=93=4=.=65=

$

22,366.04

101,134.24

$ 123,500.28

$

3,476.03

$ 1,840.23 2,067.24 $ 8,767.53
$ 12,675.00 $

277.02 1,949.58 2,708.05
4,934.65

$

3,476.03

$---....;;.;.;0:-.0=0- _ _ _ _ _0._00_ $

$

...;;0...0;;.-=-O $ _-'----"3..,.4.._7_6._03_ $

--:;,;0.:..00.:;.. $ --:;,;0..:..00.:;.. $

0.00 $ 0.00 $

~0~ .00 .......0;;;..;0-=0-"-

$

123,500.28 $ -===3.,.4.=.=7==6.==03== $ - = = =.....0..=. =00= $ 12,675.00 $ -====4=,9=3=4.=65=

- 23-

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

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

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

JUVENILE JUSTICE AND DELINQUENCY PREVENTION

$

9,446.29

444.00 $

6,645.69 $

11,559.67

Total Assets

$

9,890.29 $

6,645.69 $-===="1"1"",5,"5=9=.6=7=

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

$

$

131.00

9,759.29

$

9,890.29 $

$

0.00 $

$

0.00 $

Total Liabilities and Fund Equity

$

See notes to the general purpose financial statements.

- 24-

9,890.29 $

1,482.35 $ 352.84
4,810.50

11,510.51 49.16

6,645.69 $

11,559.67

0.00 $ 0.00 $
6,645.69 $

0.00 0.00
"-
11,559.67

EXHIBIT"G" Page 2

CHILD CARE SCHOOL AGE
PROGRAM

HIGH RISK YOUTH
PROGRAM

TOTALS JUNE 30,1996 JUNE 30,1995

$

2.75 $

82.00 $ 514,197.93 $ 584,179.47

18,621.85

463,037.70

356,687.62

2,545.39 12,065.53

2,143.62 10,414.12

$

18,624.60 $======8=2.~0=0$ 991,846.55 $ 953,424.83

$ 18,621.85 $ $ 18,621.85 $

$ 10.00
72.00
82.00 $

31,102.62 $ 111,310.28 230,015.44
12,539.34
384,967.68 $

119,842.71 69,734.65 197,419.69 24,682.00
411,679.05

$

2.75

$

3,478.78 $

3,266.56

101.16

2,545.39 12,065.53

2,143.62 10,414.12

$

2.75

$ 18,190.86 $ 15,824.30

0.00 $

0.00

588,688.01

525,921.48

$

2.75 $

0.00 $ 606,878.87 $ 541,745.78

$

18,624.60 $

82.00 $ 991,846.55 $ 953,424.83

=====

- 25-

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

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

SCHOOL FOOD
SERVICES FUND

FAMILY CONNECTION
FUND

LOTIERY PROGRAMS

$ 104,492.00 $ 1,250,776.02 357,900.77
$ 1,713,168.79 $

82,619.02 $ 82,619.02 $

655,548.00 655,548.00

$ $ 1,653,668.82

$ 61,165.29 21,352.57

506,595.22
84,981.25 6,513.12
6,694.01
28,404.71 21,484.47
504.56 370.66

$ 1,653,668.82 $ $ 59,499.97 $

82,517.86 $ 101.16 $

655,548.00 0.00

$ 59,499.97 $

101.16 $

0.00

541,745.78

0.00

0.00

401.77 1,651.41
,

$ 603,298.93 $

101.16 $

0.00

-26 -

EXHIBIT"H" Page 1

"ELEMENTARY AND SECONDARY EDUCATiON ACT

TITLE I

TITLE VI

GRANTS TO

TITLE II

INNOVATIVE

LOCAL

EISENHOWER

EDUCATION

EDUCATIONAL PROFESSIONAL

PROGRAM

AGENCIES DEVELOPMENT STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIALEDUCATION

FLOW

THROUGH

PRESCHOOL

$ 1,064,648.71 $

22,175.81 $

$ 1,064,648.71 $ _ _......;:;;;;;J..;..;...::.;,.;;~

32,793.00 $ 141,332.12 $

33,574.75

32,793.00 $ 141,332.12 $ _ _---=3:;3.;,~5..7..4:.:7.:5..~

$ 910,797.51 $
627.08 1,864.98
97,281.69
6,724.88 16,918.50
30,434.07

75.60 $
18,578.77 45.41

15,042.25 s
17,677.18 73.57

65,742.61 $
53,581.89 21,671.05
336.57

30,603.00 2,971.75

$ 1,064,648.71 $ _ _--'-~~_

$

0.00 $

3,476.03 $

32,793.00 $ 141,332.12 $ _ _---'3-..3.:.,.5:..7.;.4--.-7'-"5"-

0.00 $

0.00 $

0.00

$

0.00 $

3,476.03 $

0.00 $

0.00 $

0.00

0.00

0.00

0.00

0.00

0.00

$

0.00 $

3,476.03 $

0.00 $

0.00$

- 27-

.0....0..0...

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

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

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

JUVENILE JUSTICE AND DELINQUENCY PREVENTION

$ 45,486.71 $

24,136,26 $

29,366.99

$ 45,486.71 $

24,136.26 $

29,366,99

$ 86,937.09
180.23 $ 337.00

$

15,742.82

1,865,81

962.50

15,225.50

6,645,69

1,229.29

16,528.07

$ 87,454.32 $ $ -41,967.61 $

24,136.26 $ 0.00 $

34,063.42 -4,696.43

41,967,61

$

0.00 $

0.00

0.00 $ 0.00

4,696.43
0.00 0.00

$

0.00 $

- 28-

0.00 $

"
0.00

EXHIBIT"H" Page 2

CHILD CARE SCHOOL AGE
PROGRAM

HIGH RISK YOUTH
PROGRAM

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

73,685.02 $

$

73,685.02 $

$ 842,659.02 $ 362,426.94

2,047.71 2,720,023.10 2,692,134.19

357,900.77

306,231.58

2,047.71 $ 3,920,582.89 $ 3,360,792.71

$

$

73,682.27

$

73,682.27 $

$

2.75 $

1,667.09 $ 1,633,203.19 $ 1,187,202.17

150.00 230.62

144,027.78 66,305.10
182,114.77
35,466.59 39,862.88 21,352.57 37,584.32 1,654,039.48 73,682.27

74,751.91 37,880.92 35,822.69 113,026.31
2,566.00 2,999.92 48,651.67
43,635.88 1,464,282.00
32,687.68

16,528.07

34,128.04 144,254.96

2,047.71 $ 3,904,167.02 $ 3,221,890.15

0.00 $

16,415.87 $ 138,902.56

46,664.04

6,145.21

$

2.75 $

0.00 $

63,079.91 $ 145,047.77

0.00

0.00

541,745.78

392,302.12

401.77 1,651.41

504.25 3,891.64

$

2.75 $

0.0_0 $ 606,878.87 $ 541,745.78

- 29-

WORTH COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1996

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

1990 BOND ISSUE
FUND

PROJECT 94-759-074

GEORGIA STATE AND INVESTMENT
PROJECT 94/948-759-067

$ 163,661.42 $

0.00 $

0.00 $ 1,930,937.94

Total Assets

$ 163,661.42 $

0.00 $

0.00 $ 1,930,937.94

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 163,661.42 $ $ 163,661.42 $

0.00 $ 0.00 $

$

11,757.79

247,451.66

338,756.05

$

597,965.50

$ $ ..0::..,:.0.::.0:::.. 0,00 $

1,332,972.44 1,332,972.44
0,00 1,332,972.44

Total Liabilities and Fund Equity

$ 163,661,42 $

0.00 $

0.00 $ 1,930,937.94

See notes to the general purpose financial statements.

- 30-

EXHIBIT "I"

FINANCING COMMISSION
PROJECT 95/94S-759-068

LOTIERY PROJECT 97-759-042

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

1,408.00 $

55,144.00 $ 2,151,151.36 $

424,544.37

457,038.30

$

1,408.00 $

55,144.00 $ 2,151,151.36 $ .....===8=.8...1..,.5==8=2=.6=7=-

$

1,408.00

$

1,408.00

$

$

13,165.79

247,451.66

338,756.05

$ 599,373.50 $

1,194.66
24,002.86 406,353.29
431,550.81

$ 416,181.42

$

55,144.00 $ 1,388,116.44

33,850.44

$

55,144.00 $ 1,388,116.44 $

450,031.86

$

0.00

0.00

163,661.42

0.00

$

0.00 $

55,144.00 $ 1,551.177.86 $ 450,031.86

$

1,408.00 $

55,144.00 $ 2,151,151.36 $

881,582.67

- 31 -

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

REGULAR

1990 BOND ISSUE
FUND

PROJECT 94-759-074

GEORGIA STATE AND INVESTMENT
PROJECT 94/94S-759-067

REVENUES

State Funds Taxes and Other Funds

$

$

7,841.80

0.00 $

163,203.27 $

1,516,514.09 1,800.00

Total Revenues

$

7,841.80 $

0.00 $ 163,203.27 $ 1,518,314.09

EXPENDITURES

Current Support Services Business Administration Supplies Dues and Fees
Capital Outlay Communication Other Purchased Services Supplies Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures

$

s 17.65

44.00

10,739.00
s s 10,800,65

0,00

s s 0.00

$ 156,779.56
341.15 261,583,45
6,498,00
425,202,16 $

12,000.00
3,392,070.39 155,355.12
3,559,425.51

Excess of Revenues over (under) Expenditures

$ -2,958.85 $

0.00 $ -261,998.89 $ -2,041,111.42

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 166,620.27

$

$ -416,181,42

261,998.89 $

3,340,233.42

Total Other Financing Sources (Uses)

$ 166,620.27 $ -416,181.42 $ 261,998.89 $ 3,340,233.42

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

s s 163,661.42

-416,181.42 $

0.00 $ 1,299,122.00

FUND BALANCE JULY 1

0.00

416,181.42

0.00

33,850,44

FUND BALANCE JUNE 30

$ 163,661.42 $

0.00 $

0.00 $ 1,332,972.44

See notes to the general purpose financial statements.

- 32-

EXHIBIT"J"

,
FINANCING COMMISSION
PROJECT 95/94S-759-068

LOTIERY PROJECT 97-759-042

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

19,164.64 $

$

19,164.64 $

0.00 $ 1,698,882.00 $ 1,171,042.53

9,641.80

23,343.89

-=O.;.::.o~O $ 1,708,523.80 $ 1.194,386.42

$

$

29,327.25

29,196.55

s

58,523.80 $

$

-39,359.16 s

0.00 $

17.65 44.00

$ 12,000.00 186,106.81
341.15 3,693,589.39
161,853.12

504.00
8,032.57 19,963.45 3,760,515.26 264,940.38

s 0.00 $ 4,053,952.12

4,053,955.66

s 0.00 -2,345.428.32 $ -2,859,569.24

s

s 39,359.16

55,144.00 $ 3,863,355.74 $ 2,396.412.55

-416,181.42 -1,475,537.05

$

39,359.16 s

s s 55,144.00

3.447,174.32

920,875.50

s

0.00 s

s 55,144.00 $ 1,101,746.00 -1,938,693.74

0.00

0.00

450,031.86

2,388,725.60

$

0.00 $

s 55,144.00

1,551,777.86 $

450,031.86

- 33-

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

SCHEDULE N1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Direct Food and Nutrition Program Summer School Food Service Program for Children 1995 Grant 1996 Grant Food Distribution Program Alternative to Commodity Donations 1996 Grant Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (2) 1995 Grant
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1995 Regular 1995 Summer 1996 Grant 1996 Summer TrtJell Eisenhower Professional Development 1995 Regular 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1994 Carry-Over 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Through Georgia Department of Human Resources Safe and Drug-Free Schools High Risk Youth Program 1995 Grant
Total U. S. Department of Education
- 34 -

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 $ 10.559

90,456.00 $ 30,748.40

10.550

90,863.00

93,722.56 30,748.40
(1)

10.553

276,040.80

* 10.555

755,510.64

10.550

7,157.18

s $ 1,250,776.02

(1) 1,522,040.68 (3)
7,157.18 1,653,668.82

* 84.010 $

-266.05 $

* 84.010

11,140.64

* 84.010

1,032,955.73

* 84.010

20,818.39

-266.05 11,140.64 1,032,955.73 20,818.39

84.281 84.281

1,010.81 21,165.00

1,010.81 17,688.97

84.298

32,793.00

32,793.00

84.027 84.027
84.173

-110.88 141,443.00
33,574.75

-110.88 141,443.00
33,574.75

84.048 84.243

13,382.40 32,104.31

24,996.10 (3)
62,458.22 (3)
"-

84.186

2,047.71

$ 1,342,058.81 $

2,047.71 1,380,550.39

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

SCHEDULE "1"

Total Federal Financial Assistance

$ 2,809,824.44 $ 3,173,698.25

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

(1) Expenditures for the Alternatives to Commodity Donations and the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(2) 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.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 35 -

WORTH COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30.1996
INTEREST BEARING ACCOUNTS
Bank of Worth, The Sylvester, Georgia
Certificates of Deposit No. 12179 (6.00%) No. 12417 (5.60%)
N.O.W. Accounts (3.04%)
Sun Trust Bank, Albany, Georgia
N.O.W. Accounts (Variable)
Sylvester Banking Company, Sylvester, Georgia
Certificates of Deposit No. 19491 (6.10%) No. 19712 (6.00%) No. 19741 (6.00%) No. 19742 (6.00%)
N.O.W. Accounts (Variable) Passbook Savings Account (Variable)

SCHEDULE "2"
$ 100,000.00 550,000.00 529.22
2,455,081.58
400,000.00 200,000.00 800,000.00 150,000.00 -138,781.61
1,315.11
$ 4,518,144.30

See notes to the general purpose financial statements. - 36 -

WORTH COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Agriculture, U. S. Department of Alternative to Commodity Donations Summer Feeding Program
Defense, U. S. Department of Department of the Army R.O.T.C.
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Quality Basic Education Deferred Summer Salaries - FY 1996 Vocational Education State Funds Federal Other State Programs Apprenticeship Program Innovative Programs Remedial Summer School Program Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Individuals with Disabilities Education Act Part B - Special Education Flow Through
Human Resources, Georgia Department of Child Care Family Connection
Margaret Jones Public Library Reimbursement of Expenses
Medical Assistance, Georgia Department of Medical Services
Office of the Governor Georgia Children and Youth Council Juvenile Justice and Delinquency Prevention
Office of School Readiness Pre-Kindergarten Program

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERViCE

FUND

FUND

FUND

TOTAL

$ 21,900.00 30,748.40

$ 21,900.00 30,748.40

$ 18,812.81

"18,812.81

1,569,167.00
14,479.00
64.15 3,600.00 7,366.04

61,619.78 117,628.45
444.00

61,619.78 117,628.45
1,569,167.00
14,479.00 444.00
64.15 3,600.00 7,366.04

120,192.12 12,675.00 18,621.85 16,370.69
256.80 442.30

120,192.12 12,675.00 18,621.85 16,370.69 256.80 442.30

11,559.67 39,170.00

11,559.67 39,170.00

- 37 -

WORTH COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Southwest Georgia Regional Development Center Job Training Partnership Act
Various Sources Interest Earned Other
Worth County High School Reimbursement of Expenses
Worth County Middle School Lost Books Reimbursement of Expenses
Worth County Tax Commissioner County Wide Bond Tax County Wide School Tax

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

.REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 6,645.69

$

6,645.69

$

5,188.49

143.00

5,196.00 266.05

10,384.49 409.05

169.03

169.03

2,179.00 1,503.99

2,179.00 1,503.99

118,867.07

$ 10,161.58

10,161.58 118,867.07

s $ 1,742,238.68 $ 463,037.70 10,161.58 $ 2,215,437.96

See notes to the general purpose financial statements.

- 38 -

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

SCHEDULE "4"

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

TOTAL DEBT SERVICE

1990 ISSUE

INTEREST (*)

PRINCIPAL

$ 212,537.50 $

97,537.50 $ 115,000.00

307,715.00

187,715.00

120,000.00

309,915.00

179,915.00

130,000.00

306,335.00

171,335.00

135,000.00

307,290.00

162,290.00

145,000.00

307,430.00 306,812.50 310,427.50 307,917.50 309,617.50

152,430.00 141,812.50 130,427.50 117,917.50 104,617.50

155,000.00 165,000.00 180,000.00 190,000.00 205,000.00

310,165.00 309,545.00 307,742.50 304,742.50 305,662.50

90,165.00 74,545.00 57,742,50 39,742.50 20,662.50

220,000.00 235,000.00 250,000.00 265,000.00 285,000,00

$ 4,523,855,00 $ 1,728,855.00 $ 2,795,000.00

(*) Interest due July 1, 1996 was paid prior to June 30, 1996, and has been excluded from this schedule.

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period
Bonds Payable at June 30, 1996

1990 ISSUE
$ 2,900,000.00
-105,000,00
$ 2,795,000.00

MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date
See notes to the general purpose financial statements. - 39 -

JAN 1 - JUL 1 JAN 1

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

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries - FY 95 Deferred Summer Salaries - FY 96 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Alternative School Program Distant Learning Instructional Technology Pre-Kindergarten Program Safe Schools Grant Technology Installation
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Human Resources, Georgia Department of Family Connection
Medical Assistance, Georgia Department of Georgia Medical Assistance Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 8.113,452.00 1.088.433.00 285,581.00 348,929.00 111.035.02 2,305,665.00

686,766.00 218.490.00 337,882.00 302.072.89
71.685.00 315,618.00
23,984.00 51,530.00 -1,219,911.00 -1,423,656.00 1,569,167.00 1,163,206.00
$ 91,542.19

104,492.00

124,300.00 497.15
27.n9.11 435.43
327,004.13 3,029.45 3,315.00
40,479.00 7.366.04
14,696.00 11,n2.48

19,000.00 5,500.00 105,132.00 173,650.00 5,125.00 50,000.00

$ 8,113.452.00 1.088,433.00 285,581.00 348.929.00 111.035.02 2,305,665.00
686.766.00 218,490.00 337.882.00 302.072.89
71,685.00 315,618.00
23,984.00 51,530.00 -1.219,911.00 -1,423.656.00 1.569,167.00 1,163,206.00 104,492.00 91,542.19
124,300.00 497.15
27,n9.11 435.43
327,004.13 3,029.45 3,315.00
40,479.00 7,366.04 14,696.00 11.n2.48
19,000.00 5,500.00 105,132.00 173,650.00 5,125.00 50,000.00

$ 1,698,882.00 82,619.02 6,058.64 297.141.00 63,676.00

1,698,882.00 82,619.02 6,058.64
297.141.00 63,676.00.

$ 15.071.879.53 $ 842,659.02 $ 1.698,882.00 $ 17,613,420.55

- 40 -

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

SCHEDULE "6"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other Sources Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Milk Court Settlement Rents Reimbursement for Salaries Sales Adult Meals Contracted Meals Lunches Supplemental School Assets Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 3,122,638,37 3,839.27
10,788.57

$ 270,282.75 $ 270,282.75

3,122,638.37

323.89

4,163,16

910,16

11,698,73

13,528,00

12,472,14 188,959,02 $
2,535,00 1,749,83
397,50 32,879,80

19,534,70 $ 75,00
87,10

2,786,44 10,810,00 17,437.34

60,879,84 1,910,77
236,658,82 38,754,54

7,568,80 2,073,00

6,292,85

13,528,00
12,472.14 222,355.37
2,610,00 1,749,83
87,10 397,50 32,879,80
60,879,84 1,910,77
236,658,82 38,754,54 2,786.44 10,810.00 19,510,34

$ 3,420,821,28 $ 357,900,77 $ 9,641,80 $ 277,809,65 $ 4,066,173,50

See notes to the general purpose financial statements,

- 41 -

THIS PAIiI LE" BLANK

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

SCHEDULE '7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 12,372,005.51 $
3,126,081.44 43,866.07 42,507.23 7,275.00 48,344.91
122,868.80 42,759.65 83,538.00 43,177.49
7,500.00 23,574.29 589,594.99 431,577.91
268,034.18 18,959.65
4,029.06

1,653,643.85 $
342,571.00 31,153.43
114,363.30
18,539.51 6,949.97 337.00
1,649.48 3,000.00
525.69
125,594.15 285,354.05
30,858.24 792,696.52
32,441.90 3,689.50
12,472.14 14,944.79

14,025,649.36 3,468,652.44 75,019.50 156,870.53 7,275.00 66,884.42 129,818.77 43,096.65 83,538.00 44,826.97 3,000.00 525.69 7,500.00 149,168.44 874,949.04 462,436.15 792,696.52 300,476.08 22,649.15 12,472.14 18,973.85

415,086.66

433,382.50

848,469.16

Total Expenditures

$ 17,690,780.84 $ 3,904,167,02 $ 21,594,947,86

See notes to the general purpose financial statements. - 43 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer and Cleaning Services Communication Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment

ALTERNATIVE SCHOOL
PROGRAM

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

1,470.00

8,996.00 $

5,500.00 $

22,780.00

8,534.00

82,352.00

Total Expenditures

$

19,000.00 $

5,500.00 $==:::::::1=0=5=,1=3=2=.0=0=

See notes to the general purpose financial statements. - 44 -

SCHEDULE "8"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

299,249.60

$ 299,249.60

69,544.59

69,544.59

3,828.66

3,828.66

$

46,418.00

47,888.00

2,157.20

2,157.20

66.56

66.56

21,758.60

21,758.60

54,832.87 $

5,125.00

3,582.00

100,815.87

10,875.94

10,875.94

370.66

370.66

2,768.32

2,768.32

40.00

40.00

108.00

108.00

5,190.00

96,076.00

$

470,791.00 $

5,125.00 $

50,000.00 $ 655,548.00

- 45 -

THIS PAGE LEFT BLANK

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 10,101,505.00 $ _ _-=3=.2:..7J..,:5:.;5:"'1:"'.:0'::'0='"

$ 9,687,088.64
667,749.31 $ _ _--"-;5;..8;.:.8.;.,.;4;...3.;.8..;..,5,;;,0.;...
$ 10,354,837.95

-39,938.00 $ 10,314,899.95

Amount of Underexpenditure for Total Allotment

$

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

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

See notes to the general purpose financial statements. - 47 -

W<mH COUNTY BOARDOF EDUCATION ANALYSIS OF MINIMUMEXf'ENQIWRE REQ,JIREMENTS.BY PROGRAM
GENERAl.. FUNQ OUA!..!JY BASIC EDUCATIONPROGRAMS YEAR ENDEDJUNE30 1996

GENERAl.. AND CAREER EDUCATIONPROGRAMS
r) Kindergarten
Grades 1 3 (*) Sl.t>Total K-3
Grades 4 5 (*) Grades6 8 (*) Grades 9 12 (*) HighSchool Laboratolies (*) Vocational Education Laboratories (*)
Total Generaland Career EducationPrograms SPECIAl EDUCATION PROGRAMS
Regular Programs Category I (*) Category " (*) Category III (*) Category IV (*) SlJl>T. otal Regular Category V (Gifted) (*) Total Special EducationPrograms
REMEDIALEDUCATIONPROGRAM f*J Total Thirteen Weighted Programs
MEDIA CENTERPROGRAMS Salaries Operations Total Media center Programs
Total Thirteen Weighted and Media center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff DevelopmentPrograms (*)IdentifiesThirteen Weighted Programs. (1) Salary accruals (July and August 1996 Deferred
Salaries) reportedas expenditures in the General Purpose Financial Statementsare not included on this analysis in order to cofl'lJly with program guidelines.
seenotes to the general purposefinancial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$

829,012.00

$

746,110.80 $

2,153,nO.00

1,938,393.00

$ 2,982,782.00 90 $ 2,684,503.80 $

1,022,025.00 90

919,822.50

1,980,807.00 90

1,782,726.30

1,204,739.00 90

1,084,265.10

414,347.00 90

372,912.30

508,752.00 90

457,876.80

$ 8,113,452.00

$ 7,302,106.80 $

0.00 0.00 265,110.00 265,110.00

$ 1,024,113.00

$

921,701.70 $

0.00

$ 1,024,113.00 90 $

921,701.70 $

64,320.00 90

57,888.00

$ 1,088,433.00

$

979,589.70 $

$

285,581.00 90 $

257,022.90 $

$ 9,487,466.00

$ 8,538,719.40 $

0.00
0.00 0.00 265,110.00

$

276,239.00 90 $

246,615.10 $

72,690.00 90

65,421.00

$

348,929.00

$

314,036.10 $

0.00 0.00

$ 9,836,395.00

$ 8,852,755.50 $

265,110.00

$

25,555.02

$

25,555.02 $

0.00

85,480.00

85,480.00

0.00

$

111,035.02 100 $

111,035.02 $

0.00

(2) Salary accruals (July and August 1995 Deferred Salaries)reportedas expenditures in the prior year General Purpose FinancialStatements are includedon this analysis as required by programguidelines.

48 -

SCHEDULE"10"

~ TOTAl.. REQUIRED

ACTUAl.. EXPENDITURES SALARIES(1)(2) OPERATIONS

TOTAl..

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALlOTMENT

$

746,110.80 $

821,209.24 $

23,625.92 $

844,835.16

1,938,393.00

2,091,170.59

120,704.80

2,211,875.39

$ 2,684,503.80 $ 2,912,379.83 $

144,330.72 $ 3,056,710.55 $

0.00

919,822.50

1,128,026.09

n,393.51

1,205,419.60

0.00

1,782,726.30

1,685,462.92

110,092.71

1,795,575.63

0.00

1,349,375.10

1,334,343.90

172,195.65

1,506,539.55

0.00

372,912.30

447,531.71

8,557.55

456,089.26

0.00

457,876.80

449,546.30

40,797.69

490,343.99

0.00

$ 7,567,216.80 $ 7,957,310.75 $

553,367.83 $ 8,510,678.58

$

921,701.70

$

$ 408,792.37 510,745.99 101,715.47

844.06 $ 11,701.33 9,446.87 7,639.10

844.06 420,493.70 520,192.86 109,354.57

$

921,701.70 $ 1,021,253.83 $

29,431.36 $ 1,050,685.19

0.00

57,888.00

91,092.96

1,915.85

93,008.81

0.00

$

979,589.70 $ 1,112,346.79 $

31,347.21 $ 1,143,694.00

$

257,022.90 $

307,874.91 $

3,723.46 $

311,598.37

0.00

$ 8,803,829.40 $ 9,377,532.45 $

588,438.50 $ 9,965,970.95

$

248,615.10 $

309,556.19

$

309,556.19

0.00

65,421.00

$

79,310.81

79,310.81

0.00

$

314,036.10 $

309,556.19 $

79,310.81 $

388,867.00

$ 9,117,865.50 $ 9,687,088.64 $

667,749.31 $ 10,354,837.95 $

0.00

$

25,555.02

85,480.00

$

111,035.02 .;o,;;,;;~

s

34,447.05 $

34,447.05

79,056.95

79,056.95

$

113,504.00 $

113,504.00 $

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

- 49 -

WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1996
BOARD MEMBER ADDRESS
Mr. Thomas Carter, Chairman (*) P. O. Box 383 Sylvester, Georgia 31791
Mr. Randy Bacon (*) 8025 Georgia Highway 133 Doerun, Georgia 31744
Mr. Melvin Jefferson (*) P. O. Box 212 Sylvester, Georgia 31791
Mr. Garry Johnson (*) 101 Bob White Circle Sylvester, Georgia 31791
Ms. Sarah McCrary (*) 204 East Franklin Street, Box 9 Sylvester, Georgia 31791

SCHEDULE "11"

s

1,875.00

1,300.00

1,500.00

1,400.00

1,200.00

7,275.00

(*) Denotes Board Members Serving as of June 30, 1996

See notes to the general purpose financial statements. - 50 -

SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.\., Suite 214 Atlanta, Georgia 30334-8400
April 3, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Worth County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Worth County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 3, 1997. 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.
Compliance with laws, regulations, contracts, and grants applicable to Worth County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-IO

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 96CRL-IO

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 3, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Worth County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 3, 1997. 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 Worth County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit FoUow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believethat Worth County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 96CRL-40

CLAUDE L. VICKERS
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 3, 1997

Honorable ZeII Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Worth County Board ofEducation

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREl\1ENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Worth County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 3, 1997. 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 Board's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

96CRL-80

We conducted our audit ofcompliance in accordance with generallyaccepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Worth County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Worth County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t::f~
Claude L. Vickers State Auditor
CLV:gp 96CRL-80

CLAUDE L. VICKERS
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 3, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Worth County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 3, 1997. 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 ofthe fiscal year 1996 general purpose financial statements of the Worth County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(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 Worth County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

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

96CRL-120

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

CLV:gp 96CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATEAUDITOR
(404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 3, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Worth County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERN1v1ENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Worth County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 3, 1997. 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 of the Worth 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.

96ICL-3

In planningand performing our audit ofthe general purpose financial statements of the Worth County Board ofEducation for the year endedJune 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies ana procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report 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) General Fixed Assets

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

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

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Worth County Board ofEducation's financial statements and this report does not affect our report thereon dated April 3, 1997.

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 96ICL-3

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 3, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Worth County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Worth County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 3, 1997. 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 Worth County Board of Education's compliance with requirements applicableto major Federal financial assistance programs and have issued our opinion thereon dated April 3, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Worth 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, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 3, 1997.
96ICL-7

The management ofthe Worth County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives 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 noncompliancemay nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1996, the Worth County Board of Education expended 65% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which

96ICL-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 low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal fmancial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determiningthe nature, timing, and extent of the procedures to be performed in our audit ofthe Worth County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated April 3, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 96ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Improper Expenditures Financial Statements Amount: $10,000.00 Audit Control Number 7591-93-01
The audit report for the fiscalyear ended June 30, 1992, stated that on April 9, 1992, the Worth County Board
ofEducation approved payment of$1O,OOO.OO to the Worth County Board of Commissioners to be applied to the construction cost of an agricultural complex in the community. On June 30, 1992, payment of $10,000.00 was made by the Board's General Fund for the construction ofthe facility that was built on a tract of land owned by the Worth County Board of Commissioners.
In response to an inquiry from the State Superintendent of Schools, the Attorney General rendered an opinion, dated October 31, 1957, to the effect that school funds may not be spent by a local board of education for the construction of a building on property not owned by that board of education.
Appropriate action should be taken by the Board to secure reimbursement of the $10,000.00 for deposit to the Board's General Fund.
AUDIT FOLLOW-UPIRESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7591-93-05
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$1O,259.96 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.
AUDIT FOLLOW-UPIRESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $10,671.47 Audit Control Number 7591-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$10,671.47 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$10,671.47 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
- 1-

WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7591-93-02
The audit report for the year ended June 30, 1995, 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 adequate separation of employee duties was noted. This condition 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 "1" of this report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7591-93-04
The audit report for the year ended June 30, 1995, noted that the management of the Worth County Board ofEducation had chosen not to maintaina 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 establishaccounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiaryrecords 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.
- 2-

SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

WORTH COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1996
AU" DIT FOLLOW-UPIRESOLUTION
Failure to Meet Expenditure Requirements Financial Statements Amount: $10,671.47 Audit Control Number 7591-94-01
We concur with this finding. This findinghas been resolved by the Georgia Department ofEducation through an increase of $10,671.00 in the Board's fiscal year 1997 local fair share portion ofQBE Allotments.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7591-93-02
We concur with this finding; however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding cannot be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7591-93-04
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
Note: The Worth County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.