GA A'600 
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l494-q5, 
STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET ATLANTA, GEORGIA 30334 
 
 AUDIT REPORT PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY 
CLEVELAND, GEORGIA YEAR ENDED JUNE 30, 1995 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - 
 
Page 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
3 
 
C 
 
STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
6 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
14 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
16 
 
SCHEDULES 
 
1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
18 
 
2 CASH AND CASH EQUIVALENTS 
 
20 
 
3 ACCOUNTS RECEIVABLE 
 
21 
 
SCHEDULE OF REVENUE 
 
4 
 
STATE 
 
22 
 
5 
 
LOCAL AND OTHER 
 
23 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
6 
 
GOVERNMENTAL FUND TYPES 
 
24 
 
7 
 
LOTTERY PROGRAMS 
 
25 
 
8 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
26 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - 
SECTION II SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL 
SECTION ill COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
SECTIONN 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 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - 
SECTION VI PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 29, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation 
and Director and Members of the Pioneer Regional Educational Service Agency Board of Control 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
Ladies and Gentlemen: 
We have audited the general purpose financial statements (Exhibits A through D) of the Pioneer Regional Educational Service Agency, as of and for the year ended June 30, 1995, as listed in the table of contents. These :financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe 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. 
We did not observe the taking ofinventories for resale at June 30, 1995, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories for resale through alternative procedures. 
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: 
95ARL-33* 
 
  The general purpose financial statements of the Agency did not contain a General Fixed Assets Account Group to account for equipment owned by the Agency which should be included to conform to generally accepted accounting principles. 
The aggregate effect on the general purpose financial statements of this omission has not been determined, but is believed to be material. 
In our opinion, except for the effect of adjustments, if any, on the General and the Special Revenue Fund as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the inventories for resale as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matter referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Pioneer Regional Educational Service Agency as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated July 29, 1996, on our consideration of the Agency's internal control structure and a report dated July 29, 1996, on its compliance with laws and regulations. 
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Pioneer Regional Educational Service Agency taken as a whole. The combining statements (Exhibits E and F), the financial schedules (Schedules 1 through 8 which includes the Schedule of Federal Financial Assistance) and the Schedule of Salaries and Travel, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements of the Pioneer Regional Educational Service Agency. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the General and the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the inventories for resale as discussed in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24. 
Respectfully submitted, 
~~~ 
Claude L. Vickers State Auditor 
CLV:cm 95ARL-33* 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY - 1- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY 
COMBINED BALANCE SHEET 
ALL FUND TYPES 
JUNE 30, 1995 
 
EXHIBIT"A" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTALS 
 
{Memorandum On~l 
 
JUNE 3011995 
 
JUNE 3011994 
 
$ 295,933.30 $ 
 
295,933.30 $ 
 
231,575.15 
 
$ 
 
49,494.66 
 
189,497.16 
 
238,991.82 
 
217,719.21 
 
88,906.25 
 
342,620.41 
 
431,526.66 
 
82,008.29 
 
261924.14 
 
26,924.14 
 
32,924.14 
 
Total Assets 
 
$ 
 
165,325.05 $ 
 
828,050.87 $ 
 
993,375.92 $ 
 
564,226.79 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Cash Overdraft 
 
$ 
 
Accounts Payable 
 
Salaries Payable 
 
Expired Grant Balances Payable 
 
Total Liabilities 
 
$ 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For Continuation of Federal Programs 
 
For Inventories 
 
$ 
 
$ Unreserved 
Undesignated 
 
Total Fund Equity 
 
$ 
 
66,343.23 4,269.73 $ 
70,612.96 $ 
 
$ 173,817.10 173,093.35 
331219.56 
380,130.01 $ 
 
88.906.25 $ 88,906.25 $ 
5.805.84 94.712.09 $ 
 
3421620.41 $ 342,620.41 $ 105,300.45 447,920.86 $ 
 
66,343.23 178,086.83 $ 173,093.35 
33.219.56 450.742.97 $ 
$ 431.526.66 431,526.66 $ 111,106.29 542.632.95 $ 
 
38,530.40 176,829.75 47.501.35 262.861.50 
3,547.31 821008.29 85,555.60 215.809.69 301.365.29 
 
Total Liabilities and Fund Equity $ 
 
165,325.05 $ 
 
828!050.87 $ 
 
993,375.92 $ 
 
564,226.79 
 
The notes to the general purpose financial statements are an integral part of this statement -2- 
 
 PIONEER REGIONAL EDUCATIONAL SERVJCE AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES 
VEAR ENDED JUNE 30, 1995 
 
EXHIBITs 
 
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 student Transportation Services Central Support Services Other Support Services Other Operations of Non-Instructional Services 
C&pital Outlay 
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 
Transfer of the Cooperative Purchasing Agency from the North Georgia Regional Educational Service Agency (Note 5) 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTALS 
 
{Memorandum On~ 
 
YEAR ENDED 
 
JUNE 3011995 
 
JUNE 3011994 
 
$ 523,013.62 $ 1,753,833.29 $ 
 
72,651.37 
 
1,520,757.41 
 
5731382.06 
 
9271434.14 
 
$ 111691047.05 $ 412021024.84 $ 
 
2,276,846.91 $ 1,593,408.78 11soo1816.20 
51371 1011.89 s 
 
2,202,806.38 1,532,652.70 
8291857.36 
41565,316.44 
 
$ 314,343.07 $ 2,397,615.89 $ 
 
215,572.45 
175,028.56 47,267.73 30,538.02 
76,730.34 68,210.85 223,448.12 148,195.93 
 
131,571.31 707,713.82 
2,515.10 352,192.43 558,213.63 144,no.25 
1,014.27 
3,762.93 
 
$ 1,2991335.07 $ 4,2991369.63 $ 
 
$ -1301288.02 $ 
 
-971344.79 $ 
 
2,711,958.96 $ 
131,571.31 923,286.27 
2,515.10 527,220.99 605,481.36 175,308.27 
1,014.27 76,730.34 71,973.78 223,448.12 1481195.93 
5,598.704.70 $ 
-227,632.81 $ 
 
2,561,706.33 
221,634.82 829,224.61 
25,955.27 449,123.14 
56,025.20 111,027.06 
210.85 72,165.84 
4,990.00 234,032.36 
415661095.48 
-n9.04 
 
$ 
 
$ 
 
$ -130,288.02 $ 225,000.11 
 
-97,344.79 $ 76,365.18 
 
-227,632.81 $ 301,365.29 
 
62.33 -62.33 
0.00 
-n9.04 302,144.33 
 
4681900.47 
 
4681900.47 
 
FUND BALANCE JUNE 30 
 
$ 
 
94?12.09 $ 4471920.86 $ 
 
5421632.95 $ 
 
3011365.29 
 
The notes to the general purpose financial statements are an integral part of this statement. -3- 
 
  PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1995 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS} 
 
REVENUES 
 
State Funds Federal Funds Local and Other Funds 
 
$ 446,812.00 $ 1, 176,899.00 
 
523,013.62 72,651.37 573,382.06 
 
Total Revenues 
 
$ 1,623,711.00 $ 1,169,047.05 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Other Operations of Non-Instructional Services 
Capital Outlay 
 
$ 226,347.00 $ 314,343.07 
 
197,012.00 
165,379.25 658,156.00 74,500.00 
n,650.oo 
198,782.00 152,000.00 
 
215,572.45 
175,028.56 47,267.73 30,538.02 
76,730.34 68,210.85 223,448.12 148,195.93 
 
Total Expenditures 
 
$ 1,749,826.25 $ 1,299,335.07 
 
Excess of Revenues over (under) Expenditures 
 
$ -126,115.25 $ -130,288.02 
 
FUND BALANCE JULY 1, 1994 
 
207,789.28 
 
225,000.11 
 
Adjustments 
 
-13,591.60 
 
Transfer of the Cooperative Purchasing Agency from the North Georgia Regional Educational Service Agency (Note 5) 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS} 
 
$ 1,861,556.40 $ 1,753,833.29 
 
1,704,910.00 1,520,757.41 
 
274,842.00 
 
927,434.14 
 
$ 3,841,308.40 $ 4,202,024.84 
 
$ 2,427,040.40 $ 2,397,615.89 
 
118,692.00 ns,194.oo 
2,740.00 362,332.00 
2,846.00 76,719.00 
1,200.00 
 
131,571.31 707,713.82 
2,515.10 352,192.43 558,213.63 144,no.25 
1,014.27 
 
91,100.00 
 
3,762.93 
 
$ 3,858,863.40 $ 4,299,369.63 
 
$ -17,555.00 $ -97,344.79 
 
139,112.48 
 
76,365.18 
 
-2,285.88 
 
468,900.47 
 
FUND BALANCE JUNE 30. 1995 
 
$ 68,082.43 $ 94,712.09 
 
$ 119,271.60 $ 447,920.86 
 
The notes to the general purpose financial statements are an integral part of this statement. -5- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1995 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The Pioneer Regional Educational Service Agency (Agency) was established pursuant to the Official Code of Georgia Annotated Sections 20-2-270 through 20-2-274 for the purposes of providing shared services designed to 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 ofoffice are prescribed by the State Board ofEducation; provided, however, that at least one-third ofthe membership of each Board shall be individuals who hold no other public office, who are not employees ofany local unit of administration, and who are not employees ofthe Georgia Department ofEducation. 
With the exception of the departure from generally accepted accounting principles disclosed in these notes, the financial statements ofthe 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 ofthe 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 Pioneer 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 oflocal boards of education from the respective member local school systems. Each Board appoints and contracts with a director who is the executive officer ofthe 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 Pioneer Regional Educational Service Agency are as follows: Banlcs County, Dawson County, Forsyth County, Franklin County, City of Gainesville, Habersham County, Hall County, Hart County, Lumpkin County, Rabun County, Stephens County, Towns County, Union County and White County. 
FUND ACCOUNTING 
The Agency uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. 
- 6- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1995 
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 1YPES - are used to account for all or most ofa regional educational service agency's general activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the Agency except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a regional educational service agency. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department ofEducation and from the Federal government to accomplish specific objectives and are required to be accounted for separately. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants, sales and services and investment income. 
- 7- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1995 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Expenditures are generally recognized when the related fund liability is incurred. 
BUDGET 
The Pioneer Regional Educational Service Agency's budget is a complete financial plan for the Agency's fiscal year and is based upon estimat_es ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Agency at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. 
The budget process begins when the Agency's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and savings accounts) in authorized financial institutions. Georgia Laws authorize the Agency to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. 
RECEIVABLES 
R~ivables 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 when purchased and cost ofgoods sold is recorded as the inventory items are sold. Inventories ofgoods for resale are shown on the Combined Balance Sheet at cost (first-in, first-out) and are equally offset by a reservation of fund balance which indicates that they are not available for expenditure even though they are a component of net current assets. 
- 8- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1995 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
PREPAID ITEMS 
The Pioneer Regional Educational Service Agency rents facilities from the White County Board ofEducation. Under terms of an agreement between the parties, all costs incurred by the Agency for improvements to the facilities will be treated as prepaid expense. These costs will be amortized as rent expense at a rate of $6,000.00 per year until such costs have been offset in this manner. 
INTERFUND TRANSACTIONS 
The Agency has the following type ofinterfund transactions: 
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of the securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination ofthe following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
- 9- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
Note 2: DEPOSITS 
 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia, 
 
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State ofGeorgia, 
 
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS . At June 30, 1995, the bank balances were $618,615.35. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Agency or by the Agency's agent in the Agency's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Agency's name. 
Category 3 - Uncollateralized deposits. {This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Agency's name.) 
 
The Agency's deposits are classified by risk category at June 30, 1995, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 300,000.00 
 
2 
 
0.00 
 
3 
 
318,615.35 
 
Total 
 
$ 618,615.35 
 
- 10 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1995 
Note 3: RISK MANAGEMENT 
The Agency is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees and natural disaster. 
The Agency has obtained commercial insurance for risk of loss associated with torts, assets, and job related illnesses or injuries to employees. Additionally, the Agency has obtained commercial insurance for errors and omissions, however the policy excludes coverage for sexual harassment and discrimination claims. The Agency has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Agency's insurance coverage in any of the past three years. 
The Agency has elected to self-insure for all losses related to natural disaster. The Agency has not experienced any losses related to natural disaster in the past three years. 
Note 4: CONTINGENT LIABILITIES 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Agency believes that such disallowances, if any, will be immaterial to its overall financial position. 
Note 5: SIGNIFICANT EVENTS 
On July I, 1994, the North Georgia Regional Educational Service Agency transferred the fund equity and all operations of the Cooperative Purchasing Agency to the Pioneer Regional Educational Service Agency. 
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 in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service 
- 11 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30; 1995 
Note 6: RETIREMENT PLANS 
multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
Retirement benefits also in~lude 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 ofdisability or death. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer 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, 1995, was $2,669,156.15, total payroll was $2,733,000.63. 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Agency who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Agency makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. 
Total contributions made during fiscal year 1995 amounted to $448,685.68, ofwhich $315,227.18 was made by the Agency and $133,458.50 was made by employees. These contributions represented 11.81 % (Agency) and 5% (employees) of covered payroll. 
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure 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. 
- 12 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXIIlBIT "D" 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
Note 6: RETIREMENT PLANS 
 
Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows: 
 
Total pension benefit obligation 
 
$15,313,743,000.00 
 
Net assets available for benefits, at cost 
 
14,254,785,000.00 
 
Unfunded pension benefit obligation 
 
$ 1,058,958,000.00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. 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, 1995 were $565,117,811.00. The Agency's contribution for the year ended June 30, 1995 of$315,227.18 was actuarially determined and represented .0558% of total contributions made by all participating employers. 
 
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. 
 
Note 7: SURETY BONDS 
 
The Director, Mr. J. Marlin Smith, is bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 58564536, on which premium was paid through May 1, 1996. 
 
- 13 - 
 
 PIQNEER REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIAL- REVENUE fUNP JUNE 30, 1995 
 
~ Cash and Cash Equivalents Accounts Receivable Inventories 
 
ALPINE CENTER 
 
GEORGIA LEARNING RESOURCES SYSTEM 
 
LOTTERY PROGRAMS 
 
TEACHER EVALUATION 
GRANT 
 
TEACHER TRAINING FOR SEX EDUCATION 
 
ACQUIRED IMMUNODEFICIENCY 
SYNDROME {AIDS} ACTMTY 
 
s 228,359.08 $ 78,094.53 
 
s 
 
100.58 S 
 
0.00 
 
35,899.30 S 23,641.20 
 
s 
 
2,171.23 
 
Total Assets 
 
S 228,359.08 S 113,993.83 S 23,641.20 S 
 
100.58 S 
 
0.00 S 
 
2,171.23 
 
LIABILITIES ANP fU.MP EQUITY 
 
LIABILITIES 
 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
Total Liabilities 
 
s 25,655.54 S 
138,961.68 29,005.29 
s 193,622.51 S 
 
fUNPEQVIIY 
 
Fund Balances 
 
ReseMld 
 
For Continuation d Federal Programs 
 
For Inventories 
 
Unreserved 
 
Undesignated 
 
s 
 
34,736.57 S 
 
Total Fund Equity 
 
s 34,736.57 S 
 
s 
29,409.46 34,131.67 
4,214.27 
67,755.40 S 
46,238.43 S 46,238.43 S 
 
19,260.55 
4,380.65 S 23,641.20 S 
0.00 S 0.00 S 
 
100.58 100.58 
0.00 S 0.00 S 
 
s s 
0.00 S 0.00 S 
 
2,171.23 2,171.23 
0.00 0.00 
 
Total Liabilities and Fund Equity S 228,359.08 S 113,993.83 S 23,641.20 S 
 
100.58 S 
 
0.00 S 
 
2,171.23 
 
See notes to the general purpose financial statements. 
 
-14- 
 
 EXHIBIT"E" 
 
DRUG-FREE SCHOOLS AND COMMUNITIES 
ACT 
 
$ 
 
144.13 
 
ELEMENTARY AND SECONDARY EDUCATION ACT 
 
TITLE 11- 
 
EISENHOWER 
 
CHAPTER2 
 
MATHEMATICS 
 
INNOVATIVE 
 
AND SCIENCE 
 
EVEN 
 
PROGRAM 
 
EDUCATION 
 
START 
 
COOPERATIVE PURCHASING 
AGENCY 
 
TOTALS JUNE 301 1995 JUNE 301 1994 
 
$ 
 
0.00 
 
$ 
 
75,60427 $ 
 
382,302.59 $ 
 
208,279.78 
 
$ 
 
37,500.00 
 
$ 27,645.38 
 
62,640.05 
 
189,497.16 
 
205,555.08 
 
342,620.41 
 
342,620.41 
 
$ 
 
144.13 $ 
 
37,500.00 $ 
 
0.00 $ 27,645.38 S 
 
480,864.73 $ 
 
914,420.16 $ 
 
413,834.86 
 
$ 
 
37,500.00 
 
$ 
 
144.13 
 
$ 
 
144.13 $ 
 
37,500.00 
 
$ 27,437.51 207.87 $ 
$ 27,645.38 $ 
 
$ 113,918.87 
113,918.87 $ 
 
86,369.29 $ 173,817.10 173,093.35 33,219.56 
466,499.30 $ 
 
74,608.18 38,530.40 176,829.75 47,501.35 
337,469.68 
 
s _ _ _ _o._oo_s _ _ _ _o._oo_s _ _ _ _o_.oo_s 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
$ o.oo 0.00 $ 
 
342,620.41 $ 24,325.45 
366,945.86 $ 
 
$ 342,620.41 
 
3,547.31 
 
105,300.45 
 
72,817.87 
 
447,920.86 $ _ __.;;.7..;;..:6,"-'36'-"5-'--'-.1~8 
 
s _ _ _ _144_.1_3 s 
 
37,soo.oo s--~~o=.oo=s 21,645.38 s 
 
480,864.73 $ 
 
914,420.16 $ 
 
413,834.86 
 
-15- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
SpEQIAL REVENUE FUND 
VEAR ENDED JUNE 30, 1995 
 
ALPINE CENTER 
 
GEORGIA LEARNING RESOURCES 
SYSTEM 
 
LOTTERY PROGRAMS 
 
TEACHER EVALUATION 
GRANT 
 
TEACHER TRAINING FOR SEX EDUCATION 
 
ACQUIRED IMMUNODEFICIENCY 
SYNDROME (AIDS} ACTIVITY 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
 
$ 1,3TT,901.78 $ 131,874.00 S 127,343.51 S 820,255.93 133,626.97 61,891.35 342,714.93 
 
85,714.00 $ 
 
31,000.00 $ 
 
28,176.22 
 
TatalRewnUN 
 
$ 2,260,049.06 S 608,215.90 S 127,343.51 S 85,714.00 S 31,000.00 S 
 
28176.22 
 
EXPENDITURES 
CUmlnt lnatruction SUpport SeMcea Pupil SelVices lrnpl0,l9nll!l'I cl Instructional Services Educational Media SeNice6 General Administration Business Adminilbation Maintenance and Openllion cl Plant Student Tranaportation Services Other Support SeMces 
 
$ 1,580,312.64 S 392,428.92 S 
 
116,985.31 266,520.91 
223,755.60 
 
4,335.36 72,149.21 
2,515.10 126,272.26 
 
69,187.43 1,014.27 
 
6,184.70 
 
TT,435.83 S 48,807.68 
1100.00 
 
82,862.32 22.40 S 
2,829.28 
 
31,000.00 S 
 
28,176.22 
 
Total Expenditures E>ccea cl Revenues CMlf (under) Expenditures 
 
$ 2,257,TT6.16 S 603,885.55 S 127,343.51 S 
 
$ 
 
2,272.90 S 4,330.35 S 
 
0.00 S 
 
85,714.00 S 0.00 S 
 
31,000.00 $ 0.00 S 
 
28176.22 0.00 
 
QI!:::11;B EfNANCI~ SQURg;S Operating Transfers In 
 
E>ccela cl Revenues and Other Financing Sou~ 
 
0Y8I' (under) Expenditures 
 
$ 
 
2,272.90 S 4,330.35 S 
 
0.00 S 
 
0.00 S 
 
0.00 S 
 
0.00 
 
EUND BALANCE JULY 3 
 
32,463.67 
 
41,908.08 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
Transfer cl the Cooperative Purchasing Agency from the North Georgia Regional Educational Service Agency (Nole 5) 
 
FUNQ ~LANCE JUNE 30 
 
$ 34?36.57 S 461238.43 $ 
 
0.00 S 
 
0.00 S 
 
0.00 S 
 
0.00 
 
See notes to the general purpose financial statements. 
 
-16- 
 
 EXHIBIT"F'' 
 
DRUG-FREE SCHOOL.SAND COMMUNmES 
ACT 
 
ELEMENTARY AND SECONDARY EDUCATION ACT 
 
TITLE II 
 
EISENHOWER 
 
CHAPTER2 
 
MATHEMATICS 
 
INNOVATIVE 
 
ANDSCIENCE 
 
EVEN 
 
PROGRAM 
 
EDUCATION 
 
START 
 
COOPERATIVE PURCHASING 
AGENCY 
 
TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 
 
$ 
 
186,009.20 $ 
 
$ 
 
186,009.20 $ 
 
$ 50,000.00 
50,000.00 $ 
 
0.00 $ 302,689.09 $ 
0.00 $ 302,689.09 $ 
 
$ 522,827.86 522,827.86 $ 
 
1,753,833.29 $ 1,520,757.41 
927 434.14 
 
1,746,876.38 1,433,123.93 
341,193.24 
 
4,202,024.84 $ 3,521,193.55 
 
$ 
 
$ 
 
185,499.18 
 
510.02 
 
$ 
 
186,009.20 $ 
 
$ 
 
0.00 $ 
 
48,981.50 $ 1,018.50 
50,000.00 $ 0.00 $ 
 
73.71 $ 215,520.97 
 
1,882.95 
 
10,250.64 73,655.27 
 
36.n 
 
599.28 $ 
 
2,662.93 
 
1,993.43 $ 302,689.09 $ 
 
-1,993.43 $ 
 
0.00 $ 
 
$ 
555,384.35 69,398.12 
624,782.47 $ -101,954.61 $ 
 
2,397,615.89 $ 2,269,389.09 
 
131,571.31 707,713.82 
2,515.10 352,192.43 558,213.63 144,770.25 
1,014.27 3,762.93 
 
221,634.82 620,943.91 25,955.27 303,962.93 
2,829.12 84,393.61 
210.85 4,990.00 
 
4,299,369.63 $ 3,534,309.60 
 
-97,344.79 $ 
 
-13,116.05 
 
$ 
 
0.00 $ 
 
0.00 
 
0.00 $ 0.00 
 
-1,993.43 $ 1,993.43 
 
0.00 $ 0.00 
 
-101,954.61 $ 0.00 
 
62.33 
 
-97,344.79 $ 76,365.18 
 
-13,053.72 89,418.90 
 
468900.47 
 
468900.47 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
366945.86 $ 
 
4471920.86 $ 
 
761365.18 
 
-17 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY 
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30, 1995 
 
SCHEDULE 1 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
AWARDS IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDSl 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Education, U. S. Department of 
 
Through Georgia Department of Education 
 
Drug-Free Schools and Communities Act 
 
1994Grant 
 
84.186 
 
1994 Carry-Over 
 
84.186 $ 
 
1995 Grant 
 
84.186 
 
Elementary and Secondary Education Act 
 
Chapter2 
 
Innovative Programs 
 
1995 Regular 
 
84.151 
 
Title II 
 
Eisenhc,.yer Mathematics and Science 
 
Education 
 
1994 Regular 
 
84.164 
 
Even Start 
 
1993 Carry-Over 
 
* 84.213 
 
1994 Grant 
 
* 84.213 
 
1994 Carry-Over 
 
* 84.213 
 
1995 Grant 
 
* 84.213 
 
Individuals with Disabilities Education Act 
 
Title VI, B 
 
Georgia Leaming Resources System 
 
1993 Carry-Over 
 
* 84.027 
 
1994 Carry-Over 
 
* 84.027 
 
1995 Regular 
 
* 84.027 
 
Severely Emotionally Disturbed 
 
1994 Regular 
 
 84.027 
 
1994 Carry-Over 
 
* 84.027 
 
1995 Regular 
 
* 84.027 
 
Preschool Program 
 
Georgia Leaming Resources System 
 
1994 Regular 
 
84.173 
 
Special Projects 
 
Severely Emotionally Disturbed 
 
1993 Carry-Over (A) 
 
* 84.027. 
 
1994 Regular 
 
* 84.027 
 
1994 Carry-OVer 
 
* 84.027 
 
1995 Regular 
 
* 84.027 
 
Special Education Personnel Development 
 
and Parent Training 
 
TltleVI, D 
 
Georgia Leaming Resources System 
 
1993 Regular 
 
84.029 
 
1994 Regular 
 
84.029 
 
1995 Regular 
 
84.029 
 
Vocational Education - Basic Grants to States 
 
High School Program 
 
Basic Grant 
 
1995 Grant 
 
84.048 
 
$ 25,573.00 185,398.00 
50,000.00 
25,000.00 70,328.00 292,000.00 
23,500.00 108,880.00 61,759.00 220,593.00 
16,523.00 550,755.00 
7,054.00 
23z749.30 
 
-10.573.90 25,573.00 $ 160,436.20 
 
25,573.00 $ 160,436.20 
 
25,573.00 160,436.20 
 
12,500.00 
 
50,000.00 
 
50,000.00 
 
25,000.00 65,614.70 70,328.00 179,715.71 
 
25,000.00 
70,328.00 207,361.09 
 
1,993.43 
25,000.00 
70,328.00 207,361.09 
 
11,168.56 23,500.00 108,880.00 
-9,830.73 61,759.00 220,593.00 
 
23,500.00 104,665.73 
61,759.00 201,442.30 
 
-4,243.67 
 
15,014.00 68,598.13 16,134.00 550,755.00 
 
16,134.00 540,920.63 
 
23,500.00 104,665.73 61,759.00 201,442.30 
16,134.00 540,920.63 
 
-284.55 2,083.00 
 
3,260.98 
 
23z749.30 
 
23z749.30 
 
1,553.88 3,260.98 
23z749.30 
 
Total U.S. Department of Education 
 
$ 116611112.30 $ 
 
116161468.75 $ 115141130.23 $ 1151116n.54 
 
Corporation for National and Community Service Through Georgia Department of Education Serve America Program 1995 Grant 
 
94.004 $ 301000.00 $ 
 
191273.30 $ 301000.00 $ 
 
301000.00 
 
- 18 - 
 
 PIONEER REGIONAL EDUCATIONAL SERYJCE AGENCY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30, 1995 
 
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 
Cooperative Agreements to Support School Health Education to Prevent the Spread of Acquired 
Immunodeficiency Syndrome Teacher Training - Aids Health Education 1994 Contract Contract 95-0509 Contract 95-0648 Contract 95-0974 
Through Georgia Department of Human Resources Developmental Disabilities Basic Support and Advocacy Grants Georgia Leaming Resources System 1993 Contract 
 
93.938 93.938 $ 93.938 93.938 
93.630 
 
$ 16,702.00 5,260.00 6,200.00 
 
6,500.00 $ 16,627.20 5,260.00 
 
4,117.79 $ 16,627.20 5,260.00 2,171.23 
 
4,117.79 16,627.20 5,260.00 2,171.23 
 
71025.00 
 
21200.26 
 
21200.26 
 
Total U. S. Department of Health and Human Services 
 
$ 281162.00 $ 
 
351412.20 $ 301376.48 $ 
 
301376.48 
 
National Science Foundation Through Griffin Regional Educational Service Agency Community Based Instruction Resource Project 
 
$ 271208.40 $ 
 
201557.50 $ 
 
181902.07 $ _ _ _18-1902_._07_ 
 
Total Federal Financial Assistance 
Major Programs are identified by an asterisk C-) in front of the CFDA number. 
 
See notes to the general purpose financial statements. 
 
- 19 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY CASH AND CASH EQUNALENTS JUNE 30, 1995 
 
SCHEDULE "2" 
 
NONINTEREST BEARING ACCOUNTS 
First National Bank of White County, Cleveland, Georgia 
INTEREST BEARING ACCOUNTS 
Bank of Dahlonega, Dahlonega, Georgia 
Certificate of Deposit No. 1975 (5.30%) 
First National Bank of White County, Cleveland, Georgia 
Investment Account (3.00%) Premier Checking (Variable) 
 
$ -156,809.43 
 
$ 100,000.oo 
 
209,320.83 77,078.67 
 
386,399.50 
 
$ 229,590.07 
 
See notes to the general purpose financial statements. - 20 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY ACCOUNTS RECEIVABLE JUNE 30, 1995 
 
SCHEDULE "3" 
 
Bank of Dahlonega Interest Earned 
Education, Georgia Department of Lottery Program Education Technology Centers Federal Programs Elementary and Secondary Education Act Chapter2 Innovative Programs Even Start Individuals with Disabilities Education Act TdleVI, D Georgia Leaming Resources Systems Serve America Program Contracts Cooperative Agreements to Support School Health Teacher Training -AIDS Health Education Participation of Local School Personnel in Technology Training 
Griffin Regional Educational Service Agency Community Based Instruction Resource Project 
Various Sources Payroll Withholdings Sales and Services Shared Services Projects 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 
 
2,628.22 
 
$ 
 
2,628.22 
 
$ 
 
23,641.20 
 
23,641.20 
 
10,726.70 
29,040.28 6,739.87 
0.67 358.92 
 
37,500.00 27,645.38 
3,260.98 2,171.23 
62,640.05 32,638.32 
 
37,500.00 27,645.38 
3,260.98 10,726.70 
2,171.23 29,040.28 
6,739.87 
0.67 62,998.97 32,638.32 
 
$ 
 
49,494.66 $ 189,497.16 $ 238,991.82 
 
See notes to the general purpose financial statements. 
 
- 21 - 
 
 PIONEER REGIONAL EDUCATIONAL SERYJCE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "4" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
GRANTS Education, Georgia Department of Other State Programs Georgia Leaming Resources System Regional Educational Service Agencies Severely Emotionally Disturbed Special Education Low Incidence Grant Staff Development Sex Education Grant Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Distant Leaming Education Technology Centers 
 
$ 
 
70,195.00 $ 
 
70,195.00 
 
$ 
 
434,796.00 
 
434,796.00 
 
1,375,401.78 1,375,401.78 
 
55,892.00 
 
55,892.00 
 
31,000.00 
 
31,000.00 
 
85,714.00 
1,100.00 126,243.51 
 
85,714.00 
1,100.00 126,243.51 
 
Hall County Board of Health Babies Can't Wait Program 
 
4,827.00 
 
4,827.00 
 
CONTRACTS Education, Georgia Department of Coordination of Logistical and Technical Arrangements to Review, Segment and Index Videotapes or Software to the Quality Core Curriculum Objectives Participation of Local School Personnel in Technology Training Print the 1995 Georgia Textbook List and Distribute it to Identified Local System Personnel 
 
11,000.00 67,500.00 
6,967.22 
 
11,000.00 67,500.00 6,967.22 
 
OTHER Printing Services Training Costs for Staff Development Coordinator Academy Workshop Fees 
 
767.75 
1,982.65 
 
3,460.00 
 
767.75 
1,982.65 
3,460.00 
 
$ 
 
523,013.62 $ 1,753,833.29 $ 2,276,846.91 
 
See notes to the general purpose financial statements. - 22 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF LOCAL AND OTHER REVENUE 
YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "5" 
 
Indirect Cost Special Revenue Fund 
Interest Earned Sales and Services 
Audio-Visual Repair Less: Cost of Goods Sold 
Business Machine Repairs Less: Cost of Goods Sold 
Computer Repairs Less: Cost of Goods Sold 
Cooperative Purchasing Agency Less: Cost of Goods Sold 
Printing Sales Less: Cost of Goods Sold 
Services Provided Shared Services Projects Boards of Education Banks County Buford, City of Dawson County Forsyth County Franklin County Gainesville, City of Habersham County Hall County Hart County Lumpkin County Rabun County Stephens County Towns County Union County White County 
Workshop Fees Other 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 
 
30,874.43 
 
$ 
 
30,874.43 
 
13,564.58 $ 
 
2,446.66 
 
16,011.24 
 
14,193.47 -10,031.81 
8,147.55 -7,547.78 25,412.39 -26,526.36 
47,846.25 -9,087.58 
 
2,459,126.46 -1,938,745.26 
 
14,193.47 -10,031.81 
8,147.55 -7,547.78 25,412.39 -26,526.36 2,459,126.46 -1,938,745.26 47,846.25 -9,087.58 
 
9,773.00 7,332.40 11,205.60 40,953.60 18,293.20 16,970.80 30,049.80 58,219.80 18,919.60 15,126.40 10,242.80 23,843.80 4,773.40 11,658.00 14,505.80 164,495.03 30,173.89 
 
14,894.12 
5,382.00 
7,289.00 9,978.87 61,366.61 23,491.69 7,623.00 4,577.00 32,154.64 58,570.50 22,412.67 63,170.73 5,954.00 87,741.45 
 
24,667.12 7,332.40 16,587.60 
40,953.60 25,582.20 26,949.67 91,416.41 81,711.49 26,542.60" 19,703.40 42,397.44 82,414.30 27,186.07 74,828.73 20,459.80 252,236.48 30,173.89 
 
$ 
 
573,382.06 $ 
 
See notes to the general purpose financial statements. 
- 23 - 
 
927,434.14 $ 1,500,816.20 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "6" 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Other Purchased Services Supplies Energy Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures 
Nonoperating Costs Building and Building Improvements Equipment 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTAL 
 
$ 637,177.20 $ 2,095,823.43 $ 2,733,000.63 
 
167,882.19 
 
566,739.54 
 
734,621.73 
 
26,906.29 
 
62,795.31 
 
89,701.60 
 
80,608.63 
 
692,190.84 
 
772,799.47 
 
2,700.00 
 
2,700.00 
 
5,810.05 
 
14,705.86 
 
20,515.91 
 
7,937.45 
 
46,542.14 
 
54,479.59 
 
6,545.19 
 
36,749.15 
 
43,294.34 
 
12,352.00 
 
38,698.10 
 
51,050.10 
 
13,578.04 
 
32,498.84 
 
46,076.88 
 
1,320.47 
 
51,869.60 
 
53,190.07 
 
78,343.20 
 
289,324.11 
 
367,667.31 
 
8,598.89 
 
40,845.52 
 
49,444.41 
 
457.65 
 
2,103.04 
 
2,560.69 
 
375.00 
 
375.00 
 
30,874.43 
 
30,874.43 
 
81,346.31 
 
108,366.42 
 
189,712.73 
 
148,195.93 19,575.58 
 
188,868.30 
 
148,195.93 208,443.88 
 
Total Expenditures 
 
$ 1,299,335.07 $ 4,299,369.63 $ 5,598,704.70 
 
See notes to the general purpose financial statements. - 24 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995 
 
SCHEDULE '7 
 
EXPENDITURES 
Operating Costs Professional and Technical Services Communications Supplies 
Nonoperating Costs Equipment 
Total Expenditures 
 
DISTANT LEARNING 
 
EDUCATION TECHNOLOGY 
CENTERS 
 
TOTAL 
 
$ 
 
650.00 
 
$ 
 
650.00 
 
$ 
 
1,571.23 
 
1,571.23 
 
450.00 
 
69,817.23 
 
70,267.23 
 
54,855.05 
 
54,855.05 
 
$ 
 
1,100.00 $ 
 
126,243.51 $ =====1=27:::::!:,34===3=.5=1 
 
See notes to the general purpose financial statements. - 25 - 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS 
YEAR ENDED JUNE 30, 1995 
BOARD MEMBER ADDRESS 
PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY 
Mr. Tommy Stephens, Chairman (*) Union County Board of Education 50 School Circle Blairsville, Georgia 30512 
Mr. Charles Burt(*) Route 5, Box 5475 Dawsonville, Georgia 30534 
Mr. John Cleveland(*) Hart County Board of Education P. 0. Box696 Hartwell, Georgia 30643 
Mr. Raymond Collins (*) White County Board of Education 135 Brook Street Cleveland, Georgia 30528 
Mr. James Dumas (*) 1394 Harden Bridge Road Commerce, Georgia 30529 
Mrs. Ina Fossett(*) Forsyth County Board of Education 314 Tribble Gap Road Cumming, Georgia 30130 
Mr. Uoyd Harben(*) Dawson County Board of Education P. 0. Box208 Dawsonville, Georgia 30534 
Mrs. Jerri Hooper (*) Habersham County Board of Education P. 0. Box467 Clarkesville, Georgia 30523 
Mr. H. F. Johnson, Jr. (*) Hall County Board of Education 711 Green Street, Suite 100 Gainesville, Georgia 30501 
Mr. Gary Keith (*) Lumpkin County Board of Education 101 Mountain Vifm Drive Dahlonega, Georgia 30533 
- 26 - 
 
SCHEDULE "8" 
 
$ 
 
450.00 
 
500.00 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS 
YEAR ENDED JUNE 30. 1995 
 
BOARD MEMBER ADDRESS 
Mr. James Kimsey(*) Towns County Board of Education P. 0. Box386 Hiawassee, Georgia 30546 
Mr. David Martin (*) 4098 South Browning Bridge Road Lula, Georgia 30554 
Mr. Ed Mills (*) Stephens County Board of Education Route 1, Box 75 Toccoa, Georgia 30577 
Mr. Boyd Outz (*) Franklin County Board of Education P. 0. Box99 Carnesville, Georgia 30521 
Mrs. Tena Padgett (*) 1364 Chamblee Gap Road Cumming, Georgia 30130 
Mr. Hal Pierce (*) 1122 Gumlog Road Lavonia, Georgia 30553 
Mr. Charles Prince (*) Rabun County Board of Education 
P.O.Box468 
Clayton, Georgia 30525 
Mr. Dock Sisk (*) Banks County Board of Education Box 248, Highway 51 Homer, Georgia 30547 
Mr. Elmer Thompson (*) 2742 Murphy Highway Blairsville, Georgia 30512 
Mr. Dale Thurman (*) Highway76 Hiawassee, Georgia 30546 
Dr. Alan Zubay (*) City of Gainesville Board of Education 200 Main _Street Hunt Tower, Suite 100 Gainesville, Georgia 30505 
 
- 27 - 
 
SCHEDULE "8" 
 
$ 
 
550.00 
 
50.00 450.00 
 
550.00 150.00 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS 
YEAR ENDED JUNE 30, 1995 
. BOARD MEMBER 
ADDRESS 
COOPERATIVE PURCHASING AGENCY 
Mr. Morgan Arp () Fannin County Board of Education P. 0. Box606 Blue Ridge, Georgia 30513 
Mr. Dan Cromer() Barrow County Board of Education P.O. Box767 Winder, Georgia 30680 
Mr. Thomas Y. Harris (*) Oglethorpe County Board of Education 
P. 0. Box 190, Highway78 
Lexington, Georgia 30648 
Mr. H. F. Johnson (*) Hall County Board of Education 711 Green Street, Suite 100 Gainesville, Georgia 30503 
Mr. Corky Jones c) 
Cherokee County Board of Education 
P. 0. Box769 
Canton, Georgia 30114 
Mr. Boyd Outz (*) Franklin County Board of Education 
P. 0. Box99 
Carnesville, Georgia 30521 
Mr. Jim Perkins () Madison County Board of Education 
P. 0. Box37 
Danielsville, Georgia 30633 
Mr. Dock Sisk () Banks County Board of Education Box 248, Highway 51 Homer, Georgia 30547 
Mr. Kimsey Wood (*) Pickens County Board of Education 488 Stegall Drive Jasper, Georgia 30143 
 
c> Denotes Board Members Serving as of June 30, 1995 
 
See notes to the general purpose financial statements. 
 
- 28 - 
 
SCHEDULE "8" $ ===2=,7=0=0.=00= 
 
 SECTION TI SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SUMMARY Of SALARIES AND TRAVEL 
YEAR ENDED JUNE 30 1995 
 
SALARIES 
GENERAL FUND lnatructlon Support Services Improvement of Instructional Services General Administration Business Administration Central Support Services Other Support Services Other Operations of Non-Instructional Services 
Total General Fund 
SPECIAL REVENUE FUND 
 
TOTAL PER FINANCIAL STATEMENTS (ACCRUAL BASIS) 
 
ADJUSTMENTS FOR ACCRUALS JUNE 301 1994 JUNE 301 1995 
 
TOTAL PER SCHEDULE (CASH BASIS) 
 
$ 
 
138,082.05 $ 
 
0.00 $ 
 
0.00 $ 138,082.05 
 
123,316.56 97,220.11 38,710.16 56,151.36 22,500.00 161,196.96 
 
123,316.56 97,220.11 38,710.16 56,151.36 22,500.00 161,196.96 
 
$ 
 
637,1TT.20 $ 
 
0.00 $ 
 
0.00 $ 637,1TT.20 
 
2,095,823.43 
 
176,829.75 
 
-173,093.35 
 
2,099,559.83 
 
Total Salaries 
 
$ 
 
2,733,000.63 $ 
 
176,829.75 $ 173,093.35 $ 2,736,737.03 
 
~ 
 
GENERAL FUND 
 
lnatructlon 
 
$ 
 
Support Services 
 
Improvement of Instructional Service& 
 
General Administration 
 
Business Administration 
 
Central Support Services 
 
Other Support Service& 
 
Other Operations of Non-Instructional Service& 
 
Total General Fund 
 
$ 
 
SPECIAL REVENUE FUND 
 
7,289.07 $ 
7,675.63 4,511.39 
21.63 2,650.13 3,504.15 1,254.29 
26,906.29 $ 
62,795.31 
 
0.00 $ 
0.00 $ 0.00 
 
$ -711.60 
-711.60 $ 0.00 
 
7,289.07 
7,675.63 3,799.79 
21.63 2,650.13 3,504.15 1,254.29 
26,194.69 
62,795.31 
 
Total Travel 
 
$ 
 
ss,101.60 s 
 
o.oo s _ _ _-_11_1_.60_ s 
 
88 990.oo 
1 
 
 PIONEER R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL 
YEAR ENDED JUNE 30, 1995 
 
NAME 
 
TITLE CATEGORY 
 
ADAMS.SHIRLEY J ALLEY,NANCY S ARMOUR.JUDITH ANN ARMOUR,JUDITH ANN 
AUTRY.TONYA BALBUZE,MAUREEN 
BEASLEY.ANGELA D BEAVERS.BARBARA JEAN 
BENNETT.ROGER E BERGHOLM,BONNY E 
BERRONG.MARILYN A BLACK,RITA A 
BOGGS,CAROLYN P BOLLINGER, MAC 
BOWEN.SHERRIL BROOKS.MARC BURRELL.CHERYL B CARTER.TERESA A CHASTAIN.SHERRY P COCHRAN.BONNIE L COLLINS, J LAMAR COUCH,PAULA A DERDEN.DONNA 
DORSEY.HELEN H DORSEY.KEVIN 
DORSEY.SUES DYER,GINA DYER.GLENDA FARMER.BEVERLY FARMER,HOWARD LEE 
FLEMING,ROBIN W FORTNER.CATHERINE FRANKS, DIANNE S FREEMAN,SHIRLEY A FREEMAN.SHIRLEY A FREEMAN,SUSIE J 
FREEMAN.SUSIE J FULLER.LELA GERRELL,JERILYN GOWAN,BONEL GRANT,JERRY A 
HARNEY,PATRICIA 
HARRISON,JAMES J JR HELTON,DARLENE Y 
HENNING.DIANA L 
HIGGINBOTHAM.JANE HOLCOMB.BETTY HOLCOMB.JOYCE HULSEY, CURT! S HUNTER.MARLENE 
JACKSON.DOUG KIMBRELL.ANN 
KINSEY.BUFORD 0 LEWIS,MONTENE M LEWIS,MONTENE M LOYLESS,CAROLYN R MARCHBANKS,SARALYN W 
MARCHBANKS.SCOTT G MAXEY,KASMIR S MAXWELL.THERESA SHANNON MCCONNELL,VICKIE C MCDOWELL,MICHAEL C MCGHEE,GILBRETTA S 
MCGHEE,GILBRETTA S MCGUIRE, LINDA C 
MOFFETT.MALVINA 
 
SEVERELY EMOTIONALLY DISTURBED PR 
 
$ 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
INSTRUCT! ON 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SUPP SRVS - IMPROV INSTR & ED MED SRVS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
MISCELLANEOUS PROGRAMS 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SUPP SRVS - IMPROV INSTR & ED MED SRVS 
 
SUPPORT SERVICES - CENTRAL 
 
SUPPORT SERVICES - BUSINESS 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
OTHER SUPPORT SERVICES 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
INSTRUCTION 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
MISCELLANEOUS PROGRAMS 
 
INSTRUCTION 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
GENERAL ADMINISTRATION 
 
SUPPORT SERVICES - CENTRAL 
 
SUPPORT SERVICES - BUSINESS 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SALARIES AMOUNT 
41,507.24 $ 31,155.54 
19,946.04 189.00 
18,961.70 10,617.70 4,349.84 56,719:20 26,475.86 60,900.00 14,252.04 6,323.01 4, 120. 16 13,730.50 28,047.00 5,516.42 11,100.90 30,906.52 25,520.30 38,853.96 19,828.40 17,140.50 9,248.96 2,207.15 24,099.88 5,502.66 16,790.50 1,143.00 28,887.96 11,007.77 47,957.04 13,652.36 8,602.44 8,602.56 16,202.16 6,943.80 27,417.20 13,255.20 15,201.36 22,500.00 44,918.40 30,648.00 10,014.66 32,947.34 5,100.16 1,842,00 17,529.00 20,247.76 18,801.00 13,255.20 1,062.00 23,430.96 37,219.80 15,951.00 38,302.86 23,107.24 23,456.74 13,024.69 27,046.74 21,159.96 47,548.80 22,508.00 3,400.00 22,472.04 19,758.65 
 
TRAVEL EXPENSE 
1,620.01 21. 61 
384.72 
59.90 
4,427.37 72.03 
1,543.11 13.44 3.99 
32.21 99.63 
2,140.98 
370.86 106.26 739.79 22.68 
59.64 
296.89 59.85 
1,349.27 84.00 25.83 
9.45 
6.93 297. 14 112. 34 510.00 1,892.13 480. 17 1,004.74 1,608.59 
81. 48 
10.92 127.68 
3,097.31 
45. 15 266.22 
672.70 7.56 
2,650. 13 12. 18 
39.90 848.66 
 
>ED 
 
 PIONEER R.E.S.A. 
 
SCHEDULE OF SALARIES AND TRAVEL 
 
2 
 
YEAR ENDED JUNE 30, 1995 
 
NAME 
 
TITLE CATEGORY 
 
SALARIES AMOUNT 
 
TRAVEL EXPENSE 
 
MOFFETT.WAYNE NEAVE, SHELIA NICHOLS.WILLARD M PALMER.BARBARA PALMER.BARBARA PALMER.DANNY PALMER.DARREN J PARKER.SUSAN C 
PARTIN.MELANIE L 
PECK.BOBBIE L PERRY, DAVID 
PORTER-WHITMIRE.DERRICK PORTERFIELD.JANICE B PRICE.STELLA W PROCTOR.SUSAN 
ROGERS.CARL RUARK.CHRISTINE C SEABOLT,J ALLEN 
SEABOLT,J ALLEN SEGARS.KATHRYN SHERIFF SEGERS,G YVONNE SEWELL,YONAH 
SHANNON, JULIA G SKELTON, BARBARA SLONE.ANNE SMITH, EVELYN H 
SMITH.EVELYN H SMITH, EVELYN H SMITH, J MARLIN 
SMITH.SAMANTHA N SMITH.STACY SQURIES,SHERI A 
STANCIL.RUSSELL STEPHENS.ANN STINESPRING.CLARE G STOKES.ASHLEY STOVER.STAN STOWERS.MARCUS KEITH STOWERS.MARCUS KEITH STOWERS.MARCUS KEITH TAYLOR.BRENDA SUE 
TAYLOR. LISA A TENCH,ENGIE A THOMAS.BETTY 
THOMAS,C RONALD THOMAS.JANEE VANDIVER.JENNIFER 
VANDIVER.SHANNON DENISE WALKER.DORIS WATKINS.KENNETH H WATKINS.KENNETH H 
WHITE, THOMAS R WILLIAMS, LEWIS 
WILLS.KATHRYN P WILSON,S PAMELA WINDHAM.SHERYL WINDHAM.SHERYL 
WINKLER.MARGIE WISE.NANCY WOODS.COLETTE WRIGHT.PHIL YORK.BEATRICE C YOUNG,JO ELLEN 
 
SEVERELY EMOTIONALLY DISTURBED PR 
 
$ 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
GENERAL ADMINISTRATION 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
MISCELLANEOUS PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
INSTRUCTION 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SUPP SRVS - IMPROV INSTR & ED MED SRVS 
 
OTHER SUPPORT SERVICES 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
INSTRUCTION 
 
GENERAL ADMINISTRATION 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
DIRECTOR 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
INSTRUCTION 
 
MISCELLANEOUS PROGRAMS 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
INSTRUCTION 
 
GENERAL ADMINISTRATION 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
OTHER OPERATIONS OF NONINSTRUCT. SERV. 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
INSTRUCTION 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SPECIAL REVENUE FUND - OTHER PROGRAMS 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
GEORGIA LEARNING RESOURCES SYSTEM FUND 
 
MISCELLANEOUS PROGRAMS 
 
SEVERELY EMOTIONALLY DISTURBED PROGRAM 
 
60,696.00 $ 28,557.50 30,648.00 
775.00 17,822.00 26,757.57 20,128.19 42,164.52 7,419.86 31,206.86 32,536.56 42,512.74 3,903.34 27,389.91 48,548.76 25,782.41 11,828.53 57,994.92 
29,311.70 22,732.24 
9,300.00 12,130.50 16,790.50 14,484.54 12,030.96 6,592.23 
67,692.96 26,701.64 
3,012.19 14,313.37 23,430.96 13,652.36 39,734.14 16,925.34 42,714.74 15,951.84 
999.96 37,218.96 
5,540.66 21,543.30 13,179.08 34,390.40 23,692.99 
9. 181. 50 16,575.96 2,208.00 10,298.53 44,918.40 
50,170.80 18,460.00 36,379.64 36,167.90 
383.64 41,028.14 31,020.20 11,184.12 
1,837.84 53,170.80 10,075.50 22,799.00 
 
3,205.76 38.85 
377.60 16. 17 
3,959.92 
38.22 2,536.29 
2,354.76 2,209.93 
504.42 3,222.43 2,994.15 3,229.13 
101. 85 1,007.23 
37.80 
6.09 3,393.05 2,589.23 
127.32 
2,416.12 
1,129.50 
399. 18 4,431.89 
3,248.20 20.00 11. 55 
3,687.76 73.71 
2,950.78 
2,343.21 1,971.32 
4,202.75 50.40 
2,612.17 
175.81 
 
TOTALS 
 
$ 2,736,737.03 $ 88,990.00 
 
BOEO 
 
 SECTION ill COMPLIANCE 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 29, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Director and Members ofthe Pioneer Regional Educational Service Agency Board ofControl 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements ofthe Pioneer Regional Educational Service Agency as of and for the year ended June 30, 1995, and have issued our report thereon dated July 29, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditors report on the general purpose financial statements. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
We did not observe the taking ofinventories for resale at June 30, 1995, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories for resale through alternative procedures. 
Compliance with laws, regulations, contracts, and grants applicable to Pioneer Regional Educational Service Agency is the responsibility of the Agency's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Agency's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 
95CRL-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:cm 95CRL-I0 
 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATE AUDI.OR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 29, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Director and Members of the Pioneer 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 ofthe Pioneer Regional Educational Service Agency as of and for the year ended June 30, 1995, and have issued our report thereon dated July 29, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have applied procedures to test the Pioneer Regional Educational Service Agency's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995: 
 
(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 ofManagement 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. 
 
95CRL-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 ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Pioneer Regional Educational Service Agency had not complied, in all material respects, with those requirements. However, the results of our 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:cm 95CRL-50 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 29, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Director and Members ofthe Pioneer 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 ofthe Pioneer Regional Educational Service Agency as of and for the year ended June 30, 1995, and have issued our report thereon dated July 29, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have also audited the Pioneer Regional Educational Service Agency's compliance with the requirements governing: 
 
(1) Types of Services Allowed or Unallowed 
 
(5) Applicable Special Tests and Provisions 
 
(2) Eligibility 
(3) Matching, Level ofEffort, and/or Earmarking 
 
(6) Other Requirement Claims for Advances and Reimbursements 
 
(4) Reporting 
 
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, 1995. The management of the Pioneer 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. 
 
95CRL-80 
 
 Except as discussed in the following paragraph, 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 Pioneer Regional Educational Service Agency's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. 
We did not observe the taking ofinventories for resale at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories for resale through alternative procedures. However, this matter has no affect on the Agency's compliance with the requirements listed in the second paragraph of this report. 
In our opinion, the Pioneer 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, 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. 
 
CLV:cm 95CRL-80 
 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 29, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Director and Members of the Pioneer Regional Educational Service Agency Board ofControl 
 
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 ofthe Pioneer Regional Educational Service Agency as of and for the year ended June 30, 1995, and have issued our report thereon dated July 29, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
In connection with our audit of the fiscal year 1995 general purpose financial statements of the Pioneer Regional Educational Service Agency and with our consideration of the Agency's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (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, 1995. 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 Pioneer Regional Educational. Service Agency's compliance with these requirements. Accordingly, we do not express such an opinion. 
 
95CRL-120 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Pioneer Regional Educational Service Agency had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
 
CLV:cm 95CRL-120 
 
Claude L. Vickers State Auditor 
 
 SECTION IV INTERNAL CONTROL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 29, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Director and Members ofthe Pioneer Regional Educational Service Agency Board ofControl 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements ofthe Pioneer Regional Educational Service Agency as of and for the year ended June 30, 1995, and have issued our report thereon dated July 29, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
We did not observe the taking of inventories for resale at June 30, 1995, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories for resale through alternative procedures. 
The management of the Pioneer Regional Educational Service Agency is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and 
that transactions are executed in accordance with management's authorization and recorded properly to permit 
the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods 
95ICL-3 
 
 is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate. 
In planning and performing our audit of the general purpose financial statements of the Pioneer Regional Educational Service Agency for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding ofthe design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose :financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe 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 internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose :financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses. 
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Pioneer Regional Educational Service Agency's financial statements and this report does not affect our report thereon dated July 29, 1996. 
95ICL-3 
 
 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:cm 95ICL-3 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 29, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation 
and Director and Members of the Pioneer Regional Educational Service Agency Board of Control 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements ofthe Pioneer Regional Educational Service Agency as of and for the year ended June 30, 1995, and have issued our report thereon dated July 29, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Pioneer Regional Educational Service Agency's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 29, 1996. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement 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 Pioneer Regional Educational Service Agency complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. 
We did not observe the taking ofinventories for resale at June 30, 1995, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories for resale through alternative procedures. 
In planning and performing our audit for the year ended June 30, 1995, we considered the Agency's internal controlstructure in order to determine our auditing procedures for the purpose of expressing our opinions 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 
95ICL-8 
 
 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 July 29, 1996. 
 
The management of the Pioneer 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 ofinternal 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 ofinherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure _to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate. 
 
For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: 
 
GENERAL REQUIREMENTS 
 
SPECIFIC REQUIREMENTS 
 
(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(1) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level ofEffort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(4) Reporting 
 
(6) Audit Follow-Up/Resolution (7) Administrative Requirements 
 
(5) Applicable Special Tests and Provisions 
(6) Other Requirement Claims for Advances and Reimbursements 
 
For all of the internal control structure categories listed above, we obtained an understanding ofthe design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. 
 
During the year ended June 30, 1995, the Pioneer Regional Educational Service Agency expended 79/c, ofits total Federal financial assistance under major Federal financial assistance programs. 
 
95ICL-8 
 
 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 ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 
We noted 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: 
(I) Cash Management 
(2) Administrative Requirements 
A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule ofFindings and Improper or Questioned Costs, the following control category includes a reportable condition that 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 of the Pioneer Regional Educational Service Agency's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated July 29, 1996. 
95ICL-8 
 
 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantoi- agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:cm 95ICL-8 
 
 SECTIONV FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Records Federal Financial Assistance Audit Control Number 8544-93-03 Finding Resolved 
The audit report for the year ended June 30, 1993, stated that the accounting records for the Individuals with Disabilities Education Act - Special Education Personnel Development and Parent Training - Title VI, D Program (CFDA 84.029) were not adequately segregated to ensure identification of revenues and expenditures by specific project as required by 34 CFR 80.20. For the year under review, these accounting records were adequately segregated as required. 
AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Records Federal Financial Assistance Audit Control Number 8544-94-01 Finding Resolved 
The audit report for the year ended June 30, 1994, stated that the accounting records for the Elementary and Secondary Education Act - Even Start Program (CFDA 84.213) were not adequately segregated to ensure identification of revenues and expenditures by specific project as required by 34 CFR 80.20. For the year under review, these program accounting records were adequately segregated as required. 
PRIOR YEAR/CURRENT YEAR 
ACCOUNTING CONTROLS (OVERALL} - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition- Material Weakness Audit Control Number 8544-93-01 
The audit report for the year ended June 30, 1994, stated that the Agency did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. 
Note: Federal financial assistance programs affected by this finding are as follows: Elementary and Secondary Education Act- Even Start Program (CFDA 84.213) Individuals with Disabilities Education Act - Title VI, B Program (CFDA 84.027) 
- 1- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 
PRIOR YEAR/CURRENT YEAR 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 8544-93-02 
The audit report for the year ended June 30, 1994, noted that the Pioneer Regional Educational Service Agency did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Agency did not establish a General Fixed Assets Account Group within the formal accounting records. The management of the Agency has chosen not to maintain a system-wide General Fixed Assets Account Group due to the GENESIS computer system not having a Fixed Assets Accounting program. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
CURRENT YEAR 
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 8544-95-01 
A review of cash management procedures for the Individuals with Disabilities Education Act, Title VI, B, Georgia Learning Resource System Program (CFDA 84.027) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. During the fiscal year 1995, the program had an average cash balance of$9,548.63 with excessive ending monthly cash balances in seven months. This noncompliance was a result ofthe Agency's failure to follow procedures to accurately forecast cash needs. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department ofEducation and disbursement of such funds by the Agency. 
-2- 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 CURRENT YEAR FEDERAL FINANCIAL REPORTS Completion Report Not Filed on Timely Basis Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 8544-95-02 Audit tests for the year under review indicated the Pioneer Regional Educational Service Agency failed to file the completion report for the Individuals with Disabilities Education Act, Title VI, B, Georgia Learning Resource System - 94 Carryover Project (CFDA 84.027) on a timely basis, as required by guidelines established by Georgia Department ofEducation. The completed report for this project was filed on January 15, 1996, while the required due date was September 30, 1995. This noncompliance was a result of Agency oversight. Appropriate procedures should be established and implemented by the Board to ensure that program completion reports are submitted in accordance with program requirements. 
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 SECTION VI PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 8544-93-01 
We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved. 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 8544-93-02 
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staffthe Board has decided not to pursue the recording of general fixed assets on the financial statements. 
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 8544-95-01 
We have made a conscious effort to comply. We manage a number of conference and contract activities as a fiscal agent. On occasion, late deliveries, backorders, and conference costs change, which results in an early request. We will continue to address the issue to minimize the time lapsing between the transfers and the payment. 
FEDERAL FINANCIAL REPORTS Completion Report Not Filed on Timely Basis Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 8544-95-02 
No excuse. We just missed an FY 94 Carry Over Projects Report. We did file approximately two dozen reports timely and a number of contract reports.