GA A800 oRl
Ed-(Q I NGI
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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
ROME, GEORGIA YEAR ENDED JUNE 30, 1994

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -

SECTION!

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

3

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

20

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

22

3 INVESTMENTS

23

4 ACCOUNTS RECEIVABLE

24

SCHEDULE OF REVENUE

5

STATE FUNDS

25

6

LOCAL AND OTHER FUNDS

26

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -

SECTION!

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

27

8

LOTTERY PROGRAMS

28

9

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

29

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

30

SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL

SECTION III
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -
SECTION IV INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTIONV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION VI PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Northwest Georgia Regional Educational Service Agency Board of Control
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Northwest Georgia Regional Educational Service Agency, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Agency's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:
* The general purpose financial statements of the Agency did not contain a General Fixed Assets Account Group to account for equipment owned by the Agency which should be included to conform to generally accepted accounting principles.
94ARL-33

The aggregate effects on the general purpose financial statements of this omission have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the third paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Northwest Georgia Regional Educational Service Agency as ofJune 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Northwest Georgia Regional Educational Service Agency taken as a whole. The combining statements (Exhibits E and F), the financial schedules (Schedules 1 through 10 which includes the Schedule ofFederal Financial Assistance) and the Schedule of Salaries and Travel, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office 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.
:t=~
Claude L. Vickers State Auditor
CLV:jg 94ARL-33

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - 1-

L

NQBTt:!WE!,T !afORGII!, REGIONAi EOUCATIONAb SEBVICE AGENCY CQMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 1994

EXHIBIT"A"

ASSETS Cash Investments Accounts Receivable Inventories

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS {Memorandum Onll'.} JUNE 30, 1994 JUNE 30 1993

144,837.02 $ 176,889.95 $

22,171.03 $

343,898.00 $

380,761.24

5,939.36

5,939.36

84,952.61

22,019.41

110,768.91

132,788.32

85,279.41

20,104.12

20104.12

17693.00

Total Assets

$ 172,795.79 $ 307,762.98 $

22,171.03 $

502,729.80 $

568.686.26

LIABILITIES ANO FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable Expired Grant Balances Payable

12,399.98 $

72,249.13 225,279.42
1251.05

Total Liabiltties

12399.98 $ 298,779.60

FUND EQUITY

Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories for Resale

5,920.95 $

1,969.91 20,104.12

$

5,920.95 $

22,074.03

Unreserved Deficit Undesignated

154474.86

-13,090.65 $

Total Fund Equity.

160 395.81 $

6,983.38 $

84,649.11 $ 225,279.42
1,251.05

101,734.41 214,593.91

$

311179.58 $

316,328.32

$

7,890.86 $

20,104.12

27,994.98 $

6,417.93 6,417.93

22171.03 22,171.03 $

-13,090,65 176 645.69
191,550.22 $

245 940.01 252,357.94

Total Liabiltties and Fund Equity

$ 172,795.79 $ 307,762.96 $

22,171.03 $

502,729.60 $

568,666.26

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

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

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

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

504,166.38 $ 1,879,169.93

26,472.00

733,173.99

306,521.65

-2,355.96

$

837,160.03 $ 2,609,987.96

$ 1,422,660.03

$

479,358.88

116,290.79 53,620.49
200,910.46 35,515.89

222,742.62 401,983.01
628.74 502,483.97
2,282.00 69,001.50

$

885,696.51 $ 2,621,781.87

$

-48,536.48 $

-11,793.91

$

$

-1,040.14

$

-1,040.14 $

1,040.14 1,040.14

$

-49,576.62 $

209,972.43

-10,753.77 19,737.15

FUND BALANCE JUNE 30

$

160,395.81 $

8,983.38

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

EXHIBIT"B"

TYPES TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

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

$ 2,383,336.31 759,645.99 304,165.69 $
$ 3,447,147.99 $

$ 0.00

2,383,336.31 $ 759,645.99 304,165.69

2,209,333.84 719,724.89 371,657.21

0.00 $ 3,447,147.99 $ 3,300,715.94

$ 1,422,660.03

222,742.62 881,341.89
628.74 618,774.76 $
55,902.49 269,911.96
35,515.89

$ 3,507,478.38 $

$

-60,330.39 $

$ 1,422,660.03 $ 1,482,749.09

477.33

222,742.62 881,341.89
628.74 619,252.09
55,902.49 269,911.96
35,515.89

210,301.00 733,267.58
13,346.27 587,278.01
60,048.24 106,523.50 30,134.19

477.33 $ 3,507,955.71 $ 3,223,647.88

-477.33 $

-60,807.72 $

77,068.06

$

1,040.14

-1,040.14

$

0.00

$

-60,330.39 $

229,709.58

$

1,040.14 $

5,193.16

-1,040.14

-5,193.16

$

0.00 $

0.00

-477.33 $ 22,648.36

-60,807.72 $ 252,357.94

77,068.06 175,289.88

$ 169,379.19 $

22,171.03 $ 191 ,550.22 $ 252,357.94

-5-

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVIC!; AGENCY

EXHIBIT"C"

COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant other Support 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 1993
ADJUSTMENTS
Prior Year (Net)

ACTUAL PER
EXHIBIT"B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 2,383,336.31 $ 2,254,815.15 $

759,645.99

664,320.00

304,165.69

219,444.82

$ 3,447,147.99 $ 3,138,579.97 $

128,521.16 95,325.99 84,720.87
308,568.02

$ 1,422,660.03 $ 1,409,194.00 $

222,742.62 881,341.89
628.74 618,774.76
55,902.49 269,911.96
35,515.89

216,830.00 818,204.00
910.00 662,078.00
69,783.00 278,459.00
30,000.00

$ 3,507,478.38 $ 3,485,458.00 $

$ -60,330.39 $ -346,878.03 $

-13,466.03
-5,912.62 -63,137.89
281.26 43,303.24 13,880.51
8,547.04 -5,515.89
-22,020.38
286,547.64

$

1,040.14 $

-1,040.14

$

0.00 $

0.00 $ 0.00
0.00 $

$ -60,330.39 $ -346,878.03 $

229,709.58

222,943.88

1,040.14 -1,040.14
0.00
286,547.64 6,765.70

-1,884.62

1,884.62

FUND BALANCE JUNE 30 1994

$ 169,379.19 $ -125,818.77 $

295,197.96

The notes to the general purpose financial statements are an integral part of this statement. -6-

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Northwest 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 of providing shared services designed to improve the effectiveness of educational programs and services oflocal school systems and for providing instructional programs directly to selected public school students in the state.
Each regional educational service agency is governed by a board. The number of members and terms of office are prescribed by the State Board ofEducation; provided, however, that at least one-third of the membership of each Board shall be individuals who hold no other public office, who are not employees of any local unit of administration, and who are not employees of the Georgia Department ofEducation.
With the exception ofthe departure from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Agency have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the Agency's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the Northwest Georgia Regional Educational Service Agency is determined to be a jointly governed organization.
The members of the Board are elected by an annual caucus of an equal number of members of local boards of education from the respective member local school systems. Each Board appoints and contracts with a director who is the executive officer of the regional educational service agency. The director is responsible for the administration of the programs and services approved by the Board.
Member boards of education in the Northwest Georgia Regional Educational Service Agency are as follows: Bartow County, City of Bremen, City of Calhoun, City of Cartersville, Catoosa County, Chattooga County, City of Chickamauga, Dade County, Floyd County, Gordon County, Haralson County, Polk County, City of Rome, City of Trion and Walker County.
FUND ACCOUNTING
The Agency uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
- 7-

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Agency. To conform to generally accepted accounting principles, a 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, Local and Other Funds under control ofthe Agency, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a regional educational service agency's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Agency except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a regional educational service agency.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department ofEducation and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
EXPENDABLETRUSTFUND Self Insured Employee Benefit Fund - the fund used to account for unemployment compensation contributions and expenditures.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities gerierally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
- 8-

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are intergovernmental grants, sales and services and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The Northwest Georgia Regional Educational Service Agency has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Agency's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, the budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. This final budget is then submitted to the Georgia Department of Education.
The Agency prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Agency to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Agency are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Agency to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
- 9-

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant 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 ofgoods for resale are recorded as assets at the time ofpurchase and the related cost of goods sold is recorded as the inventory items are sold. Inventories are valued at cost on the Combined Balance Sheet and are maintained on the first-in, first-out (FIFO) basis. 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.
Operating transfers are recorded for all interfund transactions other than reimbursements.
- 10 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(I) 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 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 ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
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NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $758,984.53. The amounts of the 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 Agency's name. Cash collateralized with securities held by the pledging financial 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, 1994, as follows:

Risk Category

Bank Balance

2 3
Total

$ 100,000.00 393,225.60 265 758.93
$ rn~ 98:l SJ

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Agency or the Agency's agent in the Agency's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Agency's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Agency's name.

Funds invested in an investment pool managed by another governrnent are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1994, the carrying amount ofthe Agency's total investments was $5,939.36 and consisted entirely offunds in the Local Governrnent Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Agency did not own any specific identifiable securities in the pool.

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NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1994

Note 3: RISK MANAGEMENT

The Agency has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$477.33 was paid in claims.

Note 4: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Agency had encumbrances in the amount of$2,446.18 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department of Education has funding available to the Agency in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Education Technology Center

$ 2 446 18

The amounts described in this note are not reflected in the general purpose financial statements.

Note 5: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter 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 6: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by Agency's are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years 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%ofthe average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are

- 13 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994
Note 6: RETIREMENT PLANS
available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Agency's payroll for employees covered by TRS for the year ended June 30, 1994, was $2,022,171.87; total payroll was $2,074,399.95.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Agency who are covered by TRS are required to contribute 6% oftheir gross earnings to TRS. The Agency makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contnbutions made during fiscal year 1994 amounted to $360,375.70, of which $239,045.63 was made by the Agency and $121,330.07 was made by employees. These contributions represented 11.81% (Agency) and 6% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:
- 14 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1994

Note 6: RETIREMENT PLANS

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ I 090 292 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Agency's contribution for the year ended June 30, 1994 of$239,045.63 was actuarially determined and represented .0458% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 7: SURETY BONDS

Mrs. Jane Huntley, Director through January 13, 1995, was bonded in the amount of$10,000.00 with the Glens Falls Insurance Company, New York, New York, their Bond No. BNP 000-57-14.

The Director, Dr. William E. Carson, effective January 14, 1995, is bonded in the amount of$10,000.00 with the Glens Falls Insurance Company, New York, New York, their Bond No. BNP 000-57-14, on which premium was paid through June 30, 1994.

- 15 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

ASSETS Cash Accounts Receivable Inventories
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories for Resale
Unreserved Deficit Undesignated Total Fund Equity
Total Liabilities and Fund Equity

COOPERATIVE PURCHASING
FUND

GEORGIA LEARNING RESOURCES
SYSTEM

SEVERELY EMOTIONALLY
DISTURBED

$

1,635.01 $ 257,753.07

$

66,532.03

3,004.42

20,104.12

$

86,636.15 $

4,639.43 $ 257,753.07

$

79,622.68

$

$

79,622.68 $

967.53 $ 3,671.90

54,256.39 203,496.68

4,639.43 $ 257,753.07

$

20,104.12

$

20,104.12

-13,090.65

$

0.00 $

0.00

$

7,013.47 $

0.00 $

0.00

$

86,636.15 $

4,639.43 $ 257,753.07

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

EXHIBIT"E"

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

ELEMENTARY AND SECONDARY EDUCATION ACT
CHAPTER 1 EDUCATION OF
CHILDREN IN STATE SCHOOLS

TEACHER TRAINING AIDS
HEALTH EDUCATION

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

26,400.89 $

521.78

$ 286,310.75 $ 241,866.77

$

28,449.82

7,324.00

$

5,458.64

110,768.91

43,718.70

20,104.12

17,693.00

$

28,449.82 $

33,724.89 $

521.78 $

5,458.64 $ 417,183.78 $ 303,278.47

$

27,605.93

$

16,758.89 $

16,558.84

843.89

407.16

$

28,449.82 $

33,724.89 $

$ 55.12 466.66
521.78 $

2,192.19 $ 211.20
1,085.34
3,488.73 $

109,420.80 72,249.13 $ 225,279.42
1,251.05
408,200.40 $

72,280.75 211,260.57
283,541.32

$

0.00 $

0.00 $

$

0.00 $

0.00 $

$

28,449.82 $

33,724.89 $

$ $ 0.00 0.00 $

1,969.91 $ 1,969.91 $
0.00 1,969.91 $

1,969.91 $ 20,104.12
22,074.03 $
-13,090.65 0.00
8,983.38 $

6,417.93 6,417.93 13,319.22 19,737.15

521.78 $

5,458.64 $ 417,183.78 $ 303,278.47

- 17 -

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

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pup~ Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant
Total Expend~ures
Excess of Revenues over (under) Expend~res
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

COOPERATIVE PURCHASING
FUND

GEORGIA LEARNING RESOURCES
SYSTEM

SEVERELY EMOTIONALLY
DISTURBED

$

57,600.00 $ 1,729,229.00

119,837.42

296,072.20

$

-2,355.96

$

-2,355.96 $ 177,437.42 $ 2,025,301.20

$ 1,372,520.34

$

76,418.01

219,942.66 176,664.40

$

3,949.79

93,737.41 2,282.00 5,000.00

193,975.10 63,012.50

$

3,949.79 $ 177,437.42 $ 2,026,115.00

$

-6,305.75 $

0.00 $

-813.80

$

-6,305.75 $

13,319.22

0.00 $ 0.00

813.80
0.00 0.00

$

7,013.47 $

0.00 $

0.00

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

EXHIBIT"F"

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

ELEMENTARY AND SECONDARY EDUCATION ACT
CHAPTER 1 EDUCATION OF
CHILDREN IN STATE SCHOOLS

TEACHER TRAINING AIDS
HEALTH EDUCATION

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

92,340.93

$ 306,315.23 $

$

92,340.93 $ 306,315.23 $

2,478.00 $ 2,478.00 $

$ 8,471.14

1,879,169.93 $ 733,173.99 -2,355.96

1,718,779.84 679,618.89 -4,422.92

8,471.14 $ 2,609,987.96 $ 2,393,975.81

$

12,798.11 $

37,341.58

78,553.82

$ 62,765.79
628.74 210,987.01

989.00

$

92,340.93 $ 311,723.12 $

$

0.00 $

-5,407.89 $

69.72

$

0.00 $

-5,338.17 $

0.00

5,338.17

$

0.00 $

0.00 $

2,799.96 $
-165.34
2,634.62 $ -156.62 $

$ 1,422,660.03 $ 1,482,749.09

7,580.99

222,742.62 401,983.01
628.74 502,483.97
2,282.00 69,001.50

210,301.00 198,219.05
13,346.27 432,725.68
3,839.15 63,576.35

7,580.99 $ 2,621,781.87 $ 2,404,756.59

890.15 $

-11,793.91 $

-10,780.78

156.62
0.00 $ 0.00

1,040.14

5,193.16

890.15 $ 1,079.76

-10,753.77 $ 19,737.15

-5,587.62 25,324.77

0.00 $

1,969.91 $

8,983.38 $

19,737.15

-19-

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERY'Cf AGENCY SCHfPUl EOE FfPERAL FINANCIAi ASSISTANCE
YEAR ENDfP JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U.S. Department of

Through Georgia Department of Education

Drug-Free Schools and Communtties Act

1992 Grant

84.186

1993 Grant

84.186

1993 Carry-Over

84.186

1994Grant

84.186

Elementary and Secondary Education Act

Chapter 1

Education of Children in State Schools

1992 Regular

84.009

1994 Regular

84.009

Chapter2

Block Grant Flow Through

Preparation and Distribution of Textbook

Evaluation Materials to the State

Textbook Advisory Committee

1993 Contract

84.151

Individuals with OisabiliUes Education Act

TttleVI, B

Georgia Leaming Resources System

1993 Carry-Over

84.027

1994Reguiar

84.027

Severely Emotionally Disturbed

1990 Carry-Over

84.027

1992 Regular

84.027

1993 Carry-Over

84.027

1994Regular

84.027

TrtleVl,D

Special Education Personnel Development

and Parent Training

1994Regular

84.029

Vocational Education Basic Grants to States

High School Program

Basic Grant

1993 Grant

84.048

1994 Grant

84.048

Through Georgia Department of Human Resources

Drug.Free Schools and Communities Act

Drug Abuse Resistance Education Program

1992 Contract

84.186

1993 Contract

84.186

$ 30,000.00 273,860.00
2,800.00
8,000.00 108,833.00
86,380.00 240,827.00
6,020.00
26,472.00

-247.79 $
30,000.00 254,639.56

-5,338.17 30,000.00$ 254,232.40

30,000.00 254,302.12 (1)

-165.34 2,478.00

2,478.00

2,634.62 (1)

2,900.00

8,000.00 108,833.00
-200.00 -3,826.27 86,380.00 209,692.20

8,000.00 108,833.00
86,380.00 209,692.20

8,000.00 108,833.00
86,380.00 209,692.20

3,004.42

3,004.42

37,206.00

10,116.59

26,472.00

(2)

7,155.00 21 297.00

27,421.00

27421.00

Total U. S. Department of Education

$ 783192.00 $

TT4257.95 $ 751174.85 $

730267.36

20.

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1994

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Health and Human Services, U.S. Department of Through Georgia Department of Education Acquired Immunodeficiency Syndrome (AIDS) Activity Teacher Training - AIDS Health Education 1992 Contract AIDS School Health Education Implementation of a Program in Comprehensive Health Education 1993 Contract 1994 Contract

93.118
93.938 93.938 $

8,230.00

4,820.00

4,820.00 $

3,012.50 $ 5,458.64

2,122.35 5 458.64

Total U. S. Department of Health and Human Services

8,230.00 $

9,640.00 $

8,471.14 $

7 580.99

Total Federal Financial Assistance

791 422.00 $

783 897.95 $ 759 645.99 $

737 848.35

Major Programs are identified by an asterisk(*) in front of the CFDA number.

(1) Expenditures for this program include State, and/or Local and 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 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY ANALYSIS OF CASH AND CASH EQUIVALENTS JUNE 30 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
First Rome Bank, Rome, Georgia
First Union National Bank of Rome, Rome, Georgia

$ 344,069.76 -171.76
$ 343,898.00

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

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY INVESTMENTS JUNE 30 1994

SCHEDULE "3"

INVESTMENT POOL
Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%)

$ 5,939.36

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

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "4"

Education, Georgia Department of Vocational Education - Basic Grants to States Federal Funds Lottery Programs Computers in Classrooms Distant Learning Education Technology Center Contracts Federal Funds Acquired Immunodeficiency Syndrome (AIDS) Activity Teacher Training -AIDS Health Education Federal Programs Georgia Learning Resources System Individuals wtth Disabilities Education Act Title VI, D Special Education Personnel Development and Parent Training
Human Resources, Georgia Department of Contract Federal Funds Drug-Free Schools and Communities Act Drug Abuse Resistance Education Program
Sales and Services Cooperative Purchasing Various Boards of Education and Individual Schools
Various Sources Reimbursement for Workshop Expendttures

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

16,355.41

$

$
8,907.00 989.00
18,553.82

16,355.41
8,907.00 989.00
18,553.82

5,458.64

5,458.64

3,004.42

3,004.42

7,324.00

7,324.00

5,664.00

66,532.03

66,532.03 5,664.00

$

22,019.41 $

110,768.91 $

132,788.32

See notes to the general purpose financial statements.

- 24 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Other State Programs Georgia Learning Resources System Regional Educational Service Agencies Severely Emotionally Disturbed Staff Development Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Computers in Classrooms Distant Learning Education Technology Center
Georgia Public Telecommunications Commission Lottery Program Distant Learning
CONTRACTS Education, Georgia Department of Vocational Education Technology Training Printing Salary and Supervision of Behavior Disorders Teacher
OTHER Education, Georgia Department of Reimbursement tor Workshops

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

57,600.00 $

57,600.00

$

379,008.00

379,008.00

1,693,229.00

1,693,229.00

31,000.00

31,000.00

85,714.00

8,907.00 989.00
78,553.82

85,714.00
8,907.00 989.00
78,553.82

3,891.11

3,891.11

3,000.00 5,029.38

36,000.00

3,000.00 5,029.38
36,000.00

415.00

415.00

$

504,166.38 $ 1,879,169.93 $ 2,383,336.31

See notes to the general purpose financial statements.

- 25 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE "6" SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30 1994

Indirect Cost Special Revenue Fund
Interest Earned Membership Contributions
City Boards of Education Bremen Calhoun Cartersville Chickamauga Rome Trion
County Boards of Education Bartow Catoosa Chattooga Dade Floyd Gordon Haralson Polk Walker
Sales and Services Cooperative Purchasing Less: Cost of Goods Sold
Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

30,008.00

986.75

$

30,008.00

986.75

3,125.00 5,047.50 6,972.50 3,117.50 11,298.50 2,985.00

21,372.50 19,512.50
7,357.50 5,507.50 22,602.50 11,887.50 7,352.50 16,250.00 22,212.50

$ 108,925.90

284,674.44 -287 ,030.40

3,125.00 5,047.50 6,972.50 3,117.50 11,298.50 2,985.00
21,372.50 19,512.50
7,357.50 5,507.50 22,602.50 11,887.50 7,352.50 16,250.00 22,212.50
284,674.44 -287,030.40 108,925.90

$ 306,521.65 $

-2,355.96 $ 304,165.69

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

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$

361,965.08 $ 1,712,434.87 $ 2,074,399.95

94,673.36

431,812.08

526,485.44

17,036.97

43,161.25

60,198.22

53,933.75

77,140.86

131,074.61

3,712.78

3,712.78

320.29

320.29

14,715.50

19,166.66

33,882.16

161,538.22

2,445.78

163,984.00

3,818.00

3,818.00

827.00

827.00

10,336.48

29,201.05

39,537.53

47,532.38

23,102.71

70,635.09

81,281.42

90,380.99

171,662.41

11,774.26

11,774.26

2,261.87

17,105.03

19,366.90

8,204.79

7,414.35

15,619.14

30,008.00

30,008.00

7,332.08

7,332.08

24,685.91

118,154.61

142,840.52

Total Expenditures

$

885,696.51 $ 2,621,781.87 $ 3,507,478.38

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

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE"B"

COMPUTERS IN
CLASSROOMS

EXPENDITURES

Operating Costs Repair and Maintenance Services Supplies

Nonoperating Costs Equipment

$

8907.00

DISTANT LEARNING

EDUCATION TECHNOLOGY
CENTER

G.P.T.C. DISTANT LEARNING

275.00

$

714.00 $

683.72

77 870.10 $

3891.11

TOTAL
275.00 1,397.72 90668.21

Total Expendttures

8,907.00 $

989.00 $

78,553.82 $

3,891.11 $_....,,;92_,.340..,_.93_,

See notes to the general purpose financial statements.

- 28 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

SCHEDULE "9"

EXPENDITURES
Operating Costs Unemployment Compensation Claims

$ ===4=7=7,;;;.3~3

See notes to the general purpose financial statements. - 29 -

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "10"

BOARD MEMBER ADDRESS
Mr. Charles Johnston, Chairman () Dade County Board of Education P.O. Box 188 Trenton, Georgia 30752
Dr. Larry Atwell {) City of Rome Board of Education 508 East Second Street Rome, Georgia 30161
Ms. Lynn Barlow() 495 Craigtown Road N. E. Calhoun, Georgia 30701
Dr. Harold Barnett() City of Cartersville Board of Education 310 Old Mill Road Cartersville, Georgia 30120
Mr. Lanny Benson () Walker County Board of Education P.O. Box29 LaFayette, Georgia 30728
Mr. W. H. Boling, Sr. () 88 Ridgeview Drive Silver Creek, Georgia 30173
Mr. Jimmy Carter () Polk County Board of Education P.O. Box 128 Cedartown, Georgia 30125
Mr. Paul Chambers () City of Chickamauga Board of Education 105 Lee Circle Chickamauga, Georgia 30707
Dr. Jackie Collins () Floyd County Board of Education 600 Riverside Parkway N. E. Rome, Georgia 30161
Mr. Earl Crapps () 2138 Highway 41, N. W. Cartersville, Georgia 30120
Mrs. Nora Dent () 58 Timberlake Cove N. E. Cartersville, Georgia 30120
Mrs. Cathy Dohrmann () 15 Wellington Way Rome, Georgia 30161

- 30 -

COMPENSATION

TRAVEL

400.00 $

63.00

350.00

500.00 600.00 400.00

102.69 253.40

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "10"

BOARD MEMBER ADDRESS
Dr. James E. Holloway () City of Calhoun Board of Education P.O. Box785 Calhoun, Georgia 30703-0785
Mr. Bill Kinzy () City of Trion Board of Education Pine Street Trion, Georgia 30753
Mr. Dennis McBrayer () City of Bremen Board of Education 504 Laurel Street Bremen, Georgia 30110
Mrs. Ellen Marie Moore () Route 2, Box 139 Rising Fawn, Georgia 30752
Dr. Davis Nelson () Bartow County Board of Education P.O. Box 200007 Cartersville, Georgia 30120
Mr. Horace Parrish () P.O. Box 1076 Cedartown, Georgia 30125
Mr. Ben Perry () Catoosa County Board of Education P.O. Box 130 Ringold, Georgia 30736
Mr. Melvin Reeves () Haralson County Board of Education P.O. Box 508 Buchanan, Georgia 30113
Mr. Phil Robbins () Gordon County Board of Education P.O. Box 127 Calhoun, Georgia 30701
Mr. Frank Stewart() Chattooga County Baord of Edcuation P.O. Box 30 Summerville, Georgia 30747

() Denotes Board Members Serving as of June 30, 1994 See notes to the general purpose financial statements.

- 31 -

COMPENSATION

TRAVEL

350.00 $

115.99

500.00

77.70

$==..,,;3~,1=0=0=.0=0$===~6=1~2-=7=8

SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SUMMARY OF SALARIES AND TRAVEL YEAR ENDED JUNE 30 1994

SALARIES

TOTAL PER FINANCIAL STATEMENTS (ACCRUAL BASIS)

ADJUSTMENTS FOR ACCRUALS

JUNE 30, 1993

JUNE 30, 1994

TOTAL PER SCHEDULE (CASH BASIS)

GENERAL FUND Support Services Improvement of Instructional Services $ General Administration Business Administration

251,357.32 $ 72,043.96 38,563.80

3,333.34$

0.00 $

254,690.66 72,043.96 38,563.80

Total General Fund

$

361,965.08 $

3,333.34 $

0.00

365,298.42

SPECIAL REVENUE FUND

1,712,434.87

211,446.73

-225,279.42

1,698,602.18

Total Salaries

$

2,074,399.95 $

214,780.07 $

-225,279.42 $ 2,063,900.60

TRAVEL
GENERAL FUND Support Servioes Improvement of Instructional Services $ General Administration Business Administration
Total General Fund
SPECIAL REVENUE FUND

15,028.70$ 1,219.59 788.68
17,036.97 $
43,161.25

0.00 $ 0.00 $

0.00 $ 0.00 $

15,028.70 1,219.59 788.68
17,036.97
43,161.25

Total Travel

$

60,198.22 $

0.00 $

0.00 $

60,198.22

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

NAME

TITLE CATEGORY

ALLGOOD, MARTHA J ARNETT. TRACY L ARNT, TRACY BENTLEY, GWENDOLYN BENTON, ST ACY S BESHEARS, MABEL BLACK.KAYE BLACK, SAMANTHA BLACK, SAMANTHA BOATNER, BARRY BOOKER, MARY BOWEN, KERRY W BRANCH, KATHRINE BRASS, VE LOA BRASS, VE LOA BROOKS, DOUGLAS K BROOKS, PAMELA L BROWN, SARA C BULGER, TYNDALL BUTLER, GREGORY N CALOWELL, SANDRA G CAMERON, ANN CAMP, GWENDOLYN J CAMP, VALARI M CARLISLE, REBECCA A CARPENTER, CHARLES CARPENTER. CHARLES CARPENTER, CHARLES CARRI, S JANE CARTER.MAURICE CARTER.PATRICK CASEY, DEA MCCARSON CASEY, DEBORAH J CHANDLER, SUSAN CHESTER, KAYE CHILDERS, TAMMY CHILDERS, TAMMY CHILDERS, TAMMY COBB.GAIL B COBB, GAIL B COLLINS, DONNA M COLLINS.DONNA M COLLINS, DONNA M COOK.JOAN A COOK, JOAN A COOPER, BARRY CORNELISON,LORI J COVINGTON, ELIZABETH COVINGTON, THOMAS R COX.CHRISTY CRAWFORD, JEFFREY A CROSS, CAROL CZENTNAR. MARY K DARROW, DENNIS K DAVIS, THOMAS A DEAN, ALAN 0 DENNARD, VIVIAN DENNARD, VIVIAN DIXON, LAINIE DOOLEY, LORI DOWDY, CHRISTOPHER J DUKE, KAREN S DUVALL, RAMONA A DUVALL, RAMONA A EDWARDS, KATHY FEDERER, PENELOPE A

SEVERELY EMOTIONALLY DISTURBED PR SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOT I ONA LL Y DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPP SRVS - IMPROV INSTR & ED MED SRVS SUPP SRVS - IMPROV INSTR & ED MED SRVS SUPPORT SERVICES - BUSINESS SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPPORT SERVICES - BUSINESS SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS
SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM !REN SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM

SALA RI ES I AMOUNT
14,464.08 60.00
20,918.64 180.00
26,059 20 30 00 40 00
9,238.28
228 50 592 50 47,129.00
40.00 38,443.50
26,445 08 140 00 29 75 909 68
21 , 367, 22 11,178 90
108 37 11,513.96 41,360.04
3,556.24 10,674.99 11,333 34
2,811.68 21,372 60
6,10684 290 00
8,574.30 29,568 88
40 00 63 00 955 75
4,500.00 15,450.00
4,500.00 20,666.09 12,000.00
3,115.02 4,156.02 2,770.68
140.00 191. 21 24,700.92 1,074.88 33,950.36 24,440.38 639. 46 38,101.79 32,106 54 20,152.59
80.00 47,539. 11
6,999 96 17 50 80 00
20,788 08 119 00
7,347 86 3,673.92
20.00 3,265.30

TRAVEL EXPENSE
317. 10 609. 29 932 82
1,056 51 294 42
1,482.33 2,211. 71
232.47 122 85
18 90 1,855 57
37 68 240 04 154 35
17. 85 219. 1 i 2,170 49 1,258.90 1,018 92 1,127 95
63 42 82 59 376. 53 2,223 20 106 .03 3,316 59 224 28
43 89 291 .47 203. 30

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

NAME
FLDW,PATTJ J FOUTS, MARY K FOUTS. MARY K FREEMAN.DIANA M GAMMON.CLAIRE GARNER, SHARON E GARRISON, JAMES W GILCHRIST, LOIS GOLDEN, L KRISTINA GRAVES.CAROL N GRAVETT, KATHY GREEN, SHERRY A GREENE, DANA
GREESON, NANCY s GREESON, NANCY s
GREGORY, LINDA SUE HANSARD, MARY HARNER,LOIS HARRIS.ANGELA L HAWKINS, MELODY HICKS.DENNIS R HIXON.CAROLYN M HOBGOOO,PENNIE HOLCOMB, REBECCA A HOLMES LEY, MARY ELLEN HORTON, WANDA D HUNTLEY, HELEN JANE HUNTLEY, HELEN JANE HUTCH I NS , JOHN L INGRAM,CAREY N JACOBS, JENNIFER JENKINS, JACKIE JILES.HEATHER JOHNSON, CA THY T JOHNSON, KENNETH D JOHNSTON,CHARLSIE M JONES, SUSAN K JORDAN, PENNY KRESAK, KAREN E LEVERETT, DEBBIE LJNOSY,LJNDA B LITTLE, TIMOTHY M L!TTLEF!ELD,MELISSA S MADDEN, BARBARA J MALONEY, CAROL MASSEY, OPAL MATHIS.JENNIFER M MCBRYDE.CATHY A MCCARTY ,PATRICE
MCCORD, SHANNON MCDANIEL, LARRY T MCGEE , ANNETTE V MCGRAW, WI LL! E JOE MCNAIR.JOEL A MCRAE, MARY MEDLOCK, DAVID 0 MOBLEY, W STEPHEN MONEY, JACK MONEY, JACK MONEY, JACK MOON.KATHLEEN MOORE. BARBARA J MORAITAKIS, TAMMY D MORGAN, BARBARA ANN MORGAN.BILLY W NEWBERRY. RONNIE S NICHOLS, GWENDOLYN D

TITLE CATEGORY
SEVERELY EMOTIONALLY DISTURBED PR SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS FEDERAL PROGRAMS SEVERELY EMOT! ONA LL Y DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOT I NALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DI STU RB ED PROGRAM SEVERELY EMOT I NALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOT! ONA LL Y DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM DIRECTOR GENERAL ADMJNI STRAT JON SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPP SRVS - IMPROV INSTR & ED MED SRVS SUPP SRVS - IMPROV INSTR & ED MED SRVS SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPP SRVS - IMPROV INSTR & ED MED SRVS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOT IONA LL Y DI STU RB ED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY OJ STU RB ED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOT! ONA LL Y DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM FEDERAL PROGRAMS SEVERELY EMOTIONALLY DISTURBED PROGRAM

SALARIES AMOUNT
9,303 96 7,667 .68 3,833 84 ,43, 94 7. 14
84 . so
360 63 17,109 40 16,665 48
7,569 20 11,696 71
80 00 35,419. 10
80 00 15,872 06
4,893 20 971 . 37 158 50
19,846. 10 35 00
24,775 80 24,987.24
150.00 17,455.80
650.00 17 50
61,093 56
29 . 75 31,078.48
120.00 8. 56
2,440.59 103 .95
8,483 06 331 .50
4,123 05 83 22
24,348 62 35 00 80.00
8,011.64 21. 749.20 24,036.06
55. 26 105.00 18,883 56 669 38
52 50 175 00
62.00 29. 704.80
4,762. 12 3,245 30 4,631 .40 21,166 70
678 .50 19,962 58 26,718 23
1 .968 .23 8,568 98 13,759 86
210 00 10,525 92 29,100.52 24,660.00
159. 35

TRAVEL EXPENSE
1,047 48 1,125 81 3,854 00
163 38 558 39
59 43
3, 139 70 607 53 56 .07
109 47 37 38
188. 16 633 00
1,012 74 89 67
10.50
177 .93
285 81 88 62
288 54
155. 59
335 77 3,389 67
908 67
68 88 79 80 85 . 54 2,300 23

NAME
NI ELSON. SANDRA OGLES, S MICHELLE OGLES. S MICHELLE OWENBY. WANDA C OWENBY, WANDA C OWENS. CHARLOTTE PATTERSON, DOROTHY PATTERSON, SHERRY K PATTON.MARTHA PAYNE, PHYLLIS PAYNE, PHYLLIS PAYNE, SANDY PERRY. CANDACE PERRY, MARK S PERRY, SARA E PIERCE, LINDA G PITTS, JACQUELINE M POPE. TALMADGE 8 POPE.TALMADGE B POWELL, R SELENA POWELL, R SELENA POWELL,R SELENA POWELL, R SELENA PROCTOR, DANA M PULLEN,JOE T PULLEN, JOE T QUINTON,MARLENE J RACKLEY, MYRA A RICE, JOEY RICKETTS, BARBARA C RITCH, SHARON D ROACH, WESLEY A ROBERTS, BETTY RUDE SEAL. VICKY ANN SALMON, CAROLE E SALMON, CAROLE E SALMON, CAROLE E SANTOR, CECELIA L SELLERS, TREVA K SELMAN.ALMA VICTORIA SETSER, LINDA C SEWELL, ROSA SHERFIELD.SANORA E SHIFLETT ,CHRISTOPHER SIMMONS, ROBIN R SINNOCK, LESLIE SMART ,CATHERINE D SMITH, JANICE M SMITH, PAMELA RAE SMITH.SANDRA S SMITH, SANORA S SMOOT, WAYNE STEVENSON, CATHER I NE L STEWART, DEBORAH STUMP, DEBRA K SWITZER.ELLEN R THORNTON, DARREN TRAPP.MONICA SUE TUCKER, BRENT LAMAR TUCKER, REBECCA S VANN, ANN VINSON.KATHY Z WALKER, CHARLOTTE H WALKER, LINDA ELLYN WARREN, PAMELA ANN WEBB, LORI A
WEBB, SUSAN A

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

TITLE CATEGORY

SEVERELY EMOTIONALLY DISTURBED PR

$

SEVERELY EMOTIONALLY DISTURBED PROGRAM

FEDERAL PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

FEDERAL PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DI STURBEO PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SUPP SRVS - I MPROV INSTR & ED MEO SRVS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SUPP SRVS - IMPROV INSTR & ED MEO SRVS

SUPPORT SERVICES - BUSINESS

SUPP SRVS - IMPROV INSTR & ED MED SRVS

GENERAL ADMINISTRATION

SUPPORT SERVICES - BUSINESS

SPECIAL REVENUE FUND - OTHER PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

GEORGIA LEARNING RESOURCES SYSTEM FUND

FEDERAL PROGRAMS

FEDERAL PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SUPP SRVS - IMPROV INSTR & ED MED SRVS

GENERAL ADMINISTRATION

SPECIAL REVENUE FUND - OTHER PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOT IONA LL Y O I STU RB ED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

FEDERAL PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

FEDERAL PROGRAMS

SEVERELY EMOTI ONA LL Y O I STURBEO PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

FEDERAL PROGRAMS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SUPP SRVS - IMPROV INSTR & ED MED SRVS

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

SEVERELY EMOTIONALLY DISTURBED PROGRAM

FEDERAL PROGRAMS

SALARIES AMOUNT
35 00 6,618 00 6,310 22 13,397.30 3,524.26
BO.DO 190.89 209. 75 50,493.60 34,308. 70 12,000.00 11,514.00
60.00 13,171.70 10,863.10
35 .04 16,821 05
23,113 BO
10,950 40
9,200.00 9,090.92 35,112.00 14. 864. 04 18,598.08
160.00 79 75
9,748.46 9,922.94 1 , 673. 32
90.00 29. 75 17,947.96
800.00 17,211.54
35.00 16,616 64 11,649 39
149 75 36,424 21
59 50 8,814 96 1,550 68 18,325.20
420.00 21,959.22 14,725 26
7,362.64 4, 759 68 12,71498
45 00 29. 75 40.00 105.00 111. 25 10,683.76 10,840.92 173 .87 7, 757. 75 17,455.80 24,548.14 10,463 54 10,231.84 39,099 26

TRAVEL EXPENSE
519. 54 771. 75 1,492.68
2,298.69 2,124.12
640 59
40. 32 293. 16 382. 09 544. 16
39 .27 193. 20
7. 56 142 .80 2, 85D. 00 708 19
6.30
3. 15 13. 65
61. 95 21.00 1,721.44 153 30
497 70 255. 78
89 04 87 .65 81 48 394 98 72 03 44 94 142 86

NAME
WEST ,BONNIE LYNN WHITE, CARMEN N WILEY.JULIA D WILLIAMS.BRENDA A WILLI AMS, DAWNMARI E WILLIAMS.NANCY B WILLIAMS.NORMA B WILSON. FRANCES WOOD. BRENETT A GAYE WOOD.WILLIAM TODD WOOSLEY. VIRGINIA DAWN WUDEL. TOM

NORTHWEST GEORGIA R E.S.A. SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994
TITLE CATEGORY
SEVERELY EMOTIONALLY DISTURBED PR SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SUPP SRVS - IMPROV INSTR & ED MED SRVS SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM SEVERELY EMOTIONALLY DISTURBED PROGRAM
TOTALS

SALARIES AMOUNT
60.00 30.00 3,978 94 .10.231.86 40.00 156. 37 3. 989. 20 119.04 9,049.96 30.00 21. 959. 22 854. 82
2. 063. 900 60

TRAVEL EXPENSE
212. 52
113 61 8 .40
60. 198 22

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
March 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Director and Members of the Northwest Georgia Regional Educational Service Agency Board ofControl
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency as ofand for the year ended June 30, 1994, and have issued our report thereon dated March 28, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
Compliance with laws, regulations, contracts, and grants applicable to Northwest Georgia Regional Educational Service Agency is the responsibility ofthe Agency's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests ofthe Agency's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Northwest Georgia Regional Educational Service Agency complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied, in all material respects, with those provisions.
94CRL-10

This report is intended for the infonnation 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:jg 94CRL-10

Claude L. Vickers State Auditor

C!AUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Northwest Georgia Regional Educational Service Agency Board of Control

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency as ofand for the year ended June 30, 1994, and have issued our report thereon dated March 28, 1995. This report was qualified a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Northwest Georgia Regional Educational Service Agency's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office 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.

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Northwest Georgia Regional Educational Service Agency had not complied, in all material respects, with those requirements. However, the results ofour procedures disclosed immaterial instances of noncompliance with those requirements, which are 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,
~~
Claude L. Vickers State Auditor
CLV:jg 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Director and Members of the Northwest Georgia Regional Educational Service Agency Board of Control

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated March 28, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(4) Applicable Special Tests and Provisions

(2) Matching, Level ofEffort, and/or Earmarking
(3) Reporting

(5) Other Requirement Claims for Advances and Reimbursements

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Northwest Georgia Regional Educational Service Agency is responsible for the Agency's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Agency's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Northwest Georgia Regional Educational Service Agency complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
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:jg 94CRL-80

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 28, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Director and Members of the Northwest Georgia Regional Educational Service Agency Board of Control

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency as ofand for the year ended June 30, 1994, and have issued our report thereon dated March 28, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the Northwest
Georgia Regional Educational Service Agency and with our consideration of the Agency's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

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With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Northwest Georgia Regional Educational Service Agency had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
c:f'~,(~
Claude L. Vickers State Auditor
CLV:jg 94CRL-120

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
March 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Northwest Georgia Educational Service Agency Board of Control
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated March 28, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
In planning and performing our audit of the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Northwest Georgia 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
94ICL-3

accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation (8) General Ledger
(9) General Fixed Assets

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

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

94ICL-3

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Northwest Georgia Regional Educational Service Agency's financial statements and this report does not affect our report thereon dated March 28, 1995.

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.

R:i::::e

CLV:jg 94ICL-3

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
March 28, 1955

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members of the Northwest Georgia 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 Northwest Georgia Regional Educational Service Agency as of and for the year ended June 30, 1994, and have issued our report thereon dated March 28, 1995. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Agency's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 28, 1995.
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 (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Northwest Georgia Regional Educational Service Agency complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Agency's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Agency's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB 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 March 28, I995.
94ICL-8

The management of the Northwest Georgia Regional Educational Service Agency is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(1) Political Activity (2) Civil Rights (3) Cash Management

(1) Types of Services Allowed or Unallowed
(2) Matching, Level ofEffort, and/or Earmarking

(4) Federal Financial Reports

(3) Reporting

(5) Allowable Costs/Cost Principles (6) Audit Follow-Up/Resolution (7) Administrative Requirements

(4) Applicable Special Tests and Provisions
(5) Other Requirement Claims for Advances and Reimbursements

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

During the year ended June 30, 1994, the Northwest Georgia Regional Educational Service Agency expended 95% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Agency's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would

94ICL-8

be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Agency's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Cash Management
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with Jaws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, we noted a reportable condition in the following control category that we believe is also considered to be a material weakness:
Administrative Requirements
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Northwest Georgia Regional Educational Service Agency's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated March 28, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
R;;;~A

CLV:jg 94ICL-8

Claude L. Vickers State Auditor

SECTIONV FINDINGS AND IMPROPER OR QUESTIONED COSTS

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 8504-93-02
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Drug-Free Schools and Communities Act Program (CFDA 84.186) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests of cash management procedures for this program revealed no excessive cash balance accumulations by the Agency.
AUDIT FOLLOW-UP/RESOLUTION Delinquent Completion Reports Federal Financial Assistance Finding Resolved Audit Control Number 8504-93-04
The audit report for the year ended June 30, 1993, stated that the Agency failed to file a final completion report by the required date, for Individuals with Disabilities Education Act - Title VI, B - Severely Emotionally Disturbed 1992 and 1993 Projects (CFDA 84.027) in accordance with regulations established by the Georgia Department ofEducation. In the year under review, final completion reports were filed by the required dates.
AUDIT FOLLOW-UP/RESOLUTION Lack ofExpenditure/Obligation Documentation Federal Financial Assistance Finding Resolved Audit Control Number 8504-93-06
The audit report for the year ended June 30, 1993, stated that the Agency's completion report for the DrugFree Schools and Communities Act - 1993 Program (CFDA 84.186) submitted by the Agency included expenditures/obligations which could not be documented and were not liquidated in the subsequent fiscal year. As a result, an unexpended grant balance in the amount of$5,338. l 7 remained on hand at June 30, 1993. This questioned cost had not been resolved as ofJune 30, 1994. However, a refund of$5,338.17 was made by the Agency to the Georgia Department of Education in the subsequent fiscal year and this amount is included in the accounts payable as shown on the Combined Balance Sheet, Exhibit "A" of this report.

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 8504-93-01
The audit report for the year ended June 30, 1993, noted that the management of the Northwest Georgia Regional Educational Service Agency had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Agency did not establish a General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Northwest Georgia Regional Educational Service Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group.
These subsidiary records should include 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.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 8504-93-03
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Individuals with Disabilities Education Act - Title VI, B - Severely Emotionally Disturbed Program (CFDA 84.027) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests of cash management procedures again revealed excessive cash balance accumulations by the Agency. During fiscal year 1994, the program had an average cash balance of $15,830.57 and had excessive ending monthly cash balances in six months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs of this program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Agency.

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
FEDERAL FINANCIAL REPORTS Failure to Refund Unexpended Grant Balance Federal Financial Assistance Nonmajor Program Nonmaterial Noncompliance Amount: $1,079.76 Audit Control Number 8504-93-05
Accounting records applicable to the Teacher Training - AIDS Health Education program (CFDA 93.118) reflected an unexpended grant balance of$1,079.76 at June 30, 1993. This balance is the result ofunexpended funds on projects from fiscal year 1993. Instructions pertaining to project completion reports requires unexpended grant balances to be refunded to the Georgia Department of Education. Accordingly, the unexpended grant balance of$1,079.76 should be refunded to the Georgia Department ofEducation.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 8504-94-01
The accounting records presented for audit contained the following discrepancies:
1) The general ledger at June 30, 1994, was not in balance. This condition was a result of the Agency recording entries which circumvented certain practices prescribed in Section I, Chapter 2, of the Financial Management for Georgia Local Units of Administration.
2) A cash balance for one bank account remained on the general ledger at June 30, 1994, but the account had been closed during the year. This condition was a result of accounting personnel failing to properly reconcile all bank accounts in a timely manner.
A substantial amount of time and effort was required by the audit staff to identify these discrepancies and develop the necessary audit adjustments to correct the financial statements.
Subsequent to the year under review, the Agency made numerous changes in personnel. The Agency should continue its efforts to ensure that internal controls are in place to safeguard its assets.

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
CURRENT YEAR
ALLOWABLE COSTS/COST PRINCIPLES Inaccurate Indirect Cost Calculation Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $5,920.95 Audit Control Number 8504-94-02
A review of the Agency's indirect cost calculations revealed an error in the calculation which resulted in an overpayment of $5,212.00 by the Severely Emotionally Disturbed program (CFDA 84.027), and an overpayment of$708.95 by the Georgia Learning Resources System program (CFDA 84.027) to the General Fund. Refund of these overpayments should be made to the Georgia Department of Education from the Agency's General Fund.
This condition occurred because management failed to use the approved Indirect Cost Rate as required by the Georgia Department of Education. The Agency should follow guidelines set up by Georgia Department of Education which requires the Agency to allocate indirect costs based on an approved rate.
ADMINISTRATIVE REQUIREMENTS Inadequate Accounting Records Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 8504-94-03
For the year under review, accounting records ofthe Drug-Free Schools and Communities Act - 1994 Program (CFDA 84.186) were not maintained on an individual project basis. Each project in this program requires a separate budget and project completion report. Extensive audit procedures were necessary to segregate these expenditures as required. Although, total expenditures on the accounting records did agree with total expenditures on all project completion reports, accounting records should be adequately segregated to ensure identification ofrevenues and expenditures on a project-by-project basis.
This condition occurred because management disregarded the provisions of the Drug-Free Schools and Communities Act grant agreement which requires that all federally funded projects maintain separate accountability.

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
CURRENT YEAR
ADl\1INISTRATIVE REQUIREMENTS Inadequate Accounting Records Federal Financial Assistance Nonmajor Program Norunaterial Noncompliance Audit Control Number 8504-94-04
For the year under review, accounting records of the Acquired Immunodeficiency Syndrome (AIDS) Activity 1994 Program (CFDA 93.939) were not maintained on an individual project basis. Each project in this program requires a separate budget and project completion report. Extensive audit procedures were necessary to segregate those expenditures as required. Although, total expenditures on the accounting records did agree with total expenditures reported on all project completion reports, accounting records should be adequately segregated to ensure identification ofrevenues and expenditures on a project-by-project basis.
This condition occurred because management disregarded the provisions of the AIDS grant agreement which requires that all federally funded projects maintain separate accountability.
ADl\1INISTRATIVE REQUIREMENT Inadequate Board Membership Financial Statements Nonmaterial Noncompliance Audit Control Number 8504-94-05
At June 30, 1994, the Agency's Board of Control (Board) totaled twenty-two (22) members, fifteen (15) persons from participating boards of education, and seven (7) persons not associated with those entities. As described in Note 1 ofExhibit "D", and pursuant to the Official Code of Georgia Annotated, Section 20-2272(a), the Board's membership is required to include at least one-third of its number that 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 Department ofEducation. Accordingly, at least eight (8) members of the Board should not be associated with participating boards of education. The Board should adjust its membership in order to comply with O.C.G.A. Section 20-2-272(a).
FEDERAL FINANCIAL REPORTS Failure to Refund Unexpended Grant Balance Federal Financial Assistance Nonmajor Program Nonmaterial Noncompliance Amount: $890.15 Audit Control Number 8504-94-06
Accounting records applicable to the Teacher Training - AIDS Health Education Program (CFDA 93.938) reflected an unexpended grant balance of $890.15 at June 30, 1994. This balance is the result ofunexpended

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Failure to Refund Unexpended Grant Balance Federal Financial Assistance Nonmajor Program Nonmaterial Noncompliance Amount: $890.15 Audit Control Number 8504-94-06
funds on the 1992 Grant which ended on November 30, 1993. Instructions pertaining to project completion reports requires unexpended grant balances to be refunded to the Georgia Department of Education. Accordingly, the unexpended grant balance of $890.15 should be refunded to the Georgia Department of Education.

SECTION VI PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 8504-93-01
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff the Agency has decided not to pursue the recording of general fixed assets on the financial statements.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 8504-93-03
Regular meetings between Federal program directors and the accounting department have been scheduled to monitor this activity to ensure proper cash management.
FEDERAL FINANCIAL REPORTS Failure to Refund Unexpended Grant Balance Federal Financial Assistance Nonmajor Program Nonmaterial Noncompliance Amount: $1,079.76 Audit Control Number 8504-93-05
This is the result of not separating the funds - a personnel change has been made - this will not occur in the future - monies will be refunded.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 8504-94-01
I) The Genesis System will not allow the books to close if the General Ledger is out of balance. With the help of Financial Review section from Georgia Department of Education, a change to ledger balances entry was made to balance the General Ledger at end ofFY'94.
2) Personnel changes and internal controls have occurred which will ensure that these problems will not reoccur.

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30 1994
ALLOWABLE COSTS/COST PRINCIPLES Inaccurate Indirect Cost Calculation Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $5,920.95 Audit Control Number 8504-94-02
The indirect costs were re-calculated and refunds made to GA DOE 4/17/95. These indirect cost rates were calculated on State grants not Federal. The rules about this were unclear, but have now been clarified. This finding should not re-occur.
ADMINISTRATIVE REQUIREMENTS Inadequate Accounting Records Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 8504-94-03
This finding has been resolved in the FY'95 year and should not re-occur. This is a result of a personnel change.
ADMINISTRATIVE REQUIREMENTS Inadequate Accounting Records Federal Financial Assistance Nonmajor Program Nonmaterial Noncompliance Audit Control Number 8504-94-04
This finding has been resolved in FY'95 and should not re-occur. This is a result of a personnel change.
ADMINISTRATIVE REQUIREMENT Inadequate Board Membership Financial Statements Nonmaterial Noncompliance Audit Control Number 8504-94-05
This finding was resolved in FY'95.
Note: The Northwest Georgia Regional Educational Service Agency has elected not to provide comments for inclusion in this report other than the above.