Review report, state of Georgia, First District Regional Educational Service Agency, Statesboro, Georgia, year ended June 30, 1997

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REVIEW REPORT STATEOF GEORGIA FIRSTDISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY STATESBORO, GEORGIA YEARENDED JUNE 30, 1997

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANTS COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXIllBITS

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

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

14

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

15

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

16

2 SCHEDULE OF STATE REVENUE

17

3 SCHEDULE OF SALARIES AND TRAVEL

18

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -
SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND 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
January 23, 1998

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Education
and Director and Members of the First District Regional Educational Service Agency Board of Control
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying fmancial statements (Exhibits A through D) of First District Regional Educational Service Agency as of and for the year ended June 30, 1997, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these fmancial statements is the representation of the management of First District Regional Educational Service Agency.
A review consists principally of inquiries of Agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception of the matter described in the following paragraph, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
* The 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 fmancial statements of this variance or omission have not been determined, but are believed to be material.
97ARL- RESA-1

Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E and F and Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications which should be made thereto.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:ds 97ARL-RESA-l

FIRST DISTRICTREGIONAL EDUCATIONAL SERVICE AGENCY

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1997

EXHiBITlA"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories for Resale

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30, 1996

$

598,958.63

$

598,958.63 $

612,479.00

378,796.03

378,796.03

359,095.36

85,581.62 $

685,691.73

771,273.35

804,384.57

635,659.28

635,659.28

562,321.74

Total Assets

$ 1,063,336.28 $ 1,321,351.01 $ 2,384,687.29 $ 2,338,280.67

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 Programs For Inventories for Resale Unreserved Undesignated
Total Fund EqUity
Total Liabilities and Fund Equity

$

155,092.77 $

155,092.77 $

90,026.81

$

21,519.60

185,254.20

206,773.80

189,735.42

63,464.03

133,996.18

197,460.21

211,618.60

2,756.48

2,756.48

2,232.49

63,911.55

63,911.55

63,911.55 83,183.06

$

148,895.18 $

477,099.63 $

625,994.81 $

640,707.93

$

3,084.69

$

3,084.69 $

3,084.69

4,774.21

4,774.21

4,774.21

$

22,190.73

22,190.73

32,098.14

635,659.28

635,659.28

562,321.74

906,582.20

186,401.37

1,092,983.57

1,095,293.96

$

914,441.10 $

844,251.38 $ 1,758,692.48 $ 1,697,572.74

$ 1,063,336.28 $ 1,321,351.01 $ 2,384,687.29 $ 2,338,280.67

The notes to the general purpose financial statements are an integral part of this statement.
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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1997

EXHIBIT "B"

FUND BALANCE JUNE 30

$ 914A41.10 $ 844,251,38 $ 1,758,692.48 $ 1,697,572.74

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1997

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 1,1996
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 823,898,00 $ 1,106,769,88

534,088,50

617,153,99

$ 1,357,986,50 $ 1,723,923,87

$ 290,756,35 $ 277,600,64 814,992.74 1,015,240,93

195,640,58 74,632.38 130,210,78

147,761,50 77,519,26 108,421,91

36,934.32

$ 1,506,232,83 $ 1,663,478.56 $ -148,246,33 $ 60,445,31

$

0,00

$ -141,835,17

$ -141,835,17 $

0,00

$ -290,081,50 $ 914,742.30

60,445,31 853,995,79

FUND BALANCE JUNE 30, 1997

$ 624,660,80 $ 914,441,10

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,346,838,00 $ 1,332,199,00 1,666,131,00 1,922,864,19 542,186,25
$ 3,012,969.00 $ 3,797,249,44

$ 580,846,00 $ 587,237.47

462,631,00 850,845,66
14,998,00 568,651.00 438,762.80 101,631.00
1,400,00 512,854,00
6,000,00

466,342,35 1,035,490,90
24,734,03 570,885,89 420,723,59 112,605,04
195,63 574,494.59
3,865.52

$ 3,538,619.46 $ 3,796,575,01

$ -525,650.46 $

674.43

$ 525,650.46 $

0,00

$ 525,650.46 $

0,00

$

0,00 $

674.43

878,688,48

843,576.95

652,26

$ 879,340.74 $ 844,251,38

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

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
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 of office 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.
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.
For financial reporting purposes, the Agency is considered to be an organizational unit of the State, and therefore a part ofthe primary government ofthe State of Georgia. Inclusion in the State's financial reporting entity is based on application of criteria defmed in Section 2100 of the Governmental Accounting Standards Board Codification ofGovernmental and Financial Reporting Standards which indicates that the Agency does not have legal separate standing.
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.
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 General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose fmancial 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:

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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 received primarily from the Georgia Department ofEducation 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 ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants, sales and services and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In the prior year, a technology training registration fund was reported as Lottery Funds and included as part of the Special Revenue Fund. This fund had a fund balance of $3,924.36 at June 30, 1996. For fiscal year 1997, this fund will be reported in the General Fund. The fund balance ofthe respective funds at July 1, 1996, have been restated as appropriate.

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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXlllBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The First District Regional Educational Service Agency's budget is a complete financial 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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. This final budget is then submitted, 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 of deposits 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 the options for 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:
(l) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1997

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(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 on Federal, State or other grants 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.
GOODS FOR RESALE SUPPLIES AND EQUIPMENT
Inventories are reported on the Combined Balance Sheet at average cost. The Agency records inventories on its fmancial statements as goods for resale when purchased and costs of goods 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.

-8-

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Agency has the following types ofinterfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are
recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZAnON 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,
(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,
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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXHIBIT"D"

Note 2: DEPOSITS AND INVESTMENTS

(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, 1997, the bank balances were $732,573.06. The amounts ofthe 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, 1997, as follows:

Risk Category

Bank Balance

1

$ 104,201.61

2

628,371.45

3

0.00

Total

$ 732.573.06

CATEGORIZATION OF INVESTMENTS At June 30, 1997, the carrying amount of the Agency's total investments was $378,796.03 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 of the 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 DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"D"

Note 3: RISK MANAGEMENT

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

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 these risks 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:

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

3,535.00 $

3.535.00 $

0.00

$

0.00 $

2,365.00 $

2,365.00 $

0.00

Note 4: OPERATING LEASES

The First District Regional Educational Service Agency has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1997, amounted to $10,568.00. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1998 1999 2000 2001 2002

$ 15,852.00 15,852.00 15,852.00 15,852.00 5,284.00

Total

$ 68,692.00

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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"D"

Note 5: ON-BEHALF PAYMENTS
The Agency has recognized revenues and expenditures in the amount of$72,582.51 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 ofNon-Certified Personnel In the amount of $72,582.51
Note 6: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Agency believes that such disallowances, if any, will be immaterial to its overall financial position.
The Agency is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Agency operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
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 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by Agency's are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXHIBIT"D"

Note 7: RETIREMENT PLANS

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. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Contribution

1997 1996 1995

100% 100% 100%

$ 329,518.36 $ 307,112.68 $ 293,554.03

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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"E"

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

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS JUNE 30, 1997 JUNE 30,1996

$

74,380.02

$ 361,562.91 $ 324,128.82 $ 685,691.73

746,569.31

635,659.28

635,659.28

562,321.74

$ 361.562.91 $ 959,788.10 $ 1.321,351.01 $ 1,383.271.07

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories for Resale Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 118,167.79 $

36,924,98 $ 155.092,77 $ 168.368.41

67,166.79

118,087.41

185.254.20

164,333,88

133,996.18

133,996.18

121,576.28

2,756.48

2,756.48

2,232.49

83,183.06

$ 322,087.24 $ 155,012.39 $ 477,099,63 $ 539,694.12

$

22,190.73

$

22.190,73 $

32,098.14

$ 635.659.28

635.659,28

562,321.74

17,284.94

169,116.43

186,401.37

249,157.07

$

39,475.67 $ 804.775.71 $ 844,251.38 $ 843.576.95

$ 361,562.91 $ 959,788.10 $ 1,321,351.01 $ 1,383.271.07

See notes to the general purpose financial statements.

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FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY

EXHIBIT "F"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30,1997

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

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 1,246,991.00 $ 1,922,864,19 50,201.16
$ 3,220,056.35 $

85,208.00 $ 1,332,199.00 $ 1,398,534,91

1,922,864,19 1,692,687.83

491,985.09

542,186.25

415,714.52

577,193.09 $ 3,797,249.44 $ 3,506,937.26

$ 587,237.47
466,342.35 950,282,90 $
24,734.03 570,885.89
61,585.32 195.63
574,494.59 3,865.52
$ 3,239,623.70 $

$ 587,237.47 $ 620,522,21

85,208,00
420,723.59 51,019.72

466,342.35 1,035,490.90
24,734.03 570,885.89 420,723.59 112,605.04
195,63 574,494,59
3,865.52

591,601.09 831,733.10
539,787.20 425,491.56 141,406.96
235,35 417,206.49
3,338.02

556,951.31 $ 3,796,575.01 $ 3,571,321,98

$ -19,567,35 $

20,241.78 $

674.43 $ -64,384.72

$

92,649.61

-3,016.18

$

89,633.43

$ -19,567.35 $

20,241.78 $

674.43 $

25,248.71

59,043.02

784,533.93

843,576.95

818,328,24

FUND BALANCE JUNE 30

$ 39,475,67 $ 804,775.71 $ 844,251.38 $ 843,576.95

See notes to the general purpose financial statements.

- 15-

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30,1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U, S. Department of Through Effingham County Board of Education Goals 2000 State and Local Education Systemic Improvement Grant 1996 Grant Through Georgia Department of Education Safe and Drug-Free Schools 1997 Grant Elementary and Secondary Education Act Title I Migrant Education 1996 Grant 1997 Grant Individuals with Disabilities Education Act Part B - Special Education Special Projects Georgia Learning Resources System 1997 Grant Severely Emotionally Disturbed 1997 Grant Part D - Special Education Personnel Development and Parent Training Georgia Learning Resources System 1996 Grant 1997 Grant Goals 2000 State and Local Education Systemic Improvement Grant 1997 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 1996 Contract

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84,276 $

30,784,78 $

31,286,78 (1)

84,186

404,204.39

404,438.39 (1)

84.011 84.011

304,567.38 780,000.00

336,929.21 (2) 757,809.27 (2)

* 84.027 * 84.027

240,002.82 117,175.93

240,002.82 117,175.93

84.029 84.029

2,225.54 10,656.39

2,225.54 10,656.39

84.276

25,732.96

$ 1,915,350.19 $

25,732.96 1,926,257.29

93.938 $

7,514.00 $

7,514.00

Total Federal Financial Assistance

$ 1,922,864.19 $ 1,933,771.29

* This program has been defined as a major program on a statewide basis in accordance with OMB Circular A-133. Internal control and compliance testing for this program has been conducted at other organizational units of the State of Georgia.
(1) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(2) Includes Federal Assistance of $564,844.54 provided to subrecipients.

See notes to the general purpose financial statements.

- 16 -

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1997

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Other State Programs Georgia Learning Resources System Governor's School Leadership Institute Health Insurance Regional Educational Service Agencies RFP Technical Evaluation Committee Reimbursement School Leaders Consortium Severely Emotionally Disturbed Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification
CONTRACTS Education, Georgia Department of Participation of Local School Personnel in Technology Training

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

137,136.00 $

$

813.80

72,582.51

823,898.00

254.25

49,997.32

1,109,855.00

85,208.00

159,224.00

TOTAL
137,136.00 813.80
72,582.51 823,898.00
254.25 49,997.32 1,109,855.00
85,208.00
159,224.00

$

1,106,769.88 $

1,332,199.00 $

2,438,968.88



See notes to the general purpose financial statements.

- 17 -

FIRST DISTRICTREGIONALEDUCATIONAL SERVICEAGENCY SCHEDULE OF SALARIESAND TRAVEL YEAR ENDED JUNE 30,1997

SCHEDULE"3"

PIiRSONNEL
ADAMS,JEAN AHL,BRENDA AHL,BRENDA ALEXANDER,DEBRA ALLEN,TANYA ANDERSON,JACKIE P ANDERSON,JACKIE P ANDERSON,JACKIE P ARTIS,NATASHA BARR,CHARLES R BAZEMORE,WILLIAM H BAZEMORE,WILLIAM H BEACHUM,RCLAY JR
sscxscorr AL
BENNEn,BETHANY BISHOP,NELDAR BLACKWOOD,JOAN M BOATRIGHT,JENNIFER BOYER,L1SA B BOYER,L1SA B BRADDOCK,WHITNEY BRADDOCK,WHITNEY BRADFORD,ELAINE Y BRADFORD,ELAINE Y BRAVO,BERNICE BRINSON,KIMBERLY BRINSON,KIMBERLY BROWN,CODY BROWN,KAY BROWN,KAY BROWN,REBECCAM BROWN,STANLEYM BURCH,BOBBIE CANADY,CINDI CLARK,BEVERLY CLARK,RICHARD CLAY,JANICED CLENDINEN,ANNEP CLENDINEN,ANNE P COOPER,GARY COVINGTON,CAROLYN G CRAVEN,DEBBIE L CRAVEN,DEBBIE L CROWDER,KIMBERLY D Pins CROWDER,KIMBERLY D Pins DAVIS,BENJAMIN M DAVIS,BRADFORD C DAVIS,DEBORAH W DAVIS,KAYANN DEAL,HOODW DEAN,BARBARA DENMARK,IRENE M DENMARK,IRENE M DENMARK,IRENE M DIXON,PETRONIA DUNN,JUSTIN L DURDEN,AMY L DURDEN,AMY L ELLlS,JAMIE FARMER,ARLENE N FARMER,ARLENE N FARMER,ARLENE N FARMER,ARLENE N FARRELL,MARYANN

PROGRAM
SPECIALREVENUEFUND - OTHER PROGRAMS SPECIALREVENUEFUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIALREVENUEFUND - OTHER PROGRAMS SPECIALREVENUEFUND - OTHER PROGRAMS GENERALADMINISTRATION SUPPORTSERVICES- BUSINESS MIGRANTEDUCATION AGENCIESFUND SPECIALREVENUEFUND - OTHER PROGRAMS INTERNALSERVICESFUND SPECIALREVENUEFUND - OTHER PROGRAMS INTERNALSERVICESFUND INTERNALSERVICESFUND MIGRANTEDUCATION AGENCIESFUND SPECIALREVENUEFUND - OTHER PROGRAMS SUPP SRVS- IMPROVINSTR & ED MED SRVS SUPP SRVS - IMPROVINSTR & ED MED SRVS SPECIALREVENUEFUND - OTHER PROGRAMS SUPP SRVS- IMPROVINSTR & ED MED SRVS FEDERAL PROGRAMS SPECIALREVENUEFUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIALREVENUEFUND OTHER PROGRAMS FEDERAL PROGRAMS MIGRANTEDUCATION AGENCIESFUND SPECIALREVENUEFUND - OTHER PROGRAMS FEDERAL PROGRAMS INTERNALSERVICES FUND DIRECTOR GENERALADMINISTRATION FEDERAL PROGRAMS INTERNALSERVICES FUND SPECIALREVENUE FUND OTHER PROGRAMS SPECIALREVENUE FUND - OTHER PROGRAMS SPECIALREVENUE FUND OTHER PROGRAMS INTERNALSERVICES FUND SUPP SRVS IMPROVINSTR & ED MED SRVS SPECIALREVENUEFUND OTHER PROGRAMS FEDERAL PROGRAMS INTERNALSERVICES FUND INTERNALSERVICES FUND GEORGIALEARNING RESOURCES SYSTEM FUND FEDERAL PROGRAMS SPECIALREVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS INTERNALSERVICES FUND INTERNALSERVICES FUND SPECIALREVENUE FUND - OTHER PROGRAMS SPECIALREVENUE FUND OTHER PROGRAMS INTERNALSERVICES FUND SPECIALREVENUE FUND OTHER PROGRAMS SUPP SRVS - IMPROVINSTR& ED MED SRVS SPECIALREVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIALREVENUE FUND - OTHER PROGRAMS INTERNALSERVICES FUND SPECIALREVENUE FUND OTHER PROGRAMS INTERNALSERVICES FUND SPECIALREVENUE FUND- OTHER PROGRAMS GENERALADMINISTRATION SUPPORTSERVICES - BUSINESS SPECIALREVENUE FUND - OTHER PROGRAMS MIGRANTEDUCATION AGENCIES FUND SPECIALREVENUE FUND OTHER PROGRAMS
18

SALARIES

$

26,105.80 $

7,169.30

1,380.66

22,576.91

737.00

1,148.82

4,735.38

1,961.40

38.00

46,908.60

18,774.00

18,774.00

2,582.83

35,339.38

194.74

56,510.16

51,674.11

6,413.89

44,720.04 7,402.08
27,132.72 48,036.09

15,333.30 427.50
4,809.90 1,308.63 76,350.00

5,227.68 4,016.25
199.50 4,337.50
23.75 25,327.77 50,669.05 33,481.86

24,627.23 27,571.68
300.00 50,608.36 20,874.66

200.00 200.00 6,504.66
29.68 27,056.69
129.00 582.00 37,332.80

213.00 1,052.50 9,775.87 9,820.66
418.00 4,656,58 9,046.35 6,221.60 4,523.22 1,422.96

TRAVEL 285.13 15,75 17.00 104,20
334.50 1,305.83
3,386.00 3,192.70 4,020.94
32.75 368.48 1,754.74 1,645.44 561.75 148.00 147.25 5,438.00 135,70
2,919.46
4,824.13 336.78 21.00
1,360.85 3,146.10
951.22 349.25
5,094.97 45.00
249.31 96.50

P5RSONNEL
FLETCHER,BENJAMIN F FLOWERS,GAIL FLOWERS,GERI FORDHAM,FLO E FORDHAM,FLO E FOUNTAIN,JUNE S FOX,SHEILA GANn,SHEILA 0 GIVENS,BETIY JO GIVENS,BETIY JO GLiSSON,JAIME GOODRICH,MARIE ANN GRANT,PAMELA GRIFFIN,CAROL GRIMES,RACHAEL K GROOVER,SHERRI B HAIRE,BRENDA HALL,KELLY H HALL,MELISSA HALLIGAN,SUSAN F HAND,TERRY HARPER,MARY P HARRELL,FRAN HARRIS,BETSY HARRIS,SANDRA HARRISON,PHYLLIS T HARVEY,HORACE 0 HAnAWAY,JULIE R HILL,L1NDA F HOBBS,CAROLYN M HODGE,KIM HODGE,NANCY HODGE,NANCY HOLLOWAY,CLARA B HORD,JANET S HUBBARD,IKE B JR HUGHES,JANELLE HUGHES,JANELLE HUNTER,ESTELLE HUTCHINSON,RHONDA HYERS,LERA INGLEY,THERISA JACKSON,MELANIE H JACKSON,RANDOLPH C JENKINS,WILMA JOHNSON,KENNETH C JOHNSON,SHERRI JOHNSON,wENDY JONES,DANNY JONES,JANICE JORDAN,ALEX JORDAN,ALEX KEEL,BEVERLY JAN KELLEY,JUDI KENDRICK,KATHLEEN B KIMBALL,LEWIS E KIRKLAND,CHARLENE KIRKLAND,SANDRA M KIRKPATRICK,LENA LAIRSEY,SHERRY LAIRSEY,SHERRY LAMB,SARAH LANIER,JAMES LANIER,JOSEPH

FIRSTDISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEARENDED JUNE 30,1997

SCHEDULE "3"

PROGRAM
INTERNAL SERVICES FUND SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS FEDERAL PROGRAMS SUPP SRVS- IMPROV INSTR& ED MED SRVS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS FEDERAL PROGRAMS SUPP SRVS- IMPROV INSTR& ED MED SRVS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SUPP SRVS- IMPROV INSTR& ED MED SRVS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPSRVS- IMPROV INSTR& ED MED SRVS SPECIAL REVENUE FUND- OTHERPROGRAMS SUPPORT SERVICES - PUPILSERVICES INTERNAL SERVICES FUND SUPPSRVS- IMPROV INSTR& ED MED SRVS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS INTERNAL SERVICES FUND SUPPSRVS- IMPROV INSTR& ED MED SRVS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPORT SERVICES - PUPILSERVICES INTERNAL SERVICES FUND SPECIAL REVENUE FUND OTHERPROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND- OTHERPROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS FEDERAL PROGRAMS SUPPSRVS- IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPORT SERVICES - PUPILSERVICES SUPPORT SERVICES - PUPILSERVICES SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHERPROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS INTERNAL SERVICES FUND INTERNAL SERVICES FUND
- 19-

SALARIES

$

200.00

2,491.93

26.12

47,237.92 $

7,640.68 38.00
4,362.66 19,608.30

4,917.14 85.50
363.37 183.50
38.00 12,920.48 6,122.05
33.25 207.50 57,525.64 190.00 33.25 1,062.75 1,768.30 23.75 45,145,48 1,209.60 20,307.51 10,819,17 60,250.70 1,635.67 33,834.84

8,638.70 24,108.00
2,200.85 59,363.28

85.50 38.00 97.37 45,274.88 23,537.28 3,658.60 40.00 21,808.20 3,183.76 5,936.50 6,056.40 6,408.90 37,660.80

10,671.17 59,963.28 23,537.28 57,422.26
4,492.20 14,908.62 29,123.05
1,095.16 5,236,46
369.30 1,635.19
833.63

TRAVEL
1,346,62 562,75
127.94
72.72
3,790.53
4,776,70 510,75
3,190.87 431.04 367.98 120.44
739.67 1,794.72
3,539.19
46.50 67.75 175.98 686.59 299.25 3,542.63 3,391.68 209.50 127.22 72.72

PERSONNEL
LANIER,SONYA W LANIER,SONYA W LEE,BILL LEE.JENNIFER L1BBY,DONNA H L1BBY,DONNA H MALLARD,CARETHA MALLARD,DANA S MALLARD,DANA S MANGRUM,DONNA MARCHIONNI,CARLO L MARTIN,LUKE R MASON,BRENDA MAYNER,IRENE MCDONALD,CAROL MCDUFFIE,ROSEMARY M MCDUFFIE,ROSEMARY M MIDDLETON,BRIAN MIDDLETON,BRIAN MILLS,TRACY MINCEY,JAMES W MINCEY,JAMES W MINCEY,JOANN MOODY,JULIE MOORE,ELLA MARIE MORALES,SANDRA MORGAN,JENNIE F MORGAN,L1NDA D MORGAN,PEGGY C MORRIS,GAIL P MORRIS,JEANNIE S MORRIS,JEANNIE S MORRIS,LYNNE T MORRIS,MARY H MOTES,KAREN MURPHY,CHARLES MURPHY,CHARLES MURRAY,DONALD MURRAY,DONALD NASH,SUSAN NESSMITH,SUSAN D NORWOOD,LOUELLA NUNEZ,NORMA A OQUENDO,HEIDI L OQUINN,PAULA R PALMER,SANDRA L PAnERSON,BARBARA PAnERSON,BARBARA PEARCE,MELANIE M PEARCE,SHERRY PEARSON,L1NDA PHENIS,JAMES C PHILLlPS,ROSE ANNE PHILLlPS,ROSE ANNE POLLEn,PAULA N POWELL,CATHY G POWELL,CHARLonE PURVIS,GLENDA PURVIS,GLENDA QUILLEN,SANDRA RICE,L1NDA RICE,L1NDA RIGDON,JEFFERY D ROBINSON,JULlEnE

FIRSTDISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE30,1997

SCHEDULE "3"

PROGRAM
SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS MIGRANT EDUCATION AGENCIES FUND MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPSRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPORT SERVICES - BUSINESS INTERNAL SERVICES FUND INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPORT SERVICES - PUPIL SERVICES SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPPSRVS- IMPROV INSTR & ED MEDSRVS FEDERAL PROGRAMS SUPPORT SERVICES - PUPIL SERVICES MAINTENANCE & OPER. OF PLANT SERVICES MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND SUPPSRVS- IMPROV INSTR & ED MEDSRVS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND SUPPORT SERVICES - PUPIL SERVICES 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 SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND FEDERAL PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND- OTHER PROGRAMS
- 20-

SALARIES

$

19,616.89 $

1,802.47

32,128.70

19,807.44

29,389.40

458.37 854.25 4,094.40 31,649.25 1,067.50 200.00 375.25 140.00 24,139.62 831.25 2,900,60 21,294.24

4,258.34 3,659.80
359.67 5,526.08
242.22 118.00 1,300.00 59,963.28 3,513.20 11,864.00 22,435.20 42,1n.78

50,339.51 1,487.40 1,036.80
16,669.36

2,030.62 498.75 29.75 159.00 292.12
35,167.78 11,662.56
101.00 4,646.16 19,608.30

73.00 35.00 20.00 57,075.64 48,853.63

3,132.65 38.00 71.12
18,180.80

1,208.08

19,356.84 3,744.54
16.62

TRAVEL 158.75 148.75
3,887,00 555.60 566.46 64.50
241.00
3,601.75
338.96
1,154.39
85.75 1,498.50
449.44 3,247.08
177.00 182.94 1,126.47 403.75
5.829.49 2,304.00
453.44 17.50
3,933.30 n5.19 313.25
403.50 818.01
26.25 28.00

P5RSONNEL
ROESEL,DEE ANN ROESEL, DEE ANN ROOKS,DENISE RUSHING,ROBERT 0 JR SAMPSON,SHAWNA SANDERS,CYNTHIA SCARBOROUGH,ELLEN SHUMAKER,MATTHEW A SMITH,CHRIS E SMITH,CONNIE SMITH,COREY T SMITH,ELAINE V SMITH,KAYLA HOPE SMITH,MAXE SMITH,MICHELE S STOVALL,MISTY STOVALL,MISTY STRICKLAND,SANDRA TAYLOR,KENNETH THOMPKINS,NADRE THOMPSON,DAWN THOMSON,DORIS THOMSON,DORIS TILLMAN,JACQUELYN TODD,L1SA TOMBERLlN,CINDY W TOMBERLlN,CINDY W TORRANCE,RONDA M TREMBLE,MELANIE TRUETT,CONNIE E TRUETT,CONNIE E TURNER,L1SA D TUTTLE,BEVERLY S TUTTLE,BEVERLY S VOLLRATH,ZINA WAINWRIGHT,TAMELA L WALLER,MARK H WARD,JAMES E WARD,KAREN WARD,LANCE WAUGH,FAYEW WAUGH,FAYEW WEATHERSPOON,BOBBIE WILCOX,CELESTE WILLlAMS,WANDA J WILSON,ANGELA WILSON,TERESA A ZIPF,SHIRLEY A
Accruals June 30, 1996 June 30, 1997

FIRSTDISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES ANDTRAVEL YEAR ENDED JUNE30,1997

SCHEDULE "3"

PROGRAM
SUPPSRVS - IMPROV INSTR &ED MED SRVS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPORT SERVICES - PUPILSERVICES SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS INTERNAL SERVICES FUND SUPPSRVS - IMPROV INSTR &ED MED SRVS SPECIAL REVENUE FUND- OTHER PROGRAMS INTERNAL SERVICES FUND FEDERAL PROGRAMS MIGRANT EDUCATION AGENCIES FUND INTERNAL SERVICES FUND SUPPSRVS- IMPROV INSTR &ED MEDSRVS SPECIAL REVENUE FUND- OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS 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 MIGRANT EDUCATION AGENCIES FUND SUPPSRVS - IMPROV INSTR &ED MEDSRVS FEDERAL PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SUPPSRVS- IMPROV INSTR &ED MEDSRVS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS SPECIAL REVENUE FUND- OTHER PROGRAMS INTERNAL SERVICES FUND INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND FEDERAL PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SUPPORT SERVICES - BUSINESS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS

SALARIES

$

$

37,661,38

5,881.50

14,092.04

38.00

7,381.56

45.00

280.00

53,687.74

1,197.00

1,301.50

19,356.84

2,687.50

24,151.68

50,915.05

13,225.34

482.00 50.00 50.00
674.15 47,262.36
9,300.96 17.50 45.00
2,624.50 10,603.09 12,119.80 13,100.02

38,480.04 3,939.50
582.00 37,483.48
90.25 35.00 1,487.84 27,540.79 6,246.51 135.25 41,624.88 11,383.92 3,842.12 187.00 15,208.56 17,107.97 2,107.24 546.25

$ 2,870,626.12 $

TRAVEL 708,44
2,351,19 51.00 47.50 170,50
4,600.78
32.50
2,951.60 35.50 111.94
32.00 2,177.65 3,299.40
264.50 117.00
612.75 1,554.75
3,692.76
456.00
3,612.70
88.25 146.50
132,185.70

-211,618.60 197,460.21

-278.00 754,75

$ 2,856,467.73 $ 132,662.45

See notesto the generalpurpose financial statements.

- 21 -

SECTIONTI AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

8804-93-02 8804-93-03 8804-94-01

Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 8804-93-03

At present, Georgia Department of Education has not implemented a General Fixed Assets Account Group in our accounting system.

SECTION III CURRENT YEAR FINDINGS AND QUESTIONED COSTS

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8804-97-01
For the year under review, management of the First District Regional Educational Service Agency did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial 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.