Audit report, Central Savannah River Area Regional Educational Service Agency, Dearing, Georgia, year ended June 30, 1994

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

AUDIT REPORT CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
DEARING, GEORGIA YEAR ENDED JUNE 30, 1994

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
-TABLE OF CONTENTS-

SECTION!

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

20

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

21

3 INVESTMENTS

22

4 ACCOUNTS RECEIVABLE

23

SCHEDULE OF REVENUE

5

STATE FUNDS

24

6

LOCAL AND OTHER FUNDS

25

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

26

8

LOTTERY PROGRAM

27

9 SCHEDULE OF TRAVEL OF BOARD MEMBERS

28

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
- TABLE OF CONTENTS -
SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL
SECTION III COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION IV INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTIONV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
- TABLE OF CONTENTS -
SECTION VI PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Central Savannah River Area Regional Educational Service Agency Board of Control
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Central Savannah River Area Regional Educational Service Agency, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Central Savannah River Area Regional Educational Service Agency as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.

94ARL-31

Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Central Savannah River Area Regional Educational Service Agency taken as a whole. The combining statements (Exhibits E and F), the financial schedules (Schedules 1 through 9 which include the Schedule of Federal Financial Assistance) and the Schedule of Salaries and Travel, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Central Savannah River Area Regional Educational Service Agency. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, 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.
?_:A
Claude L. Vickers State Auditor
CLV:jg 94ARL-31

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
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C!;;NTRAL SAVAN~ RIVER AREA REGIONAL ~DUCATIONAj SERVl!;E AGEt:,:CY
COMBINED ~ C E SH5ET ALL FUND TYPES AND ACCOUNT GROYP
JUNE 30 1994

EXHIBIT"'A"'

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories for Resale Prepaid Hems General Fixed A6sets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL FIXED ASSETS

TOTALS ~morandum On!u JUNE30 1994 JUNE 30 1993

n,479.61 $

50,000.00

122,479.61 $

63,933.59

502,814.00

26,460.06

529;274.06

550,TT3.91

64,143.83

19,061.72

83;205.55

48,282.24

18,101.43

18,101.43

16,550.98

13,560.00

13,560.00

253 641.20

253 641.20

245 544.71

Total.A66et&

598 619.26 $

91,541.33 $

76.460.06 $

253,64120 $ 1,020.261.85 $ 925,085.43

l,.lABILITIES ~Q FUNQ~QUITY
~ Cash Overdraft AccoumsPayable Salaries Payable Expired Grant BalallC86 Payable
Total Liabilities
FUNQ!;QUrTY
Investment in General Fixed Assets
-Fund Balances Reser,ed For lnYentory for R ~
Undes;gnaled
Total Fund Balances
Total Fund Equity

126,426.55 61,845.13 $ 1 ,849.80
203121.48 $

17,429.53 74,105.12
6.32
91 540.97

126,426S5 $ 79,274.66 88,954.92 6.32
294 662.45 $

104,841.97 19,407.50 88,43221 293.48
212,975.16

25364120 $ 253 641.20 $ 245 544.71

18,101.43 377396.35 $ 395 497.78 $ 395 497.78 $

0.36 $ 0.36 $ 0.36 $

76 460.06 76 460.06 76460.06 $

253 641.20 $

18,101.43 $ 453856.TT 471 958.20 $ 725,599.40 $

16,550.98 450014.58 466 565.56 71211027

Total Liabilities and Fund Equity

598 619.26 $

91 541.33 $

76,460.06 $

253 641.20 $ 1 020,261.85 $ 925.085.43

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

CENTRAL SAVANNAH RIVfR ARfA RfGlQNAI fptJCATIONA\ SERVICE AGENCY COMBINED TATEM ENT OF REVENUES EXPfNDITURfS AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
YfAR fNDfQ JUNE 3Q 1994

EXHIBIT''B''

REVENUES
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Cunent Instruction Support Services Pupil Services lmprc:M!ment of Instructional Servlces General Administration Business Administration Maintenance and Operation of Plant
Total Expenditures
Excess of Revenues aver (under) Expenditures
OTHER FINANCING SOURCES (USES}
Operating Transfers In Operating Transfers Out
Total other Financing Sources (Uses)
Excess of Revenues and other Financing Sources aver (under) Expenditures and Other Financing Uses
FUNO BAL ANGE JULY 1
lnentory - Net Change in Period

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS (Memorandum On!:)
YEAR ENDED JUNE 30 1994 JUNE 30 1993

413,008.00 $ 497196.73

851,275.71 $ 146,318.15
91 804.50

1,264,283.71 146,318.15 589 001.23 $

910 204.73 $ 1 089 398.36 $ 1 999 603.09 $

$ 1 829.00

1,264,283, 71 $ 146,318.15 590 830.23

1,182,982.78 292,421.37 536 571.93

1 829.00 $ 2 001 432.09 $ 2 011 976.08

77,438.53 $ 478,497.84 $ 555,936.37 $

44,542.07 392,925.44 127,681.60 218,983.23
46 620.53

282,434.86 124,286.61 154,657.08
49 522.11

326,976.93 517,212.05 282,338.68 218,983.23
96142.64

908191.40 $ 1 089 398.50 $ 1 997 589.90 $

2 013.33 $

-0.14 $

2 013.19 $

0.00 $ 555,936.37 $ 513,447.20

326,976.93 517,212.05 282,338.68 218,983.23
96142.64

327,856.30 589,830.15 249,251.76 209,634.53 100 261.30

0.00 $ 1 997 589.90 $ 1990281.24

1 829.00 $

3 842.19 $

21 694.84

7,511.00 -7511.00
0.00

2,013.33 $ 391,934.00
1 550.45

-0.14 $ 0.50

2,013.19 $ 391,934.50
1 550.45

1,829.00 $ 74,631.06

3,842.19 $ 466,565.56
1 550.45

21,694.84 447,822.08
-2 951.36

FUND BAI ANCf JUNE 30

395 497.78 $

0.36 $ 395 498.14 $

76 460.06 $ 471 958.20 $ 466 565.56

The notes to the general purpose financial statements are an integral part of this statement. -3-

QE!:lIBAI SAllANNAI::! BlllER ABEA BE!:,IQNAL EQIJCATIONAL ERVICE AGENCY QQMi!l!:lEQ STATEME!:jT OE BEllENUE E~PEt:lQITURE AND CHANGES IN F!,!ND BALANQES AQI!.!AL ANQ i!!.!DGET - GQVERf:lMENIAL FUNQ IYPES
YEAR ENQEQ Jli!:jE 30 1994

EXHIBIT"C"

~

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

State Funds Federal Funds Local and other Funds

1,264,283.71 $ 146,318.15 589,001.23

0.00 $

1,264,283.71 $ 146,318.15 589,001.23

1,296,971.00 $ 214,407.00 604,505.58

-32,687.29 -68,088.85 -15,504.35

Total Revenues

$ 1,999,603.09 $

0.00 $ 1,999,603.09 $ 2, 115,883.58 $

-116,280.49

EXPENQIT!,!RES

Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant other Support Services

$ 555,936.37 $
326,976.93 517,212.05 282,338.68 218,983.23
96,142.64

0.00 $

555,936.37 $ 515,173.00 $

326,976.93 517,212.05 282,338.68 218,983.23
96,142.64

377,315.00 654,926.00 288,282.14 226,111.00 102,583.83
2,400.00

-40,763.37
50,338.07 137,713.95
3,923.46 7,127.77 6,441.19 2,400.00

Total Expenditures

$ 1,997,589.90 $

0.00 $ 1,997,589.90 $ 2,164,770.97 $

167,181.07

Excess of Revenues CNer (under) Expenditures $

2,013.19 $

0.00 $

2,013.19 $ -48,887.39 $

50,900.58

F!,!NQ i!Ai,ANCE J!,!LY 1 1993

391,934.50

-16,550.98

375,383.52

466,672.83

-91,289.31

AQJ!,!STMENTS

Prior Year (Net)

0.00

0.00

993.73

-993.73

IN)lENTQBY - NET QHANGE IN PERIQQ

1,550.45

-1,550.45

0.00

0.00

F!JNQ i!Ai,ANCE JUNE 30 1994

$ 395,498.14 $

-18,101.43 $

377,396.71 $ 418,779.17 $

-41,382.46

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

CENTRAL SAVANNAH RIVER AREA

EXHIBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Central Savannah River Area Regional Educational Service Agency (Agency) was established pursuant to the Official Code of Georgia Annotated Sections 20-2-270 through 20-2-274 for the purposes of providing shared services designed to improve the effectiveness of educational programs and services of local school systems and for providing instructional programs directly to selected public school students in the state.
Each regional educational service agency is governed by a board. The number of members and terms of office are prescnbed by the State Board ofEducation; provided, however, that at least one-third ofthe membership of each Board shall be individuals who hold no other public office, who are not employees of any local unit of administration, and who are not employees ofthe Georgia Department ofEducation.
The financial statements ofthe Agency have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Agency's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Central Savannah River Area Regional Educational Service Agency is determined to be a jointly governed organization.
The members ofthe Board are elected by an annual caucus ofan equal number of members oflocal boards of education from the respective member local school systems. Each Board appoints and contracts with a director who is the executive officer of the regional educational service agency. The director is responsible for the administration of the programs and services approved by the Board.
Member boards of education in the Central Savannah River Area Regional Educational Service Agency are as follows: Burke County, Columbia County, Emanuel County, Glascock County, Jefferson County, Jenkins County, Lincoln County, McDuffie County, Screven County, Taliaferro County, Warren County and Wilkes County.
FUND ACCOUNTING
The Agency 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.

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CENTRAL SAVANNAH RIVER AREA

EXHIBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Agency, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a regional educational service agency's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Agency except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a regional educational service agency.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department ofEducation and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity. This fund includes:
EXPENDABLE TRUST FUND Self-Insurance Employee Benefit Fund - the fund used to account for Unemployment Compensation contributions and expenditures.
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired by the Agency. General fixed assets consist entirely of equipment since the Agency is prohibited by Georgia Law from holding title to real property.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund 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 decreases (i.e., expenditures) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
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CENTRAL SAVANNAH RIVER AREA

EXIDBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recogniz.ed when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be detennined 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 intergovernmental grants, sales and services and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Central Savannah River Area Regional Educational Service Agency has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Agency's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, the budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. This final budget is then submitted to the Georgia Department of Education.
The Agency prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Agency to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

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CENTRAL SAVANNAH RIVER AREA

EXHIBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Agency are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Agency to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
INVENTORIES
GOODS FOR RESALE Inventories are reported on the Combined Balance Sheet at cost. The Agency uses the purchases method to account for inventories whereby purchases for resale are recorded at the time of purchase. The inventory reported on the balance sheet is equally offset by a reservation of fund balance which indicates that it does not constitute "available spendable resources" even though it is a component of net current assets.

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CENTRAL SAVANNAH RIVER AREA

EXIIlBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1994, are recorded as prepaid items.
GENERAL FIXED ASSETS
General fixed assets purchased, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at fair market value
where no historical records exist. Donated general fixed assets are recorded at fair market value on the date
donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets.
INTERFUND TRANSACTIONS
The Agency has the following type ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one ofor any combination of the following:

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CENTRAL SAVANNAH RIVER AREA

EXHIBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS
At June 30, 1994, the bank balances were $ll3,0l 9.76. 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 Agency or by the Agency's agent in the Agency's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Agency's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Agency's name.)
The Agency's deposits are classified by risk category at June 30, 1994, as follows:

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CENTRAL SAVANNAH RIVER AREA

EXHIBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

I

$ 100,000.00

2

0.00

3

13 019.76

Total

$ 113 Ql2 76

CATEGORIZATION OF INVESTMENTS

Investments are classified as to risk by the three categories described below:

Category I - Insured or registered, or securities held by the Agency or the Agency's agent in the Agency's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Agency's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Agency's name.

Funds invested in an investment pool managed by another governrnent are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1994, the carrying amount of the Agency's total investments was $529,274.06 and consisted entirely offunds in the Local Governrnent Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Agency did not own any specific identifiable securities in the pool.

Note 3: CHANGES IN GENERAL FIXED ASSETS

The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year:

Eguipment

Balance July I, 1993

$ 245,544.71

Additions

23,923.49

Deductions

15 827.00

Balance June 30, 1994

$ 25) 64] 2Q

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CENTRAL SAVANNAH RIVER AREA

EXIDBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 4: RISK MANAGEMENT
The Agency has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, no claims were paid.
Note 5: 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 Agency believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by Agency's 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. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

- 13 -

CENTRAL SAVANNAH RIVER AREA

EXHIBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: RETIREMENT PLANS

The Agency's payroll for employees covered by TRS for the year ended June 30, 1994, was $1,246,652.95; total payroll was $1,247,175.66.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Agency who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Agency makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 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 1994 amounted to $222,029.19, of which $147,229.72 was made by the Agency and $74,799.47 was made by employees. These contributions represented 11.81% (Agency) and 6% (employees) of covered payroll.

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

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ I 090 292 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. 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, 1994 were $521,550,000.00. The Agency's contribution for the year ended June 30, 1994 of$147,229.72 was actuarially determined and represented .0282% of total contributions made by all participating employers.

- 14 -

CENTRAL SAVANNAH RIVER AREA

EXHIBIT "D"

REGIONAL EDUCATIONAL SERVICE AGENCY

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: RETIREMENT PLANS
Ten year historical trend information is presented in the 1994 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.
Note 7: SURETY BONDS
The Director, Ms. Anne Saunders, is bonded in the amount of$100,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B-78599, on which premium was paid through July 1, 1994.

- 15 -

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

EVALUATION AND
ASSESSMENT

SEVERELY EMOTIONALLY
DISTURBED

LOTTERY PROGRAM

$

0.00 $

76,576.02

14,965.31 $

2,319.00

$

0.00 $

91,541.33 $

2,319.00

$

$

17,429.53

74,105.12

6.32

$

91,540.97 $

2,319.00 2,319.00

$

0.00

0.36

0.00

$

0.00 $

91,541.33 $

2,319.00

See notes to the general purpose financial statements. - 16 -

EXHIBIT"E"

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

ELEMENTARY AND SECONDARY

EDUCATION ACT

TITLE 11-

CHAPTER 1

EISENHOWER

EDUCATION OF MATHEMATICS

CHILDREN IN AND SCIENCE

STATE SCHOOLS EDUCATION

TEACHER TRAININGAIDS HEALTH EDUCATION

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

0.00 $

0.00 $

76,576.02 $

63,933.59

$

1,777.41

19,061.72

33,132.95

$

1,777.41 $

0.00 $

0.00 $

0.00 $

95,637.74 $

97,066.54

$

1,777.41

$

1,777.41

$

4,096.41

17.429.53 $

17.475.21

74,105.12

79,297.35

6.32

293.48

$

95,637.38 $

97,066.04

0.36

0.50

$

1,777.41 $---==0=_0_0_$ ====0.=00=$ ====0.=00=$

95,637.74 $

97,066.54

-17-

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant
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
FUND BALANCE JUNE 30

EVALUATION SEVERELY

AND

EMOTIONALLY

ASSESSMENT DISTURBED

LOTTERY PROGRAM

$

85,714.00 $

703,242.71 $ 62,319.00

96,820.68

62,653.50

$ 85,714.00 $ 862,716.89 $ 62,319.00

$ 410,576.37 $ 60,979.00

$

67,415.48

12,498.52

282,434.86 127,323.69

5,800.00

42,382.11

1,340.00

$

85,714.00 $ 862,717.03 $ 62,319.00

$

0.00 $

-0.14 $

0.00

$

0.00 $

-0.14 $

0.00

0.00

0.50

0.00

$

0.00 $

0.36 $

0.00

See notes to the general purpose financial statements. -18 -

EXHIBIT"P'

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

ELEMENTARY AND SECONDARY

EDUCATION ACT

TITLE 11-

CHAPTER 1

EISENHOWER

EDUCATION OF MATHEMATICS

CHILDREN IN

AND SCIENCE

STATE SCHOOLS EDUCATION

TEACHER TRAININGAIDS HEALTH EDUCATION

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 20,000.00 $ 29,151.00
$ 49,151.00 $

354.00 $ 354.00 $

24,100.00 $ 24,100.00 $

$ 5,043.47

851,275.71 $ 146,318.15
91,804.50

781,342.78 292,421.37 102,146.99

5,043.47 $ 1,089,398.36 $ 1,175,911.14

$

$

36,935.66

12,215.34

$

49,151.00 $

$

0.00 $

$

0.00 $

0.00

$

0.00 $

180.19 $
173.81
354.00 $ 0.00 $

6,762.28
15,000.00 $ 2,337.72
24,100.00 $ 0.00 $

$ 478,497.84 $ 439,143.50

4,935.47 108.00

282,434.86 124,286.61 154,657.08
49,522.11

327,856.30 200,423.52 124,417.51
34,792.49 58,081.36

5,043.47 $ 1,089,398.50 $ 1,184,714.68

0.00 $

-0.14 $

-8,803.54

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

7,511.00

-0.14 $ 0.50

-1,292.54 1,293.04

0.00 $

0.00 $

0.00 $

0.36 $

0.50

-19 -

CENTRAi SAVANNAH RIVER ARf,A
REGIONAi EDUCATIONAl SERVICE AGENCY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communtties Act 1994 Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Regular Trtlell Eisenhower Mathematics and Science Education 1994 D and E Grant Individuals with Disabilities Education Act TrtleVl,B Severely Emotionally Disturbed 1992 Carry-Over 1993 Regular 1993 Carry-Over 1994 Regular

CFDA
~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.186 $

20,000.00 $

20,000.00$ 20,000.00$

20,000.00

84.009

354.00

354.00

354.00

354.00

84.164

24,100.00

24,100.00

24,100.00

24,100.00

84.027 84.027 84.027 84.027

6,625.00
46,565.00 103 713.00

6,625.00 23,833.91 46,565.00 28 665.40

6,625.00
46,565.00 43630.68

6,625.00
46,565.00 43 630.68

Total U. S. Department of Education

$ 201,357.00 $

150 143.31 $ 141274.68 $

141 274.68

Health and Human Services, U.S. Department of Through Georgia Department of Education Acquired Immunodeficiency Syndrome (AIDS) Activity CooperatiVe Agreements to Suppart School
Health Education to Prevent the Spread
of Acquired Immunodeficiency Syndrome 1993 AIDS Health Education
Implementation of a Program in Comprehensive Health Education 1994 AIDS Health Education

93.938 93.938 $

$ 8,230.00

4,820.00 $

4,820.00$

223.47

223.47

4,820.00 223.47

Total U. S. Department of Health and Human SeMces

$

8,230.00 $

5,043.47 $

5,043.47 $

5043.47

Labor, U.S. Department of Through Georgia Department of Education Job Training Partnership Act 09-2-15-50-743

17.250

$

6 954.80

Total Federal Financial Assistance

$ 209 587,00 $

162141.58 $ 146318.15 $

146 318.15

The Agency had no major programs as defined by the Single Audtt Act of 1984.

See notes to the general purpose financial statements

- 20 -

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
Allied Bank of Georgia, Thomson, Georgia
N.O.W. Account (2.47%)

SCHEDULE "2" $ ==-=3=,9=4=6.=94=

See notes to the general purpose financial statements. - 21 -

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
INVESTMENTS JUNE 30 1994
INVESTMENT POOL
Office of Treasury and Fiscal SeJVices Local Government Investment Pool (4.237%)

SCHEDULE 3 $ 529,274.06

See notes to the general purpose financial statements. - 22 -

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "4"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

Education, Georgia Department of Lottery Program Education Technology Center Federal Program lndMduals with Disabilities Education Act Trtle VI, B - Severely Emotionally Disturbed

$

2,319.00 $

14,965.31

Georgia State University

Reimbursement for Supplies and Materials

for Principals Assessment Center

$

1,323.86

Richmond County Board of Education Workshop and Seminar Fees for Principals Assessment Center

1,600.00

Various Sources For Health Education Contract For Sales and Services

61,219.97

1,777.41

TOTAL
2,319.00 14,965.31
1,323.86
1,600.00 1,777.41 61,219.97

$

64,143.83 $

19,061.72 $==8=3;,.,2=0=5.=55;,

See notes to the general purpose financial statements. - 23 -

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of other State Programs Regional Educational Service Agencies Severely Emotionally Disturbed Staff Development Sex Education Grant Supervision and Assessment of Student and Beginning Teachers and Performance Based Certification Lottery Program Education Technology Center
CONTRACT Education, Georgia Department of Participation of Local School Personnel in Technology Training

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 379,008.00 $
31,000.00

$ 703,242.71

379,008.00 703,242.71
31,000.00

85,714.00 62,319.00

85,714.00 62,319.00

3,000.00

3,000.00

$ 413,008.00 $ 851,275.71 $ 1,264,283.71

See notes to the general purpose financial statements. - 24 -

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE "6''

Contributions to Self-Insured Employee Benefit Fund from Other Funds For Unemployment Compensation Insurance
Health Education Contract County Boards of Education Burke Columbia Lincoln McDuffie Taliaferro Warren
Indirect Cost Special Revenue Fund
Interest Earned Membership Contributions
County Boards of Education Burke Columbia Emanuel Glascock Jefferson Jenkins Lincoln McDuffie Screven Taliaferro Warren Wikes
Registration Fees Sales and Services
Audio Visual and Computer Repair Less: Purchases for Resale
Shared Service Contributions County Boards of Education Emanuel Jefferson Lincoln
Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

$

$

$

9,258.00

23,936.62

4,000.00 5,000.00 3,000.00 8,000.00 4,975.00 4,176.00

24,921.00 72,485.60 26,179.20
2,511.00 19,234.80
9,088.20 8,002.80 23,598.00 16,491.60 1,500.00 5,945.40 11,502.00 8,768.36
406,587.20 -239,362.12

21,908.99
20,700.99 23,939.09

62,000.00 653.50

1,829.00 $

1,829.00

4,000.00 5,000.00 3,000.00 8,000.00 4,975.00 4,176.00
9,258.00 23,936.62

24,921.00 72,485.60 26,179.20
2,511.00 19,234.80
9,088.20 8,002.80 23,598.00 16,491.60 1,500.00 5,945.40 11,502.00 8,768.36
406,587.20 -239,362.12

21,908.99 62,000.00 20,700.99 24,592.59

$ 497,196.73 $

91,804.50 $

1,829.00 $ 590,830.23

See notes to the general purpose financial statements.

- 25 -

CENTRAL SAVANNA!:! RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXP!;NDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE '7"

EXPENDITUR!;S
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Property Services Insurance Communications Supplies Energy Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$

627,868.16 $

619,307.50 $ 1,247,175.66

133,182.46

144,561.72

277,744.18

32,019.81

20,498.08

52,517.89

16,768.06

35,688.27

52,456.33

117.60

117.60

6,021.56

3,471.13

9,492.69

8,881.22

6,350.00

15,231.22

8,400.00

12,400.00

20,800.00

8,008.43

1,132.57

9,141.00

576.00

576.00

7,441.27

13,545.11

20,986.38

38,654.10

149,871.27

188,525.37

15,097.73

13,083.97

28,181.70

2,807.00

3,367.00

6,174.00

9,258.00

9,258.00

1,933.49

1,933.49

2,348.00

54,930.39

57,278.39

Total Expenditures

$ 908,191.40 $ 1,089,398.50 $ 1,997,589.90

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

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994
EXPENDITURES Operating Costs Professional and Technical Services Supplies Nonoperating Costs Equipment
Total Expenditures

SCHEDULE "8"

EDUCATION TECHNOLOGY
CENTER

$

1,340.00

21,129.10

39,849.90

$===62="3=1=9=.0=0

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

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994
BOARD MEMBER ADDRESS
Dr. Randall Edmunds, Chairman (J
Lincoln County Board of Education P. 0. Box39 Lincolnton, Georgia 30817
Dr. Betty Y. Brown, Vice Chairperson () Emanuel County Board of Education P. 0. Box 130 Swainsboro, Georgia 30401
Dr. Lynn Batten () Jenkins County Board of Education
P. 0. Box660
Millen, Georgia 30442
Ms. Patricia Bazemore c)
Screven County Board of Education P. 0. Box 1668 Sylvania, Georgia 30467
Dr. Lynn Cadle (J
Columbia County Board of Education P. 0. Box 10 Appling, Georgia 30802
Mr. C. Douglas Day () Burke County Board of Education P. 0. Box908 Waynesboro, Georgia 30830
Dr. Ed Grisham (") McDuffie County Board of Education P. 0. Box957 Thomson, Georgia 30824
Dr. Evans Harris () Taliaferro County Board of Education P. 0. Box 154 Crawfordville, Georgia 30631
Ms. Ruth Hilson () Route 2, Box 206 Mitchell, Georgia 30830
- 28 -

SCHEDULE "9"

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994
BOARD MEMBER ADDRESS
Mr. Robert P. Lyons () 206 Joy Street Swainsboro, Georgia 30401
Ms. Rubye Mason () P. 0. Box214 Lincolnton, Georgia 30817
Dr. Anne Mein () Glascock County Board of Education P. 0. Box205 Gibson, Georgia 3081 O
Mr. Jerry L. Robinson () Wilkes County Board of Education P. 0. Box279 Washington, Georgia 30673
Rev. Bill Seaman () Arrington Mill Road Dearing, Georgia 30808
Mr. Tucker Vaughn () Jefferson County Board of Education P. 0. Box449 Louisville, Georgia 30434
Mr. Robert H. Warren (*) Warren County Board of Education P. 0. Box228 Warrenton, Georgia 30828
Ms. Helen Williams () 503 Ellis Street Wrens, Georgia 30833
Dr. Nancy D. Williamson () 2 Woodbridge Drive Evans, Georgia 30809
() Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements.
- 29 -

SCHEDULE "9"

$

117.60

$ ====1=1=7.=60=

SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY
SUMMARY OF SALARIES AND TRAVEL YEAR ENDED JUNE 30 1994

SALARIES
GENERAL FUND Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration
Total General Fund
SPECIAL REVENUE FUND

TOTALPER FINANCIAL STATEMENTS {ACCRUAL BASIS)

ADJUSTMENTS FOR ACCRUALS

JUNE 30, 1993

JUNE 30, 1994

TOTAL PER SCHEDULE {CASH BASIS)

$

56,310.00 $

9,134.86 $

32,788.00 302,579.98
81,311.18 154,879.00

$

627,868.16

9,134.86

619,307.50

79,297.35

-9,385.10 $ -5,464.70
-14,849.80 -74,105.12

56,059.76
27,323.30 302,579.98
81,311.18 154,879.00
622,153.22
624,499.73

Total Salaries

1 247,175.66 $

88,432.21 $

-88,954.92 $ 1,246,652.95

TRAVEL

GENERAL FUND

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

General Administration

Business Administration

Total General Fund

SPECIAL REVENUE FUND

7,216.62 $
4,577.16 16,607.67
2,807.39 810.97
32,019.81 $
20,498.08

Total Travel

$

52,517.89 $

0.00 $ 0.00 .$ 0.00 $

0.00 $ 0.00 $

7,216.62
4,577.16 16,607.67
2,807.39 810.97
32,019.81
20,498.08

0.00 $

52,517.89

CENTRAL SAVANNAH RIVER R. E. S. A. SCHEDULE OF SALARIES ANO TRAVEL
YEAR ENOED JUNE 30, 1994

NAME

TITLE CATEGORY

BLACK, VICTORIA ANN

SPECIAL REVENUE FUND - OTHER PROG

BLALOCK, MARY H

SPECIAL REVENUE FUND - OTHER PROGRAMS

BOYKIN, LORI LYNN

SPECIAL REVENUE FUND - OTHER PROGRAMS

BROWN, PHYLLIS

SPECIAL REVENUE FUND - OTHER PROGRAMS

BRUSNAHAN, REBECCA J

INSTRUCT ION

CAIN,HELEN A

SPECIAL REVENUE FUND - OTHER PROGRAMS

CHEEK, MARK P

SUPP SRVS - IMPROV INSTR & ED MED SRVS

CHESNUT, JOO I L

SPECIAL REVENUE FUND - OTHER PROGRAMS

COWART, VERONICA K

SUPP SRVS - IMPRDV INSTR & ED MED SRVS

DAVIS, ANNA

SPECIAL REVENUE FUND - OTHER PROGRAMS

DAY, JEAN B

SPECIAL REVENUE FUND - OTHER PROGRAMS

EDENFIELD, SHARON MCGEE SPECIAL REVENUE FUND - OTHER PROGRAMS

FIELDS,CONNIE T

SPECIAL REVENUE FUND - OTHER PROGRAMS

FLEMING,CARL W

INTERNAL SERVICES FUND

FORD, CLAIRE MAUREEN

INSTRUCTION

FOUNTAIN,DEBORAH ANN

SPECIAL REVENUE FUND - OTHER PROGRAMS

FOWLER, AVA DEAN

SUPPORT SERVICES - BUSINESS

FROST, ARLENE TINCHER

SPECIAL REVENUE FUND - OTHER PROGRAMS

GLOVER, SHANNON RENEE

SPECIAL REVENUE FUND - OTHER PROGRAMS

GODBEE, ESTHER GLOVER

SPECIAL REVENUE FUND - OTHER PROGRAMS

GREEN, FRANCES W

SPECIAL REVENUE FUND - OTHER PROGRAMS

HALL ,MARY E

SPECIAL REVENUE FUND - OTHER PROGRAMS

HATFIELD,DONALD L

INTERNAL SERVICES FUND

HENDRIX,JUDY FAY

SPECIAL REVENUE FUND - OTHER PROGRAMS

HICKS,SANDRA KAY

SPECIAL REVENUE FUND - OTHER PROGRAMS

HODGE, DONNA E

SPECIAL REVENUE FUND - OTHER PROGRAMS

HOWARD,MOLLY PARISH

SPECIAL REVENUE FUND - OTHER PROGRAMS

HULSEY ,KIM S

SPECIAL REVENUE FUND - OTHER PROGRAMS

JOHNSON, DONNA S

SPECIAL REVENUE FUND - OTHER PROGRAMS

JOHNSON, RUBY ARTHUR ENE SUPP SRVS - IMPROV INSTR & ED MED SRVS

JONES, MICHAEL AUBREY

INTERNAL SERVICES FUND

JONES, SHERYL DENISE

SPECIAL REVENUE FUND - OTHER PROGRAMS

KENNEDY ,DORIS E

SPECIAL REVENUE FUND - OTHER PROGRAMS

KICKLIGHTER, JESSE ALLEN SPECIAL REVENUE FUND - OTHER PROGRAMS

LEONARD,WILMA R

SPECIAL REVENUE FUND - OTHER PROGRAMS

LOUNDY, TRELLIS A

SPECIAL REVENUE FUND - OTHER PROGRAMS

MASTERS, REBECCA S

SPECIAL REVENUE FUND - OTHER PROGRAMS

MERKEL, ANITA LOUISE

SPECIAL REVENUE FUND - OTHER PROGRAMS

MERKEL.ANITA LOUISE

INTERNAL SERVICES FUND

NELSON, TERRY L

SPECIAL REVENUE FUND - OTHER PROGRAMS

OGLESBY,RITA A

SPECIAL REVENUE FUND - OTHER PROGRAMS

PETERS, VONTRESSA DANI ELS SPECIAL REVENUE FUND - OTHER PROGRAMS

ROBERTS, BEAUFORT G JR

SPECIAL REVENUE FUND - OTHER PROGRAMS

RUSSELL, CYNTHIA B

SUPP SRVS - IMPROV INSTR & ED MEO SRVS

RUSSELL, CYNTHIA B

SPECIAL REVENUE FUND - OTHER PROGRAMS

SAUNDERS, ANNE H

DIRECTOR

SAUNDERS, ANNE H

GENERAL ADMINISTRATION

SHORT, MICHAEL LEE

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SHORT, MICHAEL LEE

SPECIAL REVENUE FUND - OTHER PROGRAMS

STONE, CUMMY J

SPECIAL REVENUE FUND - OTHER PROGRAMS

SWANN, LINDA B

SUPPORT SERVICES - BUSINESS

TAYLOR, LESTER

INTERNAL SERVICES FUND

TOBU REN, DAVID

SUPP SRVS - IMPROV INSTR & ED MED SRVS

TOBUREN, DAVID

SPECIAL REVENUE FUND - OTHER PROGRAMS

USRY, TRACEY J

GENERAL ADMINISTRATION

USRY, TRACEY J

SPECIAL REVENUE FUND - OTHER PROGRAMS

WALDEN, CHARLOTTE SMITH SPECIAL REVENUE FUND - OTHER PROGRAMS

WALLER,PATRICIA W

SUPPORT SERVICES - PUP! L SERVICES

WILSON, WILLARD M JR

INTERNAL SERVICES FUND

YOUMANS, DEBORAH ANN

SPECIAL REVENUE FUND - OTHER PROGRAMS

TOTALS

SALARIES AMOUNT
4,213 81 5,626 41 3,255 25 18,879 20 24,417 72 16,036 51 53,253 04 19,024 68 48,911.49 8,477.39 20,133.01 20,073.45 36,654.70 28,488.00 31,642.04 27,782.75 6,603.86 6,325.80 8,162.80 8,326.60 3,301.49 28,234.13 19,517.45 5,862.36 6,255.90 29,556.14 54,625 83 35,313.87 9,270.00 48,911.49 16,825.00
785. 39 5,418.81 42,004.75 29,150.76 7,256.42 29,202.24 10,140.65 10,140.65 42,599.30 1,028.72 13,130.22 20,780.74 48,911.49
61,405 87
27,097 61 27,097 61
2,994 36 22,889 43 25,019 00 54,195 22
9,764 66 9,752 79 7,082 23 27,323 30 35,536 26 21,982 30
1,246,652 95 $

TRAVEL EXPENSE
224 .49 2,325.78
207. 78 2,941.82
192. 18 3,008.66
157. 29 253 .09 334. 65 4,890.84 1,460.42
1,380.16 4,208, 49
988. 36 27. 76
3,349.93 108.25
1,811.26 2,180.44
4,003.54 298. 34
2,045.43 189.00
2,807.39 468. 72
2,310.84 152 .48 351 .32
3,291.14 752. 54
4,577.16 198 92
1,019 42 52,517 89

SECTION III COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Central Savannah River Area Regional Educational Service Agency Board of Control
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 Central Savannah River Area Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995.
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 Central Savannah River Area Regional Educational Service Agency is the responsibility ofthe Agency's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests ofthe Agency'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 indicate that, with respect to the items tested, the Central Savannah River Area Regional Educational Service Agency complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied, in all material respects, with those provisions.
94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:jg 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Central Savanna!I River Area Regional Educational Service Agency Board of Control

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 Central Savanna!I River Area Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. We have applied procedures to test the Central Savannah River Area Regional Educational Service Agency'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, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the first paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Central Savannah River Area Regional Educational Service Agency had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~
Claude L. Vickers State Auditor
CLV:jg 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Central Savannah River Area Regional Educational Service Agency Board of Control

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 Central Savannah River Area Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995. In connection with our audit of the fiscal year 1994 general purpose financial statements ofthe Central Savannah River Area Regional Educational Service Agency and with our consideration of the Agency's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) 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, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Central Savannah River Area Regional Educational Service Agency'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 first paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Central Savannah River Area Regional Educational Service Agency had not complied, in all material respects, with those requirements.

94CRL-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,
~-~
Claude L. Vickers State Auditor
CLV:jg 94CRL-120

SECTION IV INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Central Savannah River Area Regional Educational Service Agency Board of Control
REPORT ON INTERNAL CONTROL STRUCTURE 1N ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Central Savannah River Area Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995.
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.
In planning and performing our audit ofthe financial statements of the Central Savannah River Area Regional Educational Service Agency for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Central Savannah River Area Regional Educational Service Agency is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or
94ICL-1

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.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation
(8) General Ledger
(9) General Fixed Assets

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation ofone 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.

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 ohhis report which is a matter of public record.

Respectfully submitted,
~~d:
Claude L. Vickers State Auditor

CLV:jg 94ICL-1

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 26, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Central Savannah River Area Regional Educational Service Agency Board of Control
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 Central Savannah River Area Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated July 26, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Central Savannah River Area Regional Educational Service Agency complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs.
We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 26, 1995.
94ICL-13

The management ofthe Central Savannah River Area Regional Educational Service Agency 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 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 the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Audit Follow-Up/Resolution (7) Administrative Requirements

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

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

During the year ended June 30, 1994, the Central Savannah River Area Regional Educational Service Agency had no major Federal financial assistance programs and expended 66% of its total Federal financial assistance under the following nonmajor Federal financial assistance program:

Individuals with Disabilities Education Act - Title VI, B Severely Emotionally Disturbed

94ICL-13

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above, that are applicable to the aforementioned nonmajor Federal financial assistance program. 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.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a 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 perfonning their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jg 94ICL-13

SECTIONV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
REPORTING Failure to Retain Adequate Records Federal Financial Assistance Material Noncompliance Audit Control Number 8684-93-01
The audit report for the year ended June 30, 1993, stated that documentation could not be provided to support the amounts shown on the DE Form 601 "Summary of Services to Children and Adolescents" for Individuals with Disabilities Education Act - Title VI, B - Severely Emotionally Disturbed Program (CFDA 84.027). For the year under review, it was again noted that documentation could not be provided to support these amounts. This noncompliance occurred because the Agency indicated it was not aware of the reporting requirements of the program. Amounts on this form are required by the Georgia Department ofEducation and provide information as to the number ofstudents served by the program. Procedures should be implemented to retain accurate records supporting amounts reported on the DE Form 601.
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Delinquent Completion Report Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 8684-94-01
For the year under review, the Agency failed to file a completion report by the required date for the Individuals with Disabilities Education Act - Title VI, B - Severely Emotionally Disturbed program (CFDA 84.027) in accordance with regulations established by the Georgia Department ofEducation. The Agency stated that the failure to submit the completion report by the required date was an oversight. Procedures should be implemented to ensure that final completion reports are filed in a timely manner.

SECTION VI PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

CENTRAL SAVANNAH RIVER AREA REGIONAL EDUCATIONAL SERVICE AGENCY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
REPORTING Failure to Retain Adequate Records Federal Financial Assistance Material Noncompliance Audit Control Number 8684-93-01
We concur with this finding. Procedures have been implemented to retain accurate records to support amounts reported on theDE Form 601 "Summary ofServices to Children and Adolescents" as required by the Georgia Department ofEducation.
FEDERAL FINANCIAL REPORTS Delinquent Completion Report Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 8684-94-01
We concur with this finding. Procedures have been implemented to ensure completion reports are submitted by required dates.