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REVIEW REPORT STATE OF GEORGIA NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY WINTERVILLE, GEORGIA YEAR ENDED JUNE 30, 1997

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

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

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

12

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

13

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

14

2 SCHEDULE OF STATE REVENUE

15

3 SCHEDULE OF SALARIES AND TRAVEL

16

SECTIONI1 AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

NORTHEAST GEORGIA 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 9, 1998

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe State Board of Education
and Director and Members ofthe Northeast Georgia 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 financial statements (Exhibits A through D) of Northeast Georgia 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 financial statements is the representation of the management ofNortheast Georgia 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 fmancial 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-l

Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the fmancial 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 th~ inquiries and analytical procedures applied in the review of the financial statements, and except for the effects ofthe matters discussed in the paragraph above, we are not aware of any material modifications which should be made thereto.
Respectfully submitted,

CLV:jy 97ARL-RESA-l

Claude L. Vickers State Auditor

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1997

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

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

$ 229,499.73

$ 502,550.40 $ 133,437.95 $ 635,988.35

509,856.40

57,517,94

57,517.94

82,313,55

$

560,068.34 $

133,437,95 $

693,506,29 $

821,669,68

Total Liabilities and Fund Equity $

560,068.34 $

133,437.95 $

693,506.29 $

821,669.68

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

NORTHEAST GEORGIA 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

$ 302,681.47 $

3,958.60 $ 306,640,07 $ 283,089,30

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

NORTHEAST GEORGIA 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 General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Enterprise Services
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 Net Change in Period
Inventories for Resale

GENERAL FUND

BUDGET

ACTUAL

$ 1,077,599,21 $ 1,123,942,94 315,419,00
2,728,784.78 2,249,192.22
$ 4,121,802.99 $ 3,373,135.16

$ 536,670.90 $ 541,724.67

820,354.50 1,153,622.92
250,173.11 82,984.20 168,680.62

877,352.31 1,075,369.42
238,607.43 82,826.64 140,088.08

367,078.20 798,285.47

110,341.60 269,286.00

$ 4,177,849.92 $ 3,335,596.15

$ -56,046.93 $ 37,539.01

$

8,259.39 $

-8,259.00

$

0.39 $

7,310.21 7,310.21

$ -56,046.54 $ 44,849.22

255,059.81

282,627.86

26,016.22

-24,795.61

FUND BALANCE JUNE 30, 1997

$ 225,029.49 $ 302,681.47

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,790,759,00 $ 1,584,464.13

482,605.00

391,692.90

205,051.95

406,260.36

$ 2,478,415.95 $ 2,382,417.39

$ 1,191,236.95 $ 1,029,865.57

578,853.00 97,891.84
389,906.60 8,731.00
157,324.00 324.00
54,610.00

464,687.09 79,230.51
387,802,28 8,730.78
143,856.21 324.00
257,113.58

$ 2,478,877.39 $ 2,371,610.02

$

-461.44 $ 10,807.37

$

0.00

$

-7,310.21

$

0.00 $ -7,310.21

$

-461.44 $

7,770.01

-7,308.57

3,497.16 461.44

$

0.00 $ =====3~,9=5=8.=60=

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

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Northeast Georgia 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 desi~ed to improve the effectiveness of educational programs and services of local school systems and for providing instructional programs directly to selected public school students in the state~
Each regional educational service agency is governed by a board. The number ofmembers and terms ofoffice are prescribed by the State Board of Education; provided, however, that at least one-third of the membership of each Board shall be individuals who hold no other public office, who are not employees of any local unit of administration, and who are not employees ofthe Georgia Department of Education.
The members ofthe Board are elected by an annual caucus of an equal number ofmembers of local boards of education from the respective member local school systems. Each Board appoints and contracts with a director ~ho 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 of the primary government ofthe State of Georgia. Inclusion in the State's financial reporting entity is based on application of criteria defined 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 financial statements account for all State, Federal and Other funds under control of the Agency, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
-5-

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997
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 fmancial 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 fmancing 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.
BUDGET
The Northeast Georgia 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 aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
-6-

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1997
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the Agency's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget.
This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA
Section 20-2-167, to the Georgia Department ofEducation. 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 EQIDVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized fmancial 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.
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 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.
INTERFUND TRANSACTIONS
The Agency has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
-7-

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXlllBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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
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 ofthe 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,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
-8-

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997

Note 2: DEPOSITS

(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 $416,373.55. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 Category 2 Category 3 -

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 Agencyis name. Cash collateralized with securities held by the pledging fmancial institution's trust department or agent in the Agency's name. 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

$ 173,939.88

2

242,433.67

3

0.00

Total

$ 416.373.55

Note 3: RISK MANAGEMENT

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

The Agency has obtained commercial insurance for risk of loss associated with torts, assets, and errors or omissions. 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.

- 9-

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

Note 3: RISK MANAGEMENT

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

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

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

1996 1997

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

415.00 $

5.330.00 $

4.925.00 $

$

820.00 $

1.998.19 $

2.818.19 $

820.00 0.00

The Agency participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Agency pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

Note 4: ON-BEHALF PAYMENTS

The Agency has recognized revenues and expenditures in the amount of$71,339.55 for health insurance and retirement contributions paid on the Agency's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $70,894.55

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $445.00

- 10 -

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

Note 5: CONTINGENT LIABILITIES

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

Nore6: RETrnEMENTPLANS

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 fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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%

$ 387,422.04 $ 356,636.39 $ 338,545.04

- 11 -

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS JUNE 30,1997 JUNE 30,1996

$

300,45

$

300.45 $

475.93

42,294.46 $ _ _9~1..:..,1;..;4.;;..3';..;..49.;;..

133,437.95

361,570.36

$

42,594.91 $

91,143.49 $ 133,738.40 $ 362,046.29

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts ~ayable

$

Salaries Payable

Expired Grant Balances Payable

Total Liabilities

$

FUND EQUITY

Fund Balances Reserved For Continuation of Federal Programs $ For Continuation of State Programs Unreserved Undesignated

Total Fund Equity

$

$ 7,842.20 10,890.55 19,903.56 38,636.31 $
3,958.60
0.00 $ 3,958.60 $

19,852.21 $ 48,532.50 22,758.78
91,143,49 $

19,852.21 $ 56,374.70 33,649.33 19,903,56
129,779.80 $

115,680.63 51,782.67
186,799.39 7,322,16
361,584.85

$
0.00 0.00 $

3,958.60 $
0,00
3,958.60 $

456.84 4.60
461,44

Total Liabilities and Fund Equity $

42,594.91 $

91,143.49 $ 133,738.40 $ 362,046,29

See notes to the general purpose financial statements.

- 12-

NORTHEAST GEORGIA 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 General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Operating Transfers Out
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$ 1,584,464,13 $ 1,584,464.13 $ 1,767,518.61

$ 391,692,90

391,692.90

339,503.04

406,260.36

406,260.36

172,060.83

$ 391,692.90 $ 1,990,724,49 $ 2,382,417.39 $ 2,279,082.48

$

24,000,35 $ 1,005,865.22 $ 1,029,865,57 $ 1,163,912.31

221,491.11 66,890.20 63,319.23
9,583.01
2,907,24

243,195,98 12,340,31
324,483.05 8,730.78
134,273,20 324,00
254,206,34

464,687.09 79,230,51
387,802.28 8,730.78
143,856.21 324.00
257,113.58

501,751.47 69,589.42 338,956.90
8,361.80 110,326,96
3,564.20 82,337.58

$ 388,191.14 $ 1,983,418.88 $ 2,371,610,02 $ 2,278,800.64

$

3,501.76 $

7,305,61 $

10,807.37 $

281.84

$

-7,310.21 $

-7,310.21

$

3,501.76 $

456.84

-4.60 $ 4.60

3,497.16 $ 461.44

281.84 179.60

FUND BALANCE JUNE 30

$

3,958.60 $

0.00 $

3,958.60 $ =====46~1==.44==

See notes to the general purpose financial statements.

- 13-

..

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

SCHEDULE "1"

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

YEAR ENDED JUNE 30, 1997

Total Federal Financial Assistance

$ 391,692.90 $=====3:=88:::l:,=19=1=,1::::4

* This program has been defined as a major program on a statewide basis in accordance with OMS Circular A-133. Internal control and compliance testing for this program has been conducted at other organizational units of the State of Georgia.
The Agency did not provide Federal Assistance to any subrecipient.

See notes to the general purpose financial statements. - 14 -

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

GRANTS

Education, Georgia Department of

Vocational Education

$

Other State Programs

Georgia Learning Resources System

Health Insurance

Regional Educational Service Agencies

Severely Emotionally Disturbed

Supervision and Assessment of Student and

Beginning Teachers and Performance-

Based Certification

145,046.00
$ 70,894.55 638,650.00

$ 68,722.00
1,515,742.13

85,208.00

Office of Treasury and Fiscal Services Public School Employees Retirement

445.00

CONTRACTS Education, Georgia Department of Georgia Leadership Evaluation Georgia Teacher's Conference Resource Guide for Staff Development Instructional Training Technology Center

24,342.66 28,968.73 12,000.00 118,388.00

TOTAL
145,046,00 68,722.00 70,894.55 638,650,00 1,515,742.13
85,208.00
445.00
24,342.66 28,968.73 12,000.00 118,388,00

$ 1,123,942.94 $

1,584,464.13 $ 2,708,407.07

See notes to the general purpose financial statements. - 15 -

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1997

SCHEDULE "3"

PERSONNEL
AARON,LYDIA E AKRIDGE,BARNEY R AKRIDGE,BARNEY R ALLEN,BESS ROWAND ALLEN,BESS ROWAND ALLEN,JUDITH C ARNOLD,PATSY J BAILEY,GREGORY L BANKSTON,EDDIE BARTON,KATHY MADDOX BARUCH,FELISSA P BASTIAN,BARBARA B BEASLEY,GEORGIA BLAIR BEASLEY,SAMMY T JR BLANTON,NORIKA WYATI BLOODSAW,KENYA 0 BOLDEN,CARL S BOSTIAN,ILONA INGRID BOSWELL,STEPHANIA 0 BOWMAN,JAY L BRADFORD,MARY A BRANNON,DIANE SMALL BRAY,CINDY G BROGDON,JOCELYN E BROOKS,SARAH LYNN BROWN,STEPHANIE REGINA BRUNSON,BARBARA F BURGESS,MARGARET FOWLER BURNETIE,CHRISTOPHER L BURNETIE,PAUL E JR BUTLER,KATHERINE L CALLAWAY,CINDY ALICE CALLAWAY,RODDERICK T CAMPBELL,JOHN WILLIE CARMICHAEL,SHIRLEY A CARTER,MARTHA S CARTER,MARY K CARTHERN,PAULA J CARVELL,PAMELA CHAVEZ,MICHAEL S CIRAVAL,KENNETH CLARK,VIRGINIA 0 COOK,SUSAN H COOK,SUSAN H CORNISH,MARTHA SMITH COSTIN,GREGG JAMES COX,JOANN COX,TORES VALLAY CSEH,LORI ELIZABETH DALTON,CURRIE SHANADORE DAVIS,CARL III DAVIS,TARA L DAVIS,THOMAS L DEATON,JENNIFER KRISTINA DICK,JUDITH S DICKS,DENNIS ARTHUR DODSON,JON MARK DONOVAN,JENNIFER L DUNCAN,WILLIAM D EATON,JOANNA WOOD EDWARDS,TONY R EIDELL,JARRETI M ELDER,MARY ANN ELROD,BARBARA OWENS ELROD,BARBARA OWENS

PROGRAM
FEDERAL PROGRAMS DIRECTOR GENERAL ADMINISTRATION SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND-OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS FEDERAL PROGRAMS FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS FEDERAL PROGRAMS SPECIAL REVENUE FUND OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS FEDERAL PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND SPECIAL REVENUE FUND - OTHER PROGRAMS MAINTENANCE & OPER. OF PLANT SERVICES FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS 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 FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND FEDERAL PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS GENERAL ADMINISTRATION SPECIAL REVENUE FUND - OTHER PROGRAMS

SALARIES

$

13,852.93

76,260.40

$

2,500.00

65,955.60

40,369.09

3,556.40

12,861.32

80.00

5,436.58

2,121.00

5,986.54

56,013.20

14,036.95

45.00

421.23

8,467.48

14,040.04

13,429.20

13,710.14

43,641.41

39,622.07

21,976.07

41.56

29,081.84

28,602.43

20,751.66

24,503.10

21,680.48

62,230.60

57,706.34

54,343.73

13,536.91

4,692.48

8,553.00

60,455.60

2,200.46

3,386.45

14,514.04

1,863.20

49,765.66

40.00

6,596.61

12,202.36

2,818.85

23,880.82

45.00

13,809.50

16,273.87

505.20

14,649.50

29,297.00

223.16

2,067.76

38,685.00

18,679.53

12,069.12

22,402.30

21,282.10

29,327.36

20,727.12

6,745.36

20,880.00

18,943.39

6,111.05

TRAVEL
2,354.38 3,100.96 1,153.50
17.00 43.50
3,334.89
2,672.50 456.00 296.00 145.00
3,030.01 30.00 350.00 16.50
3,435.07 3,072.75 1,339.87
2,641.86
842.25
351.00 272.25
946.00
77.50
2,194.25 322.25 145.00 89.75

-16 -

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,1997

SCHEDULE "3"

PERSONNEL
EUDY,MICHAEL DEREK FAIN,KAREN HELTON FAMBROUGH,CYNTHIA C FlETCHER,GINA K FOREIT,IVETTE FERNANDEZ FORTSON,RICHARD FRANTZ,JOANNE WHITTEMORE FRANTZ,PEGGY PAYNE FREE,RUBY ANN GARNER,THURMAN GEISLER,CAROLYN E GORDON,THOMAS 0 JR GOUGE,SALLY R GRANGER,MARGOT ELISABETH GREEN,FREDDIE P GRESHAM,JOHN L GRIMES,DEBORAH ESTEPP GUSTAFSON,ELAINE 0 HANDLEY,CANDACE M HARDEGREE,DEBORAH KAY HARPER,LARRY 0 NEAL HARRIS,ANGELA BURNETT HARRIS,CYNTHIA ANN HICKS,MATTHEW T HOGG,JAMES E HUFF,SWADE T HUMPHREY,CRAWFORD L INNECKEN,JOYCE JACKSON,BEVERLY D JENKINS,JAMES SAMUEL JR JONES,CHARLES W JONES,COURTNEY TORRON JONES,EFFIE MAE JONES,JOHNNY JR JONES,JOHNNY JR JUSTICE,JENNIFER WILLIAM KELLEHER,ROBERT M KENNEY,KAREEM DESHAWN KESLER,TERESA 0 KING,JUANITA KLEIMAN,MATTHEW E KLEIN,L1SA LAKLY,DANIEL STEVEN LAKLY,DANIEL STEVEN LEDDY,CONNIE V LOEBL,JULIE HOPE LONG,ANN LONG,KELLY LOWRING,ABBIE N LUKE,JOHN W JR LUMPKIN,L1NDA MARIE MARTIN,ROSE MARY MAYNARD,TIMOTHY H MBABA,VICTOR MCCRARY,NATASHA WALKER MCLEROY,JANICE B MERCER,BRENDA B MERCER,BRENDA B MERRITT,KENNETH B MILLER,KAREN ABADIE MILLER,RALPH E MINER,JULIE KAY MONK,BOBBIE HEATON MORRISON,DIANNE RUFF MORRISON,DIANNE RUFF

PROGRAM
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 FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS 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 FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND SUPP SRVS - IMPROV INSTR & ED MED SRVS FEDERAL PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND OTHER PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND INTERNAL SERVICES FUND SUPP SRVS - IMPROV INSTR & ED MED SRVS MAINTENANCE & OPER. OF PLANT SERVICES INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPP SRVS IMPROV INSTR & ED MED SRVS SUPP SRVS - IMPROV INSTR &ED MED SRVS SUPPORT SERVICES - BUSINESS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS INTERNAL SERVICES FUND FEDERAL PROGRAMS FEDERAL PROGRAMS SUPP SRVS IMPROV INSTR &ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS

SALARIES

$

3,082,84

5,976,66

659,33

5,492,68

1,344,78

13,280,26

30,040,30 $

50,000,00

21,934,44

265,20

2,074,54

14,219,91

14,649,50

80,00

45,00

2,302,80

10,276,23

62,355,60

4,655,00

27,798,61

40,00

559,36

923,65

120,00

55,411,98

240.00

2,204.50

12,510,86

4,868,95

12,617.69

225,94

921,19

354.40

4,950,65

14,851,94

37,569.50

14,947,54

3,595,60

6,472.16

13,429,20

27,312,16

25,000,00

34,124.95 30,431,84 21,857.40 22,352,04
961,57 41,537,99
8,580.33 370.37
39,266.66 53,000.00
5,299,00 9,146,74 60,000,00 13,682,63 5,314,80 3,942,16 7,536,85 28,995.65 53,014.30 33,996,82 18,816.89 16,918.65

TRAVEL
1,902,50 1,427,90
87,00 375,00
3,172,70 714,00
3,265,66
551.55
2,401,93 260,75 700.90
1,663,00 504,00
2,264,82 3,654,00
388,50 716.25 1,494,75 4,507.52
2,907.82 196.12
33.50 2,215.00 3,639,75
951,01 209,29

-17 -

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1997

SCHEDULE "3"

PERSONNEL
MORRISON,LOUIS JR MOSS,WILLIE R III NACKERUD,NOLA M NELSON,KARIN JO NORRIS,RICHARD EUGENE PARKMAN,DEBORAH L PASS,ELlZABETH 0 PATAT,PAULA 0 PEAVEY,LYNNE DUNNINGTON PETERSON,PAUL MICHAEL PHILLlPS,JULIE M PLAISANCE,RENE LOIS PLAn,MICHAEL BERNARD PORTER,GWENDOLYN PORTER,THERESA PYNN,VALERIE N QUINN,KRISTI I RAFAL,SANDRA G RAWSON,BRENDA C RHODEN,MELODY JEANNINE RICE,CAROLINE S RICE,CAROLINE S RICE,CATHERINE RICHIE,JULIUS REGINALD RIDDLE,POSY S RIDDLE,POSY S RIDDLEBERGER,DEBORAH W ROBERTSON,STANTON W ROSENE,RYAN M ROSENKRANS,CECILIA B SAPP,JULIE VESPER SELLERS,VICKIE E SHOLLENBERGER,CHARLES E SHUBERT,TERRESA HUBACEK SIMMONS,PATRICK D SIMPSON,LAMAR REID SIMPSON,LAMAR REID SIMS,DAVID L SKILLEN,DAVID SKILLEN,DAVID SMITH,JACQUELINE E SPANGLER,DONNA C STANCIL,BRENDA H STEFURAK,JAMES RUFFUS STERN,SUSAN JANE STOKES,SHIRLEY ANN R STONE,MARY A STUDEVAN,MARC T SWEENEY,CATHLEEN TAYLOR,CAROLYN SABRINA TAYLOR,JOSEPH THOMAS TAYLOR,ROOSEVELT THAXTON,ALLIE D THURMOND,LAURIE NELLE TRonER,SUSAN H TROnER,SUSAN H VINSON,ANN FRANCES VINSON,MARION DELORES WALDEN,MARY SUSAN WALKER,AMY DRENNAN WALKER,RUBEN T WALLACE,DEBRA CHRISTIAN WAnS,JASPER L WEIHER,DONALD E WELLER,DIANA LOUISE

PROGRAM
SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS FEDERAL PROGRAMS INTERNAL SERVICES FUND FEDERAL PROGRAMS FEDERAL PROGRAMS SUPPORT SERVICES - BUSINESS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SUPPORT SERVICES - BUSINESS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS GENERAL ADMINISTRATION GEORGIA LEARNING RESOURCES SYSTEM FUND SUPP SRVS - IMPROV INSTR & ED MED SRVS INTERNAL SERVICES FUND INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS FEDERAL 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 SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS GENERAL ADMINISTRATION GEORGIA LEARNING RESOURCES SYSTEM FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SUPPORT SERVICES - BUSINESS SPECIAL REVENUE FUND - OTHER PROGRAMS INTERNAL SERVICES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS

SALARIES

$

13,340.12

14,649.50

11,462.54

46,989.14 $

28,856.16

24,361.37

32,994.16

12,001.59

14,243.54

24,970.96

40.00

7,047.66

25.20

12,659.37

200.00

28,912.68

32,232.66

5,678.34

22,930.42

7,021.00

21,934.96

7,311.65

38,442.23

14,626.16

1,594.44

11,125.65

997.44

1,309.75

771.38

28,537.64

28,035.84

350.46

2,970.56

26,901.36

22,090.18

19,485.22 3,465.20

23,880.82 16,479.84
180.00 36,788.11 18,380.28 52,618.46 14,487.57 29,450.00 4,609.70 32,388.85 13,429.20 14,649.50
200.00 27,267.16
1,013.94 5,519.60 52,969.60 38,123.89
505.20 24,567.16
1,387.73 25.20
19,524.89 9,488.56 26,565.88 52,858.59

TRAVEL
593.75 2,372.75 1,514.30
200.63 781.75 343.50
1,841.00 665.50 115.50 282.00
37.75 157.25
19.50 2,288.50
233.90 399.00 47.50 1,816.00
58.50 503.00
2,558.75 1,680.50
388.00 1,315.50
166.68 193.50
953.75
701.64
61.00
1,757.25

-18 -

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1997

SCHEDULE "3"

See notes to the general purpose financial statements.

- 19 -

SECTION II AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

NORTHEAST GEORGIA 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

8584-93-02

Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 8584-93-02

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the [mancial statements.

PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

8584-96-01

Previously Reported Corrective Action Implemented

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
INVENTORIES Inadequate Resale Inventory Procedures Finding Control Number FS-8584-97-01
For the year under review, the inventory procedures of the Agency were insufficient to provide for adequate control over the resale inventory. The Agency failed to reconcile the year-end physical count of the resale inventory to the accounting records.
This deficiency was the result of management's failure to implement proper control procedures over resale inventory that are necessary to adequately safeguard and report the resale inventory of the Agency. The Agency should establish appropriate controls to ensure that the resale inventory is reconciled with the accounting records annually and that needed adjustments, if any, are recorded on a timely basis.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number FS-8584-97-02
For the year under review, the Agency did not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose fmancial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of the General Fixed Assets Account Group. These 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.