GA A~OO .Ri E.?b\ &1 " \qcl5 -q~ AUDIT REPORT GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY GRIFFIN, GEORGIA YEAR ENDED JUNE 30, 1996 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS ANDSUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 5 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 6 ADDITIONAL FINANCIAL INFORMATION COMBINING ANDINDIVIDUAL FUND STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 16 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 18 G FIDUCIARY FUND TYPE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND 20 SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 21 2 CASH AND CASH EQUIVALENTS 22 3 ACCOUNTS RECEIVABLE 23 SCHEDULE OF REVENUE 4 STATE 24 5 OTHER 25 GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES SCHEDULE OF EXPENDITURES BY OBJECT 6 GOVERNMENTAL FUND TYPES 27 7 LOTTERY PROGRAMS 28 8 SCHEDULE OF COMPENSATION OF BOARD MEMBERS 29 SECTIONll SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL SECTION III COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THEFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THEGENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT 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 G0VERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THEINTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - SECTION V FINDINGS ANDIMPROPER OR QUESTIONED COSTS . SCHEDULE OFFINDINGS ANDIMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 2]4 Atlanta, Georgia 30334-8400 April 24, 1997 -. Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Director and Members of the Griffin Regional Educational Service Agency Board ofControl INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through D) of the Griffin 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. 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. In our opinion, the general purpose financial statements present fairly, in all material respects, the financial position of the Griffin Regional Educational Service Agency as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generallyaccepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated April 24, 1997, on our consideration ofthe Agency's internal control structure and a report dated April 24, 1997, on its compliance with laws and regulations. 96ARL-31 Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements of the Griffin Regional Educational Service Agency taken as a whole. The combining and individual fund statements (Exhibits E throughG), the financial schedules (Schedules 1 through 8 which includes the Schedule ofFederal Financial Assistance) andthe 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 Griffin Regional Educational ServiceAgency. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relationto the general purpose financial statements taken as a whole. A copyof this report hasbeenfiled 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, d:. ~ ClaudeL. Vickers State Auditor CLV:gp 96ARL-31 GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY - 1- GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1996 ASSETS Cash and Cash Equivalents Accounts Receivable .. Inventories General Fixed Assets Equipment Amountto be Provided in Future Years For Payment of Compensated Absences Total Assets GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND FIDUCIARY FUND TYPE AGENCY FUND $ 136,576.85 $ 0.00 16,326.77 $ 393,563.87 579,234.68 $ 152,903.62 $ 972,798.55 $=======0=.0=0 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Compensated Absences Total Liabilities FUND EqUITY Investment in General Fixed Assets Fund Balances Reserved For Continuation of Federal Programs For Sick and Personal Leave For Inventory for Resale Unreserved Undesignated Total Fund Balances Total Fund Equity $ 14,168.24 s 31,407.70 253,879.65 58,690.72 9,352.84 $ 90,098.42 $ 277,400.73 $ 21,303.33 $ 3,775.05 579,234.68 $ 3,775.05 $ 600,538.01 59,030.15 94,859.81 $ $ 62,805.20 $ 695,397.82 $ $ 62,805.20 $ 695,397.82 $ 0.00 0.00 9.00 Total Liabilities and Fund Equity $ 152,903.62 $ 972,798.55 $ ====:::::=::::0::.=00= The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT "A" " ACCOUNT GROUPS GENERAL GENERAL FIXED LONG-TERM ASSETS DEBT TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30, 1995 $ 136,576.85 $ 173,997.02 409,890.64 271,415.56 579,234.68 590,966.34 $ 705,577.46 705,577.46 665,709.81 $ 87,661.62 87,661.62 80,186.85 $ 705,577.46 $ 87,661.62 $ 1,918,941.25 $ 1,782,275.58 $ 14,168.24 285,287.35 $ 241,537.23 68,043.56 54,447.20 42,350.90 $ 87,661.62 87,661.62 80,186.85 $ 87,661.62 $ 455,160.77 $ 418,522.18 $ 705,577.46 $ 705,577.46 $ 665,709.81 $ 705,577.46 $ 21,303.33 $ 15,345.23 3,775.05 3,775.05 579,234.68 590,966.34 $ 604,313.06 $ 610,086.62 153,889.96 87,956.97 $ 758,203.02 $ 698,043.59 $ 1,463,780.48 $ 1,363,753.40 $ 705,577.46 $ 87,661.62 $ 1,918,941.25 $ 1,782,275.58 -3- GRIFFIN 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 $ 62,805.20 $ 695,397.82 $ 758,203.02 $ 698,043.59 The notes to the general purpose financial statements are an integral part of this statement. -4- The notes to the general purpose financial statements are an integral part of this statement. - 5- GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY ExmBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES TheGriffin Regional Educational Service Agency (Agency) was established pursuant to the Official Code of Georgia Annotated Sections 20-2-270 through 20-2-274 for the purposes of providing shared services designed to improvethe effectiveness of educational programs and services of local school systems and for providing instructional programsdirectly to selected public school students in the state. Eachregional educational service agency is governed by a board. The number of members and terms of office are prescribed by the StateBoardof Education; provided, however, that at least one-thirdof 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 ofthe GeorgiaDepartment ofEducation. Thefinancial statements of the Agency havebeen prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and accountgroups 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 howto 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 Griffin Regional Educational Service Agency is determined to be a jointlygoverned 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 Griffin Regional Educational Service Agency are as follows: Butts County, Fayette County, Griffin-Spalding County, Henry County, Lamar County, Newton County, Pike County and Thomaston-Upson County. FUND ACCOUNTING The Agency usesfunds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating . transactions related to certain governmental functions or activities. - 6- GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. The general purpose financial statements account for all State, Federal and Other funds under control ofthe Agency, in compliance with generallyaccepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a regional educational service agency's general activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the Agency except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a regional educational service agency. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department ofEducation and from the Federal government to accomplish specific objectives and are required to be accounted for separately. FIDUClARY FUND TYPE - the agency fund used to account for assets held as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: AGENCY FUND - the fund used to account for assets in the Special Activities Account. ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired for use by the Agency. The Agency is prohibited by Georgia Law (0. C.G.A. 20-2-272 (b) from holding title to real property. GENERAL LONG-TERM: DEBT ACCOUNT GROUP - used to account for material accrued compensated absences. 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 - 7- GRIFFIN REGIONALEDUCATIONAL SERVICE AGENCY EXHIBIT "Oil NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balanceis considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Agencyfunds are purely custodial in nature and do not involve measurement of results of operations. Governmental funds are accounted for using the modified accrual basis of accountingunder which: Revenues are recognized whensusceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to payliabilities 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. Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. BUDGET The Griffin Regional Educational ServiceAgency's budget is a completefinancial plan for the Agency's fiscal year and is basedupon estimates of expenditures togetherwithprobable 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 Agencyat the aggregate level. The budget for governmental funds was prepared on a basis other than 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 budgetis then submitted, in accordance with provisions of the 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. - 8- GRIFFIN REGIONALEDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cashand cashequivalents consist of deposits (including savings and N.O.w. accounts) in authorized financial .institutlons. Georgia Laws authorize the Agencyto deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. RECEIVABLES Receivables consist of grant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed 'and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. INVENTORIES GOODS FOR RESALE Inventories are reported on the Combined Balance Sheet at cost (weighted average). The Agencyuses 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 reservationof fund balancewhich indicates that it does not constitute "available spendable resources" even though it is a component of net current assets. GENERAL FIXED ASSETS General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation hasbeen provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. COMPENSATED ABSENCES Compensated absences represent obligations of the Agency relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. - 9- GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RESERVED FUND BALANCES Reserved fund balances include $3,775.05 in unexpended funds received in prior years from the Georgia Department ofEducation for sick and personal leave to be paid to substitute personnel. These funds will be used for the original purpose until exhausted. INTERFUND TRANSACTIONS The Agency has the following types of interfund transactions: Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, 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 11 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, - 10 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 2: DEPOSITS (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State of Georgia, (4) Bonds, bills, notes, certificatesofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia, (5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principaland interest and debt obligationsissued 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 $377,473.34. 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 $ 175,346.88 2 150,713.88 3 51.412.58 Total $ 377.473.34 - 11 - GRIFFINREGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1996 Note 3: GENERALFIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: Balance July 1, 1995 Equipment s 665,709.81 Additions 44,135.49 Deductions BalanceJune 30, 1996 4.267.84 s 705,577.46 Note 4: RISK MANAGEMENT The Agency is exposed to various risksofloss related to torts; theft of, damageto, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation. The Agencyhas obtained commercial insurance for risk of loss associated with torts, assets and job related illness or injuries to employees. The Agency has neither significantly reduced coverage for these risks nor incurred losses (settlements) whichexceeded the Agency's insurance coverage in any ofthe past three years. The Agency has electedto self-insure for all losses related to natural disaster and errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. 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 General Fundwithexpenditure andliability beingreported when it is probablethat a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability 1995 $ 0.00 $ 6,948.15 $ 6,948.15 $ 0.00 1996 $ 0.00 $ 1,567.00 $ 1,567.00 $ 0.00 " - 12 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY EXIllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 5: GENERAL LONG-TERM DEBT The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows: Compensated Absences Balance July 1, 1995 $ 80,186.85 Additions 7.474.77 Balance June 30, 1996 $ 87,661.62 Note 6: ON-BEHALF PAYMENTS The Agency has recognized revenues and expenditures in the amount of $20,872.60 for health insurance paid on the Agency's behalfby the following State Agency: Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$20,872.60 Note 7: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Agency believes that such disallowances, if any, will be immaterial to its overall financial position. Note 8: ACCUMULATED EMPLOYEES' LEAVB The Agency's administrative staff and certain other full-time employees earn one and one-quarter days per month ofvacation. A maximum of fifteen days ofunused vacation may be accumulated and carried over at the end ofthe next fiscal year. Upon termination, employees will be paid at the rate of 1/230 of their annual salary for each day ofunused vacation up to a maximum often days. Persons employed by the Agency prior to July 1, 1994, who have accrued vacation in excess of fifteen days as of June 30,1995, should use that excess vacation by June 30, 1999. Persons who terminate employment with the Agency prior to June 30, 1999, and have unused vacation in excess often days will be paid 1/230 of their annual salary for each day of unused vacation. See Note 1 - Compensated Absences - 13 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY EXlllBIT liD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS .JUNE 30. 1996 Nme9: RETffiEMENTPLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by Agency's are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligiblefor 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 of the 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 annuallyan amount equal to the member'sservice retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member'scontributions are refunded with interest. The Agency's payroll for employees covered by TRS for the year ended June 30, 1996, was $1,490,064.80; total payroll was $1,567,993.76. TRS CONTRIBUTIONS REQUffiED 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 ofretum on investments) was 7.50%. Total contributions made during fiscal year 1996 amounted to $250,480.55, of which $175,976.78 was made by the Agency and $74,503.77 was made by employees. These contributions represented 11.81% (Agency) and 5% (employees) of covered payroll. - 14 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 9: RETIREMENT PLANS 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 ofestimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligationwas adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows: Total pension benefit obligation $17,442,607,000.00 Net assets available for benefits, at cost 15,857,066,000.00 Unfunded pension benefit obligation $ 1 585 541.000.00 The measurement ofthe total pension benefit obligationis based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Agency's contribution for the year ended June 30, 1996 of$175,976.78 was actuarially determined and represented .0290% 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 10: SURETY BONDS The Director, Dr. Hugh G. Stinchcomb, is bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 68328573, on which premium was paid through January 3, 1997. - 15 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996 ASSETS . Cash and Cash Equivalents Accounts Receivable Inventories LOTTERY PROGRAMS ELEMENTARY AND SECONDARY EDUCATION ACT TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES GEORGIA LEARNING RESOURCES SYSTEM SAFE AND DRUG-FREE SCHOOLS $ 100.85 $ 2,764.28 $ 5,174.76 $ 18,846.49 5,723.51 Total Assets $ 100.85 $ 2,764.28 $ 5,174.76 $ 24,570.00 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Inventory for Resale Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 100.85 $ $ 100.85 $ $ 0.00 $ $ 0.00 $ $ 100.85 $ 483.02 $ 2,281.26 2,764.28 $ 384.76 $ 24,570.00 384.76 $ 24,570.00 $ 4,790.00 $ 4,790.00 0.00 0.00 $ 0.00 0.00 $ 4,790.00 $ 0.00 2,764.28 $ 5,174.76 $ 24,570.00 See notes to the general purpose financial statements. - 16 - EXHIBIT"E" VOCATIONAL EDUCATION FEDERAL JOB TRAINING PARTNERSHIP ACT/SERVICE DELIVERY AREA NO. 5 DAR.E. PROGRAM NATIONAL SCIENCE FOUNDATION GRANT MEMBER SERVICE FUND TOTALS JUNE 30, 1996 JUNE 30, 1995 .. $ 0.00 $ 16,091.30 $ 2,283.17 $ 3,214.77 $ 48,475.62 $ 90,940.81 7,103.50 23,477.81 $ 357,259.05 393,563.87 266,407.09 579,234.68 579,234.68 590,966.34 $ 0.00 $ 16,091.30 $ 9,386.67 $ 26,692.58 $ 936,493.73 $ 1,021,274.17 $ 948,314.24 $ 62,643.86 $ 62,643.86 $ 23,615.80 $ 16,091.30 $ 9,386.67 $ 3,107.67 199,755.38 253,879.65 218,992.69 7,071.58 9,352.84 30,566.71 $ 16,091.30 $ 9,386.67 $ 10,179.25 $ 262,399.24 $ 325,876.35 $ 273,175.20 $ 0.00 $ $ 0.00 $ 0.00 $ 0.00 $ $ $ 0.00 0.00 $ 16,513.33 $ $ 579,234.68 16,513.33 $ 579,234.68 $ 0.00 94,859.81 16,513.33 $ 674,094.49 $ 21,303.33 $ 579,234.68 600,538.01 $ 94,859.81 695,397.82 $ 15,345.23 590,966.34 606,311.57 68,827.47 675,139.04 $ 0.00 $ 16,091.30 $ 9,386.67 $ 26,692.58 $ 936,493.73 $ 1,021,274.17 $ 948,314.24 -17 - GRIFFIN 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 School Administration Maintenance and Operation of Plant Other Support Services Enterprise Operations Other Operations of Non-Instructional Services Total Expendttures Excess of Revenues over (under) Expendttures OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expendttures and Other Financing Uses FUND BALANCE JULY 1 Inventory - Net Change in Period Inventory for Resale LOTIERY PROGRAMS ELEMENTARY AND SECONDARY EDUCATION ACT TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES GEORGIA LEARNING RESOURCES SYSTEM SAFE AND DRUG-FREE SCHOOLS $ 66,094.00 $ $ 66,094.00 $ $ 32,816.00 75,674.00 126,805.00 $ 127,723.51 32,816,00 $ 202,479,00 $ 127,723,51 $ 64,000,00 $ 2,094,00 $ 37,938.29 36,984,00 $ 66,608,51 18,612,12 110,474,52 3,493.85 84,869,13 4,916.09 $ 66,094.00 $ $ 0,00 $ $ $ $ 0.00 $ 0,00 36,984.00 $ -4,168.00 $ 199,189.00 $ 127,723.51 3,290,00 $ 0.00 4,168.00 $ 4,168.00 $ -0.06 -0.06 0,00 $ 3,289.94 $ 0.00 0.00 1,500.06 0,00 FUND BALANCE JUNE 30 $ See notes to the general purpose financial statements. 0.00 $ -18- 0.00 $ 4,790.00 $ _ _...0...0;0,~ EXHIBIT"F" VOCATIONAL EDUCATION FEDERAL JOB TRAINING PARTNERSHIP ACT/SERVICE DELIVERY AREA NO. 5 DAR.E. PROGRAM NATIONAL SCIENCE FOUNDATION GRANT MEMBER SERVICE FUND TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 $ 10,on.03 $ $ 10,on.03 $ 0.00 $ 0.00 $ 85,231.00 $ 199,099.02 -----$ 85,231.00 $ 199,099.02 $ $ 264.543.13 264,543.13 $ 141,768.00 $ 386,723.72 581,751.56 1,787,974.20 264,543.13 166,616.35 988,062.69 $ 2,341,314.27 $ 10,701.00 $ 8,154.03 $ 18,855.03 $ $ -8,n8.00 $ $ 8,n8.00 8,n8.00 $ 0.00 $ 0.00 $----0.0-0 $ 0.00 $ 0.00 $ 0.00 $ 85,254.07 $ . 85,254.07 $ -23.07 $ 180,093.66 16,337.20 $ 196,430.86 $ 2,668.16 $ $ 35,563.41 202,947.38 238,510.79 $ 26,032.34 $ 112,639.29 $ 1,091,967.36 8,154.03 453,809.37 18,612.12 131,727.81 2,094.00 39,057.26 202,947.38 20,533.22 318,732.65 20,802.55 149,601.66 1,106.00 36,090.09 442,724.06 181,396.29 146,389.96 969,041.26 $ 2,409,343.84 19,021.43 $ -68,029.57 $ 23.07 $ 12,969.07 $ 4,044.87 -0.06 $ 12,969.01 $ _ _4..:,.0.:.4:.4,;"..8;,,7;;:~ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 2,668.16 $ 13,845.17 26,032.34 $ 659,793.81 31,990.44 $ 675,139.04 -63,984.70 637,403.66 -11,731.66 -11,731.66 101,720.08 0.00_ $ 16,513.33 $ 674,094.49 $ 695,397.82 $ 675,139.04 -19- GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1996 EXHIBIT"G" SPECIAL ACTIVITIES ACCOUNT ASSETS Cash and Cash Equivalents BALANCE JULY 1,1995 ADDITIONS DEDUCTIONS BALANCE JUNE 3D, 1996 $ 0,00 $ 662,47 $ 662.47 $==========0.=0=0= LIABILITIES Sales Tax $ 0.00 $ 662.47 $ 662.47 $ ===========0=.0=0= See notes to the general purpose financial statements. - 20- GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1996 Total Federal Financial Assistance The Agency had no major programs as defined by the Single Audit Act of 1984. (1) Expenditures for this program .nclude State and/or Other Funds. Expenditures are not maintained by fund source. (2) Expenditures on this program were not maintained by fund source. See notes to the general purpose financial statements. - 21 - s 610,437.72 $ 5.9;;.8;;.,::2;;,2;;;8;;.,;6,;;8,;;. GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY CASH AND CASH EQUIVALENTS JUNE 30, 1996 SCHEDULE "2" INTEREST BEARING ACCOUNTS First National Bank of Griffin, Griffin, Georgia N.O.W. Account (2.50%) First Union National Bank of Georgia, Griffin, Georgia N.O.W. Account (1.23%) Passbook Savings Account (2.00%) Nations Bank, . Atlanta, Georgia Money Market Account (Variable) $ 101.00 $ 27,882.93 21,193.57 49,076.50 73,231.11 $ 122,408.61 See notes to the general purpose financial statements. - 22 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY ACCOUNTS RECEIVABLE JUNE 30,1996 GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND Defense, U. S. Department of Teacher and Teacher's Aide Placement Program $ 7,808.45 $ . Education, Georgia Department of Federal Programs Safe and Drug-Free Schools $ 5,723.51 Human Resources, Georgia Department of Acquired Immunodeficiency Syndrome Comprehensive Health Education Program D.A.R.E. Program High Risk Youth Program 971.87 3,109.73 7,103.50 University of Georgia Research Foundation National Science Foundation Grant 23,477.81 Various Sources Reimbursement For Staff Development Sales and Services 4,436.72 357,259.05 TOTAL 7,808.45 5,723.51 971.87 7,103.50 3,109.73 23,477.81 4,436.72 357,259.05 $ 16,326.77 $ 393,563.87 $ -====4=0=9=,8=9=0=.6=4= See notes to the general purpose financial statements. - 23 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996 SCHEDULE -4- AGENCYIFUNDING GRANTS Education, Georgia Department of Other State Programs Alternative Programs Georgia Learning Resources System Health Insurance Mentoring Program Regional Educational Service Agencies Special Education Low Incidence Grant Staff Development Sex Education Grant Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Alternative School Program Education Technology Centers Safe Schools Grant CONTRACT Education, Georgia Department of Operation of an Instruction Training Technology Center GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND $ 246,350.00 $ 20,872.60 4,500.00 476,374.00 17,908.00 -370.57 85,714.00 $ 75,674.00 49,000.00 15,000.00 2,094,00 2,500,00 TOTAL 246,350.00 75,674.00 20,872.60 4,500.00 476,374.00 17,908.00 -370.57 85,714.00 49,000.00 15,000.00 2,094.00 2,500.00 $ 853,848.03 $ 141,768.00 $ ======9=9=5=,6=1=6=.=0=3= See notes to the general purpose financial statements. - 24 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996 SCHEDULE "5" Boards of Education Business Machine Repairs Butts County Fayette County Griffin-Spalding County Henry County Lamar County Newton County Pike County Thomaston-Upson County Membership Fees Butts County Fayette County Griffin-Spalding County Henry County Lamar County Newton County Pike County Thomaston-Upson County Psychological Services Butts County Staff Development Butts County Fayette County Griffin-Spalding County Henry County Lamar County Newton County Pike County Thomaston-Upson County Interest Earned Rei mbursements For Indirect Cost Special Revenue Fund For Staff Development Various Sources Sales and Services Audio-Visual Repairs Less: Purchases for Resale Business Machine Repairs Less: Purchases for Resale GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 8,427.80 27,327.80 24,854,32 21,957.60 4,482.12 14,608.60 7,652.96 16,688.76 67,425.67 58,673.72 63,512,17 56,574.36 65,684.85 40,684.28 40,332.20 42,381.84 51,731.04 4,399.75 2,207.54 7,491,88 1,640,88 2,236.20 8,303.44 2,194.95 2,862.35 5,136.28 $ 8,427.80 27,327.80 24,854.32 21,957.60 4,482.12 14,608.60 7,652.96 16,688.76 67,425.67 58,673.72 63,512.17 56,574.36 65,684.85 40,684.28 40,332.20 42,381.84 51,731.04 4,399.75 2,207.54 7,491.88 1,640,88 2,236.20 8,303.44 2,194.95 2,862.35 5,136.28 22,725.20 13,861.59 $ 27,319.12 -16,608.87 6,716.41 -3,077.67 22,725.20 13,861.59 27,319.12 -16,608.87 6,716.41 -3,077.67 - 25 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996 SCHEDULE "5" Sales and Services Computer Services Less: Purchases for Resale Copy Machine Repairs Less: Purchases for Resale Photocopy Services Supplies and Materials Less: Purchases for Resale Tuition Butts County Board of Education Griffin-Spalding County Board of Education Lamar County Board of Education Other GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 399,934.31 $ 399,934.31 -361,896.98 -361,896.98 59,183,48 59,183.48 -47,315.51 -47,315.51 $ 3,989.38 3,989.38 1,295,379.67 1,295,379.67 -1,095,111.31 -1,095,111.31 55,620,00 207,030,00 46,350,00 20,361,60 '20,48 55,620.00 207,030.00 46,350.00 20,382.08 $ 1,019,411,13 $ 264,543,13 $ 1,283,954.26 See notes to the general purpose financial statements. - 26 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996 SCHEDULE "6" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Other Purchased Services Supplies Energy Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures Nonoperating Costs Equipment Total Expenditures GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 1,195,217.88 $ 261,551.39 28,336.00 154,031.41 3,550.00 729.76 23,059.35 47,220.32 37,500.00 10,915.31 5,519.05 42,981.13 18,422.31 10,342.88 4,911.13 913.64 372,775.88 $ 61,719.53 10,511.91 252,384.76 7,050.35 27,150.00 4,646.81 81,661.42 65,12828 7,939.47 18,071.43 3,247.00 22,72520 2,729.88 1,567,993.76 323,270,92 38,847.91 406,416.17 3,550.00 729.76 30,109.70 74,370.32 37,500.00 15,562,12 87,180.47 108,109.41 26,361.78 28,414,31 8,158.13 22,725.20 3,643.52 3,874.10 31,299.34 35,173.44 $ 1,849,075.66 $ 969,041.26 $ 2,818,116.92 See notes to the general purpose financial statements. - 27 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT LOTIERY PROGRAMS YEAR ENDED JUNE 30, 1996 SCHEDULE ...,.. EXPENDITURES Operating Costs Professional and Technical Services Supplies Nonoperating Costs Equipment ALTERNATIVE SCHOOL PROGRAM EDUCATION TECHNOLOGY CENTERS SAFE SCHOOLS GRANT $ 35,000.00 9,151.76 $ 4,556.27 $ 4,848.24 10,443.73 $ 2,094.00 TOTAL 35,000.00 15,802.03 15,291,97 Total Expenditures $ 49,000.00 $ 15,000.00 $ 2,094,00 $ 6.6..,.0..9..4...0..0... See notes to the general purpose financial statements. - 28 - GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS YEAR ENDED JUNE 30,1996 BOARD MEMBER AD" DRESS GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY BOARD OF CONTROL Mr. Trigg Dalrymple, Chairman (*) Fayette County Board of Education 210 Stonewall Avenue Fayetteville, Georgia 30214 Dr. Lynn Batten (*) Griffin-Spalding County Board of Education P. O. Drawer N Griffin, Georgia 30224 Mr. Gary Boehmer (*) Henry County Board of Education P. O. Box 479 McDonough, Georgia 30253 Mr. John Brinks (*) 140 Rosewood Drive Fayetteville, Georgia 30214 Dr. Wendell Clamp (*) Newton County Board of Education P. O. Box 1469 Covington, Georgia 30269 Mr. James Crayton (*) Pike County Board of Education P. O. Box 386 Zebulon, Georgia 30295 Dr. Dennis Fordham (*) Butts County Board of Education 181 North Mulberry Street Jackson, Georgia 30233 Dr. James W. Jenkins (*) Lamar County Board of Education 103 Birch Street Milner, Georgia 30257 Mr. Frank King (*) Thomaston-Upson County Board of Education 205 Civic Center Drive Thomaston, Georgia 30286 Mr. M. C. Paget (*) P. O. Box 96 Jackson, Georgia 30233 Mr. Wallace Rhodes (*) 100 Oakdale Street Thomaston, Georgia 30286 - 29 - SCHEDULE "8" $ 500.00 500.00 500.00 GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS YEAR ENDED JUNE 30,1996 BOARD MEMBER ADDRESS Mr. Jimmy White (*) 140 Rosewood Drive Fayetteville, Georgia 30214 Total Griffin Regional Educational Service Agency Board of Control '. GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY ACADEMY BOARD (1) Ms. Carolyn Byrd, Chairman (*) 465 Lakeside Road Williamson, Georgia 30292 Dr. Lynn Batten (*) Griffin-Spalding County Board of Education P. O. Drawer N Griffin, Georgia 30224 Mr. Emest Battle (*) 826 Chestnut Drive Jackson, Georgia 30233 Dr. Dennis Fordham (*) Butts County Board of Education 181 North Mulberry Street Jackson, Georgia 30233 Mr. Horace Hightower (*) 111 B Street Barnesville, Georgia 30204 Dr. James W. Jenkins (*) Lamar County Board of Education 103 Birch Street Milner, Georgia 30257 Total Griffin Regional Educational Service Agency Academy Board (*) Denotes Board Members Serving as of June 30, 1996 Note: (1) The Griffin Regional Educational Service Agency Academy Board has primary responsibility for oversight of the Academy Program and its policies, personnel and finances. The Griffin Regional Educational Service Agency Board of Control has final authority for the program. See notes to the general purpose financial statements. - 30 - SCHEDULE "8" $ 500.00 $ 2,000.00 $ 500.00 550.00 500.00 $ 1,550.00 $ 3,550.00 SECTION II SUMMARY ANDSCHEDULE OF SALARIES ANDTRAVEL GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SUMMARY OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,1996 ~ SALARIES GENERAL FUND Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Total General Fund SPECIAL REVENUE FUND TOTAL PER FINANCIAL STATEMENTS (ACCRUAL BASIS) ADJUSTMENTS FOR ACCRUALS JUNE 30,1995 JUNE 30,1996 TOTAL PER SCHEDULE (CASH BASIS) $ 255,284.98 $ 30,572.50 $ -37,406.66 $ 248,450.82 44,199.86 407,912.57 161,491.57 79,502.04 50,371.20 196,455.66 4,247.00 19,627.70 -21,284.06 48,446.86 406,256.21 161,491.57 79,502.04 50,371.20 196,455.66 $ 1,195,217.88 $ 54,447.20 $ -58,690.72 $ 1,190,974.36 372,n5.88 -9,352.84 363,423.04 Total Salaries $ 1,567,993.76 $ 54,447.20 $ -68,043.56 $ 1,554,397.40 TRAVEL GENERAL FUND Instruction $ Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Total General Fund $ SPECIAL REVENUE FUND 1,661.27 $ 1,547.33 20,005.73 4,856.38 265.29 28,336.00 $ 10,511.91 0.00 $ s 0.00 0.00 $ 0.00 $ 1,661.27 1,547.33 20,005.73 4,856.38 265.29 28,336.00 10,511.91 Total Travel $ 38,847.91 $ 0.00 $ .....=====0,;,;.00= $ 38,847.91 NAME ANDREWS,KIM ANDREWS,ROBIN A ANDREWS,ROBIN A BARBER,DANA BEVIL,LINDA F BLUBAUGH,M JAMIE BLUBAUGH,M JAMIE BROOKS,CAROL BUNN,RONALD BURGREEN,LAUREN W CLARK,KAY COPELAND,JACQUELINE CRUMBLEY ,MARY CRUSE,CHARLES R DUDEK,M JAN DUNN,CLYDE D DUNN, CLYDE D DYE,PATRICIA G DYE,PATRICIA G FINLEY,JOHN H FINLEY,JOHN H FLETCHER, JUANITA FULLER,JONATHAN GARNER,TOYE H GARRISON,RONNIE D GARRISON, RONNIE D GEE,DENNIS R GEE, DENNIS R GEE,DENNIS R GOUKLER,SANDRA A GOUKLER,SANDRA A GOUKLER,SANDRA A GRAVES,ARTHUR B GREENE,LOUELLA A HALL,JAMES W HALL,JAMES W HART,CARALIE R HART, CARALI E R HARVEY,DIANE B HARVEY.DIANE B HEAD. RONALD W HEAD,RONALD W HINDS. STANMORE J HINDS,STANMORE J HOBSON,CHARLES DAVID HOGAN,DENISE P HOGAN,DENISE P JACKSON,GARY P JAMI SON.LI SA M JONES,REBECCA W KENDALL,BRENDA J LAWRENCE,IRIS MATTHEWS,ANDREA L MATTHEWS,ANDREA L MCGAVIN. JOHN T MCGAVIN,JOHN T MCGAVIN,JOHN T MCLUCAS,JOHN L MCNEAL,VICKEY MCNEAL.VICKEY MOORE.ALTON A MOORE.ALTON A PACE,BOWMAN S PARKER.LAFAIRRA PARKS.DENNIS MICHAEL PARKS.GARY L GRIFFIN R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996 TITLE CATEGDRY INSTRUCTION $ INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF INSTRUCTION SUPPORT SERVICES - BUSINESS INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF INSTRUCTION INSTRUCTION INSTRUCTION INTERNAL SERVICES FUND INSTRUCTION GENERAL ADMINISTRATION INTERNAL SERVICES FUND GENERAL ADMINISTRATION SUPPORT SERVICES - BUSINESS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION INSTRUCTION SUPP SRVS - IMPROV INSTR & ED MED SRVS INSTRUCTION SCHOOL ADMINISTRATION INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND SUPPORT SERVICES - INSTRUCTIONAL STAFF MAINTENANCE & OPER. OF PLANT SERVICES INTERNAL SERVICES FUND SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS SUPPORT SERVICES - INSTRUCTIONAL STAFF SPECIAL REVENUE FUND - OTHER PROGRAMS MAINTENANCE & OPER. OF PLANT SERVICES INTERNAL SERVICES FUND INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF SUPP SRVS - IMPROV INSTR & ED MED SRVS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS MAINTENANCE & OPER. OF PLANT SERVICES SUPPORT SERVICES - PUPIL SERVICES INTERNAL SERVICES FUND SCHOOL ADMINISTRATION INSTRUCTION SUPP SRVS - IMPROV INSTR & ED MED SRVS FEDERAL PROGRAMS SUPPORT SERVICES - INSTRUCTIONAL STAFF GENERAL ADMINISTRATION SPECIAL REVENUE FUND - OTHER PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF GENERAL ADMINISTRATION MAINTENANCE & OPER. OF PLANT SERVICES MAINTENANCE & OPER. OF PLANT SERVICES INSTRUCTION MAINTENANCE & OPER. OF PLANT SERVICES INTERNAL SERVICES FUND SALARIES AMOUNT 282.00 '19.467.50 $ 192.50 86.00 22,260.00 30,081.64 192.50 5,994.01 430.00 42,023.14 322.50 2,537.00 43.00 25,970.04 301.00 55,398.48 28,111.20 27,685.16 27,685.06 1.118.00 752.50 20,335.44 60,422.04 26.347.00 55.00 340.00 23,099.02 110.00 110.00 2.988.00 27,680.50 34,988.82 9,832.50 33,564.90 15,039.79 30,814.90 11,406.30 31,336.98 9,149.58 24.784.00 192.50 53.159.70 11,130.00 11.130.00 32.330.04 4,247.00 29.056.44 19,080.00 21.50 1,609.22 41.861.00 1,235.75 50.243.89 12.696.00 55,398.48 44.721.16 192.50 26.457.60 32.161.44 43.00 30.210.00 3.038.00 TRAVEL EXPENSE 488.53 288.59 1,099.65 864.93 304.75 1,234.45 1,837.08 53.50 20.00 227.50 233.75 784.17 2,917.25 2.463.84 216.70 1,605.79 703.25 19.50 2,252.79 190.25 37.79 2,388.93 198.50 1.460.18 854.05 3.264.37 378.90 29.75 NAME PHILLIPS,EDDIE JANE PHILLIPS, EDDIE JANE ,POLLARD,R 0 QUARTERMAN,JEANELL T 'RIVERS,DOUGLAS L RIVERS, SUSAN S RIVERS, SUSAN S SANDERS,KENARD SANDERS,KENARD SHELLEY,LISA LYLE SIZEMORE,RODNEY C SIZEMORE,RODNEY C SPURGEON,JOYCE E SPURGEON,JOYCE E SPURGEON, JOYCE E 'STINCHCOMB, HUGH G STINCHCOMB,HUGH G TALMADGE,DELORIS B TUGGLE,JUNE K TURNER, WILLIAM R TURNIPSEED,W KEITH WELLMAKER,LASONYA WHITFIELD, RICHARD B WHITNER, TRELL WILSON,DONNA P WILSON,JANE S WIMBUSH,MONTINA WRENSEN,GEORGE M GRIFFIN R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL 2 YEAR ENDED JUNE 30, 1996 TITLE CATEGORY SALARIES AMOUNT TRAVEL EXPENSE INSTRUCTION $ SUPPORT SERVICES - INSTRUCTIONAL STAFF INSTRUCTION INSTRUCTION INTERNAL SERVICES FUND GENERAL ADMINISTRATION FEDERAL PROGRAMS INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF SUPP SRVS - IMPROV INSTR & ED MED SRVS INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF SUPPORT SERVICES - INSTRUCTIONAL STAFF GEORGIA LEARNING RESOURCES SYSTEM FUND FEDERAL PROGRAMS DIRECTOR GENERAL ADMINISTRATION INSTRUCTION GENERAL ADMINISTRATION SUPP SRVS - IMPROV INSTR & ED MED SRVS INTERNAL SERVICES FUND INSTRUCTION MAINTENANCE & OPER. OF PLANT SERVICES INSTRUCTION GENERAL ADMINISTRATION INSTRUCTION INSTRUCTION SUPPORT SERVICES - PUPIL SERVICES 22,383.00 192.50 495.00 180.00 11,812.50 1,766.64 19,433.40 23,160.50 $ 192.50 45,509.12 26,634.50 192.50 1,250.00 48,514.00 4,463.48 69,628.32 86.00 21,200.04 53,347.40 17,504.46 86.00 8,970.78 172.00 18,652.68 129.00 688.00 44,199.86 190.75 3,307.91 41.25 1,000.00 2,727.73 2,196.77 1,417.43 1,547.33 TOTALS $ 1,554,397.40 $ 38,847.91 BOED SECTION III COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 April 24, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Director and Members of the Griffin Regional Educational Service Agency Board ofControl COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Griffin Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated April 24, 1997. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to Griffin 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 of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 96CRL-IO This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:gp 96CRL-IO Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 April 24, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Director and Members of the Griffin Regional Educational Service Agency Board ofControl SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Griffin Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated April 24, 1997. We have applied procedures to test the Griffin 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) Drug-Free Workplace Act (3) Cash Management (7) Audit Follow-Up/Resolution (4) Federal Financial Reports (8) Administrative Requirements Our procedures were limited to the applicableprocedures 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-50 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Griffin Regional Educational Service Agency had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:gp 96CRL-50 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATEAUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, s.w, Suite 214 Atlanta, Georgia 30334-8400 April 24, 1997 -.HonorableZell Miller, Governor Membersofthe General Assembly Members of the State Board ofEducation and Director and Members of the Griffin Regional Educational ServiceAgency Board of Control SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REOUIREMENTS APPLICABLE TO NONMAJORFEDERAL FINANCIAL ASSISTANCE PROGRAMTRANSACTIONS Ladies and Gentlemen: We haveaudited the general purpose financial statements of the Griffin Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated April 24, 1997. In connection with our audit of the fiscal year 1996 general purpose financial statements of the Griffin Regional Educational Service Agency and with our consideration of the Agency's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (OMB) CircularA128, "Audits ofState 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 CircularA-128, we haveperformed 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 Agency's compliance withthese requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance withthe requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Griffin Regional Educational Service Agency had not complied, in all material respects, with those requirements. 96CRL-120 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:gp 96CRL-120 Claude L. Vickers State Auditor SECTION IV INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 April 24, 1997 ', Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Director and Members of the Griffin Regional Educational Service Agency Board ofControl REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Griffin Regional Educational Service Agency as of and for the year ended June 30, 1996, and have issued our report thereon dated April 24, 1997. We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. . The management of the. Griffin 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 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 of the general purpose financial statements of the Griffin Regional Educational Service Agency for the year ended June 30, 1996, we rbtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design 96ICL-l ofrelevant policies andprocedures and whetherthey havebeen 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 andnot to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Our consideration of the internal control structurewould not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduceto a relatively low level the risk that errors or irregularities in amountsthat would be material in relation to the general purpose financial statements being audited mayoccurand not be detected within a timely period byemployees in the normal course ofperforming theirassigned functions. We noted no matters involving the internal control structure and its operationthat we considerto be material weaknesses as defined above. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:gp 96ICL-l Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 April 24, 1997 .Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education and Director and Members ofthe Griffin Regional Educational Service Agency Board of Control SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Griffin Regional Educational Service Agency as of and for the year ended June 30,1996, and have issued our report thereon dated April 24, 1997. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits ofState 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. In planning and performing our audit for the year ended June 30, 1996, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 24, 1997. The management of the Griffin Regional Educational Service Agency is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the 96ICL-13 preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purposes of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS SPECIFIC REQUIREMENTS (1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (5) Allowable Costs/Cost Principles (1) Types of Services Allowed or Unallowed (2) Eligibility (3) Reporting (4) Applicable Special Tests and Provisions (6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (5) Other Requirement Claims for Advances and Reimbursements (8) Administrative Requirements For all of the internal control structure categories listed above, we obtained an understanding of the design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1996, the Griffin Regional Educational Service Agency had no major Federal financial assistance programs and expended 69% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs: Safe and Drug-Free Schools Program National Science Foundation Grant 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 the aforementioned nonmajor Federal financial assistance programs. 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. 96ICL-13 Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employeesinthe normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:gp 96ICL-13 GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30. 1996 ~ PRIOR YEAR AUDIT FOLLOW-UP / RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Deleted Audit Control Number 8624-95-01 The audit report for the year ended June 30, 1995, noted that a review of cash management procedures for the Job Training Partnership Act program (CFDA 17.250) disclosed that cash draws were made in advance ofimmediate cash needs, resulting in the accumulation of excessive balances. During the year under review, the Agency transferred the remaining balance of this account to the Georgia Department of Labor and subsequentlyclosed the Job Training Partnership Act program. Therefore, this finding is considered deleted and will no longer appear in subsequent audit reports. AUDIT FOLLOW-UPIRESOLUTION Failure to File Final Close-Out Financial Reports Federal Financial Assistance Audit Control Number 8624-95-02 The audit report for the year ended June 30, 1995, noted that the Agency failed to file final close-out reports for the Job Training Partnership Act program (CFDA 17.250) as required by guidelines established by the Georgia Department ofLabor. During the year under review, the Agency closed this program; however, the Agency failed to submit final close-out reports to the Georgia Department ofLabor. Appropriate procedures should be implemented by the Agency to ensure that the Job Training Partnership Act program close-out financial reports are submitted as required. AUDIT FOLLOW-UP / RESOLUTION Inadequate Accounting Records Federal Financial Assistance Finding Deleted Audit Control Number 8624-95-03 The audit report for the year ended June 30, 1995, noted that accounting records for the Job Training Partnership Act program (CFDA 17.250) were not adequately segregated to ensure identification of revenues and expenditures. During the year under review, the Agency closed the Job Training Partnership Act program. Therefore, this finding is considered deleted and will no longer appear in subsequent audit reports. - 1- GRIFFIN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30. 1996 CURRENT YEAR CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 8624-96-01 A review of cash management procedures for the Safe and Drug-Free Schools Program (CFDA 84.186) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1996, the program had an average cash balance of$9,71OA1 with excessive ending monthly cash balances in seven months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Agency. Note: The Griffin Regional Educational Service Agency was provided an opportunity to include pertinent comments from the Agency's management concerningthese audit findings, conclusions and recommendations. The Agency has elected not to provide comments for inclusion in this report. - 2-