Audit report, First District Regional Educational Service Agency, Statesboro, Georgia, year ended June 30, 1996

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AUDIT REPORT FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
STATESBORO,GEORGIA YEAR ENDED JUNE 30, 1996

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

20

2 CASH AND CASH EQUIVALENTS

21

3 INVESTMENTS

22

4 ACCOUNTS RECEIVABLE

23

SCHEDULE OF REVENUE

5

STATE

24

6

OTHER

25

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

26

8

LOTTERY PROGRAM

27

9 SCHEDULE OF GRANTS TO BOARDS OF EDUCATION

SPECIAL REVENUE FUND

28

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

29

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -
SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL
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 OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION 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
SECTION V 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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, s.w., Suite 214
Atlanta, Georgia 30334-8400
July 31, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the First District 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 First District Regional Educational Service Agency, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the 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 OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of inventories for resale at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories for resale through alternative procedures.
As described in the notes to the general purpose fmancial 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:
96ARL-33

* The general purpose financial statements of the Agency did not contain a General Fixed Assets
Account Group to account for equipment owned by the Agency which should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of this omission have not been determined, but are believed to be material.
In our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the 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 preceding paragraph, the general purpose fmancial statements present fairly, in all material respects, the fmancial position ofthe First District Regional Educational Service Agency as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated July 31, 1997, on our consideration ofthe Agency's internal control structure and a report dated July 31, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the First District Regional Educational Service Agency taken as a whole. The combining statements (Exhibits E and F), the fmancial schedules (Schedules 1 through 10 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 of the First District 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, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the 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 of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 96ARL-33

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY - 1-

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 1996

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories for Resale
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

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

$

612,479.00

$

612,479.00 $

988,811.73

359,095.36

359,095.36

78,546.07

57,375.26 $

747,009.31

804,384.57

467,763.76

562,321.74

562,321.74

700,910.52

$ 1,028,949.62 $ 1,309,331.05 $ 2,338,280.67 $ 2,236,032.08

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Hospital Insurance (Medicare) Tax
Program Refunds Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Instructional Media For Sick and Personal Leave For Continuation of Federal Program For Inventories for Resale
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

90,026.81 $

90,026.81

$

24,924.32

164,811.10

189,735.42 $

177,713.18

90,042.32

121,576.28

211,618.60

203,760.62

2,232.49

2,232.49

6,417.65

63,911.55

83,183.06

63,911.55 83,183.06

63,911.55

$

178,878.19 $

461,829.74 $

640,707.93 $

451,803.00

$

3,084.69

$

3,084.69 $

3,084.69

4,774.21

4,774.21

4,774.21

$

32,098.14

32,098.14

562,321.74

562,321.74

700,910.52

$

7,858.90 $

594,419.88 $

602,278.78 $

708,769.42

842,212.53

253,081.43

1,095,293.96

1,075,459.66

$

850,071.43 $

847,501.31 $ 1,697,572.74 $ 1,784,229.08

$ 1,028,949.62 $ 1,309,331.05 $ 2,338,280.67 $ 2,236,032.08

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996

EXHIBIT "B"

FUND BALANCE JUNE 30

$

850,071.43 $

847,501.31 $ 1,697,572.74 $ 1,784,229.08

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

TJDS PAGE LEFT BLAHK

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1996

EXHIBIT"C"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1995
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 778,272.00 $ 998,629,20

447,782.48

513,464.48

$ 1,226,054.48 $ 1,512,093.68

$ 263,682,04 $ 791,977.05
188,609,19 65,772,10 128,965.83

277,685.14 942,632,80
145,195.93 65,851,93 106,923,86

$ 1,439,006,21 $ 1,538,289,66 $ -212,951,73 $ -26,195,98

$ $ -134,796,55
$ -134,796,55 $

3,016,18 -92,649.61
-89,633.43

$ -347,748,28 $ 1,013,461,30 -1,409.48

-115,829.41 965,900,84

FUND BALANCE JUNE 30, 1996

$ 664,303,54 $ 850,071.43

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,552,579.00 $ 1,398,534.91 2,057,962,00 1,692,687.83 439,899,52
$ 3,610,541,00 $ 3,531,122.26

$ 662,215.00 $ 620,522.21

445,491,00 1,263,147.06
40,573,00 561,321,00 418,375.36 142,999.00
1,000,00 568,602,00
7,000,00

591,601.09 851,993,74
539,787,20 425,491.56 141,406.96
235.35 417,206.49
3,338,02

$ 4,110,723.42 $ 3,591,582,62

$ -500,182.42 $ -60,460,36

$ 498,532.42 $ $ 498,532.42 $

92,649,61 -3,016.18
89,633.43

$

-1,650,00 $

29,173,07

874,052.48

818,328,24

-6,714,78

$ 865,687.70 $ 847,501.31

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1996

EXIllBIT "D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The First District 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 ofproviding 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 ofmembers and terms ofoffice are prescribed by the State Board of Education; provided, however, that at least one-third of the 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 of Education.
With the exception ofthe departure from generally accepted accounting principles disclosed in these notes, the fmancial statements ofthe Agency have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the fmancial statements present all of the fund types and account groups of the Agency. 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 governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the First District 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 of education in the First District Regional Educational Service Agency are as follows: Appling County, Bryan County, Bulloch County, Camden County, Candler County, Effmgham County, Evans County, Jeff Davis County, Liberty County, Long County, McIntosh County, Tattnall County, Toombs County, City of Vidalia, and Wayne County.
FUND ACCOUNTING
The Agency uses funds 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-

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIllBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Agency. To conform to generally accepted accounting principles, a GeneralFixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal and Other funds under control of the Agency, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 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 of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
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.
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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The First District Regional Educational Service Agency's budget is a complete fmancial plan for the Agency's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Agency at the fund level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
The budget process begins when the Agency's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general 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 fmal budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including 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.
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 selecting among avenues of investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE30, 1996

EXlllBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due from 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 AUDIO VISUAL
Inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). 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.
SUPPLIES AND EQUIPMENT Inventories are reported on the Combined Balance Sheet at average cost. The Agency records inventories on its financial statements as goods for resale when purchased and costs ofgoods sold are recorded as inventories are sold. 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.
RESERVED FUND BALANCES
Reserved fund balances include $3,084.69 for Instructional Media and $4,774.21 for Sick and Personal leave. These programs were funded in prior years under the now defunct Adequate Program for Education in Georgia program. These funds will be used for the original purposes until exhausted.

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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
ruNE 30,1996

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Agency has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financialstatements 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of the securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

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FIRST DISTRICT REGIONAL EDUCADONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"D"

Note 2: DEPOSITS AND INVESTMENTS

(5) Bonds of any 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 ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $748,960.10. 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, 1996, as follows:

Risk Category

Bank Balance

1

$ 112,063.06

2

636,897.04

3

0.00

Total

$ 748.960.10

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Agency's total investments was $359,095.36 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Agency did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

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FIRST DISTRlCT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1996

EXIDBIT"D"

Note 3: RISK MANAGEMENT

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

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

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

The Agency is self-insured with regard to unemployment compensation claims. The Agency accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1995 1996

Beginning ofYear Liability

$

0.00

$

0.00

Claims and Changes in Estimates

$

1,510.00 $

$ 3,535.00 $

Claims Paid
1,510.00 3,535.00

End of Year Liability

$

0.00

$

0.00

Note 4: ON-BEHALF PAYMENTS

The Agency has recognized revenues and expenditures in the amount of $64,357.20 for health insurance paid on the Agency's behalf by the following State Agency:

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $64,357.20

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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

EXlllBIT "D"

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.
HOSPITAL INSURANCE (MEDICARE) TAX PROGRAM During the years 1990, 1991, 1992 and 1993 the Agency received reimbursements of$120,339.27 from the Internal Revenue Service for Medicare tax payments for employees hired before March 31, 1986. These funds represent both employer contributions and employee payroll deductions for Medicare tax payments made on behalf of employees hired prior to March 31, 1986, who had the option of participating in the Hospital Insurance (Medicare) Tax Program. Also, interest earned on these funds held on deposit less applicable fees for determining refunds due employees was $7,537.31. During fiscal year 1993, refunds of $63,965.03 were made to employees, however, no refunds have been made subsequent to this period. The remaining balance of$63,911.55 is shown separately as Hospital Insurance (Medicare) Tax Program refunds in liabilities on the Combined Balance Sheet, Exhibit "A", ofthis report. As of the date of this report, a final determination has not been made as to the Agency's responsibility regarding the remaining balance of these funds.
Note 6: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by Agency are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution 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.
- 13 -

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"D"

Note 6: RETIREMENT PLANS

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

The Agency's payroll for employees covered by TRS for the year ended June 30, 1996, was $2,600,449.95; total payroll was $2,686,429.18.

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

Total contributions made during fiscal year 1996 amounted to $437,136.28, of which $307,112.68 was made by the Agency and $130,023.60 was made by employees. These contributions represented 11.81% (Agency) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the 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 of June 30, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585.541.000.00

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

- 14-

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"D"

Note 6: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Agency's contribution for the year ended June 30, 1996 of$307,112.68 was actuarially determined and represented .0506% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
Note 7: SURETY BONDS
The Director, Dr. Kay Brown, is bonded in the amount of $20,000.00 with the American Motorists Insurance Company, Long Grove, Illinois, their Bond No. 3FM-546-648-02, on which premium was paid through August 1, 1996.

- 15 -

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIALREVENUE FUND JUNE 30,1996

ASSETS Cash and Cash Equivalents Accounts Receivable Inventoriesfor Resale
Total Assets

GEORGIA LEARNING RESOURCES
SYSTEM

EVALUATION COORDINATION
PROGRAM

SEVERELY EMOTIONALLY
DISTURBED

LOTTERY PROGRAM

TEACHERS TRAINING AND AIDS HEALTH
EDUCATION

ELEMENTARY AND SECONDARY EDUCATION ACT
TITLE I MIGRANT
EDUCATION

$

10,584,18

$ 3,178.54 $

59.00

$ 72,673.22

$ 151,218.27

1,223.04

$

112,797,24

$ 72,673.22 $

10,584.18 $ 151,218.27 $ 4,401.58 $

59.00 $

112,797.24

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable ExpiredGrant BalancesPayable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For Inventoriesfor Resale

$ 34,125.52 8,879.17 $ 7,504.10 1,657.49
s $ 52,166.28

Unreserved Undesignated
Total Fund Equity

$ 20,506.94 $ $ 20,506.94 $

$ 10,584.18

9,092.81 39,013,39 $ 96,991.82
70.00

477.22 $

10,584.18 $ 145,168.02 $

477.22 $

0.00 s 0.00 s

6,050.25 $ 6,050.25 $

3,924.36 $ 3,924.36 $

$ 59.00

72,648.08 7,787.33

59.00 $

80,435.41

$
s
0.00 0.00 $

32,098.14
32,098.14 263.69
32,361.83

Total Liabilitiesand Fund EqUity

$ 72,673.22 $

s 10,584.18 $ 151,218.27 $ 4,401.58

59.00 $

112,797.24

See notes to the general purposefinancial statements.

- 16 -

EXHIBIT"E"

GOALS 2000 STATE
AND LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANT

SAFE AND DRUG-FREE
SCHOOLS

COOPERATIVE PURCHASING
FUND

NURSING PROGRAM

KEY-NECTIONS

TOTALS

PROGRAM

JUNE 30, 1996 JUNE 30, 1995

s

64,237.61 $

282.27 $

0.00 $

78,341.60 $ 136,314.62

$

7,442.22 $ 92,753.59

308,901.73

747,009.31

377,051.90

562,321.74

562,321.74

700,910.52

$

7,442.22 $ 92,753.59 $

935,461.08 $

282.27 $

0.00 $ 1,387,672.65 $ 1,214,277.04

$

280.65 $ 52,221.35

7,161.57

22,822.88 $

67,744.09 $

282.27

17,080.36

505.00

83,183.06

$

7,442.22 $ 92,629.59 s

150,927.15 $

282.27

$ 168,368.41 $ 120,766.69

164,811.10

150,799.57

121,576.28

117,964.89

2,232.49

6,417.65

83,183.06

$ 540,171.34 $ 395,948.80

$ ---=.;=56=2..,.3:2.:1..:7.-4'-

s

562,321.74

s

32,098.14

s 562,321.74

700,910.52

$ 594,419.88 $ 700,910.52

$

......::.;o.c.:..0o:.$

124.00

222,212.19 $ _ _---"0,;.;;.0..;;..0 $

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

253,081.43

117,417.72

$

......::.;O.c.:..00:.$

124.00 $

784,533.93 $ _ _---"0,;.;;.0..;;..0 $

---"0,;.;;.0..;;..0 $ 847,501.31 $ 818,328.24

$

7,442.22 $ 92,753.59 $

935,461.08 $

282.27 $

...,,;;O~.O~O $ 1,387,672.65 $ 1,214,277.04

- 17 -

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

GEORGIA LEARNING RESOURCES SYSTEM

EVALUATION COORDINATION
PROGRAM

SEVERELY EMOTIONALLY
DISTURBED

LOTTERY PROGRAM

TEACHERS TRAINING AND AIDS HEALTH
EDUCATION

ELEMENTARY AND SECONDARY EDUCATION ACT
TITLE I MIGRANT EDUCATION

$ 151,064.00 $ 272,566.90 24,645.38
s 448,276.28 $

85,714.00 $

1,070,731.00 $ 74,254,83 16,857.95

85,714.00 $ 1,161,843.78 $

89,999.17 $
24,185.00
114,184.17 $

18,278.80 $
s 18,278.80

972,566.60 972.566.60

$ 175,141.49 38,037.08 $
200,264.41
29.040.03

s
85,714.00

513,300.52 166,207.12 253.949.76 $ 195,145.37
34.128.12

110,259.81 s

$ 18,714.33

s s 442,483.01

s

5,793.27 s

85,714.00 $ 1,162.730.89 $

110.259.81 s

0.00 $

-887.11 s

3.924,36 $

18,714.33 $
-435.53 s

s -3.016.18
$ -3,016.18

s

435.53

s

435.53

s

2.777.09 $

17,729.85

0.00 s
0.00

-887.11 $ 6.937.36

3,924.36 $ 0.00

0.00 s
0.00

87,537,17 250,252.48
14,190.29 138.860.70 28,957.78
235.35 417,206.49
3.338.02 940,578.28
31.988.32
31,988.32 373.51

FUND BALANCE JUNE 30

s 20.506.94 $

0.00 $

6,050.25 $

3,924.36 $

0.00 $

32,361.83

See notes to the general purpose financial statements.

- 18-

EXHIBIT"F"

GOALS 2000 STATE
AND LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANT

SAFE AND DRUG-FREE SCHOOLS

COOPERATIVE PURCHASING
FUND

NURSING PROGRAM

KEY-NECTIONS PROGRAM

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

1,309.01

$

37,344.22 314,098.19

$

$

37,344.22 $ 315,407.20 $

$ 374,211.19 374,211.19 $

-282.27 $
-282.27 $

$ 3,578.29

1,398,534.91 $ 1,692,687.83
439,899.52

1,325,214.74 1,514,459.60
436,937.18

3,578.29 $ 3,531,122.26 $ 3,276,611.52

$ 19,684.52

$

$

37,344.22

290,205.96

5,516.72 $

425,491.56 49,281.03

0.00 $

$

37,344.22 $ 315,407.20 $

474,772.59 s

0.00 $

$

0.00 $

0.00 $

-100,561.40 $

-282.27 $

$

92,214.08

$

92,214.08

s

0.00 s

0.00 s

-8,347.32 $

-282.27 s

0.00

124.00

792,881.25

282.27

$

0.00 s

124.00 $

784,533.93 s

0.00 $

$ 620,522.21 $ 559,840.34

3,578.29
3,578.29 s

591,601.09 851,993.74
539,787.20 425,491.56 141,406.96
235.35 417,206.49
3,338.02
3,591,582.62 $

460,293.20 795,617.19
40,766.60 514,413.71 383,143.27 139,247.67
412,504.44 2,702.50
3,308,528.92

s 0.00 $ -60,460.36

-31,917.40

s

92,649.61 s

38,539.43

-3,016.18

$

89,633.43 $

38,539.43

0.00 s
0.00

29,173.07 s
818,328.24

6,622.03 811,706.21

s 0.00

847,501.31 s 818,328.24

- 19-

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through Georgia Department of Education Safe and Drug-Free Schools 1996 Grant Elementary and Secondary Education Act Title I Migrant Education 1995 Regular 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow-Through Innovative Special Education Proposal Georgia Leaming Resources System 1996 Grant Special Projects Georgia Leaming Resources System 1996 Grant Severely Emotionally Disturbed 1996 Grant Title VI, D - Special Education Personnel Development and Parent Training Georgia Leaming Resources System 1995 Regular 1996 Grant Goals 2000 State and Local Education Systemic Improvement Grant 1996 Grant Through Georgia Department of Human Resources Safe and Drug-Free Schools High Risk Youth Grant Key-Nections Program 1996 Grant
Total U. S. Department of Education
Health and Human Services, U. S. Department of Through Georgia Department of Education AIDS School Health Education Implementation of a Program In Comprehensive Health Education 1995 Contract 1996 Contract
Total U. S. Department of Health and Human Services

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 84.186 $ 314,098.19 $

314,098.19

* 84.011 * 84.011

265,995.34 706,571.26

266,105.16 674,473.12

* 84.027
* 84.027 * 84.027

10,000.00
254,453.98 74,254.83

10,000.00
254,453.98 74,254.83

84.029 84.029
84.276

1,487.34 6,625.58
37,344.22

1,487.34 6,625.58
37,344.22

* 84.186

3,578.29

$ 1,674,409.03 $

3,578.29 1,642,420.71

93.938 $ 93.938
$

8,939.68 $ 9,339.12

8,939.68 9,774.65 (1)

18,278.80 $ _ _.1.;..8.:;:,.7!..:1...4.:.....3:.:.3=,.

Total Federal Financial Assistance Major Programs are identified by an asterisk (*) in front of the CFDA number. (1) Expenditures for this program include State and/or Other Funds.
Expenditures are not maintained by fund source. See notes to the general purpose financial statements.
- 20 -

$ 1,692,687.83 $ 1,661,135.04

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY CASH AND CASH EQUIVALENTS JUNE 30,1996

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
First Bulloch Bank and Trust Company, Statesboro, Georgia
N.O.W. Accounts (2.65%) Passbook Savings Account (2.65%)
Sea Island Bank, Statesboro, Georgia
Commercial Interest Checking Accounts (Variable)

$

10,473.75

1,263.56

510,714.88

$ 522,452.19

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY INVESTMENTS JUNE 30.1996

SCHEDULE "3"

INVESTMENT POOL
State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5.361%)

$ 359,095.36

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY ACCOUNTS RECEIVABLE JUNE 30,1996

SCHEDULE "4"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

City and County Boards of Education Sales and Services

$

308,901.73 $

County Boards of Education

Membership Contributions and Contracted

Services

$

26,542.00

Education, Georgia Department of Lottery Program Education Technology Centers Federal Programs Elementary and Secondary Education Act Title f Migrant Education Goals 2000 State and Local Education Systemic Improvement Grant Individuals with Disabilities Education Act Part B - Special Education Special Projects Georgia Learning Resources System Severely Emotionally Disturbed Title VI, D - Special Education Personnel Development and Parent Training Georgia Learning Resources System Safe and Drug-Free Schools Contract Participation of Local School Personnel in Technology Training

1,223.04

112,797,24 7,442.22

30,833.26

66,047.64 151,218.27
6,625.58 92,753.59

TOTAL 308,901.73
26,542.00
1,223.04
112,797.24 7,442.22
66,047.64 151,218.27
6,625.58 92,753.59 30,833.26

747,009.31 $ ======8=0=4=,3=8=4=,5=7=

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1996

SCHEDULE "5"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

GRANTS

Education, Georgia Department of

Other State Programs

Health Insurance

$

Individuals with Disabilities Education Act

Regional Educational Service Agencies

Severely Emotionally Disturbed

Supervision and Assessment of Student and

Beginning Teachers and Performance-

Based Certification

Lottery Program

Education Technology Centers

64,357.20 $
778,272.00

$ 151,064.00 1,070,731.00
85,714.00 89,999.17

CONTRACTS Education, Georgia Department of Participation of Local School Personnel in Technology Training School Nurse Program

155,000.00

-282.27

OTHER Administrative Services, Georgia Department of Distant Learning Telemedicine Grant Human Resources, Georgia Department of Prevention Resource Center Grant

1,000.00

1,309.01

TOTAL
64,357.20 151,064.00 778,272.00 1,070,731.00
85,714.00 89,999.17
155,000.00 -282.27
1,000.00 1,309.01

$

998,629.20 $

1,398,534.91 $ =====2=,=3=9~7=,1=6=4=.=1=1=

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30. 1996

SCHEDULE "6"

Indirect Cost Special Revenue Fund
Interest Earned Membership Contributions and Contracted
Services Boards of Education Appling County Bryan County Bulloch County Camden County Candler County Effingham County Evans County Jeff Davis County Liberty County Long County Mcintosh County Tattnall County Toombs County Vidalia, City of Wayne County
Sales and Services Audio Visual Less: Purchases for Resale Supplies and Equipment Less: Cost of Goods Sold
Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

30,641.72

50,480.42 $

$
6,500.72

30,641.72 56,981.14

22,400.70 23,092.50 35,326.50 27,804.50 32,272.01 30,461.50 42,483.34 41,596.80 35,434.50 31,545.00 29,323.00 40,288.50
7,973.50 9,146.00
125.00
23,068.99

108,494.94 -38,747.66 2,484,782.02 -2,186,418.83 65,288.33

22,400.70 23,092.50 35,326.50 27,804.50 32,272.01 30,461.50 42,483.34 41,596.80 35,434.50 31,545.00 29,323.00 40,288.50
7,973.50 9,146.00
125.00
108,494.94 -38,747.66 2,484,782.02 -2,186,418.83 88,357.32

$ 513,464.48 $

439,899.52 $

953,364.00

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "7"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Other Purchased Services Supplies Energy Books, Textbooks and Periodicals Dues and Fees Grants to Boards of Education Federal Indirect Costs Other Expenditures
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 974,359,68 $ 1,712,069.50 $ 2,686,429.18

272,165.00

389,321.89

661,486.89

66,268.98

70,645.30

136,914.28

49,405.98

189,729.98

239,135.96

6,661.52

6,661.52

781.08

1,269.44

2,050.52

13,058.03

55,434.15

68,492.18

26,846.35

29,094.91

55,941.26

17,590.18

20,230,82

37,821.00

30,096.61

63,399.72

93,496.33

73,735.64

73,735.64

37,835,24

293,742.76

331,578.00

15,484.63

5,520.83

21,005.46

3,563.08

60,665.09

64,228.17

5,968.80

12,363.06

18,331.86

414,503.92

414,503.92

30,641.72

30,641.72

20,341.23

20,341.23

18,204.50

148,872.66

167,077.16

Total Expenditures

$ 1,538,289,66 $ 3,591,582.62 $ 5,129,872.28

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT LOTIERY PROGRAM YEAR ENDED JUNE 30, 1996

SCHEDULE "8"

EXPENDITURES
Operating Costs Professional and Technical Services Communications Supplies Books, Textbooks and Periodicals Other Expenditures
Nonoperating Costs Equipment

EDUCATION TECHNOLOGY
CENTERS

$

80.00

5,125.56

3,054.03

21,838.92

6,648.00

73,513.30

Total Expenditures

110,259.81

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF GRANTS TO BOARDS OF EDUCATION SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1996

SCHEDULE "9"

Grants to Boards of Education Appling County Bulloch County Candler County Emanuel County Jeff Davis County Jenkins County Laurens County Long County Screven County Tattnall County Toombs County

ELEMENTARY AND SECONDARY EDUCATION ACT
TITLE I MIGRANT PROGRAM

$

75,194.53

16,293.10

46,129.53

7,621.17

11,994.14

13,007.82

21,683.34

9,727.35

40,141.28

116,226.58

56,485.08

$

414,503.92

See notes to the general purpose financial statements. - 28 -

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

BOARD MEMBER ADDRESS
Dr. Michael Moore, Chairman (*) Effingham County Board of Education P. O. Box 346 Springfield, Georgia 31329
Mr, Perry Bacon (*) Bryan County Board of Education P. 0, Box 768 Pembroke, Georgia 31321
Dr. Kendall Brantley (*) Toombs County Board of Education P, O. Box 440 Lyons, Georgia 30436
Dr. Frank Brocato (*) Bulloch County Board of Education 500 Northside Drive East Statesboro, Georgia 30458
Mr. Lowell Dasher (*) 5165 Highway 17 South Guyton, Georgia 31312
Mr. Lewis Griner Evans County Board of Education 302 South Spring Street Claxton, Georgia 30417
Ms. Gladyse Harris (*) Route 3, Box 250 Midway, Georgia 31320
Mr. Jerry Jones (*) Wayne County Board of Education 555 South Sunset Boulevard Jesup, Georgia 31545
Ms. Susan Lee (*) 89 Spur40 51. Marys, Georgia 31558
Mr. Gary Lewis (*) 359 Academy Drive Lyons, Georgia 30436
Mr. Durell Lynn (*) Evans County Board of Education P. O. Box 826 Claxton, Georgia 30417
Mr. Ronnie McCall (*) Tattnall County Board of Education P. O. Box 157 Reidsville, Georgia 30453
Mr. Don O'Neil (*) Liberty County Board of Education 110 South Gause Street Hinesville, Georgia 31313

COMPENSATION

TRAVEL

$

600.00 $

212.23

450.00

139.39 258.84

600.00 550.00

1,005.23

- 29 -

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1996

SCHEDULE "10"

BOARD MEMBER ADDRESS
Mr. David Rainer (*) Camden County Board of Education P. O. Box 1329 Kingsland, Georgia 31548
Mr. Ray Sellers (*) Appling County Board of Education 102 Poor Robin Extension Baxley, Georgia 31513
Mr. Ronnie Sikes (*) 230 South Kennedy Metter, Georgia 30439
Ms. Shirley Smith (*) Route 5, Box 228 Hazlehurst, Georgia 31539
Dr. Tim Smith (*) City of Vidalia Board of Education 208 College Street Vidalia, Georgia 30474
Ms. Sara Thomasson (*) 15 River Bent Road Richmond Hill, Georgia 31324
Dr. Hannah Tostensen (*) McIntosh County Board of Education P. O. Box 495 Darien, Georgia 31305
Ms. Janet Watford (*) Long County Board of Education P. O. Box 428 Ludowici, Georgia 31316
Ms. Libby White (*) Jeff Davis County Board of Education P. O. Box 571 Hazlehurst, Georgia 31539
Mr. James Wilcox (*) Candler County Board of Education P. O. Box 536 Metter, Georgia 30439
Mr. Grover Wood (*) P. O. Box 527 Crescent, Georgia 31304

(*) Denotes Board Members Serving as of June 30, 1996 See notes to the general purpose financial statements.

- 30 -

COMPENSATION

TRAVEL

$

500.00

600.00 $

373.59

300.00

600.00

472.24

$

4,200.00 $ ==~=:2;,46.1;.5~2

SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SUMMARY OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,1996

SALARIES GENERAL FUND Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant
Total General Fund SPECIAL REVENUE FUND
Total Salaries
TRAVEL GENERAL FUND Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Total General Fund SPECIAL REVENUE FUND
Total Travel

TOTAL PER FINANCIAL STATEMENTS (ACCRUAL BASIS)

ADJUSTMENTS FOR ACCRUALS JUNE 30, 1995 JUNE 30.1996

TOTAL PER SCHEDULE (CASH BASIS)

$

199.828.91 $

29.951.32 $

-30.394.70 $

199.385.53

636.711.93

55,844.41

-59,647.62

632,908.72

79,727.32

79.727.32

52,118.72

52,118.72

5.972.80

5,972.80

$

974,359.68 $

85.795.73 $

-90,042.32 $

970,113.09

1.712,069.50

117,964.89

-121,576.28

1.708,458.11

$

2.686,429.18 $ 203.760.62 $ -211,618.60 $ 2,678.571.20

$

15.752.23

$

15.752.23

45,856.29 $

878.37 $

-182.50

46,552.16

4,557.71

4.557.71

102.75

102.75

$

66.268.98 $

878.37 $

-182.50 $

66.964.85

70.645.30

64.26

-95.50

70.614.06

$

136,914.28 $====9=42=.=63== $

-278.00 $

137,578.91

FIRST DISTRICT R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1996

NAME

TITLE CATEGORY

AHL,BRENDA

SPECIAL REVENUE FUND - OTHER PROG

$

AHL,BRENDA

FEDERAL PROGRAMS

AIKEN,LARRY

SPECIAL REVENUE FUND - OTHER PROGRAMS

AIKEN, OLIVIA

SPECIAL REVENUE FUND - OTHER PROGRAMS

ALEXANDER,DEBRA

SPECIAL REVENUE FUND - OTHER PROGRAMS

ANDERSON,BETTY L

SPECIAL REVENUE FUND - OTHER PROGRAMS

ANDERSON,JACKIE P

GENERAL ADMINISTRATION

ANDERSON,JACKIE P

SUPPORT SERVICES - BUSINESS

ANDERSON,JACKIE P

MIGRANT EDUCATION AGENCIES FUND

ATKINS,STACY G

SPECIAL REVENUE FUND - OTHER PROGRAMS

BARR,CHARLES R

INTERNAL SERVICES FUND

BAZEMORE,WILLIAM H

SPECIAL REVENUE FUND - OTHER PROGRAMS

BAZEMORE,WILLIAM H

INTERNAL SERVICES FUND

BEACHUM,R CLAY JR

INTERNAL SERVICES FUND

BECK,SCOTT AL

MIGRANT EDUCATION AGENCIES FUND

BISHOP,NELDA R

SUPP SRVS - IMPROV INSTR & ED MED SRVS

BLACKWOOD,JOAN M

SUPP SRVS - IMPROV INSTR & ED MED SRVS

BLACKWOOD,JOAN M

FEDERAL PROGRAMS

BOATRIGHT,JENNIFER

SPECIAL REVENUE FUND - OTHER PROGRAMS

BOYER, LI SA B

SUPP SRVS - IMPROV INSTR & ED MED SRVS

BOYER. LI SA B

FEDERAL PROGRAMS

BOYETTE,VICKY B

SPECIAL REVENUE FUND - OTHER PROGRAMS

BRADDOCK,WHITNEY

SPECIAL REVENUE FUND - OTHER PROGRAMS

BRADDOCK ,WHITNEY

FEDERAL PROGRAMS

BRADDY ,BRANDON

INTERNAL SERVICES FUND

BRADFORD,ELAINE Y

SPECIAL REVENUE FUND - OTHER PROGRAMS

BRADFORD,ELAINE Y

FEDERAL PROGRAMS

BRATCHER,BONNIE

SPECIAL REVENUE FUND - OTHER PROGRAMS

BRINSON,KIMBERLY

SPECIAL REVENUE FUND - OTHER PROGRAMS

BRINSON,KIMBERLY

FEDERAL PROGRAMS

BRINSON,KIMBERLY L

SPECIAL REVENUE FUND - OTHER PROGRAMS

BROOKS ,AMANDA

SPECIAL REVENUE FUND - OTHER PROGRAMS

BROWN,CODY

INTERNAL SERVICES FUND

BROWN,KAY

DIRECTOR

BROWN,KAY

GENERAL ADMINISTRATION

BROWN,REBECCA M

SPECIAL REVENUE FUND - OTHER PROGRAMS

BROWN,REBECCA M

FEDERAL PROGRAMS

CHIPMAN, ALICE

SPECIAL REVENUE FUND - OTHER PROGRAMS

CLARK,RICHARD

INTERNAL SERVICES FUND

CLAY,JANICE D

SUPP SRVS - IMPROV INSTR & ED MED SRVS

CLAY,JANICE D

MIGRANT EDUCATION AGENCIES FUND

CLENDINEN,ANNE P

SPECIAL REVENUE FUND - OTHER PROGRAMS

CONSIDINE,ANN S

FEDERAL PROGRAMS

COOPER,GARY

INTERNAL SERVICES FUND

COPE,REBECCA A

SPECIAL REVENUE FUND - OTHER PROGRAMS

CDVINGTON,CAROLYN G

INTERNAL SERVICES FUND

CROWDER,KIMBERLY 0 PITTS SPECIAL REVENUE FUND - OTHER PROGRAMS

CROWDER,KIMBERLY 0 PITTS FEDERAL PROGRAMS

DAVIS,DEBORAH W

SPECIAL REVENUE FUND - OTHER PROGRAMS

DAVIS,DEBORAH W

FEDERAL PROGRAMS

DAVIS,RUTH ANN

SPECIAL REVENUE FUND - OTHER PROGRAMS

DEAL,HOOD W

INTERNAL SERVICES FUND

DECESARE,ASHLEE

SPECIAL REVENUE FUND - OTHER PROGRAMS

DENMARK, IRENE M

SPECIAL REVENUE FUND - OTHER PROGRAMS

DENMARK,IRENE M

FEDERAL PROGRAMS

DICKERSON,MARILYN A

FEDERAL PROGRAMS

DUNN,DOTY B

SUPPORT SERVICES - PUPIL SERVICES

DUNN,JUSTIN L

INTERNAL SERVICES FUND

DURDEN,AMY L

SPECIAL REVENUE FUND - OTHER PROGRAMS

DURDEN,AMY L

INTERNAL SERVICES FUND

FARMER,ARLENE N

SPECIAL REVENUE FUND - OTHER PROGRAMS

FINCH,JOY

SPECIAL REVENUE FUND - OTHER PROGRAMS

FLOWERS,VICKIE

SPECIAL REVENUE FUND - OTHER PROGRAMS

FORDHAM,FLO E

SPECIAL REVENUE FUND - OTHER PROGRAMS

FOUNTAIN,JUNE S

SUPP SRVS - IMPROV INSTR & ED MED SRVS

FOWLER,CAROLYN B

SUPPORT SERVICES - PUPIL SERVICES

SALARIES AMOUNT
690.33 $ 7,517.63
29.75 29.75 8,657.82 1,166.25 6,627.28 13,254.48 6,627.20 132.50 45,104.40 17,196.72 17,196.72 457.19 32,809.88 45,463.24 48,488.52
6,504.41 200.00
43,000.08 4,359.64
25,534.80 7,507.08 1,300.91
40,503.20 3,132.58 102.76 427.50 4,503.76 80.50 340.00 526.06
73,100.04
684.00 7,422.66
100.00 26,090. 13 40,363.70
200.00 27,458.14
22,798.48 3,818.66
25,977.60 18,313.76
1,340.46 32,523.30
6, 179.00 16, 123.20 28,371.75
93.51 34,419.86
2,559.30 6,926.50 3,872.45 9,141.36 9,141.36 21,058.29
302.50 385.25 43,613.76 45,463.24 6,388.18

TRAVEL EXPENSE
203.73
169.47
591.50 1,462.44
4,657.31 2,753.94 3,714.00
534.66 49.25
1,195.14 557.97 159. 12 730.93
467.62
128.00
4,375.04 14.00
6,295.56 186. 12 43.26
1,906.35 495.98
1,222.25 259.25
4,540.46 23.75
81.25
2,284.08 3,719.22

,0

NAME
FOX,SHEILA GANTT,SHEILA 0 GARMAN,CHRIS S GLISSON, JAIME GLISSON, JAIME HAIRE,BRENDA HALLIGAN,SUSAN F HARRISDN,PHYLLIS T HARRISON,PHYLLIS T HARVEY,HORACE 0 HERRIN,PATRICIA HINSON,DONNA HIPPS,MARY HOBBS,CAROLYN M HODGE ,NANCY HOLLOWAY,CLARA B HORD,JANET S HUBBARD, IKE B JR HUGHES,JANELLE HUGHES, JANELLE HYERS,LYNN C INGLEY,THERISA JACKSON,MELANIE H JACKSON,RANDOLPH C JOHNSON,KENNETH C JOHNSON,SHERRI JONES,JANICE JONES,JANICE JONES,ROSEMARY B JONES,ROSEMARY B JORDAN,ALEX KEARNEY,JASON KELLEY,JUDI KEMP,ANNE KENDRICK,KATHLEEN B KENT,CHAO KIMBALL,LEWIS E KIRKPATRICK,LENA LAIRSEY,SHERRY LANIER,JAMES LANIER,SONYA W LANIER,SONYA W LARSON,DENISE LEE,BILL LEE, JENNI FER LIBBY, DONNA H LILLARD,EARLENE 0 LOWDER,REBECCA LUPINEK,DANIEL MALLARD,DANA S MANGRUM, DONNA MARCHIONNI,CARLO L MAYNER,IRENE MCCOLLUM,LAVERNE MCDONALD,CAROL MCRAE,PHILIP MEDEIROS, SUSAN MIDDLETON,BRIAN MILLS,TRACY MINCEY,JAMES W MINCEY,JAMES W MINCEY , JOANN MORALES,SANDRA MORGAN,JENNIE F MORGAN, LI NDA 0 MORGAN,PEGGY C MORRIS,GAIL P

FIRST DISTRICT R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1996

TITLE CATEGORY

SPECIAL REVENUE FUND - OTHER PROG

$

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

INTERNAL SERVICES FUND

.

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

INTERNAL SERVICES FUND

SUPP SRVS - IMPROV INSTR & ED MED SRVS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPPORT SERVICES - PUPIL SERVICES

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

GENERAL ADMINISTRATION

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPPORT SERVICES - PUPIL SERVICES

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPPORT SERVICES - PUPIL SERVICES

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

MIGRANT EDUCATION AGENCIES FUND

MIGRANT EDUCATION AGENCIES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPPORT SERVICES - BUSINESS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPPORT SERVICES - PUPIL SERVICES

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SUPPORT SERVICES - PUPIL SERVICES

MAINTENANCE & OPER. OF PLANT SERVICES

MIGRANT EDUCATION AGENCIES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

MIGRANT EDUCATION AGENCIES FUND

SUPP SRVS - IMPROV INSTR & ED MED SRVS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SALARIES AMOUNT
174.25 24,595.75 42,085.68 $
1,256.94 1,379. 15 5,422.94 46,428.36 43,375.91
5,279.40 23.38
1,304.66 47.50
48,096.93 26,911.70
8,360.00 22,651.68
543.88 55,937.56
175.00 36,154.39 22,632.00
3,975.08 19,082.40 5,709.37 3,679.50
576.25 16,615.53
36,312.62 1,915.45
57,037.44 35.00
22,632.00 208.75
49,085.74 23,234.00
5,033.45 448.88
16,973.30 3,234.00
48.87 29,837.92 18,880.42 26,567.84
135.00 35.00 62.50 1,253.76 29,988.56 4,090.36 22.50 258.75 15,303.46 3,085.76 133.50 7,949.39 23,720.42 5,972.80 588.80 5,352.50 280.00 57,037.44 41,844.45 15,059.52 21,018.24

2
TRAVEL EXPENSE
4,083.81
201.60 4,313.26 4,763.14
451.75
3,259.60 747.22
243.84 2,941.02 3,803.93
30.00
65.00 13.20 696.45 2,578.81
3,544.35 157.60 21.75 680.25
4,688.32 483.75 973.44
4,060.02
3,371.99
105.60 3,203.41 2,852.37
188.37 428.17

NAME
MORRIS,JEANNIE S MORRIS,LYNNE T MORRIS,LYNNE T MORRIS,MARY H MURKISON,DAVID W MURPHY ,CHARLES NASH,SUSAN NELSON,NANCY NESSMITH,SUSAN D NUNEZ,NORMA A PALMER,SANDRA L PATTERSON,BARBARA PEARCE, MELANIE M PETERSON,SARAH PHENIS,JAMES C PHILLIPS,ROSE ANNE PURVIS,GLENDA QUILLEN,SANDRA RICE, LINDA RIGDON,JEFFERY D ROESEL ,DEE ANN ROESEL,DEE ANN ROESEL,DEE ANN RUFF ,MACK RUSHING, ROBERT 0 RYALS,JANICE SAMMONS,JOEL SANDERS ,CYNTHIA SCOTT,SHERRY SCRUGGS,JOHATHAN R SELLERS,MARILYNN SMITH, CONNIE SMITH, ELAINE V SMITH,MAX E SMITH,MICHELE S SPELL, WINDY STOTTS,MARIA STOVALL,MISTY THOMAS,APRIL THOMPSON,CHRISTINA THOMSON,DORIS THOMSON,DORIS TILLMAN, DAVID TODD, LISA TOMBERLIN,CINDY W TDMBERLIN,CINDY W TOOTLE,SONYA TORRANCE,RONDA M TREMBLE, MELANIE TRUETT,CONNIE E TURNER, LI SA 0 TUTTLE,BEVERLY S TUTTLE,BEVERLY S WALDROP, JEANETTE WALLER,MARK H WARD-GORHAM,BETTY WARD,JAMES E WARD,KAREN WAUGH,FAYE W WAUGH,FAYE W WEATHERSPOON,BOBBIE WEATHERSPOON,BOBBIE WHIDDON,KIMBERLY WHITTLE, SARAH ANNE WILLIAMS,BRANDON WILLIAMS,LINDA G R WILLIAMS,WANDA J

FIRST DISTRICT R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1996

TITLE CATEGORY

SPECIAL REVENUE FUND - OTHER PROG

$

GEORGIA LEARNING RESOURCES SYSTEM FUND

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

MIGRANT EDUCATION AGENCIES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

MIGRANT EDUCATION AGENCIES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

INTERNAL SERVICES FUND

SUPP SRVS -IMPROV INSTR & ED MED SRVS

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPPORT SERVICES - PUPIL SERVICES

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

INTERNAL SERVICES FUND

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SPECIAL REVENUE FUND - OTHER PROGRAMS

MIGRANT EDUCATION AGENCIES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

GEORGIA LEARNING RESOURCES SYSTEM FUND

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

MIGRANT EDUCATION AGENCIES FUND

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

GEORGIA LEARNING RESOURCES SYSTEM FUND

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

FEDERAL PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

INTERNAL SERVICES FUND

SPECIAL REVENUE FUND - OTHER PROGRAMS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SALARIES AMOUNT
34,590.71 $
49,038.82 1,487.40 1,264.69
16,053.30 88.18 27.50
291.25 32,624.28
1,574.84 2,246.40
35.00 108.38 54,076.44 40,016.99 135.00 7,153.36 18,620.88 14,723.43 541.50 34,726.08
147.18 39,174.84
59.50 584.25 6,385.80 1,330.00 1,774.13 158.00 6,434.89 18,124.08 22,439.61 41,080.58 110.00 1,448.75 23,511.01
90.00 6.37
44,590.80 8,446.68 477.06 57.50 4,235.28 10,498.00 100.00 15,509.06 11,649.24
37,000.08 20,613.78
181.82 35,565.46
85.00 9,894.49
29.75 27,470.24
6,089.41 39,270.00 11,145.84
598.50 6,129.22
197.50 362.50 437.00 1,317.34 4,437.84

3
TRAVEL EXPENSE 2,277.01
488.33 1,885.02
207.00 1,671 .31
7,966.42 26.50 150.14
3,794.14 987.94
50.50
2,051.50 '139.57 971.94
128.00
70.50 62.50 2,814.90
133.50
3,299.45 783.15
1,270.50
236.70 1,944. 12
158.00 3,234.29
921.44 124.85 3,461.17 21.00 75.00

lED

NAME
WILLIAMS,WANDA u WILSON,ANGELA WILSON,TERESA YAUGHN,HUGH YEOMANS,CAROL E

FIRST DISTRICT R.E.S.A. SCHEDULE DF SALARIES AND TRAVEL
YEAR ENDED uUNE 30, 1996

TITLE CATEGORY

SALARIES AMDUNT

SUPPORT SERVICES - BUSINESS

$

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SPECIAL REVENUE FUND - OTHER PROGRAMS

8,875.68
19,077.50 48.87
5,048.00 5,991.38

TOTALS

$ 2,678,571.20

4

TRAVEL EXPENSE

$

102.75

105.60

190.50 $ 137,578.91

BOED

SECTION III COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the First District 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 First District Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated July 31, 1997. 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 of inventory for resale at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories for resale through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to the First District 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 of the 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.

96CRL-IO

The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
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,
cf~
Claude L. Vickers State Auditor
CLV:jy 96CRL-IO

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the First District 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 fmancial statements of the First District Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated July 31, 1997. 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.

We have applied procedures to test the First District 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, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

96CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that First District 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.
Respectfully submitted,
~
Claude 1. Vickers State Auditor
CLV:jy 96CRL-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the First District Regional Educational Service Agency Board of Control

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the First District Regional Educational Service Agency as of and far the year ended June 30, 1996, and have issued our report thereon dated July 31, 1997. 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.

We have also audited the First District Regional Educational Service Agency's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility

(6) Monitoring Subrecipients

(3) Matching, Level of Effort, and/or Earmarking
(4) Reporting

(7) Other Requirement Claims for Advances and Reimbursements

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the

96CRL-80

First District Regional Educational Service Agency is responsible for the Agency's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.
Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the First District Regional Educational Service Agency's compliance with those requirements. 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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories for resale through alternative procedures. However, this matter has no affect on the Agency's compliance with the requirements listed in the second paragraph of this report.
In our opinion, the First District Regional Educational Service Agency complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 96CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the First District 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 fmancial statements ofthe First District Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated July 31, 1997. 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 of the fiscal year 1996 general purpose financial 'statements of the First District RegionalEducational Service Agency and with our consideration of the Agency's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

96CRL-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 First District 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.
Respectfully submitted,

CLV:jy 96CRL-120

Claude 1. Vickers State Auditor

SECTION IV INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the First District 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 fmancial statements of the First District Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated July 31, 1997. 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 of inventories for resale at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories for resale through alternative procedures.
The management of the First District 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 irregularities may
96ICL-3

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.
In planning and performing our audit ofthe general purpose financial statements ofthe First District Regional Educational Service Agency for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report fmancial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
Accounting Controls (Overall)
General Fixed Assets
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.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the First District Regional Educational Service Agency's financial statements and this report does not affect our report thereon dated July 31, 1997.
96ICL-3

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 96ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the First District 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 ofthe First District Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated July 31, 1997. 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. We have also audited the First District Regional Educational Service Agency's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 31, 1997.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the First District Regional Educational Service Agency complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of inventories for resale at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories for resale through alternative procedures.
In planning and performing our audit for the year ended June 30, 1996, we considered the Agency's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions
96ICL-7

on the Agency's general purpose fmancial statements and on its compliance with requirements applicable to major Federal fmancial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose fmancial statements in a separate report dated July 31, 1997.

The management of the First District 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 arid recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

(5) Applicable Special Tests and Provisions
(6) Monitoring Subrecipients

(7) Other Requirement Claims for Advances and Reimbursements

96ICL-7

For all of the internal control structure categories listed above, we obtained an understanding ofthe design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.
During the year ended June 30, 1996, the First District Regional Educational Service Agency expended 97% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Agency's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the 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:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the First District Regional Educational Service Agency's compliance with requirements applicable to its major Federal fmancial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated July 3l, 1997.
96ICL-7

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tY~~
Claude L. Vickers State Auditor
CLV:jy 96ICL-7

SECTION V FINDINGS AND IMPROPER OR QUESTIONED COSTS

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UPfRESOLUTION Salary Overpayment Financial Statements Amount: $1,406.80 Audit Control Number 8804-94-01
The audit report for the year ended June 30, 1994, disclosed that a review of salaries charged to the Individuals with Disabilities Education Act, Title VI, B - Severely Emotionally Disturbed Program (State), 1994 project revealed that salary expenditures were charged to the program in excess of amounts earned due to miscalculations by payroll personnel. For the year under review, no action was taken by the Agency to resolve this matter. The questioned cost of $1,406.80 should be refunded to the Georgia Department of Education from the Agency's General Fund.
PRIORYE~CrnurnNTYEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Reportable Condition - Material Weakness Inadequate Separation of Duties Audit Control Number 8804-93-02
The audit report for the year ended June 30, 1995, stated that the Agency did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. In the year under review, no improvement in the adequate separation of employee duties was noted. This condition was a result of management's decision to limit the number of administrative staffmade responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule" 1" of this report, are affected by this finding.
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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
ProORYE~CURRENTYEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 8804-93-03 The audit report for the year ended June 30, 1995, noted that the management of the First District Regional Educational Service Agency had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Agency did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose fmancial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. The subsidiary records should include an inventory of equipment owned by the Agency, and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Note: The First District 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.
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