Audit report, Coastal Plains Regional Educational Service Agency, Valdosta, Georgia, year ended June 30, 1994

GA A800 .Rl
E;20r t0
1qq3-94-

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

Received
MAR ~ 8 1995
OOCUMENlS 1'lA LIBRARIFr

AUDIT REPORT COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY
VALDOSTA, GEORGIA YEAR ENDED JUNE 30, 1994

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIilBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

4

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 AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

17

G

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

18

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

19

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

20

SCHEDULE OF REVENUE

3

STATE FUNDS

21

4

LOCAL AND OTHER FUNDS

22

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -

SECTION I

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

5

GOVERNMENTAL FUND TYPES

23

6 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

24

SECTION IT SUMMARYANDSCHEDULEOFSALARIESANDTRAVEL

SECTION ill
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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -
SECTIONV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~epartment nf ~uhits
254 WASHINGTON STREET. S.W. ROOM 214
J\tlcnda, ~enrgia 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members of the Coastal Plains Regional Educational Service Agency Board ofControl
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 Coastal Plains 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.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of inventories for resale at June 30, 1994, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories for resale through alternative procedures.
As described in the notes to the general purpose financial statements, the Agency's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
94ARL-33

* The Agency did not report compensated absences within the general purpose financial statements as required by generally accepted accounting principles.

The aggregate effects on the general purpose financial statements ofthis variance or omission have not been determined, but are believed to be material.

In our opinion, except for the effect of adjustments, ifany, on the Special Revenue Fund as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the inventories for resale as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matter referred to in the fourth paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Coastal Plains Regional Educational Service Agency as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.

Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Coastal Plains Regional Educational Service Agency taken as a whole. The combining and individual fund statements (Exhibits E through G), the financial schedules (Schedules I through 6 which includes 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 Coastal Plains 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, except for the effect of adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe inventories for resale as discussed 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 ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.

c::7~,,,,-- Respectfully submitted,

~

~

Claude L. Vickers State Auditor

CLV:jy 94ARL-33

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY - 1-

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1994

ASSETS
Cash and Cash Equivalents
Inventories For Resale
General Fixed Assets Equipment
Amount to be Provided in Future Years For Payment of: Capital Lease Agreements

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

$ 150,055.10$ 10,711.04

98,076.70

Total Assets

$ 150,055.10$ 108,787.74
============= =============

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Funds Held for Others Capital Lease Agreements
Total Liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Continuation of Federal Program For Inventories for Resale For Sick and Personal Leave
Unreserved Undesignated
Total Fund Balances
Total Fund Equity

$

679.28 $ 1,847.66

2,750.53

6,965.72

------------- -------------
$ 3,429.81 $ 8,813.38
------------- -------------

$ 1,897.66 98,076.70

-------------

$ 99,974.36

$ 146,625.29

0.00

------------- -------------

$ 146,625.29 $ 99,974.36
------------- -------------

$ 146,625.29 $ 99,974.36
------------- -------------

Total Liabilities and Fund Equity

$ 150,055.10 $ 108,787.74
============= =============

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

EXHIBIT "A"

FIDUCIARY FUND TYPE
AGENCY FUND

ACCOUNT GROUPS

GENERAL FIXED
ASSETS

GENERAL LONG-TERM
DEBT

TOTALS (Memorandum Only)
JUNE 30, 1994 JUNE 30, 1993

$

3,954.00

$ 164,720.14 $ 195,062.72

98,076.70

95,967.52

$ 275,402.20

275,402.20

275,198.93

$ 4,181.53

4,181.53

8,931.26

$

3,954.00$ 275,402.20$

4,181.53 $ 542,380.57 $ 575,160.43

============= ============= ============= ============= =============

$ 3,954.00 $ 3,954.00

$

2,526.94 $

2,469.95

9,716.25

9,653.26

3,954.00

1,638.97

$ 4,181.53

4,181.53

8,931.26

$

4,181.53 $ 20,378.72 $ 22,693.44

$ 275,402.20

$

0.00

$

0.00

$

0.00 $ 275,402.20

$ 275,402.20$ 275,198.93

$

1,897.66 $

1,356.66

98,076.70

95,967.52

250.05

$ 99,974.36 $ 97,574.23

146,625.29

179,693.83

$ 246,599.65$ 277,268.06

$ 522,001.85$ 552,466.99

$

3,954.00$ 275,402.20$

4,181.53 $ 542,380.57 $ 575,160.43

============= ============= ===========-- =====---=-=== ---====---===

- 3-

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30. 1994 JUNE 30. 1993

REVENUES

State Funds Federal Funds Local and Other Funds

$ 410,008.00$ 154,788.00 $ 564,796.00$ 557,781.00

6,170.84

134,194.00

140,364.84

142,673.17

112 .032 .85

4.750.90

116,783.75

199.829.34

Total Revenues

$ 528,211.69 $ 293,732.90 $ 821,944.59 $ 900.283.51

EXPENDITURES

Current

Instruction

$ 26,970.25$ 16,718.29 $ 43,688.54$ 39,302.80

Support Services

Pupil Services

140,105.71

140,105.71

133,562.84

Improvement of Instructional Services

264,354.98

62,942.51

327,297.49

315,619.53

Educational Media Services

12,205.07

12,205.07

10,578.74

General Administration

142,799.51

41,326.37

184,125.88

203,756.99

Business Administration

21,288.90

2,292.15

23,581.05

26,958.61

Maintenance and Operation of Plant

11,015.42

12,850.90

23,866.32

25,815.32

Other Operations of Non-Instructional

Services

94,695.72

94,695.72

150,226.92

Capital Outlay

1,790.22

Debt Service

Principal

4,749.73

4,749.73

Interest

406.67

406.67

Total Expenditures

$ 471,585.46 $ 383.136.72 $ 854,722.18$ 907 .611.97

Excess of Revenues over (under) Expenditures $ 56,626.23 $ -89,403.82 $ -32,777.59 $ -7,328.46

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ $ -89.944.82

89,944.82 $ 89,944.82 $ 79,246.90

-89.944.82

-79.246.90

Total Other Financing Sources (Uses)

$ -89.944.82 $ 89,944.82 $

0.00 $______0"-'.0...,.,0

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

$ -33,318.59 $

541.00 $ -32,777.59 $ -7,328.46

FUND BALANCE JULY 1

179,943.88

97,324.18

277,268.06

277,382.64

Inventory for Resale July 1 June 30

-95,967.52 98,076.70

-95,967.52 98.076.70

-88,753.64 95,967.52

FUND BALANCE JUNE 30

$ 146.625.29 $ 99,974.36 $ 246.599.65 $ 277,268.06

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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

ACTUAL PER
EXHIBIT "B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federal Funds Local and Other Funds

$ 564,796.00 140,364.84 116,783.75$

$ 564,796.00$ 564,796.00 $ 140,364.84 140,694.00
67,524.48 184,308.23 182,566.20

0.00 -329.16 1,742.03

Total Revenues

$ 821,944.59$ 67,524.48$ 889,469.07$ 888,056.20 $_ ___,1...,,...;41:.::2""'.8=-7

EXPENDITURES

Current

Instruction

$ 43,688.54$

Support Services

Pupil Services

140,105.71

Improvement of Instructional Services

327,297.49

Educational Media Services

12,205.07

General Administration

184,125.88

Business Administration

23,581.05

Maintenance and Operation of Plant

23,866.32

Other Operations of Non-Instructional

Services

94,695.72

Debt Service

5,156.40

0.00 $ 43,688.54$ 43,688.54$

140,105.71 327,297.49 12,205.07 184,125.88 23,581.05 23,866.32

137,437.00 353,942.37 12,279.00 198,252.26 23,137.39 33,165.00

67,524.48

162,220.20 5,156.40

161,324.96 0.00

0.00
-2,668.71 26,644.88
73.93 14,126.38
-443.66 9,298.68
-895.24 -5,156.40

Total Expenditures

$ 854,722.18 $ 67,524.48$ 922,246.66$ 963,226.52 $ 40,979.86

Excess of Revenues over (under) Expenditures $ -32,777.59 $._ _ _--=-0:.:.0:.::cO $ -32,777.59 $ -75,170.32 $ 42,392.73

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 89,944.82 $ -89,944.82

0.00 $ 89,944.82 $ -89.944.82

0.00 $ 89,944.82 -89,944.82

Total Other Financing Sources

(Uses)

$

o.oo $.____.o""'.o=o $

o.oo $

o.oo $._______o_._o-'o

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

$ -32,777.59 $

0.00 $ -32,777.59 $ -75,170.32 $ 42,392.73

FUND BALANCE JULY 1, 1993

277,268.06 -95,967.52 181,300.54 264,439.17 -83,138.63

ADJUSTMENTS

Prior Year (Net)

901.00

-901.00

INVENTORIES FOR RESALE

July 1, 1993 June 30, 1994

-95,967.52

95,967.52

0.00

0.00

98,076.70 -98,076.70

0.00

0.00

FUND BALANCE JUNE 30, 1994

$ 246,599.65$ -98.076.70 $ 148,522.95 $ 190,169.85$ -41.646.90

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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Coastal Plains Regional Educational Service Agency (Agency) was established pursuant to the Official Code ofGeorgia 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 prescribed 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 of the Georgia Department ofEducation.
With the exception ofthe departures from generally accepted accounting principles disclosed in the following paragraphs, 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 eval~ting 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 Coastal Plains Regional Educational Service Agency is determined to be a jointly governed organization.
The members of the Board are elected by an annual caucus of an equal number of members of local 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 ofeducation in the Coastal Plains Regional Educational Service Agency are as follows: Ben Hill County, Berrien County, Brooks County, Cook County, Echols County, Irwin County, Lanier County, Lowndes County, Tift County, Turner County, and the City of Valdosta.
FUND ACCOUNTING
The Agency uses funds and account groups 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.

- 6-

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

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 groups 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 agency fund used to 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:
AGENCY FUND - the fund used to account for assets held for other individuals.
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired or constructed for use by the Agency.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet.

- 7-

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other :financing uses) in net current assets. Their reported fund balance is considered a measure 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.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants, sales and services and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Coastal Plains 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 ofthe aggregate budget. The budget process begins when the Agency's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, the budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe 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, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B":
(1) Inventory for resale has been eliminated from fund balance, and
(2) Reclassification of revenues and expenditures on a basis consistent with the budget.
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COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF CASH DEPOSITS Cash consists of deposits (including certificates of deposit, savings and 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.
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.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, 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 estimated historical cost 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. Land and buildings utilized in the operation of the Agency are owned by the Lowndes County Board ofEducation.
It is the policy ofthe Agency to record assets acquired through capital lease agreements as additions to general fixed assets when received at the total acquisition cost, including interest. This presentation differs from generally accepted accounting principles in that assets acquired through capital lease agreements should be recorded in the General Fixed Assets Account Group at the inception ofthe agreement at the net present value of the minimum lease payments, not to exceed the fair market value of the leased property.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Agency relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
However, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources is material to the general purpose financial statements and has not been recorded in the General Long-Term Debt Account Group. This presentation differs from generally accepted accounting principles.
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COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Agency has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate :financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis 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 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 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 ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness 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 ofthe bonds for this purpose,
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COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note 2: DEPOSITS

(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 $238,068.93. 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:

Risk Category

Bank Balance

1

$ 208,282.02

2

0.00

3

29,786.91

Total

$ 238,068.93

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:

- 11 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note 3 : CHANGES IN GENERAL FIXED ASSETS
Balance July 1, 1993 Additions Deletions Balance June 30, 1994 Note 4: RISK MANAGEMENT

Equipment $ 275,198.93
16,488.07 16,284.80 $ 275 402.20

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. During fiscal year 1994, no claims were paid.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Coastal Plains Regional Educational Service Agency has entered into two lease agreements as lessee for copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

The following is an analysis of the carrying value of general fixed assets acquired under capital leases as of June 30, 1994:

Equipment

General Fixed Assets
$ 14 125.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Balance July 1, 1993 Deductions Balance June 30, 1994

Capital Leases
$ 8,931.26
4 749.73
$ 4,181.53

- 12 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note 5: GENERAL LONG-TERM DEBT

At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items are:

Fiscal Year Ended June 30

Capital Leases

1995

$ 4,297.00

Deduct: Imputed Interest

115.47

Net Present Value ofFuture Minimum Lease Payments

$ 4 181.53

Note 6 : CONTINGENT LIABILITIES

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

Note 7: ACCUMULATED EMPLOYEES' LEAVE

Twelve-month employees of the Coastal Plains Regional Educational Service Agency earn annual leave at the rate often days each year with unlimited accumulation. Employee leave policies ofthe Coastal Plains Regional Educational Service Agency provide for payments to employees at their current rate of pay for all accumulated leave at retirement or termination of employment. See Note 1 - Compensated Absences.

Note 8: 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 ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the

- 13 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

Note 8: RETIREMENT PLANS
TRS PLAN DESCRIPTION average of the member's two consecutive highest paid years of service multiplied by the number ofyears 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 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 Agency's cash payroll for employees covered by TRS for the year ended June 30, 1994, was $581,569.03; total payroll was $581,631.52.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Agency who are covered by TRS are required to contribute 6% oftheir 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 $103,577.45, ofwhich $68,683.42 was made by the Agency and $34,894.03 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.

- 14 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

Note 8: RETIREMENT PLANS

TRS FUNDING STATUS AND PROGRESS 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

$ 1,090,292,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 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 $68,683.42 was actuarially determined and represented .0135% oftotal contributions made by all participating employers.

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 9: SURETY BONDS

The Director, Mr. Cary Moore, is bonded in the amount of$10,000.00 with the Hartford Insurance Group, Hartford, Connecticut, their Bond No. 60-22884, on which premium was paid through February 20, 1995.

- 15 -

ASSETS
Cash and Cash Equivalents Inventories
For Resale

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1994

EXHIBIT "E"

ANNUAL

GEORGIA DRUG-FREE

EQUIPMENT EVALUATION LEARNING SCHOOLS AND

TOTALS

REPAIR CONTINUATION RESOURCES COMMUNITIES ----------------------------

FUND

GRANT

SYSTEM

ACT

JUNE 30, 1994 JUNE 30, 1993

---------- ------------ --------- ----------- ------------- -------------

$ B,813.38 $1,897.66$

0.00 $ 10,711.04 $ 10,121.42

$ 98,076.70

98,076.70

95,967.52

Total Assets

$98,076.70$ 8,813.38$ 1,897.66$

0.00 $ 108,787.74$ 106,088.94

========= =========== ======== ========= ============ ==========

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY

$ 1,847.66 6,965.72
------------
$ 8,813.38
------------

Fund Balances Reserved For Continuation of Federal Program For Inventories For Resale
Unreserved Undesignated

$ 98,076.70
----------
$ 98,076.70
0.00 $

$ 1,897.66
---------
$1,897.66

0.00

0.00 $

Total Fund Equity

$ 98,076.70 $

0.00 $1,897.66 $

$ 1,847.66 $ 1,840.70

6,965.72

6,924.06

------------- -------------

$ 8,813.38 $ 8,764.76
------------- -------------

$ 1,897.66 $ 1,356.66

98,076.70

95,967.52

$ 99,974.36$ 97,324.18

0.00

0.00

0.00

0.00 $ 99,974.36$ 97,324.18

Total Liabilities and Fund Equity

$98,076.70$ 8,813.38$ 1,897.66$

0.00 $ 108,787.74 $ 106,088.94

========== =========== ========= ========== ============= ===========

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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "F"

EQUIPMENT REPAIR FUND

ANNUAL GEORGIA

EVALUATION LEARNING

CONTINUATION RESOLRCES

GRANT

SYSTEM

TOTALS

DRUG-FREE ----------------------------

SCHOOLS AND

YEAR ENDED

COMMUNITIES ---------------------------ACT JUNE 30, 1994 JUNE 30, 1993

REVENUES

State Funds Federal Funds Local and Other Funds

$ 85,714.00$ 69,074.00

$ 154,788.00$ 156,141.00

112,302.00$ 21,892.00 134,194.00 137,174.17

$ 4,750.90

4,750.90

70,980.02

Total Revenues

$ 4,750.90$ 85,714.00 $181,376.00$ 21,892.00$ 293,732.90$ 364,295.19

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Acininistration Business Acininistration Maintenance and Operation of Plant Other Operations of NonInstructional Services
Total Expenditures

$ 16,718.29 $ 16,718.29 $ 9,302.80

$140,105.71

140,105.71 133,562.84

$ 60,508.56 2,433.95 12,205.07
18,935.44 17,217.22 2,292.15

5,173.71

62,942.51

75,834.51

12,205.07

10,578.74

41,326.37

49,698.03

2,292.15 - 1,010.90

6,270.00 6,580.90

12,850.90

11,970.69

$ 94,695.72

94,695.72 150,226.92

---------- ------------ ---------- ----------- ------------- -------------

$ 94,695.72 $ 85,714.00 $180,835.00$ 21,892.00 $ 383,136.72 $ 442,185.43

Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES

$-89,944.82 $

0.00 $ 541. 00 $

0.00 $ -89,403.82 $ -77,890.24

Operating Transfers In

89,944.82

0.00

0.00

0.00

89,944.82

79,246.90

Excess of Revenues and Other Financing

Sources over Expenditures

$

0.00 $

FUND BALANCE JULY 1

95,967.52

0.00 $ 541. 00 $ 0.00 1,356.66

0.00 $ 0.00

541. 00 $ 97,324.18

1,356.66 88,753.64

Inventory for Resale July 1 June 30

-95,967.52 98,076.70

-95,967.52 98,076.70

-88,753.64 95,967.52

FUND BALANCE JUNE 30

$98,076.70$

0.00 $ 1,897.66$

0.00 $ 99,974.36$ 97,324.18

========= ============ ========== =========== ============= ============

See notes to the general purpose financial statements. - 17 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30 1 1994

EXHIBIT "G"

CONFERENCE ACCOUNT
ASSETS Cash and Cash Equ;valents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 1993

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1994

$ 1,638.97$ 36,693.74$ 34,378.71 $ 3,954.00
============= ============= ============= =============
$ 1,638.97 $ 36,693.74$ 34,378.71 $ 3,954.00
============= ============= ============= =============

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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1994

SCHEDULE "l"

FUNDING AGENCY PROGRAM/GRANT

CFDA NI.MBER

AWARDS
IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Departrrent of Through Georgia Department of Education Drug-Free Schools and C00111Jnities Act 1992 Carry-Over 1994 Grant Individuals with Disabilities Education Act Title VI, B Georgia Learning Resources Systen 1993 Carry-Over 1994 Regular Special Education Personnel Developrrent and Parent Training Title VI, D 1993 Regular 1994 Regular

84.186 $ 1,892.00$ 1,892.00$ 1,892.00$ 1,892.00

84.186

20,000.00

20,000.00

20,000.00

20,000.00

84.027 84.027

8,000.00 99,082.00

8,000.00 99,082.00

8,000.00 99,082.00

8,000.00 99,082.00

84.029 84.029

5,220.00

5,220.00

5,220.00

1,356.66 3,322.34

Total U. S. Department of Education

$ 134,194.00$ 134,194.00$ 134,194.00$ 133,653.00

Health and Human Services, U. S. Departrrent of Through Georgia Department of Education Acquired lmrunodeficiency Syndrane (AIDS) Activity 1993 AIDS Health Education Cooperative Agreements to Support Canprehensive School Health to Prevent the Spread of HIV and Other Important Health Problems 1994 AIDS Health Education

93.118 93.938 $

$ 6,500.00

1,833.00$ 4,337.84

1,833.00$ 4,337.84

1,833.00 4,337.84

Total U. S. Department of Health and H1.111an Service

$ 6,500.00$ 6,170.84 $ 6,170.84 $ 6,170.84

Total Federal Financial Assistance

$ 140,694.00 $ 140,364.84$ 140,364.84 $ 139,823.84
============ =========== ============ =============

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

See notes to the general purpose financial statenents. - 19 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY ANALYSIS OF CASH AND CASH EQUIVALENTS JUNE 30. 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
NationsBank, Valdosta, Georgia
N.0.W. Account (4.19%) Money Market Account (Variable)
Valdosta Bank and Trust, Valdosta, Georgia
Certificate of Deposit No. 03501 (5.00%)

$ 18,401.47 60,413.20$ 78,814.67
85,905.47
$ 164,720.14
=============

See notes to the general purpose financial statements. - 20 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

AGENCY/FUNDING
GRANTS EDUCATION, GEORGIA DEPARTMENT OF Other State Programs Georgia Learning Resources System Regional Educational Service Agencies Staff Development Sex Education Grant Supervision and Assessment of Student and Beginning Teachers and Performance Based Certification

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ $ 379,008.00
31,000.00

69,074.00 $ 69,074.00 379,008.00
31,000.00

85,714.00

85,714.00

------------- ------------- -------------

$ 410,008.00 $ 154,788.00$ 564,796.00

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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

Boards of Education Membership Contributions Ben Hill County Berrien County Brooks County Cook County Echols County Irwin County Lanier County Lowndes County Tift County Turner County Valdosta, City of
Interest Earned Reimbursements
For Indirect Cost Special Revenue Fund
Sales and Services Equipment Repairs Less: Purchases for Resale
Services Provided to Various Boards of Education Staff Development Resources Center
Other

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 8,751.40 6,757.00 6,570.90 6,659.10 1,423.45 4,439.40 3,101.70
18,556.30 18,499.95 4,581.50 18,154.50 5,862.93

$ 8,751.40 6,757.00 6,570.90 6,659.10 1,423.45 4,439.40 3,101.70
18,556.30 18,499.95 4,581.50 18,154.50 5,862.93

2,671.00
$ 72,275.38 -67,524.48

2,671.00
72,275.38 -67,524.48

2,148.98 3,854.74

2,148.98 3,854.74

$ 112,032.85 $ 4,750.90$ 116,783.75
============= ============= =============

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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Repair and Maintenance Services Rents Insurance Communications Supplies Federal Indirect Costs Other Expenditures
Nonoperating Costs Equipment Principal and Interest
Total Expenditures

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

------------- ------------- -------------

$ 325,992.98 $ 255,638.54 $ 581,631.52

81,617.70

70,992.23

152,609.93

12,129.18

10,028.53

22,157.71

6,142.14

6,142.14

3,125.21

3,125.21

1,072.90

1,072.90

6,065.00

4,300.00

10,365.00

1,320.16

688.55

2,008.71

5,224.02

9,071.25

14,295.27

4,630.98

74,104.39

78,735.37

2,671.00

2,671.00

19,232.43

7,363.58

26,596.01

6,018.50

9,660.99

15,679.49

5,156.40

5,156.40

------------- ------------- -------------

$ 471,585.46 $ 450,661.20$ 922,246.66
============= ============= =============

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

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1994

SCHEDULE "6" Page 1

BOARD MEMBER ADDRESS
Gerald Griffin, Chairman(*) P.O. Box 625 Nashville, Georgia 31639
Jimmy Alberson(*) P. O. Box 609 Ashburn, Georgia 31714
Walter Altman(*) P.O. Box 5407 Valdosta, Georgia 31603-5407
John Wayne Baxter(*) P. 0. Box 1227 Valdosta, Georgia 31603-1227
Jackie Carter(*) P.O. Box 207 Statenville, Georgia 3164B
Mike Davis Route 4, Box 161 Valdosta, Georgia 31602
Rudene Gentry(*) P. 0. Box 225 Ocilla, Georgia 31774
Foster Goolsby 816 West Central Avenue Fitzgerald, Georgia 31750
Louis Harper (*) P. 0. Drawer 5189 Fitzgerald, Georgia 31750
John Horton(*) P.O. Box 511 Quitman, Georgia 31643
Larry Hunt (*) P. O. Box 152 Adel, Georgia 31620
Frank King(*) P. 0. Box 389 Tifton, Georgia 31793
Ed McCray(*) P. 0. Box 823 Tifton, Georgia 31794
Marie Mitchell (*) 715 Mclendon Road Ashburn, Georgia 31714

COMPENSATION

TRAVEL

$

500.00

400.00

- 24 -

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE DF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1994

SCHEDULE "6" Page 2

BOARD MEMBER ADDRESS
Raymond Moore(*) P. 0. Box 158 Lakeland, Georgia 31635
Mamie Pipkins P. 0. Box 207 Statenville, Georgia 31648
Juanita Robinson(*) 401 South Laurel Street, Box 12 Quitman, Georgia 31643
Lane Smith(*) 702 Howard Street Nashville, Georgia 31639
Nathaniel Thomas(*) 209 W. 8th Street Adel, Georgia 31620
Darrell Weeks (*) Route 6, Box 2285 Fitzgerald, Georgia 31750

COMPENSATION

TRAVEL

$

550.00

450.00

600.00 $

125.21

500.00

(*) Denotes Board Members Serving as of June 30, 1994

$ 3,000.00 $

125.21

=============

See notes to the general purpose financial statements. - 25 -

SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SUMMARY OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1994

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

TOTAL PER
FINANCIAL
STATEMENTS
(ACCRUAL BASIS)
---------------

ADJUSTMENTS FOR ACCRUALS
----------------------------
JUNE 30, 1993 JUNE 30, 1994
------------- -------------

TOTAL PER
SCHEDULE
(CASH BASIS)
-------------

$

19,246.67 $ 2,729.20 $ -2,750.53 $ 19,225.34

195,796.78

195,796.78

93,101.57

93,101.57

17,847.96

17,847.96

--------------- ------------- ------------- -------------

$ 325,992.98 $ 2,729.20 $ -2,750.53 $ 325,971.65

255,638.54

6,924.06

-6,965.72

255,596.88

--------------- ------------- ------------- -------------

$ 581,631.52 $ 9,653.26$ -9,716.25 $ 581,568.53
=============== ============= ============= =============

TRAVEL

GENERAL FUND

Instruction

$

Support Services

Improvement of Instructional Services

SPECIAL REVENUE FUND

1,170.81 $ 10,958.37 10,028.53

0.00 $

0.00 $

1,170.81 10,958.37 10,028.53

Total Travel

$

22,157.71 $

0.00 $

0.00 $ 22,157.71

COASTAL PLAINS R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

NAME
CONRAD,DELTHIA CONRAD,DELTHIA CRAGO.SUSAN DEMOTT, JUDITH A DEMOTT, JUDITH A DEVANE.ALLEN FIVEASH.GREGORY N GIST.DE A GOLDEN,M GAYLE GRIFFIN.MARILYN B GRIFFIN.MARILYN B JACKSON, RENEE C JACKSON.RENEE C MCSWAIN,BARBARA p MOORE,CARY PICKENS.CAROL K PITTS, L ALLEN PITTS,L ALLEN POWELL.KAREN ROBINSON,JANE STALVEY.NAN T TAYLOR,E LYNN TERRELL.AMOS C TERRELL,AMOS C WETHERINGTON.ROBERTA A

TITLE CATEGORY

SPECIAL REVENUE FUND - OTHER PROG

$

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

GENERAL ADMINISTRATION

OTHER OPERATIONS OF NONINSTRUCT. SERV.

OTHER OPERATIONS OF NONINSTRUCT. SERV.

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SUPPORT SERVICES - BUSINESS

GEORGIA LEARNING RESOURCES SYSTEM FUND

DIRECTOR

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

OTHER OPERATIONS OF NONINSTRUCT. SERV.

SUPP SRVS - IMPRDV INSTR & ED MED SRVS

GEORGIA LEARNING RESOURCES SYSTEM FUND

GENERAL ADMINISTRATION

GEORGIA LEARNING RESOURCES SYSTEM FUND

SUPP SRVS - IMPROV INSTR & ED MED SRVS

OTHER OPERATIONS OF NONINSTRUCT. SERV.

SUPP SRVS - IMPROV INSTR & ED MED SRVS

TOTALS

$

SALARIES AMOUNT

TRAVEL EXPENSE

19,225.84 $ 13,759.69 41,752.16
17,951.61 15,372.96 15,423.01 12,921 . 00 42,970.54 47,096.96
3,940.00
17,847.96 46,471.44 65,630.76 38,606.49
22,548.00 27,277.59 11,844.24
9,519.20 56,596.92
19,473.96 35,338.20

1,151.16 1,068.02 2,371.90
123.78
19.65 2,479.99
566. 13
43.68
3,273.06
2,323.46 166.39
1,767.20 345.95
2,969.60 164.30
3,323.44

581,568.53 $ 22,157.71

>ED

SECTION ID COMPLIANCE

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~eparfmenf nf ~uhifs
254 WASHINGTON STREET, S.W. ROOM 214
~thmtu, ~enrgiu 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Coastal Plains Regional Educational Service Agency Board ofControl
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 Coastal Plains Regional Educational Service Agency as ofand for the year ended June 30, 1994, and have issued our report thereon dated January 13, 1995. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking ofinventories for resale at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Coastal Plains Regional Educational Service Agency is the responsibility of the 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.

94CRL-10

The results of our tests indicate that, with respect to the items tested, the Coastal Plains 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.
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:jy 94CRL-10

~,,r~
Claude L. Vickers State Auditor

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epnrhu.eut nf J\uhits
254 WASHINGTON STREET, S.W. ROOM 214
!\tlanta, &;orgia 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Coastal Plains Regional Educational Service Agency Board ofControl

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 Coastal Plains Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated January 13, 1995. This report was qualified for a scope limitation and a departure 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 Coastal Plains 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 ofFederal 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 ofManagement and Budget's "Compliance Supplement for Single Audits ofState 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 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 second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Coastal Plains Regional Educational Service Agency had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance 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.

CLV:jy 94CRL-50

Claude L. Vickers State Auditor

CLAUDE L. VICKERS STATE AUDIIDR (404) 656-2174
TAX RATIO (404) 656-0494

~.ep~rhu.eut nf ~uhits
254 WASHINGIDN STREET, S. W. ROOM 214
J\.t!mtia, ~enrgia 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Coastal Plains Regional Educational Service Agency Board ofControl

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 Coastal Plains Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated January 13, 1995. This report was qualified for a scope limitation and for a departure 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 1994 general purpose financial statements of the Coastal Plains
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 ofManagement and Budget (0MB) Circular A-128, "Audits ofState 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

(3) Applicable Special Tests and Provisions

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Coastal Plains Regional Educational Service Agency's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Coastal Plains Regional Educational Service Agency had not complied, in all material respects, with those requirements.

This report is intended for the information of management, the Federal cognizant audit agency and other

Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a

matter of public record.

Resz~

CLV:jy 94CRL-120

Claude L. Vickers State Auditor

SECTION IV INTERNAL CONTROL

CLAUDE L. VICKERS STATE AUDITOR (404) 6562174
TAX RATIO (404) 6560494

~eparfmeuf nf J\uhifs
254 WASHINGTON STREET, S.W. ROOM 214
~thmbl, enrgia 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 6562180
PROGRAM AUDITS (404) 6562006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Coastal Plains Regional Educational Service Agency Board of Control
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Coastal Plains Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated January 13, 1995. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking ofinventories for resale at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit ofthe general purpose financial statements of the Coastal Plains 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 ofexpressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Coastal Plains 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,
94ICL-3

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 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

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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 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, a reportable condition was noted in the following control category:

Inventories

A material weakness is a reportable condition in which the design or operation of one or more of the 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.

94ICL-3

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

This 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:jy 94ICL-3

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epartm.e11t uf ~uhits
254 WASHINGTON STREET, S.W ROOM 214
J\tlanbt, ~.eorgia 30334-8400
January 13, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Coastal Plains Regional Educational Service Agency Board ofControl
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 Coastal Plains Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated January 13, 1995. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Coastal Plains Regional Educational Service Agency complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
We did not observe the taking ofinventories for resale at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Agency's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Agency's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal control structure policies and

94ICL-15

procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit ofthe general purpose financial statements in a separate report dated January 13, 1995.

The management of the Coastal Plains 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, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level 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 of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

94ICL-15

During the year ended June 30, 1994, the Coasal Plains Regional Educational Service Agency had no major Federal financial assistance programs and expended 77% of its total Federal financial assistance under the following nonmajor Federal financial assistance program:
Individuals with Disabilities Education Act Title VI, B Georgia Learning Resources System
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 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.
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 Agency'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:
Cash Management
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 financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
94ICL-15

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94ICL-15

SECTIONV FINDINGS AND IMPROPER OR QUESTIONED COSTS

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits. Financial Statements Audit Control Number 8864-93-01 Finding Resolved
The audit report for the year ended June 30, 1993, stated that the Coastal Plains Regional Educational Service Agency failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12. In the year under review, the Agency implemented procedures to monitor the collateralization ofbank balances to ensure compliance at all times with State laws governing deposits.
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Audit Control Number 8864-93-04 Finding Resolved
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Individuals with Disabilities Act - Title VI, B - Georgia Learning Resources System Program (CFDA 84.027) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Coastal Plains Regional Educational Service Agency.
PRIOR YEAR/CURRENT YEAR
INVENTORIES Inventories for Resale not Reconcilable to Records Financial Statements Reportable Condition - Material Weakness Audit Control Number 8864-93-02
The audit report for the year ended June 30, 1993, reported that inventories for resale at June 30th were not reconcilable from beginning to ending balance through an analysis ofyearly purchases/sales activity. For the year under review, we did not observe the taking of inventories at June 30, 1994, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through an analysis of yearly purchases/sales activity as reflected on the accounting records.
Appropriate action should be taken by management to ensure that accounting records document the purchases/sales activity for all inventories for resale.

COASTAL PLAINS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 8864-93-03
A review ofcash management procedures for the Drug - Free Schools and Communities Act Program (CFDA 84.186) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 1994, the program had excessive ending monthly cash balances in six months. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department of Education and disbursement of such funds by the Coastal Plains Regional Educational Service Agency.
Note: The Coastal Plains Regional Educational Service Agency was provided an opportunity to include pertinent comments from the Agency's management concerning these audit findings, conclusions and recommendations. The Agency has elected not to provide comments for inclusion in this report.