REVIEW REPORT STATE OF GEORGIA WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY GRANTVILLE, GEORGIA YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

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

15

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

16

2 SCHEDULE OF STATE REVENUE

17

3 SCHEDULE OF SALARIES AND TRAVEL

18

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

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS -
SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 16, 1998

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe State Board ofEducation
and Director and Members ofthe West Georgia Regional Educational Service Agency Board of Control
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF. FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through D) of West Georgia Regional Educational Service Agency as of and for the year ended June 30, 1997, in accordance with Statements on Standards for Accounting and Review Services issued by the Americ~ Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of West Georgia Regional Educational Service Agency.
A review consists principally of inquiries ofAgency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception ofthe matter described in the following paragraph, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
* The financial statements of the Agency did not contain a General Fixed Assets Account Group to
account for equipment owned by the Agency which should be included to conform to generally accepted accounting principles.
The aggregate effects on the financial statements of this variance or omission has not been determined, but are believed to be material.
97ARL-RESA-l

Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E and F and Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been subjected to the,inquiries and analytical procedures applied in the review ofthe financial statements and we are not aware of any material modifications which should be made thereto.
Respectfully submitted,

CLV:jy 97ARL-RESA-I

Claude L. Vickers State Auditor

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 3D, 1997

EXHIBIT"A"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories for Resale
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

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

$

31,052,22

$

31,052.22 $

26,528.30

169,792,28

169,792.28

167,833.41

8,398.28 $

44,245.33

52,643.61

28,225.34

118,390,61

118,390.61

109,686,67

$ 327,633.39 $

44,245.33 $ 371,878.72 $ 332,273.72

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For Sick and Personal Leave

$

For Continuation of Federal Programs

For Inventories for Resale

Unreserved

Designated for Self-Insurance

Undesignated

Total Fund Equity

$

$
$
2,022.52 $
118,390.61 27,313.28 179,906.98 327,633.39 $

31,385.89 $ 31,385.89 $

31,385.89 $ 31,385.89 $

21,875.42 3,021.95 10,544.76
32,879.01
68,321.14

$ 9,478.45
3,380.99 12,859.44 $

2,022.52 $ 9,478.45 118,390.61
27,313.28 183,287.97
340,492.83 $

2,022.52 4,725.28 109,686.67
27,518.28 119,999.83
263,952.58

Total Liabilities and Fund Equity $ 327,633.39 $

44,245.33 $ 371,878.72 $ 332,273,72

The notes to the general purpose financial statements are an integral part of this statement.
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WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30.1997

EXHIBIT "B"

FUND BALANCE JUNE 30

$ 327,633.39 $

12,859.44 $ 340,492.83 $ 263,952.58

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

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30.1997

EXHIBIT "c"

. GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 503,312.00 $ 17,040.00
1,059,305.50

522,755.55 939,879.17

Total Revenues

$ 1,579,657.50 $ 1,462,634.72

EXPENDITURES

Current Instruction Support Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant Other Support Services Enterprise Operations

$ 619,881.00 $
90,n9.00
294,808.00 144,812.00 104,906.00 121,215.00 297,685.00

627,237.79
91,378.01 294,855.26 160,240.18
93,294.26 120,874.62
14,938.98

Total Expenditures

$ 1,674,086.00 $ 1,402,819.10

Excess of Revenues over (under) Expenditures

$ -94,428.50 $

59,815.62

OTHER FINANCING SOURCES lUSES)

Other Sources Other Uses

$

-113.47

Total Other Financing Sources (Uses)

$

-113.47

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$ -94,428.50 $

59,702.15

FUND BALANCE JULY 1, 1996

241,638.13

259,227.30

Adjustments

-9,950.44

Inventories for Resale - Net Change in Period

8,703.94

8,703.94

FUND BALANCE JUNE 30,1997

$ 145,963.13 $ 327,633.39

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 285,464.00 $ 265,464.00

557,985.98

629,761.34

113,791.15

29,053.15

$ 957,241.13 $ 924,278.49

$

63,374.00 $

63,251.67

567,586.13 315,106.00

535,006.52 307,469.91

11,175.00

10,529.70

$ 957,241.13 $ 916,257.80

$

0.00 $

8,020.69

$

113.47

$

113.47

$

0.00 $

55,133.46

-41,067.69

8,134.16 4,725.28

$

14,065.77 $

12,859.44

The notes to the general purpose financial statements are an integral part of this statement. -5-

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1997

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The West Georgia Regional Educational Service Agency (Agency) was established pursuant to the Official Code ofGeorgia Annotated Sections 20-2-270 through 20-2-274 for the purposes ofproviding shared services 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 ofmembers and terms ofoffice are prescribed by the State Board of Education; provided, however, that at least one-third of the membership ofeach Board shall be individuals who hold no other public office, who are not employees of any local unit of administration, and who are not employees ofthe Georgia Department of Education.
The members ofthe Board are elected by an annual caucus of an equal number ofmembers of local boards of education from the respective member local school systems. Each Board appoints and contracts with a director who is the executive officer of the regional educational service agency. The director is responsible for the administration of the programs and services approved by the Board.
For financial reporting purposes, the Agency is considered to be an organizational unit of the State, and therefore a part ofthe primary government ofthe State of Georgia. Inclusion in the State's fmancial reporting entity is based on application ofcriteria defined in Section 2100 of the Governmental Accounting Standards Board Codification ofGovernmental and Financial Reporting Standards which indicates that the Agency does not have legal separate standing.
FUND ACCOUNTING
The Agency uses funds to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Agency. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal and Other funds under control of the Agency, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:

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WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1997

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - are used to account for all or most of a regional educational service agency's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources of the Agency except those required to 1;>e accounted for in another fund. These transactions relate to resources obtained and used for services provided by a regional educational service agency.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes. These funds are received primarily from the
Georgia Department ofEducation and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current 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.
Expenditures are generally recognized when the related fund liability is incurred.
BUDGET
The West Georgia Regional Educational Service Agency's budget is a complete fmancial plan for the Agency's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Agency at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.
-7-

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1997

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the Agency's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department 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
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in an authorized financial institution. Georgia Laws authorize the Agency to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Agency are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Agency to invest its funds. In selecting among the options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.

-8-

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXlllBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RECEIVABLES
Receivables consist of grant reimbursements due on Federa1~ State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has bee~ met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
INVENTORIES
GOODS FOR RESALE Inventories are reported on the Combined Balance Sheet at cost (first-in~ first-out). The Agency uses the purchases method to account for inventories whereby purchases for resale are recorded at the time of purchase. The inventory reported on the balance sheet is equally offset by a reservation offund balance which indicates that it does not constitute "available spendable resources" even though it is a component of net current assets.
RESERVED FUND BALANCES
Reserves represent those portions of fund equity that are legally segregated for a specific future use.
Reserve for Sick and Personal Leave - this reserve includes $2~022.52 in unexpended funds received in prior years from the Georgia Department ofEducation~ for sick and personal leave to be paid to substitute personnel. These funds will be used for the original purpose until exhausted.
INTERFUND TRANSACTIONS
The Agency has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund~ are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
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.
-9-

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXHIBIT"D"

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofthe securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(l) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZAnON OF DEPOSITS At June 30, 1997, the bank balances were $184,594.90. 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-

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1997

EXHIBIT"D"

Note 2: DEPOSITS AND INVESTMENTS

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, 1997, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

0.00

3

84,594.90

Total

$ 184.594.90

CATEGORIZATION OF INVESTMENTS At June 30, 1997, the carrying amount of the Agency's total investments was $169,792.28 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Agency did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

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; natural disaster and unemployment compensation.

The Agency has obtained commercial insurance for risk of loss associated with torts, assets and job related illness or injuries to employees The Agency has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Agency's insurance coverage in any of the past three years.

The Agency has obtained commercial insurance for errors and omissions, however, the policy excludes coverage for sexual harassment on claims relating to students. This exclusion does not apply to claims brought by or on behalf of employees. The Agency has not experienced any losses related to sexual harassment in 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 this risk in the past three years.

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WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXHIBIT"D"

Note 3: RISK MANAGEMENT

The Agency is self-insured with regard to unemployment compensation claims. A premium is charged by the General Fund to each user fund on the basis ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Agency accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $

4.920.00 $

4.920.00 $

0.00

$

0.00 $

205.00 $

205.00 $

0.00

Note 4: ON-BEHALF PAYMENTS

The Agency has recognized revenues and expenditures in the amount of $21,943.55 for health insurance contributions paid on the Agency's behalf by the following State Agency.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$21,943.55.

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 defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1997

EXIllBIT "D"

Nme6: RETmEMENTPLANS
TRS CONTRIBUTIONS REQUIRED AND MADE
Employees of the Agency who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Agency makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Contribution

1997 1996 1995

100% 100% 100%

$ 137,893.69 $ 126,663.59 $ 131,675.64

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

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Accounts Receivable

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS
JUNE 3D, 1997 JUNE 3D, 1996

$

3,380.99 $

3,380,99 $ 28,451.20

$ 44,245,33

44,245.33

22,379.90

TotarAssets

$ 44,245,33 $

3,380.99 $

47,626.32 $ ======io5_0,.8.3.-.1...1..=0

Total Liabilities and Fund Equity

$ 44,245.33 $

3,380.99 $

47,626.32 $ =====50~,=83_1=.1==0

See notes to the general purpose financial statements.

- 14-

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

EXHIBIT "F"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30.1997

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

REVENUES

State Funds Federal Funds Other Funds

$ $ 629,761.34

265,464.00 $ 29,053.15

265,464.00 $ 629,761.34
29,053.15

491,752.15 514,177.31

Total Revenues

$ 629,761.34 $ 294,517.15$ 924,278.49 $ 1,005,929.46

EXPENDITURES

Current

Instruction

$

Support Services

Improvement of Instructional Services

General Administration

Maintenance and Operation of Plant

63,251.67
308,338.58 $ 246,233.91
7,297.48

$
226,667.94 61,236.00 3,232.22

63,251.67 $
535,006.52 307,469.91
10,529.70

344,307.41
397,769.47 273,805.96
6,458.98

Total Expenditures

$ 625,121.64 $ 291,136.16 $ 916,257.80 $ 1,022,341.82

Excess of Revenues over (under) Expenditures

$

4,639.70 $

3,380.99 $

8,020.69 $

-16,412.36

OTHER FINANCING SOURCES

Operating Transfers In

113.47

113.47

Excess of Revenues and Other Financing

Sources over (under) Expenditures

$

4,753.17 $

3,380.99 $

8,134.16 $ -16,412.36

FUND BALANCE JULY 1

4,725.28

0.00

4,725.28

21,137.64

FUND BALANCE JUNE 30

$

9,478.45 $

3,380.99 $

12,859.44 $===4..,.7..2..=5.=2=8

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

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Ecklcation, U, S, Department of Through Georgia Department of Education Safe and Drug-Free Schools 1997 Grant Individuals with Disabilities Education Act Part B - Special Education Special Projects Georgia Learning Resources System 1997 Grant Part D - Special Education Personnel Development and Parent Training Georgia Learning Resources System 1996 Grant 1997 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1997 Grant Tech-Prep Education 1997 Grant Through Various Boards of Education Individuals with Disabilities Education Act Part B - Special Education Preschool Program 1997 Grant
Through Various RESA's Individuals with Disabilities Education Act Part D Special Education Personnel Development and Parent Training 1997 Grant
Total U. S, Department of Education
Health and Human Services, U, S, Department of Through Georgia Department of Education Cooperative Agreements to Support Comprehensive School Health Programs to Prevent the Spread of HIV and Other Important Health Problems 1997 Contract
Justice, U, S, Department of Through Office of the Governor Juvenile Justice and Delinquency Prevention Allocation to States 1997 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84,186 $ 266,697,36 $

266,697,36

* 84,027

143,973,55

84,029 84.029

52,587,00

* 84,048 84,243

15,750,00 12,034.32

143,973,55
2,665,09 44,583,03
15,750,00 12,034,32

84,173

84,738,00

85,323,71

84,029 $

7,431,98 583,212,21 $

7,431,98 578,459.04

93.938 $

3,500,00 $

3,500,00

16.540 $

43,049,13 $

43,162.60 (1)

Total Federal Financial Assistance

$ 629,761,34 $

* This program has been defined as a major program on a statewide basis in accordance with OMS Circular A-133, Internal control and compliance testing for this program has been conducted at other organizational units of the State of Georgia,

(1) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source,

The Agency did not provide Federal Assistance to any sUbrecipient.

See notes to the general purpose financial statements.

- 16 -

625,121,64

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Vocational Education Other State Programs Georgia Learning Resources System Health Insurance Regional Educational Service Agencies Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification
CONTRACTS Education, Georgia Department of Georgia Teachers' Conference Workshops on In-School Suspension
OTHER Administrative Services, Georgia Department of Distant Learning Telemedicine Grant Human Resources, Georgia Department of Substance Abuse Prevention Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

$

21,943.55

443,812.00

92,000.00 $ 62,000.00
85,208.00

50,000,00 5,000.00

2,000.00

26,256,00

TOTAL
92,000.00 62,000.00 21,943,55 443,812.00 85,208.00
50,000.00 5,000.00
2,000.00 26,256.00

$

522,755,55 $ ===2=65;:;,.4=6=4=.0==0 $ ===7=88=,2:.1=9=.5==5

See notes to the general purpose financial statements. - 17 -

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30.1997

SCHEDULE "3"

PERSONNEL
ABERNATHY,JAMES P ABERNATHY,JAMES P AUSTON,JUDY BASTON,MICHAEL D CARPENTER,MICHAEL R CLARK,ANGELYNN S COGGIN,MILLIE SHELL CREWS,AMYL DENNY,CYNTHIA DENNY,CYNTHIA DENNY,CYNTHIA DODDS,MARK 0 DWIGHT,DEBRA M DWIGHT,DEBRA M DWIGHT,DEBRA M FLETCHER,ANNE T FLETCHER,ANNE T FLETCHER,ANNE T GRIFFETH,ROIELLA HAINES,TONITA B HARRISON,ROBERT WAYNE HAWKINS,MARY I HILL,CONNIE B HOWARD,EVEANN HOWARD,EVEANN JAMES,PATRICIA L JAMES,PATRICIA L JAMES,PATRICIA L KELLY,DIANN 0 KELLY,DIANN D KOCHAN,WILLIAM R LANEY,EDDIE LITTLEFIELD,BEATRICE LITTLEFIELD,BEATRICE L1TTLEFIELD,TRACEY L1TTLEFIELD,TRACEY LITTLEFIELD,TRACEY LOWORN,JOYCE H MARLOW,PATSY D MARLOW,PATSY 0 MARLOW,PATSY 0 MOORE,DONNA B MOORE,DONNA B MOORE,DONNA B MORGAN,ROBERT A MOSELEY,LEWIS W NEWBORN,MARILEEN B NEWBORN,MARILEEN B NEWBORN,MARILEEN B OEHLER,SUSAN OWENSBY,LUANNE RHODES,MARK DAVIS SCHEIBEL-SCHMITT,CAROLE WHITE,STEVEN P WHITE,STEVEN P WHITE,STEVEN P WRIGHT,CATHERYN J
Accruals June 30, 1996

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

See notes to the general purpose financial statements.

- 18-

SALARIES

$

82,155.84

$

21,928.04

10,314.32

43,337.64

28,779.96

110.00

35,910.20

12,549.13

14,830.91

30,044.04 1,128.49

67,282.19 46,982.40
9,622.92

10,406.76 55,098.84 30,945.00 39,878.04 20,000.00
8,926.68 17,853.36 18,253.36

9,126.68 1,775.98 4,143.98 39,197.62 32,945.04

26,780.04 8,926.72 4,463.36 13,389.96
27,780.00 24,928.44 29,263.80

10,790.88 36,996.36
441.00 1,424.50 52,465.32

17,365.92 1,200.00
38,409.63 43,764.80 30,945.00 40,492.04 41,939.40 14,374.08
3,600.00 51,073.20

$ 1,214,341.87 $

TRAVEL
1,934.64 901.50 70.00
2,599.68 818.75
1,607.25 1,118.00
31.75 4.50
416.75 2,901.61 2,490.66
26.00 471.00 1,227.26 976.91 2,272.34 1,496.35
286.65 170.00 119.75 523.79
1,279.22 389.25 347.25 206.25 99.75 187.25 121.50 295.00
1,910.74 746.49
1,124.48 1,823.72
32.00
2,297.35 23.00
528.00 3,546.85
2,372.86
3,467.66
43,263.76

-10,544.76

$ 1,203,797.11 $

43,263.76

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

8604-93-01

Umesolved - See Corrective Action/Response

CORRECTIVE ACTIONIRESPONSE

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 8604-93-01

The West Georgia Regional Educational Service Agency has not been provided sufficient guidance from the Georgia Department ofEducation, nor has the Agency been provided sufficient funds, to address this issue. The Agency will continue to search for measures to resolve this deficiency.

SECTIONID CURRENT YEAR FINDINGS AND QUESTIONED COSTS

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1997
FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number FS-8604-97-01
For the year under review, the West Georgia Regional Educational Service Agency did not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements ofthe Agency being incomplete and not in accordance with generally accepted accounting principles. This deficiency occurred because of management's decision to not include a General Fixed Assets Account Group within the formal accounting records. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include 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.