GA A~oO .. R.I i::. d-b I P5 Ic;Q5 -9f:". AUDIT REPORT PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY CLEVELAND, GEORGIA YEAR ENDED JUNE 30, 1996 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - SECTION I FINANCIAL . INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE EXlllBITS 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 19 3 ACCOUNTS RECEIVABLE 20 SCHEDULE OF REVENUE 4 STATE 21 5 OTHER 22 SCHEDULE OF EXPENDITURES BY OBJECT 6 GOVERNMENTAL FUND TYPES 23 7 LOTTERY PROGRAMS 24 8 SCHEDULE OF COMPENSATION OF BOARD MEMBERS 25 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - SECTIONll 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 SECTION IV INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS SECTION V FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 March 5, 1997 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 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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit. 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 the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of inventories for resale at June 30, 1996, 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: 96ARL-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 effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material. In our opinion, except for the effect of adjustments, if any, on the General and the Special Revenue Funds as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe 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, 1996, and the results of its 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 March 5, 1997, on our consideration of the Agency's internal control structure and a report dated March 5, 1997, on its compliance with laws and regulations. Our audit was conducted for the purpose of forming 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 of the general purpose financial statements ofthe Pioneer Regional Educational Service Agency. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the General and the Special Revenue Funds, 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 of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, tf~~ Claude L. Vickers State Auditor CLV:cm 96ARL-33 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY - 1- PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1996 EXHIBIT "A" ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30, 1995 $ 348,254,86 $ 348,254,86 $ 295,933.30 $ 96,451.51 124,118.02 220,569.53 238,991.82 91,426.12 379,489.63 470,915.75 431,526.66 167,453.67 167,453.67 26,924.14 Total Assets $ 355,331.30 $ 851,862.51 $ 1,207,193.81 $ 993,375.92 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft $ Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities $ FUND EQUITY Fund Balances Reserved For Inventories $ For Prepaid Items $ Unreserved Undesignated Total Fund Equity $ 37,237.46 46,670.13 $ 7,869.79 91,777.38 $ 91,426.12 $ 167,453.67 258,879.79 $ 4,674.13 263,553.92 $ $ 201,229.16 204,054.09 33,790.49 439,073.74 $ 372,288.47 $ 372,288.47 $ 40,500.30 412,788.77 $ 37,237.46 $ 247,899.29 211,923.88 33,790.49 530,851.12 $ 463,714.59 $ 167,453.67 631,168.26 $ 45,174.43 676,342.69 $ 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 Total Liabilities and Fund Equity $ 355,331.30 $ 851,862.51 $ 1,207,193.81 $ 993,375.92 The notes to the general purpose financial statements are an integral part of this statement. -2- PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996 EXHIBIT-B- REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Other Operations of Non-Instructional Services Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 - Restated (See Note 1) Transfer of the Cooperative Purchasing Agency from the North Georgia Regional Educational Service Agency GENERAL FUND SPECIAL REVENUE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30,1996 JUNE 30,1995 $ 1,025,336.16 $ 1,830,190.62 $ 2,855,526.78 $ 2,276,846.91 113,389.79 1,067,781.85 1,181,171.64 1,593,408.78 699,394.47 1,078,873.57 1,n8,268.04 1,500,816.20 $ 1,838,120.42 $ 3,976,846.04 $ 5,814,966.46 $ 5,371,071.89 $ 586,332.07 $ 2,061,162.27 $ 2,647,494.34 $ 2,711,958.96 377,573.91 201,393.88 57,131.91 55,693.83 90,651.86 202,041.93 246,655.13 123,096.72 781,649.07 3,375.81 341,026.64 554,002.92 136,912.55 10,752.15 123,096.72 1,159,222.98 3,375.81 542,420.52 611,134.83 192,606.38 90,651.86 212,794.08 246,655.13 131,571.31 923,286.27 2,515.10 527,220.99 605,481.36 175,308.27 1,014.27 76,730.34 71,973.78 223,448.12 $ 1,817,474.52 $ 4,011,978.13 $ 5.829,452.65 $ 5,450,508.77 $ 20.645.90 $ -35,132.09 $ -14,486.19 $ -79,436.88 242,908.02 447,920.86 690,828.88 301,365.29 468,900.47 FUND BALANCE JUNE 30 $ 263,553.92 $ 412,788.77 $ 676,342.69 $ _ ....6.9_0;;,:,;.8;,;;2~8.~88;. The notes to the general purpose financial statements are an integral part of this statement. -3- THIS PAGE LEFT BLANK 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 30,1996 EXHIBIT-C GENERAL FUND BUDGET ACTUAL REVENUES State Funds Federal Funds Other Funds $ 701,300.00 $ 1,025,336.16 113,389.79 1,250,217.00 699,394.47 Total Revenues $ 1,951,517.00 $ 1,838,120.42 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 349,923.00 $ 227,507,30 152,756.00 667,518.00 75,950.00 85,702.50 214,136.00 586,332.07 3n,573.91 201,393.88 57,131.91 55,693.83 90,651.86 202,041.93 246,655.13 Tetal Expenditures $ 1,n3,492.80 $ 1,817,474.52 Excess of Revenues over (under) Expenditures $ 178,024.20 $ 20,645.90 FUND BALANCE JULY 1,1995 57,666.74. 94,712.09 Adjustments 148,195.93 SPECIAL REVENUE FUND BUDGET ACTUAL $ 1,881,090.00 $ 1,830,190.62 712,307.00 1,067,781.85 306,685.00 1,078,873.57 $ 2,900,082.00 $ 3,976,846.04 $ 1,684,368.00 $ 2,061,162.27 119,986.00 587,244.00 4,833.00 328,769.00 2,763,00 63,620.00 1,500.00 123,096.72 781,649.07 3,375.81 341,026.64 554,002,92 136,912.55 107,000.00 10,752.15 $ 2,900,083.00 $ 4,011,978.13 $ -1.00 $ -35,132.09 162,302.67 447,920.86 FUND BALANCE JUNE 30.1996 $ 235,690.94 $ 263,553.92 $ 162,301.67 $ 412,788.n The notes to the general purpose financial statements are an integral part of this statement -5- PIONEER REGIONAJ."_EDUCATIONAJ,, SERVICE AGENCY EXIllBIT "0" NOTES TO THE GENER~},:.PURPOSEFlhANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUM1\1ARY 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 of local school systems and for providing instructional programs directly to selected public school students in the state. Each regional educational service agency is governed by a board. The number of members and terms of office 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 of any local unit ofadministration, 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 of the Agency have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclose~ in these notes, the financial statements present all of the fund types and account groups ofthe Agency. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Agency's accounting policies are described below. REPORTING ENTITY In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application of the above criteria, the 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 of the regional educational service agency. The director is responsible for the administration ofthe programs and services approved by the Board. Member boards of education in the Pioneer Regional Educational Service Agency are as follows: Banks 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 EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A fund is a separate accounting entity with a self-balancing set of accounts. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Agency. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. The general purpose financial statements account for all State, Federal and Other funds under control ofthe Agency, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a regional educational service agency's general activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the Agency except those required to be accounted for in anotherfund. 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 of the 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. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund liability is incurred. RESTATEMENT OF PRIOR YEAR FUND BALANCE. In the 1995 fiscal year, the Pioneer Regional Educational Service Agency recorded expenditures of $148,195.93 for building additions in error. In the year under review, an adjustment was made to correctly record this amount as a prepaid item in accordance with a lease agreement (See Prepaid Items). The fund balance at July 1, 1995 has been restated as appropriate.. BUDGET The Pioneer Regional Educational Service Agency's budget is a complete financial plan for the Agencis fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Agency at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. 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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. CASH AND CASH EQUIVALENTS C01\1POSITION 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 Receivables consist of grant reimbursements due from 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. - 8- PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note"1: Sillv1MARY OF SIGNIFICANT ACCOUNTING POLICIES INVENTORIES GOODS FOR RESALE Inventories for resale in the General Fund - Equipment Repair Fund are maintained on the purchases method and recorded as purchases for resale at the time of purchase.. Inventories for resale for this fund are valued on the Combined Balance Sheet at cost (first-in, first-out). Inventories for resale for the Special Revenue Fund - Cooperative Purchasing Agency are recorded as assets at the time of purchase and the related cost of goods sold is recorded as the inventory items are sold. Inventories for resale for this fund are valued on the Combined Balance Sheet at cost, (first-in, first-out). Inventories reported on the balance sheet are offset by a reservation of fund balance which indicates that these amounts do not constitute "available spending resources" even though they are a component of net current assets. PREPAID ITEMS The Pioneer Regional Educational Service Agency rents facilities from the White County Board of Education. Under terms of an agreement between the parties, all costs incurred by the Agency for improvements and additions to the facilities will be treated as prepaid expenses. These costs will be amortized as rent expense at a rate of $6,000.00 per year for improvements and $10,466.40 per year for additions until such amounts have been expended in this manner. RESERVED FUND BALANCES Reserve for Prepaid Items - This reserve constitutes the amount of prepaid expenditures which are not readily available as current assets to provide working capital. Such amounts are reported as a reservation of fund balance and do not constitute "available spendable resources". INTERFUND TRANSACTIONS The Agency has the following type of interfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications. - 9- PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofthe securities pledged shall be equal to not less than 11 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 anyone of or any combination ofthe following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business ~thin the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, (5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to 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, 1996, the bank balances were $591,121.74. 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. - 10 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1996 Note"2: DEPOSITS Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Agency's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Agency's name.) The Agency's deposits are classified by risk category at June 30, 1996, as follows: Risk Category Bank Balance 1 $ 300,000.00 2 0.00 3 291.121.74 Total $ 591.121.74 Note 3: RISK MANAGEMENT The Agency is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees and natural disaster. The Agency has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illnesses or injuries to employees. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The Agency has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Agency's insurance coverage in any of the past three years. The Agency has elected to self-insure for all losses related to natural disaster. The Agency has not experienced any losses related to these risks in the past three years. Note 4: ON-BEHALF FAYMENTS The Agency has recognized revenues and expenditures in the amount of $88,708.57 for health insurance contributions paid on the Agency's behalf by the following State Agency. Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$88,708.57. - 11 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 5: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Agency believes that such disallowances, if any, will be immaterial to its overall financial position. 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 eligtble 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 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 ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting 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, 1996, was $3, 188,072.70~ total payroll was $3,285,825.62. 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 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. - 12 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1996 Note 6: RETIREMENT PLANS Total contributions made during fiscal year 1996 amounted to $535,914.94, of which $376,511.11 was made by the Agency and $159,403.83 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. Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows: Total pension benefit obligation $17,442,607,000.00 Net assets available for benefits, at cost 15,857,066,000.00 Unfunded pension benefit obligation $ 1.585 541.000.00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Agency's contribution for the year ended June 30, 1996 of$376,511.11 was actuarially determined and represented .0620% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. Note 7: SURETY BONDS The Director, Mr. 1. Marlin Smith, is bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 5856436, on which premium is paid through May 1, 1997. - 13 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Tetal Assets ALPINE CENTER GEORGIA LEARNING RESOURCES SYSTEM LOTIERY PROGRAMS TEACHER EVALUATION GRANT TEACHER TRAINING FOR SEX EDUCATION $ 219,781,10 $ 55,146.~ $ 0.00 $ 0.00 24,037.58 17,831.66 $ 6,983.99 $ 243,818.68 $ 72,978.01 $ 6,983.99 $ 0.00 $ _ _.....0....0..0. LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Tetal Liabilities FUND EQUITY Fund Balances Reserved For Inventories Unreserved Undesignated Total Fund Equity $ 28,134,44 $ 166,613.36 26,396.09 $ 221,143.89 $ $ 11,618.69 37,440.73 6,093.08 55,152.50 $ $ 22,674.79 $ 17,825.51 $ $ 22,674.79 $ 17,825.51 $ 6,328.48 340.80 314.71 6,983.99 0.00 $ 0.00 $ Total Liabilities and Fund Equity $ 243,818.68 $ 72,978.01 $ 6,983.99 $ 0.00 $ 0.00 0.00 $ 0.00 0.00 $ _ _.....0...0...0.. See notes to the general purpose financial statements. -14 - EXHIBIT -E" ~ ACQUIRED IMMUNODEFICIENCY SYNDROME (AIDS) ACTIVITY ELEMENTARY AND SECONDARY EDUCATION ACT EVEN START MFEAND DRUG-FREE SCHOOLS COOPERATIVE PURCHASING AGENCY TOTALS JUNE 30,1996 JUNE 30.1995 $ 986.61 $ . 116,269.15 $ 392,183.21 $ 382,302.59 $ 2,470.00 $ 35,521.39 37,273.40 124,118.02 189,497.16 379.489.63 379.489.63 342,620.41 $ 2,470.00 $ 3..5....5..2..1...3..9.. $ 986.61 $ 533.032.18 $ 895,790.86 $ 914,420.16 $ 2,078.48 $ 35,521.39 $ 43,928.35 $ 86,369.29 391.52 $ 160,743.71 201,229.16 173.817.10 204,054.09 173,093.35 $ 986.61 33,790.49 33.219.56 $ 2.470.00 $ 35.521.39 $ 986.61 $ 160,743.71 $ 483,002.09 $ 466,499.30 $ 372,288.47 $ 372.288.47 $ 342.620.41 $ 0.00 $ 0.00 $ ~O.~oo~ _ _ _--"-O.~OO.;;.. 40.500.30 105,300.45 $ 0.00 $ 0.00 $ 0.00 $ 372.288.47 $ 412.788.n $ 447.920.86 $ 2.,.4.7..0..0...0. $ 35.521.39 $ _ _...;,;986;.;;,;;.6_1 $ 533,032.18 $ 895.790.86 $ 914,420.16 -15 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDEP JUNE 30,1996 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support services PUpil8ervices Improvement of Instructional Services Educational Media services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services TolalExpendttures Excess of Revenues over (under) Expendttures FUNP BALANCE JULY 1 Transfer of the Cooperative Purchasing Agency from the North Georgia Regional Educational service Agency ALPINE CENTER GEORGIA LEARNING RESOURCES SYSTEM LOTTERY PROGRAMS TEACHER EVALUATION GRANT TEACHER TRAINING FOR SEX EDUCATION $ 1,520,m.00 $ 416,614.49 43,821.32 75,674,00 $ 130,721.86 412,412,72 125,083.62 $ $ 1,981,212.81 $ 618,808.58 $ 125,083,62 $ 85,714.00 $ 85,714.00 $ 22,942.00 22,942,00 $ 1,274,648.26 $ 435,825,64 $ 19,165.50 $ 122,084.22 306,253.80 388.53 225,593.n 1,012.50 86,742.66 2,987.28 114,272.92 105,918.12 64,306.01 6,380.50 82,781.96 $ 2,932.04 22,942.00 $ 1,993,274,59 $ 647,221.50 $ 125,083,62 $ $ -12,061.78 $ -28,412.92 $ 0,00 $ 34,736.57 46,238.43 0,00 85,714,00 $ 0,00 $ 0.00 22,942,00 0.00 0.00 FUND BALANCE JUNE 30 $ 22,674,79 $ 17,825,51 $ 0.00 $ 0,00 $ 0,00 See notes to the general purpose financial statements, -16- EXHIBIT "F" " ACQUIRED IMMUNODEFICIENCY SYNDROME (AIDS) ACTIVITY ELEMENTARY AND SECONDARY EDUCATION ACT EVEN START SAFE AND DRUG-FREE SCHOOLS COOPERATIVE PURCHASING AGENCY TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 $ 1,830,190.62 $ 1,753,833.29 $ 9,498.77 $ 338,172.34 $ 172,774.39 1,067,781.85 1,520,757.41 $ 622,639.53 1,078,873.57 927,434.14 $ 9,498.77 $ 338,172.34 $ 172,774.39 $ 622,639.53 $ 3,976,846.04 $ 4,202,024.84 $ 248,740.91 $ 2,061,162.27 $ 2,397,615.89 123,096.72 131,571.31 $ 9,498.77 77,917.47 $ 172,376.25 781,649.07 707,713.82 3,375.81 2,515.10 761.81 398.14 341,026.64 352,192.43 $ 551,070.88 554,002.92 558,213.63 66,226.04 136,912.55 144,770.25 1,014.27 10,752.15 10,752.15 3,762.93 $ 9,498.77 $ 338,172.34 $ 172,774.39 $ 617,296.92 $ 4,011,978.13 $ 4,299,369.63 $ 0.00 $ 0.00 $ 0.00 $ 5,342.61 $ -35,132.09 $ -97,344.79 0.00 0.00 0.00 366,945.86 447,920.86 76,365.18 468,900.47 $ O._oo_$ O_.OO_$ O~.OO_$ 372,288.47 $ 412,788.77 $ 447,920.86 -17 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996 FUNDING AGENCY PROGRAM/GRANT Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Even Start 1996 Grant Goals 2000-State and Local Education Systemic Improvement Grants 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Georgia Learning Resources System 1996 Grant Severely Emotionally Disturbed 1996 Grant Special Projects Boys Town Educational Model 1996 Grant Severely Emotionally Disturbed 1996 Grant Special Education Personnel Development and Parent Training Title VI, D Georgia Learning Resources System 1996 Grant Safe and Drug-Free Schools 1996 Grant Total U. S. Department of Education Corporation for National and Community Service Through Georgia Department of Education Learn and Serve America - School and Community Based Programs 1996 Grant 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 Contract 95-0974 Contract 96-1193 Contract 96-1384 Total U. S. Department of Health and Human Services OTHER FINANCIAL ASSISTANCE National Science Foundation Through Griffin Regional Educational Service Agency Community Based Instruction Resource Project CFDA NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84.213 $ 338,172.34 $ 84.276 35,000.00 338,172.34 202,041.93 (1) 84.027 84.027 84.027 84.027 113,196.92 213,442.02 14,904.89 188,267.58 113,196.92 213,442.02 14,904.89 188,267.58 84.027 17,524.94 17,524.94 84.186 172,n4.39 172,n4.39 $ 1,093,283.08 $ _ _...:..1l::,2.::.:60~,3=2:=.5.:=.0..:...1 94.004 $ 30,386.61 $ .: .:30:, 1.;,3:;.,; 8;.:;,6.:. ; ,6. :. .1 93.938 $ 93.938 93.938 $ 4,028.n $ 3,000.00 2,470.00 9,498.n $ 4,028.n 3,000.00 2,470.00 ....;9:J,.,4.:.::9:.:::,8.:.:,.n.:- $ 48,003.18 $ 4...;.;8;.:..,0;...;;0""3.",,,18.:;.,. Total Federal Financial Assistance Major Programs are identified by an asterisk (*) in front of the CFDA number. (1) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. See notes to the general purpose financial statements. - 18 - .. $ 1,181,171.64 $~===o=1_,3=48..,.2_1_3._5.7. PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY CASH AND CASH EQUIVALENTS JUNE 30,1996 SCHEDULE "2" NONINTEREST BEARING ACCOUNTS Regions Bank, Cleveland, Georgia INTEREST BEARING ACCOUNTS Bank of Dahlonega, Dahlonega, Georgia Certificate of Deposit No. 3353 (5.40%) Regions Bank, Cleveland, Georgia Investment Account (3.00%) Premier Checking (Variable) $ -75,017.53 $ 100,000.00 165,769.51 120,265.42 386,034.93 $ 311,017.40 See notes to the general purpose financial statements. - 19 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY ACCOUNTS RECEIVABLE JUNE 30,1996 SCHEDULE "3" Bank of Dahlonega Interest Earned Education, Georgia Department of Lottery Program Education Technology Centers Federal Programs Elementary and Secondary Education Act Even Start Individuals with Disabilities Education Act Part B - Special Education Special Projects Severely Emotionally Disturbed Special Education Personnel Development and Parent Training Title VI, D Georgia Learning Resources System Learn and Serve America - School and Community Based Programs Contracts Cooperative Agreements to Support School Health Teacher Training - AIDS Health Education Plan and Conduct Technology Training Sessions for Local School System Personnel Griffin Regional Educational Service Agency Community Based Instruction Resource Project Various Sources Payroll Withholdings Sales and Services Shared Services Projects Workshop Fees GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 2,677.81 $ 2,677.81 $ 6,983.99 35,521.39 6,983.99 35,521.39 24,037.58 24,037.58 25,276.67 42,778.56 10,039.32 0.67 2,631.24 13,047.24 17,260.92 2,470.00 37,844.14 17,260.92 25,276.67 2,470.00 42,778.56 10,039.32 0.67 2,631.24 37,844.14 13,047.24 $ 96,451.51 $ 124,118.02 $ ===2:=20:!:,5==:6:=9:=.5=3 See notes to the general purpose financial statements. - 20 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996 SCHEDULE -4- AGENCY/FUNDING GRANTS Education, Georgia Department of Other State Programs Georgia Learning Resources System Health Insurance Regional Educational Service Agency Severely Emotionany Disturbed Staff Development Sex Education Grant Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Educational Technology Centers Instructional Technology CONTRACTS Education, Georgia Department of Provide Technical Expertise in Formatting the 1995-1996 Georgia Public Education Report Card Plan and Conduct Technology Training Sessions for Local School System Personnel Provide Technology and Support for Department Staff in the use of the Technology Center OTHER Workshop Fees GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 75,674.00 $ 75,674.00 $ 88,708.57 88,708.57 701,300.00 701,300.00 1,517,476.00 1,517,476.00 22,942.00 22,942.00 85,714.00 120,814.33 4,269.29 85,714.00 120,814.33 4,269.29 4,200.00 166,127.59 65,000.00 3,301.00 4,200.00 166,127.59 65,000.00 3,301.00 $ 1,025,336.16 $ 1,830,190.62 $ 2,855,526.78 See notes to the general purpose financial statements. - 21 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1996 SCHEDULE "5" Hall County Board of Health Babies Can't Wait Program 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 North Georgia Regional Educational Service Agency Workshop Fees other GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 5,000,00 $ 5,000,00 $ 9,131.06 10,677.16 4,412.45 9,131,06 15,089.61 14,717.93 -11,287.56 5,983.97 -3,280.89 40,699.50 -35,908.26 48,598,39 -24,357.23 2,123,219.77 -1,510,455.91 14,717.93 -11,287.56 5,983.97 -3,280.89 40,699.50 -35,908.26 2,123,219.77 -1,510,455.91 48,598.39 -24,357.23 9,999.20 7,507.20 11,628.40 43,977,60 18,577.40 17,823.40 62,861,80 60,356.86 18,734.00 15,892.00 10,474.80 24,006.20 4,750.20 12,690.40 15,010.40 5,852.52 252,581.29 51,696.73 10,397.00 4,170.64 8,126.00 17,758.13 32,304.85 21,201.13 39,928.00 3,106.00 29,845,23 85,864.00 22,789.86 69,442.99 43,165.00 63,135.21 5,463.22 20,396,20 7,507.20 15,799.04 43,977.60 26,703.40 35,581.53 95,166.65 81,557.99 58,662.00 18,998.00 40,320.03 109,870.20 27,540.06 82,133.39 58,175.40 5,852.52 315,716.50 57,159.95 $ 699,394.47 $ 1,078,873.57 $ 1,778,268.04 See notes to the general purpose financial statements. - 22 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1996 SCHEDULE "6" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Other Purchased Services Supplies Energy Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures Nonoperating Costs Equipment GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 938,460.66 $ 2,347,364.96 $ 3,285,825.62 334,340.34 645,195.69 979,536.03 39,227.05 71,897.97 111,125.02 123,614.59 339,641.08 463,255.67 2,450.00 2,450.00 1,795.80 15,000.00 16,795.80 11,075.32 32,696.82 43,772.14 16,740.65 41,188.71 57,929.36 13,660.00 23,241.60 36,901.60 24,583.69 50,498.03 75,081.72 244.04 36,811.99 37,056.03 123,507.44 135,816.93 259,324.37 10,801.07 36,928.42 47,729.49 796.96 796.96 125.00 125.00 9,131.06 9,131.06 146,826.81 107,452.74 254,279.55 30,147.06 118,190.17 148,337.23 Total Expenditures $ 1,817,474.52 $ 4,011,978.13 $ 5,829,452.65 See notes to the general purpose financial statements. - 23 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1996 SCHEDULE '7" EXPENDITURES Operating Costs Communications Supplies Nonoperating Costs Equipment Total Expenditures EDUCATION TECHNOLOGY INSTRUCTIONAL CENTERS TECHNOLOGY TOTAL $ 16,329.53 13,408.36 $ 91,076.44 $ 1,571.29 2,698.00 16,329.53 14,979.65 93,774.44 $ 120,814.33 $ 4,269.29 $=====1=::25=,0=8=3,=:.6=2 See notes to the general purpose financial statements. - 24 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS YEAR ENDED JUNE 30,1996 BOARD MEMBER ADDRESS PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY Mr, H, F. Johnson, Jr., Chairman C*) Hall County Board of Education 711 Green Street, Suite 100 Gainesville, Georgia 30501 Mr. John Cleveland (*) Hart County Board of Education P.O,Box696 Hartwell, Georgia 30643 Mr, Raymond Collins C*) White County Board of Education 113 North Brooks Street Cleveland, Georgia 30528 Mr, Uoyd Harben C*) Dawson County Board of Education P,O.Box208 Dawsonville, Georgia 30534 Mrs. Jerry Hooper C*) Habersham County Board of EduCation P. O. Box 467 Clarkesville, Georgia 30523 Mr. Kermit Keenum C*) Forsyth County Board of Education 101 School Street Cumming, Georgia 30130 Mrs, Louise Keller C*) P, O. Box 301 Clayton, Georgia 30525 Rev. Ted Kelly C*) 131 Boleman Hill Road Hartwell, Georgia 30643 Mr. James Kimsey C*) Towns County Board of Education 67 Lakeview Circle, Suite C Hiawassee, Georgia 30546 Mr. Clarence Lambert C*) 822 Atlanta Highway Cumming, Georgia 30130 Mr. David Luke C*) Lumpkin County Board of Education 101 Mountain View Drive Dahlonega, Georgia 30533 - 25 - SCHEDULE -8" $ 600,00 50.00 500.00 PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS YEAR ENDED JUNE 30.1996 BOARD MEMBER ADDRESS Mr. Ed Mills (*) Stephens County Board of Education Route 1, Box 75 Toccoa, Georgia 30577 Mr. Boyd Outz (*) Franklin County Board of Education P. O. Box 99 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. Box 468 Clayton, Georgia 30525 Mr. Janney Sanders (*) P. O. Box 1005 Toccoa, Georgia 30577 Mr. Dock Sisk (*) Banks County Board of Education Box 248, Highway 51 Homer, Georgia 30547 Mr. Tommy Stephens (*) Union County Board of Education 10 Hughes Street Blairsville, Georgia 30512 Mr. Elmer Thompson (*) 2742 Murphy Highway Blairsville, Georgia 30512 Mr. Dale Thurman (*) Highway 76 Hiawassee, Georgia 30546 Dr. Alan Zubay (*) City of Gainesville Board of Education B50 Century Place Gainesville, Georgia 30505 SCHEDULE -8" $ 450.00 250.00 600.00 - 26 - PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF COMPENSATION OF BOARD MEMBERS YEAR ENDED JUNE 30, 1996 BOARD MEMBER ADDRESS COOPERATIVE PURCHASING AGENCY Mr. Dock Sisk, Chairman (*) Banks County Board of Education Box 248, Highway 51 Homer, Georgia 30547 Mr. Morgan Arp (*) Fannin County Board of Education 2290 East First Street Blue Ridge, Georgia 30513 Mr. Dan Cromer (*) Barrow County Board of Education P. O. Box 767 Winder, Georgia 30680 Mr. T. Y. Harris (*) Oglethorpe County Board of Education P.O. Box 190 Lexington, Georgia 30648 Mr. H. F. Johnson, Jr. (*) Hall County Board of Education 711 Green Street, Suite 100 Gainesville, Georgia 30503 Mr. Corky Jones (*) Cherokee County Board of Education P. O. Box 769 Canton, Georgia 30114 Mr. Boyd Outz (*) Franklin County Board of Education P. O. Box 99 Carnesville, Georgia 30521 Mr. Jim Perkins (*) Madison County Board of Education P. O. Box 37 Danielsville, Georgia 30633 Mr. Kimsey Wood (*) Pickens County Board of Education 488 Stegall Drive Jasper, Georgia 30143 (*) Denotes Board Members Serving as of June 30, 1996 See notes to the general purpose financial statements. - 27 - SCHEDULE -8- $ 2,450.00 SECTIONll SUMMARY AND SCHEDULE OF SALARIES AND TRAVEL PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SUMMARY OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,1996 SALARIES GENERAL FUND Instruction Support Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant 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 30, 1995 JUNE 30, 1996 TOTAL PER SCHEDULE (CASH BASIS) $ 255,872.52 $ 0.00 $ -7,869.79 $ 248,002.73 209,051.80 103,515.50 42,935.16 8;146.81 61,100.28 86,789.56 171,043.03 209,051.80 103,515.50 42,935.16 8,146.81 61,106.28 86,789.56 171,043.03 $ 938,460.66 $ 0.00 $ -7,869.79 $ 930,590.87 2,347,364.96 173,093.35 -204,054.09 2,316.404.22 Tetal Salaries $ 3,285,825.62 $ 173,093.35 $ -211,923.88 $ 3,246,995.09 TRAVEL GENERAL FUND Instruction $ 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 15,690.40 14,349.06 2,946.46 $ 32.50 3,610.18 2,559.20 39.25 39,227.05 $ 71,897.97 $ 711.60 711.60 $ 0.00 -231.25 $ -231.25 $ -394.05 15,459.15 14,349.06 3,658.06 32.50 3,610.18 2,559.20 39.25 39,707.40 71,503.92 Total Travel $ 111,125.02 $ 7.1..1..;;;;.6.0. $ -625.30 $ 111,211.32 NAME ADAMS,LYNN OSANI ADAMS,SHIRLEY J AIKEN,LARRY M ALIOTH, LAVONNE J ALLEY,NANCY S ARMOUR,JUDITH ANN ARMOUR,JUDITH ANN ARMOUR,JUDITH ANN AUTRY,TONYA BAGHOSE,JUDITH A BALBUZE,MAUREEN BATEY,CAROL L BEASLEY,ANGELA D BENNETT,ROGER F BENNETT,ROGER F BERGHOLM,BONNY E BERRONG,MARILYN A BLACK, RITA A BLACK,RITA A BLACK, RITA A BOWEN,SHERRI L BRAWNER,BRENDA L BRISCOE,HARRIET BROOKS,MARC BRYANT,CHRISTINE C BRYANT,TIMOTHY 0 CARTER,TERESA A CHASTAIN,SHERRY P COCHRAN,BONNIE L COLLINS, J LAMAR COUCH,PAULA A CRAWFORD,ANNIE MAE DAWDY,DIANA M DERDEN,DONNA DORSEY,HELEN DORSEY,HELEN DORSEY,KEVIN DORSEY,SUE S DORSEY ,TYLER DYER,GLENDA FARMER,BEVERLY FARMER,HOWARD LEE FARMER,KAREN RENEE FLEMING,ROBIN W FORTNER,CATHERINE FRANKS,DIANNE S FREEMAN,SHIRLEY A FREEMAN,SHIRLEY A FREEMAN,SUSIE J FREEMAN, SUSIE J FULLER,LELA FULLER,SHIRLEY GARRETT,CONNIE T GERRELL,JERILYN GOWAN,BONEL GRANT,JERRY A HARNEY,PATRICIA HARRISON,JAMES J JR HELTON,DARLENE Y HENNING,DIANA L HOLCOMB,JOYCE HOOPER,TERESA HOOPER,TERESA HULSEY, CURTI S HUNTER,MARLENE JACKSON,DOUG PIONEER R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996 TITLE CATEGDRY SPECIAL REVENUE FUND - OTHER PROG $ SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION OTHER SUPPORT SERVICES OTHER OPERATIONS OF NONINSTRUCT. SERVo OTHER OPERATIONS OF NONINSTRUCT. SERVo SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND -OTHER PROGRAMS INSTRUCTION SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND INSTRUCTION SUPPORT SERVICES - INSTRUCTIONAL STAFF SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND INSTRUCTION OTHER OPERATIONS OF NONINSTRUCT. SERVo SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND MIGRANT EDUCATION AGENCIES FUND MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS OTHER OPERATIONS OF NONINSTRUCT. SERVo OTHER OPERATIONS OF NONINSTRUCT. SERVo SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SUPPORT SERViCES - CENTRAL SUPPORT SERVICES - BUSINESS MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS MAINTENANCE & OPER. OF PLANT SERVICES SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SUPP SRVS - IMPROV INSTR & ED MED SRVS SPECIAL REVENUE FUND - OTHER PROGRAMS OTHER OPERATIONS OF NONINSTRUCT. SERVo SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION MAINTENANCE & OPER. OF PLANT SERVICES MIGRANT EDUCATION AGENCIES FUND MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SALARIES AMOUNT 12,041.01 $ 43,921.48 19,879.20 9,550.80 33,269.74 20,942.04 48.00 28,598.40 24,750.74 19,879.20 11,839.78 60,170.04 29,864.04 63,951.00 15,413.04 13,919.20 14,166.70 36,975.62 30,330.97 11 ,448. 13 9,550.80 12,006.18 4, 191 .35 25,174.32 41,499.96 25,418.18 6,083.52 19,879.20 17,713.20 9,711 .24 853.91 23,571.00 387.32 17,713.20 5,193.00 31,240.99 6,188.85 12,475.46 52,202.04 14,766.04 9,303.48 9,303.48 17,520.96 7,509.00 30,726.24 297.12 5,845.00 14,335.64 16,211.74 23,343.60 47,640.00 32,178.00 25,817.65 35,837.10 18,954.96 5,150.20 792.32 21,628.11 20,331.96 14,335.64 TRAVEL EXPENSE 51.75 1,318.33 50.50 20.00 34.00 490.00 4.00 583.11 20.00 268.91 37.00 37.50 4,315.07 1,276.00 1,734.76 31.00 10.50 21.00 64.00 3,502.20 411.00 280.56 78.75 34.50 463.19 474.00 768.21 19.50 25.75 207.00 2,079.21 119.25 71.03 25.00 110.25 53.00 20.00 1,567.98 1,092.20 39.25 572.00 1,753.68 29.00 13.75 160.00 PIONEER R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996 NAME TITLE CATEGORY JONES.ANGELA CHARLENE KIMBRELL.ANN KINSEY,BUFORD 0 KINSEY,MARILYN P LEWALLEW,MARSHA LEWALLEW,MARSHA 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 MOFFETT ,WAYNE MOORE.DON MORRISON, LESLIE NEAVE. SHELIA NICHOLS.WILLARD M NICHOLS.WILLARD M NORRIS. STEPHANIE OWENBY ,ANNETTE PALMER. BARBARA PALMER.BARBARA PALMER , DANNY PALMER.DARREN J PARKER. SUSAN C PARTIN,MELANIE L PARTIN,MELANIE L PECK,BOBBIE L PERRY,DAVID PORTER-WHITMIRE.DERRICK PRICE.STELLA W PROCTOR. SUSAN QUARLES.MELISA J ROBERTS,THOMAS W ROGERS,CARL SEABOLT.J ALLEN SEABOLT,J ALLEN SEGARS,KATHRYN SHERIFF SEGERS,G YVONNE SEWELL,YONAH SHANNON-WILEY,JULIA G SKELTON,BARBARA SLONE,ANNE SMITH. EVELYN H SMITH,EVELYN H SMITH, EVEL YN H SMITH.J MARLIN SMITH,SAMANTHA N SPERIN, WILLIAM SPERIN, WI LLIAM SQURIES,SHERI A STANCIL,RUSSELL STEPHEN,LAURA S STEPHENS ,ANN STINESPRING,CLARE G STOKES,ASHLEY STOVER.STAN STOVER. STAN STOWERS,MARCUS KEITH STOWERS,MARCUS KEITH SPECIAL REVENUE FUND - OTHER PROG $ OTHER OPERATIONS OF NONINSTRUCT. SERVo MIGRANT EDUCATION AGENCIES FUND SUPPORT SERVICES - INSTRUCTIONAL STAFF SUPPORT SERVICES - INSTRUCTIONAL STAFF OTHER SUPPORT SERVICES INSTRUCTION SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND -.OTHER PROGRAMS GENERAL ADMINISTRATION SUPPORT SERVICES - CENTRAL SUPPORT SERVICES - BUSINESS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND INSTRUCTION SPECIAL REVENUE FUND - OTHER PROGRAMS SUPPORT SERVICES - INSTRUCTIONAL STAFF OTHER OPERATIONS OF NONINSTRUCT. SERVo SPECIAL REVENUE FUND - OTHER PROGRAMS MAINTENANCE & OPER. OF PLANT SERVICES GENERAL ADMINISTRATION GEORGIA LEARNING RESOURCES SYSTEM FUND MIGRANT EDUCATION AGENCIES FUND MIGRANT EDUCATION AGENCIES FUND GEORGIA LEARNING RESOURCES SYSTEM FUND INSTRUCTION SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SUPPORT SERVICES - INSTRUCTIONAL STAFF SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND SUPP SRVS - IMPROV INSTR & ED MED SRVS OTHER SUPPORT SERVICES GEORGIA LEARNING RESOURCES SYSTEM FUND MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUNO - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION GENERAL ADMINISTRATION SPECIAL REVENUE FUND - OTHER PROGRAMS DIRECTOR SPECIAL REVENUE FUND - OTHER PROGRAMS SUPPORT SERVICES - INSTRUCTIONAL STAFF OTHER SUPPORT SERVICES MIGRANT EDUCATION AGENCIES FUND MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS INSTRUCTION GENERAL ADMINISTRATION SALARIES AMOUNT 19,879.20 $ 1,005.00 25,674.43 1,966.08 39.964.80 37.219.80 19,193.04 41,400.90 3,895.68 3,895.68 1,188.76 29,044.88 22.884.00 51.802.80 25,414.20 2.590.80 23,592.00 23,107.32 67.359.96 117.78 49,148.57 36,691.50 32,177.99 4,433.87 2,699.49 813.50 18,710.50 27,556.38 21.890.49 51,518.02 14,105.04 30,735.57 34,848.98 42.721.98 29,786.82 52,857.60 45,999.96 7.299.76 27,438.21 61,455.84 3,000.00 37,639.90 23,571.00 10,245.35 13,119.20 17,713.20 15,665.64 19,524.00 71,754.96 28,756.16 43,824.76 2,597.16 25,432.35 15,970.41 14,766.04 31,564.35 2,370.68 2,633.56 44,891.98 24,434.74 1.250.04 2 TRAVEL EXPENSE 186.94 629.34 1,570.99 4,437.73 333.45 3,610.18 7.50 100.75 1,265.64 6,773.60 2.999.70 30.00 407.15 19.00 3,338.02 101 .25 23.00 34.50 4,613.35 1,006.00 3,352.14 2,048.84 282.96 12.50 4,619.13 4,240.88 20.00 75.00 1.034.02 20.00 15.00 9.50 18.25 3,648.56 1,021.75 680.02 984.21 77.95 1,704.50 2,539."08 'OED NAME STOWERS, MARCUS KEITH TAYLOR,LISA A TENCH, ENGlE A THOMAS,BETTY THOMAS,C RONALD THOMAS,CAROLE L THOMAS,CAROLE L THOMAS, JANE E THOMASON,TERESIA G VANDIVER,JENNIFER WATKINS,KENNETH H WHITE, THOMAS B WILLIAMS,LEWIS WILLS,KATHRYN P WILSDN,S PAMELA WINDHAM, SHERYL WINKLER,MARGIE WISE,NANCY WRIGHT,PHIL YORK,BEATRICE C YOUNG,JO ELLEN PIONEER R.E.S.A. SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1996 TITLE CATEGORY SALARIES AMOUNT SPECIAL REVENUE FUND - OTHER PROG $ SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS MIGRANT EDUCATION AGENCIES FUND SUPP SRVS - IMPROV INSTR & ED MED SRVS GENERAL ADMINISTRATION SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND OTHER OPERATIONS OF NONINSTRUCT. SERVo INSTRUCTION SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND -.OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - DTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND SPECIAL REVENUE FUND - OTHER PROGRAMS SPECIAL REVENUE FUND - OTHER PROGRAMS GEORGIA LEARNING RESOURCES SYSTEM FUND MIGRANT EDUCATION AGENCIES FUND SPECIAL REVENUE FUND - OTHER PROGRAMS 35,727.99 28,084.56 7,512.50 36,850.18 25,573.94 6,81.2.80 6,813.00 3,060.50 24,942.50 17,927.04 47,640.00 53,212.80 23,636.54 38,114.41 38,430.78 43,462.14 33,269.74 2,257.24 56,412.84 15,028.84 23,571.00 TOTALS $ 3,246,995.09 3 TRAVEL EXPENSE $ 4,607.52 321.77 623.00 3,734.26 3,796.27 3,432.68 40.00 2,365.00 2,564.60 3,620.40 320.00 3,186.00 369.75 $ 111 ,211 .32 SECTION III COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 March 5, 1997 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 of Control 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, 1996, and have issued our report thereon dated March 5, 1997. 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, 1996, nor could we satisfy ourselves as to the accuracy of the 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 of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 96CRL-IO This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record. Respectfully submitted, t:f~ Claude L. Vickers State Auditor CLV:cm 96CRL-IO CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 5, 1997 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, 1996, and have issued our report thereon dated March 5, 1997. 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 toeach of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: (1) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Audit Follow-UplResolution (3) Cash Management (7) Administrative Requirements (4) Federal Financial Reports Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Agency's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 96CRL-50 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph 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 an immaterial instance of noncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs. This report is intended for the information of management, .the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, $e ~ Claude L. Vickers State Auditor CLV:cm 96CRL-50 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 March 5, 1997 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 of Control SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REOUIREMENTS 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, 1996, and have issued our report thereon dated March 5, 1997. 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 of Effort, 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, 1996. 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. 96CRL-80 Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance withthe requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Pioneer Regional Educational Service AgencYs 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, 1996, 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 ofthis 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, 1996. 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 96CRL-80 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 5, 1997 Honorable Zell Miller, Governor Members of the 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 SPECIFIC REOUIREMENTS 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, 1996, and have issued our report thereon dated March 5, 1997. 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 1996 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 (OMB) 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, 1996. As required by OMB 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. 96CRL-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 ofpublic record. a. ~ Respectfully submitted, Claude L. Vickers State Auditor CLV:cm 96CRL-120 SECTION IV INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 March 5, 1997 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 REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERmAENT 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, 1996, and have issued our report thereon dated March 5, 1997. 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, 1996, nor could we satisfy ourselves as to the accuracy of the 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 96ICL-3 nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the Pioneer Regional Educational Service Agency for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the 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 of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (1) Accounting Controls (Overall) (2) General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that 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 March 5, 1997. 96ICL-3 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 ofpublic record. CLV:cm 96ICL-3 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 March 5, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Director and Members of the Pioneer Regional Educational Service Agency Board ofControl 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, 1996, and have issued our report thereon dated March 5,1997. 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 March 5, 1997. 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 of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement 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 of inventories for resale at June 30, 1996, nor could we satisfY ourselves as to the accuracy of the amounts stated as inventories for resale through alternative procedures. In planning and performing our audit for the year ended June 30, 1996, we considered the Agency's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Agencys 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 OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures 96ICL-7 relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 5, 1997. 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, 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 of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS SPECIFIC REQUIREMENTS (1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (1) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level of Effort, 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) Qther Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1996, the Pioneer Regional Educational Service Agency expended 78% of its total Federal financial assistance under major Federal financial assistance programs. 96ICL-7 We perfonned tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Agency's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition 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, a reportable condition was noted in the following control category: Cash Management A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with 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 nonnal 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, we believe that the reportable condition described above is also considered to be a material weakness. This condition was considered in determining the nature, timing, and extent of the procedures to be perfonned 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, 1996, and this report does not affect our report thereon dated March 5, 1997. This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, a.~ Claude L. Vickers State Auditor CLV:cm 96ICL-7 SECTION V FINDINGS AND IMPROPER OR QUESTIONED COSTS PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30, 1996 PRIOR YEAR AUDIT FOLLOW-UPIRESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 8544-95-01 The audit report for the year ended June 30, 1995, stated that a review of cash management procedures for the Individuals with Disabilities Education Act - Title VI, B, Georgia Learning Resources Program (CFDA 84.027) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Agency. AUDIT FOLLOW-UPIRESOLUTION Completion Report Not Filed on Timely Basis Federal Financial Assistance Finding Resolved Audit Control Number 8544-95-02 The audit report for the year ended June 30, 1995, stated that the completion report for the Individuals with Disabilities Education Act - Title VI, B, Georgia Learning Resources System - 94 Carryover Project (CFDA 84.027) was not filed on a timely basis as required. For the year under review, test of the completion reports revealed that the completion reports were filed on a timely basis 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, 1995, stated that the Agency did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result of management'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. - 1- PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30. 1996 CURRENT YEAR CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 8544-96-01 A review ofcash management procedures for the Individuals with Disabilities Act - Part B - Special Education, Severely Emotionally Disturbed program (CFDA 84.027) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1996, the program had excessive ending monthly cash balances in six months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Agency. Note: The Pioneer Regional Educational Service Agency was provided an opportunity to include pertinent comments from the Agency's management concerning these audit findings, conclusions and recommendations. The Agency has elected not to provide comments for inclusion in this report. -3-