Audit report, state of Georgia, Department of Education, year ended June 30, 1995

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA. GEORGIA 30334

AUDIT REPORT STATE OF GEORGIA DEPARTMENT OF EDUCATION YEAR ENDED JUNE 30, 1995

DEPARTMENT OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

GOVERNMENTAL FUND TYPES

5

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF EDUCATION

12

E

"B" LOTTERY FOR EDUCATION

14

F STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND

15

G NOTES TO THE FINANCIAL STATEMENTS

16

SUPPLEMENTARY INFORMATION

H COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

36

I COMBINING STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

BUDGET FUND

37

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

38

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

44

SCHEDULES

SCHEDULES OF APPROVED BUDGET

1

"A" DEPARTMENT OF EDUCATION

46

2

"B" LOTTERYFOREDUCATION

48

3 CASH AND CASH EQUIVALENTS

49

DEPARTMENT OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

4 INVESTMENTS

50

5 SCHEDULE OF GOVERNOR'S EMERGENCY FUND

51

6 SCHEDULEOFFEDERALREVENUES

52

7 SCHEDULE OF OTHER OPERATING EXPENSES

54

8 RECONCILIATION OF TRAVEL

55

9 SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES

56

SECTION II 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
December 21, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe State Board ofEducation
and Honorable Linda C. Schrenko State Superintendent of Schools
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through G) of the Department of Education as of and for the year ended June 30, 1995. These financial statements are the responsibility of the Department's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of the Department. Equipment inventory comprises the General Fixed Assets Account Group. We were unable to determine the effects these discrepancies may have on the financial statements.

95ARL-2

In our opinion, except for the effects on the financial statements of the adjustments to the equipment inventory records that may be necessary as described in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position (statutory basis) of the Department of Education as of June 30, 1995, and the results ofits operations (statutory basis) for the year then ended, on the basis of accounting described in Note I.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits H through K and Schedules I through 9) is presented for purposes of additional analysis and is not a required part of the financial statements of the Department of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:cm 95ARL-2

FINANCIAL STATEMENTS -I-

~ C&sh and Cash Equivalents
(See Schedule)
in-tments (See Schedule)
Accounts Receivable State Appropriation Federal Financial Assistance Other
Inventories Supply Donated Food
FOled Assets Equipment
Amount to be Provided for Payment of Accrued Compensated Absences Installment Purchase Commitments

DEPARTMENT OF EDUCATION COMBINED BALANCE SHEET <STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30, 1995

GOVERNMENTAL FUND TYPE BUDGET

FIDUCIARY FUND TYPES

NONEXPENDABLE

TRUST

AGENCY

$

$

166,193,077.29

81,878,641.87

5,027,889.14

$

253,099,608.30

$

71,940.74

1,307,370.07

$

1,379,310.81

13,500.00 $ ____853.........,,.4....8....5.....3....3.... $ ___105_,3_7_8_.6_1

Total Assets

$

254,478,919.11 $

LIABILITIES AND FUND EQ!,!ITY
Liabilities Cash Overdraft Accounts Payable Contracts Payable Grants Payable Payroll Withholdings Funds Held for Others Compensated Absences Installment Purchases
Total Liabilities
Fund Equity Investment in General Fixed Assets Fund Balances Reserved Federal Financial Assistance Inventories Supply Donated Food Food Distribution Program Emergency Food Assistance Program Georgia Academy for the Blind Pupirs Trust Fund - Endowment Corpus Georgia School for the Deaf School Improvements Lottery for Education Teacher Honorarium Payment Technology General Obligation Bond Funds Vocational Education General Obligation Funds Other Reserves Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity

$

2,364,616.40

67,021,332.25

5,355,699.50

171,044,656.49

336,570.28

$

246,122,874.92

$

267,161.57

85,000.00

116,177.61 1,191,192.46

$

38,922.60 3,758.56 300.00 5,464.78 0.00
28,346.23

3,046,203.81 3,573,516.57

$

8,356,044.19 $

Total Liabilities and Fund Equity The notes to the financial statements are an integral part of this statement.

$

254,478,919.11 $

-2-

13,500.00 $

958.863.94

$

958,863.94

$

958,863.94

13,500.00

13,500.00

13,500.00 $

958,863.94

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum On~}

JUNE 301 1995

JUNE 301 1994

$

866,985.33 $

1,015,381.-41

$

105,378.61 $

119,111.83

$ 166,193,0TT.29 $ 81,878,6-41.87 5,027,889.1-4
$ 253,099,608.30 $

89,006,627.92 90,30-4,396.28 8,7-4810TT.83
188,059,102.03

$

71,9-40.7-4 $

1,307,370.07

$ 1,379,310.81 $

75,169.9-4 1,375,823.93
1 ,-450,993.87

$ 28,760,012.9-4

$ 28,760,012.9-4 $ 23,563,-489.23

$ 2,96-4,361.32 $ 169,718.-42
$ 3,134,079.7-4 $

2,96-4,361.32 $ 169,718.-42
3,134,079.7-4 $

2,912,306.95 1 n1556.20
3,084,863.15

$ 28.7601012.9-4 $ 311341079.7-4 $ 287,3451375.73 $ 2171292,9-41.52

$ 2,36-4,616.-40 $

67,021,332.25

5,355,699.50

171,0-4-4,656.-49

336,570.28

958,863.9-4

$ 2,96-4,361.32

2,96-4,361.32

169,718.-42

169,718.-42

$ 3,134,079.7-4 $ 250,215,818.60 $

1,930,-405.02 8,283,831.15 5,063,122.20 167,865,597.50
356,343.93 1,120,993.2-4 2,912,306.95
172,556.20
187,705,156.19

$ 28,760,012.9-4

$ 28,760,012.9-4 $ 23,563,-489.23

267,161.57
85,000.00
116,1TT.61 1,191, 192.-46
13,500.00
38,922.60 3,758.56 300.00 5,-46-4.78 0.00
28,3-46.23

1, 10-4, 179.-48
85,000.00
252,055.-47 1, 123,768.-46
13,500.00
38,719.23 0.00 0.00 0.00
3,116.90 19,796.52

$ 28,760,012.9-4

3,0-46,203.81 3,573,516.57
$ 37,129,557.13 $

2,629,643.20 75-4,516.84
29,587,785.33

$ 28,760,012.9-4 $ 3,134,079.7-4 $ 287,345,375.73 $ 217,292 ,9-41.52

-3 -

DEPARTMENT OF EDUCATION STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE
YEAR ENDED JUNE 30, 1995

EXHIBITB

FUND BALANCES - JULY 1
Reserved Unreserved
Designated Surplus Regular Lottery for Education
ADDITIONS
Adjustments to Prior Year's Accounts Payable Grants Payable
Change in Reserve for Inventory Donated Food Program Food Distribution Program Emergency Food Assistance Program
Excess of Funds Available over Expenditures
Exhibitc
Reimbursement of Prior Year's Expenditures
Grants Other
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1993 Year Ended June 30, 1994
Adjustments to Prior Year's Accounts Receivable
Refund of Local Grant - Indigent Care Refund of Private Grant Reserved Fund Balance Carried Over from
Prior Year as Funds Available
FUND BALANCES - JUNE 30
(To Exhibit A)
The notes to the financial statements are an integral part of this statement.
-5-

BUDGET FUND YEAR ENDED
JUNE 30, 1995 JUNE 301 1994
$ 2,626,636.06 $ 4,562,975.59

2,629,643.20 754,516.84

1,930,232.11 0.00

s $ s,01or7ss.10

sr4s3,201.10

$

768,287.35 $

427,457.23

28,172,248.27 24,865,747.92

-135,BTT.86 67,424.00

-266,056.35 311,031.57

-27,946,267.88 -24,487,383.84

6,085,182.95 93,554.52

3,731,476.01 125,692.48

$ 7,104,551.35 $ 4?07,965.02

$

0.00 $ 1,930,232.11

3,384,160.04

0.00

9,116.00 115,215.09
0.00

27,891.63 0.00
126.00

1,250,812.13

3,232, 126.88

$ 4?59,303.26 $ 5,190,376.62

$ 8,356,044.19 $ s,01oi7ss.10

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund (See Schedule) Budget Adjustments
Less: Lapsed Funds
Total State Appropriation
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Audit Contracts Contract - Honorariums Professional Standards Commission Court Settlement Donation Macon Lions Club Equipment Funding for Vocational Education High School Program Georgia State Financing and Investment Commission Funding for Student Information System Project Georgia State Financing and Investment Commission Grants Environmental Science Program (State School) Georgia Academy for the Blind France-Mediaction and Vocational Mission Programs French Cultural Services Georgia Family Connection Initiative Indigent Care Trust Fund Program Lettie Pate Evans Foundation Next Generation School Grants State Teacher of the Year Program United States Senate Youth Program Indirect Services Funding Department of Administrative Services Lottery Proceeds Service Centers Calhoun Gainesville Moultrie Swainsboro State Schools Atlanta Area School for the Deaf General Instruction/State Georgia Academy for the Blind Georgia Regional Library for the Blind Georgia School for the Deaf Reimbursements For Lost Slides For Overpayment For Postage Expense For School Lunch and Milk Program For School Nurses Training For Telephone Expenses
The notes to the financial statements are an integral part of this statement.
-6-

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$ 3,531,338,321.00 $ 3,216,277,608.00

209,944,556.00

180,667,171.00

187,000.00

405,487.00

-1, 110,160.00

-10,030,931.00

$ 3,740,359,717.00 $ 3,387,319,335.00

6,281,899.00

5,618,469.00

$ 3,734,077,818.00 $ 3,381,700,866.00

$ 515,476,319.70$ 508,786,886.29

$

665,206.60 $

664,571.29

522,663.57 0.00

532,955.80 1,196.36

1,245.00

0.00

6,777,672.00 0.00

.11,297,168.05 5,915,652.18

500.00 0.00
15,740.74 625,000.00
0.00 50,000.00 879,336.53
6,000.00 1,000.00
340,000.00

0.00 15,003.38
0.00 0.00 344,305.00 50,000.00 1,943,699.50 0.00 1,000.00
340,000.00

825.00 842.50 325.00 1,667.00
34,550.00 0.00
44,786.00 0.00
15,961.39
52.22 1,208.38 1,963.18 180,392.67 26,083.32
5.16

0.00 0.00 0.00 0.00
66,696.72 4,447.00
99,083.32 12,275.11 232,699.54
0.00 0.00 0.00 176,266.53 0.00 47.65

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT "C"

FUNDS AVAILABLE
REVENUES
OTHER REVENUES RETAINED Reimbursements For Workshop Expenses Rents Received Sales Photocopies and Publications
Video Fees
Total other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance Inventories France-Mediaction and Vocational Mission Programs Georgia-Lorraine Exchange Program Georgia School for the Deaf School Improvements Legislative Video Program Mellon School/College Collaboration Grant QBE Formula Grants School Nurse Program state Teacher of the Year Program United States Senate Youth Program Vocational Education General Obligation Funds
Total Carry-Over from Prior Year
Total Funds Available

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

2,012.36$

7,338.92

2,188.70

1,620.00

73,499.20 274,626.50

77,448.21 2831444.70

$

10,545,353.02 $

22,0661919.26

$ 4,260,099,490.72 $ 3,912,554,671.55

$

1,104,179.48$

85,000.00

13,227.45

1,228.45

991,187.04 85,000.00 0.00 1,228.45

38,719.23 500.00 20.83 0.00 571.93
1,855.54 2,392.32 3,116.90

238,920.00 500.00 11.79
1,908,260.00 0.00
5,080.77 1,938.83
0.00

$

1,250,812.13 $ _ _..;;.,31=23=2:o.i...,1=26=.8~8

$ 4,261,350,302.85 $ 3,915,786,798.43

EXPENDITURES

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F.I.C.A Retirement Health Insurance . Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Assessments by Merit System

$

27,218,244.02 $

26,758,888.05

1,640,878.51 3,929,777.73 3,068,598.10
278,730.00 41,858.00
449,512.00 136 901.47

1,631,831.64 4,009,141.07 3,568,829.80
477,264.00 29,616.00
377,651.00 134,330.66

$

36,764,499.83 $ _--'3...;.6-'-',9'--"8-'--7,L;.5~52==22~

REGULAR OPERATING EXPENSES

Motor Vehicle Expenses Supplies and Materials

$

44,514.40$

55,242.37

1,439,912.45

1,408,067.78

The notes to the financial statements are an integral part of this statement.

-7-

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

EXPENDITURES
Rl;;g!.!LAR OPERATING E2SPENSES
Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Tuition and Scholarships Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing
TRAVEL
MOTOR VEHICLE PURQHASES
EQUIPMENT
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment
COMPUTER CHARGES
Other Costs Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating Expenses (See Schedule)
Software Equipment
Equipment Purchases Rental of Equipment Per Diem, Fees and Contracts Per Diem and Fees Contracts Computer Billings, DOAS
REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER QIEM, FEES AND CONTRACTS
Per Diem and Fees Contracts
CAPITAL OUTLAY
Per Diem, Fees and Contracts Contracts

TOTALS

VEAR ENDED

JONE 30, 1995

JUNE 30, 1994

$

745,869.60 $

1,416,021.38

281,780.88

303,145.17

51,503.15

53,220.24

2,139.00

6,850.00

1,426,932.82

1,035,530.79

222,748.73

289,861.98

302,844.35

286,371.33

$

4,518,245.38 $

4,854,311.04

$

1,076,731.48 $

968,521.00

$

131,662.00 $

113,896.72

$

220,204.01 $

158,244.82

70,439.58

33,614.77

28,831.46

30,344.30

$

319,475.05 $

222,203.89

$

193,737.46 $

770,455.50

3,611,768.24

3,625,361.81

0.00

30.00

299,592.06

120,720.48

125,608.17

109,377.29

3,306,302.99 7,066.19

9,781,565.48 0.00

400,546.00 3,462,319.23 1,207,033.89

215,950.00 2,463,483.87
691,616.90

$

12,613,974.23 $

17,778,561.33

$

1,494,104.22$

1,483,479.24

$

1,166,417.20$

1,077,230.59

$

1,559, 167.98 $

1,424,977.72

24.125,513.55

12,777,429.17

$

25,684,681.53 $

14,202,406.89

$

25,000.00$

38,658.00

The notes to the financial statements are an integral part of this statement. -8-

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

EXPENDITURES
OTHER
UTILITIES
QBE FORMULA GRANTS: Kindergarten\Grades 1- 3 Grades4-8 Grades 9 -12 High School Laboratories Vocational Education Laboratories Special Education Gifted Remedial Education Staff Development and Professional Development Media Indirect Cost Pupil Transportation Local Fair Share Mid-Term Adjustment Reserve
OTHER CATEGORICAL GRANTS: Equalization Formula Sparsity Grants In School Suspension Special Instructional Assistance Middle School Incentive Special Education Low-Incidence Grants
NON-QBE GRANTS: Education of Children of Low-Income Families Retirement (H.B. 272 and H.B. 1321) Instructional Services for the Handicapped Tuition for the Multi-Handicapped Severely Emotionally Disturbed School Lunch (Federal) School Lunch (State) Supervision and Assessment of Students and Beginning Teachers and Performance-Based Certification Regional Education Service Agencies Georgia Learning Resources System High School Program Special Education in State Institutions Governor's Scholarships Counselors Vocational Research and Curriculum Even Start Salaries and Travel of Public Librarians Public Library Materials Talking Book Centers Public Library M & 0 Child Care Lunch Program (Federal) Chapter II - Block Grant Flow Through Payment of Federal Funds to Board of Technical and Adult Education
The notes to the financial statements are an integral part of this statement.
-9-

TOTALS

YEAR ENDED

JONE 30, 1995

JONE 30, 1994

$

775,349.80 $

861,521.05

$ 800,183,642.00 $ 759,921,314.00

764,882,110.00

721,385,180.00

297,405,987.00

297,422,530.00

157,120,167.00

124,988,870.00

108,414,205.00

102,574,758.00

309,288,077.00

278,830,860.00

45,180,921.00

40,026,562.00

67,899,853.00

59,244,823.00

30, 126,581.00

28,987,901.00

92,728,016.00

87,721,767.00

625,247,059.00

600,119,184.00

133,357,336.00

126,831,106.00

-635,201,965.00

-614, 197,789.00

70i767.219.00

68.563.220.00

$ 2.867,399.208.00 $ 2.682.420.286.00

$ 149,779,502.00 $ 144,854,014.00

3,257,609.00

2,966,091.00

21,906,464.00

20,901,157.00

59,211,783.00

51,051,591.00

66,129,306.00

56,908,600.00

483,628.00

411.712.00

$ 300.768.292.00 $ 277,093.165.00

$ 170,268,470.97 $ 186,023,794.03

5,185,712.00

4,950,000.00

59,252,742.21

54,732,103.21

1,047,293.70

1,065,437.85

40,369,243.00

38,965,519.00

202,115,138.43

187,111,477.77

25,571,964.00

24,213,192.00

2,022,308.57 7,264,296.00 3,603,974.49 31,574,463.78 4,097,533.00 2,972,200.00 6,717,000.00
0.00 2,448,485.00 11,838,868.38 5,505,248.94
934,520.00 4,039,391.00 30,126,533.78 8,100,763.00

2,032,955.00 7,072,130.00 3,397,225.90 28,379,567.59 3,673,574.00 2,702,000.00
0.00 293,213.00 2,720,906.00 11,183,401.47 5,718,136.33 911,019.00 4,039,390.00 24,579,610.97 9,663,513.00

14,862,910.72

14,633,712.73

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

EXPENDITURES
OTHER
NON-QBE GRANTS: Education of Homeless ChildrenNouth Innovative Programs Next Generation School Grants Limited English - Speaking students Program Drug-Free School (Federal) At Risk Summer School Program Emergency Immigrant Education Program Title II Math/Science Grant (Federal) Robert C. Byrd Scholarship (Federal) Health Insurance - Non-Cert. Personnel and Retired Teachers Pre-School Handicapped Program Mentor Teachers Nutrition Education Advanced Placement Exams Serve America Program Family Connection Grants Youth Apprenticeship Grants Remedial Summer School Alternative Programs Superintendent's Base Salary Environmental Science Grants Pay for Performance State and Local Education Systemic
LOTTERY FOR EDUCATION Pre-Kindergarten for 4-year-olds Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A Retirement Health Insurance Personal Liability Insurance Assessments by Merit System other Costs Supplies and Materials Repairs and Maintenance Rents (other than Real Estate) Insurance and Bonding Grants to Counties, Cities and Civil Divisions other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing Travel Equipment Equipment Purchases Computer Charges Software Telecommunications

TOTALS

YEAR ENDED

JONE 30, 1995

JONE 30, 1994

$

655,330.47 $

601,772.27

1,208,875.00

1,524,035.00

1,447,000.00

2,945,000.00

9,027,195.00

7,452,253.00

8,513,874.22

11,625,942.51

4,691,269.86

0.00

312,864.00

164,514.00

5,238,971.73

5, 162,004.51

513,000.00

273,723.00

99,047,892.00 15,226,209.00
1,236,710.00 131,943.00
1,771,560.00 351,427.00
3,195,000.00 2,000,000.00 1,874,991.25 7,240,788.00 1,228,175.00
100,000.00 1,048,000.00
56,000.00

90,047,892.00 14,112,004.00
999,940.00 0.00
1,056,649.00 382,597.00
1,982,199.00 280,272.00 0.00 0.00 0.00 0.00 0.00 0.00

$ 806,036,136.50 $ 756,672,676.14

$

354,556.60 $

170,163.83

10,871.44 44,410.07 44,319.49
3,420.00 1,599.80

2,845.30 20,414.05 21,270.60
2,928.00 851.64

24,905.47 1,213.85 60.00 72.00

19,964.15 0.00 0.00 36.00

75,291,336.00 3,426.08
25,668.73 448.54
19,874.47

35,188,544.98 1,238.26 3,136.52 741.87
24,822.75

48,512.40

85,150.13

3,657.44 1,489.62

4,253.00 144.04

The notes to the financial statements are an integral part of this statement. -10 -

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1995

EXHIBIT"C"

EXPENDITURES
OTHER
LOTTERY FOR EDUCATION Pre-Kindergarten for 4-year-olds Per Diem, Fees and Contracts Per Diem and Fees
Lottery Grants Applied Technology Labs Next Generation Schools Drug and Anti-Violence Education Alternative Programs Educational Technology Centers Distant Leaming - Satellite Dishes Model Technology Schools Instructional Technology Capital Outlay - Lottery Technology Installation Postsecondary Options Safe Schools Grant Media Center and Library Equipment Leaming Logic Sites Algebra Classrooms
Total other
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS

YEAR ENDED

JONE 30, 1995

JONE 301 1994

$

45 667.84 $

18,978.78

$

75,925,509.84 $

35,565,483.90

12,280,040.00 500,000.00
1,000,000.00 8,471,564.00
877,582.00 4,206,507.00 10,499,998.00 31,237,453.00 61,405,934.00 18,989,992.00 1, 128,213.67 4,000,000.00
0.00 0.00 0.00

0.00 1,000,000.00 1,025,000.00
0.00 1,236,400.00 14,111,078.00
0.00 32,889,196.00
0.00 0.00 545,855.26 20,000,000.00 37,450,000.00
924,000.00
752,700.00

$ 230,522,793.51 $ 145,499,713.16

$ 4,205,501 ?79.81 $ 3,862,547,361.35

$ 4,289,296,570.73 $ 3,940,274,182.27

-27,946,267.88

-24,487,383.84

$ 4,26113501302.85 $ 3191517861798.43

The notes to the financial statements are an integral part of this statement. -11 -

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF EDUCATION YEAR ENDED JUNE 30, 1995

EXHIBIT"D"

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE {UNFAVORABLE}

$ 3,506,688,944.00 $ 3,503,688,944.00 $

709,199,698.00

515,476,319.70

11,526,146.00

10,545,353.02

-3,000,000.00 -193,723,378.30
-980,792.98

0.00

1,250,812.13

1,250,812.13

$ 4,227,414,788.00 $ 4,030,961,428.85 $

-196,453,359.15

EXPENDITURES
Personal Services Regular Operating Expenses Travel
Motor Vehicle Purchases
Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Capital Outlay Utilities QBE Formula Grants:
Kindergarten/Grades 1 - 3
Grades4-8
Grades9-12
High School Laboratories
Vocational Education Laboratories Special Education Gifted Remedial Education Staff Development and Professional Development Media Indirect Cost Pupil Transportation Local Fair Share Mid-Term Adjustment Reserve Other Categorical Grants: Equalization Formula Sparsity Grants In School Suspension
Special Instructional Assistance Middle School Incentive
Special Education Low - Incidence Grants Non-QBE Grants
Education of Children of Low-Income Families Retirement (H.B. 272 and H.B. 1321) Instructional Services for the Handicapped Tuition for the Multi-Handicapped Severely Emotionally Disturbed School Lunch (Federal) School Lunch (State)

$

39,368,998.00 $

36,764,499.83 $

5,354,173.00

4,518,245.38

1,385,627.00

1,076,731.48

138,000.00

131,662.00

442,980.00

319,475.05

12,894,674.00

12,613,974.23

1,514,341.00

1,494,104.22

1,338,246.00

1,166,417.20

27,889,685.00

25,684,681.53

25,000.00

25,000.00

901,252.00

n5,349.BO

800,183,642.00 764,882,110.00 297,405,987.00 157,120,167.00 108,414,205.00 309,288,on.oo
45,180,921.00 67,899,853.00 30,130,581.00 92,728,016.00 625,237,059.00 133,504,950.00 -635,201,965.00 70,806,159.00

800,183,642.00 764,882,110.00 297,405,987.00 157,120,167.00 108,414,205.00 309,288,on.oo
45,180,921.00 67,899,853.00 30,126,581.00 92,728,016.00 625,247,059.00 133,357,336.00 -635,201,965.00 70,767,219.00

149,ns.so2.oo 3,257,609.00
21,906,464.00 59,211,783.00 66,129,306.00
483,628.00

149,ns,502.oo 3,257,609.00
21,906,464.00 59,211,783.00 66,129,306.00
483,628.00

199,145,125.00 5,185,712.00
59,312,984.00 1,841,080.00
40,374,n1 .oo 309,486,250.00
25,590,699.00

170,268,470.97 5,185,712.00
59,252,742.21 1,047,293.70
40,369,243.00 202,115,138.43
25,571,964.00

2,604,498.17 835,927.62 308,895.52 6,338.00 123,504.95 2so,699.n 20,236.78 171,828.80
2,205,003.47 0.00
125,902.20
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,000.00 0.00 -10,000.00 147,614.00 0.00 38,940.00
0.00 0.00 0.00 0.00 0.00 0.00
28,876,654.03 0.00
60,241.79 793,786.30
5,528.00 107,371,111.57
18,735.00

The notes to the financial statements are an integral part of this statement.
-12-

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF EDUCATION YEAR ENDED JUNE 30, 1995

EXHIBIT"D"

EXPENDITURES
Non-QBE Grants Supervision and Assessment of Students and Beginning Teachers and Performance-Based Certification Regional Education Service Agencies Georgia Leaming Resources System High School Program Special Education in State Institutions Governor's Scholarships Counselors Vocational Research and Curriculum Even Start Salaries and Travel of Public Librarians Public Library Materials
Talking Book Centers Public Library M & 0
Child Care Lunch Program (Federal) Chapter II - Block Grant Flow Through Payment of Federal Funds to Board of Technical
and Adult Education Education of Homeless Children/Youth Innovative Programs Next Generation School Grants Limited English-Speaking Students Program Drug-Free School (Federal) At Risk Summer School Program Emergency Immigrant Education Program Title II Math/Science Grant (Federal) Robert C. Byrd Scholarship (Federal) Health Insurance - Non-Cert. Personnel and
Retired Teachers Pre-School Handicapped Program Mentor Teachers Nutrition Education Advanced Placement Exams Serve America Program Family Connection Grants Youth Apprenticeship Grants Remedial Summer School Alternative Programs Superintendent's Base Salary Environmental Science Grants Pay for Performance State and Local Education Systemic

BUDGET

ACTUAL

VARIANCE-
FAVORABLE (UNFAVORABLE)

$

2,184,400.00 $

2,022,308.57 $

7,264,475.00

7,264,296.00

3,611,580.00

3,603,974.49

35,519,066.00

31,574,463.78

4,265,569.00

4,097,533.00

2,972,200.00

2,972,200.00

6,717,000.00

6,717,000.00

293,213.00

0.00

2,522,160.00

2,448,485.00

11,925,927.00

11,838,868.38

5,619,583.00

5,505,248.94

934,522.00

934,520.00

4,039,395.00

4,039,391.00

37,880,233.00

30,126,533.78

10,019,305.00

8,100,763.00

17,093,803.00 677,093.00
2,349,999.00 1,500,000.00 9,027,195.00 13,568,018.00 4,691,270.00
312,864.00 5,239,169.00
513,000.00

14,862,910.72 655,330.47
1,208,875.00 1,447,000.00 9,027,195.00 8,513,874.22 4,691,269.86
312,864.00 5,238,971.73
513,000.00

99,047,892.00 15,226,293.00
1,250,000.00 169,893.00
1,771,560.00 380,984.00
3,200,000.00 2,000,000.00 1,876,182.00 7,250,000.00 1,228,175.00
100,000.00 1,048,000.00 1,587,119.00

99,047,892.00 15,226,209.00
1,236,710.00 131,943.00
1,771,560.00 351,427.00
3,195,000.00 2,000,000.00 1,874,991.25 7,240,788.00 1,228,175.00
100,000.00 1,048,000.00
56,000.00

162,091.43 179.00
7,605.51 3,944,602.22
168,036.00 0.00 0.00
293,213.00 73,675.00 87,058.62
114,334.06 2.00 4.00
7,753,699.22 1,918,542.00
2,230,892.28 21,762.53
1,141,124.00 53,000.00 0.00
5,054,143.78 0.14 0.00
197.27 0.00
0.00 84.00 13,290.00 37,950.00
0.00 29,557.00
5,000.00 0.00
1,190.75 9,212.00
0.00 0.00 0.00 1,531,119.00

$ 4,227,414,788.00 $ 4,058,773,777.22 $

168,641,010.78

Excess of Funds Available over Expenditures

$

-27,812,348.37 $

-27,812,348.37

The notes to the financial statements are an integral part of this statement. -13-

DEPARTMENT OF EDUCATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1995

EXHIBIT"E"

FUNDS AVAILABLE REVENUES
State Appropriation

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 233,670,773.00 $ 230,388,874.00 $

-3,281,899.00

-----''--'----

EXPENDITURES
Pre-Kindergarten for 4-year olds Applied Technology Labs Next Generation Schools Drug and Anti-Violence Education Altemative Programs Educational Technology Centers Distant Leaming - Satellite Dishes Model Technology Schools Instructional Technology Capital Outlay - Lottery Technology Installation Postsecondary Options Safe Schools Grant

$

77,539,600.00 $ 75,925,509.84 $

13,600,000.00

12,280,040.00

500,000.00

500,000.00

1,000,000.oo

1,000,000.oo

8,575,400.00

8,471,564.00

900,000.00

877,582.00

4,221,839.00

4,206,507.00

10,500,000.00

10,499,998.00

31,238,000.00

31,237,453.00

61,405,934.00

61,405,934.00

18,990,000.00

18,989,992.00

1,200,000.00

1,128,213.67

4,000,000.00

4,000,000.00

1,614,090.16 1,319,960.00
0.00 0.00 103,836.00 22,418.00 15,332.00
2.00 547.00
0.00 8.00 71,786.33 0.00

----------- $ 233,670,773.00 $ 230,522,793.51 $

3,147,979.49

Excess of Funds Available over Expenditures

$

-133,919.51 $ =========-1=3=3'=91=9=.5==1

The notes to the financial statements are an integral part of this statement. - 14 -

DEPARTMENT OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT "F"

REVENUES Interest Eamed
EXPENDITURES None Recorded
Excess of Revenues over Expenditures OTHER FINANCING USES
Operating Transfers Out Excess of Revenues over Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1994
FUND BALANCE JUNE 30, 1995

ENDOWMENT CORPUS PUPILS' TRUST FUND-
GEORGIA ACADEMY FOR THE BLIND

$

931.50

0.00

$

931.50

-931.50

$

0.00

13,500.00

s_ _ _ _ _ _13_,5_0_0_.o_o

The notes to the financial statements are an integral part of this statement. -15 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Department ofEducation, an organizational unit ofthe State of Georgia, is part of the executive branch ofthe government ofthe State of Georgia. The State Board of Education is composed of one member from each Congressional District in the State, appointed by the Governor and confirmed by the Senate. The Board adopts and prescribes rules, regulations and policies as may be necessary for operating of public education in Georgia.
The State School Superintendent is elected by qualified voters of the State. The Superintendent is the Executive Officer of the State Board of Education and the Administrative Officer of the Department of Education. The Superintendent is responsible for the operation and the enforcement of the rules, regulations, policies and standards adopted by the State Board ofEducation.
The Department ofEducation does not have authority to determine the amount of funding it will receive from the State of Georgia for any given fiscal year. Such authority is vested in the General Assembly of Georgia. The Department also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Department ofEducation is included within the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State ofGeorgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Department ofEducation uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1994-1995. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.

- 16 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPES
NONEXPENDABLE TRUST FUND - The fund used to account for assets, revenues and expenses utilized in accordance with the provisions ofa trust established by individual agreement. Nonexpendable trust funds are used when only the revenues earned on the principal (corpus) of the trust may be expended for the purposes designated by the trust and the principal of the trust must remain intact.
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
ACCOUNT GROUPS
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at cost or at estimated historical cost if historical cost is not practically determinable. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
The cost ofnormal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure ofavailable spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund remits its unreserved fund balance (surplus) to the Office of Treasury and Fiscal Services in the subsequent fiscal year.
Nonexpendable trust funds, on the other hand, should be accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities are included on the balance sheet. Operating statements of these funds present increases, (i.e., revenues) and decreases, (i.e., expenses) in net

- 17 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING MEASUREMENT FOCUS
total assets. This measurement focus emphasizes the determination of net income. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Nonexpendable Trust Fund utilizes the current financial resources measurement focus.
GOVERNMENTAL FUND TYPE BUDGETFUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily State appropriations, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
FIDUCIARY FUND TYPES NONEXPENDABLE TRUST FUND
The Nonexpendable Trust Fund is maintained in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable means the amount of the 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. Revenues that are accrued include primarily interest income.
- 18 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXlilBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING FIDUCIARY FUND TYPES NONEXPENDABLE TRUST FUND
Expenditures are recorded when the related fund liability is incurred. The basis of accounting differs from generally accepted accounting principles in that nonexpendable trust funds should be maintained on the accrual basis of accounting.

A statement ofCash Flows is not presented for the Nonexpendable Trust Fund in the accompanying financial statements as required by generally accepted accounting principles.

AGENCY FUNDS Agency Funds are custodial in nature and do not measure results of operations or have a measurement focus. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.

BUDGET Appropriation allotments to the Department of Education are on the basis of a budgets submitted by the Department and approved by the Legislature and the Governor. The budgets are adopted on a basis consistent with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia and are compiled in the same manner as all State departments. Expenditures are classified by budget unit object classes as provided in Act No. 1208 of Georgia Laws 1994 (as approved April 18, 1994) and amended by Act No. 6 ofGeorgia Laws 1995 (as approved February 22, 1995), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1994-1995.

Overexpenditure of a budget unit object class, except for the "common object classes", included in the Department's final amended budget is in violation of Section 80 of the 1994-1995 Amended Appropriations Act. Expenditures ofno more than 102% ofthe stated amount for each common object class are authorized by Section 80. However, the total expenditure for the group of common object classes may not exceed the sum of the stated amounts for the separate object classes of the group. The common object classes include Personal Services, Regular Operating Expenses, Travel, Motor Vehicle Purchases, Equipment, Computer Charges, Real Estate Rentals, Telecommunications and Postage.

A comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object class was overspent by the amount identified below:

QBE Formula Grants Indirect Cost

$ 10 000,00

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand, demand deposits with banks and other financial institutions, and cash management pools that have the general characteristics of demand deposit accounts in that the Department may deposit additional cash at any time and also may withdraw cash at any time without
prior notice or penalty.

- 19 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXl-llBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost.
The Department ofEducation participates in an investment pool managed by the State of Georgia's Office of Treaswy and Fiscal Services (OTFS) referred to as the "Georgia Fund I". The Department does not have any risk exposure from investments in Georgia Fund I as the investment policy of OTFS does not provide for investments in derivatives or similar investments through the Georgia Fund I.
INVENTORIES SUPPLY
Inventories of supplies are valued at cost using the first-in/first-out (FIFO) method on the Combined Balance Sheet (Statutory Basis). The consumption method is used to account for the use of inventories. Under the consumption method, the costs ofinventories are recorded as expenditures when consumed rather than when purchased.
DONATED FOOD Inventories are shown on the Combined Balance Sheet (Statutory Basis) at a value established by the U. S. Department of Agriculture.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements:
FEDERAL FINANCIAL ASSISTANCE The residual portion ofFederal :financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as deferred revenue.
INVENTORIES SUPPLY
Reported inventories, under the consumption method, are offset by a portion of State funds reserved to provide working capital for managing a reasonable level of inventories.
DONATED FOOD Donated food inventories are equally offset by an amount to indicate that they do not constitute "available expendable resources" even though they are a component of net current assets. The fund balance reserve is based on values established by the U. S. Department of Agriculture.

- 20-

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RESERVED FUND BALANCE

GEORGIA ACADEMY FOR THE BLIND - PUPILS' TRUST FUND The fund used to account for the principal of an endowment to be preserved intact and invested with the resultant income to be transferred to the Fiduciary Fund Type - Agency Funds (Student Activities Account Georgia Academy for the Blind).

GEORGIA SCHOOL FOR THE DEAF - SCHOOL IMPROVEMENTS
The proceeds from timber sales not yet expended or encumbered. This amount is restricted for expenditure
in future years.

LOTTERY FOR EDUCATION The residual portion of grants awarded by "B" Budget - Lottery for Education to the State supported schools restricted for equipment purchases in the subsequent fiscal year.

TEACHER HONORARIUM PAYMENT The residual portion of refunds from local school systems due to the Professional Standards Commission at fiscal year end. This amount is restricted for payment to the Professional Standards Commission.

TECHNOLOGY GENERAL OBLIGATION BOND FUNDS The residual portion of refunds from local school systems due to the Georgia State Financing and Investment Commission at fiscal year end. This amount is restricted for payment to the Georgia State Financing and Investment Commission.

OTHER RESERVES
The residual portion ofvarious special purpose grants from sources which are restricted for expenditures
in subsequent fiscal years.

France - Mediaction and Vocational Mission Programs French Cultural Services Program Georgia - Lorraine Exchange Program State Teacher ofthe Year Program United States Senate Youth Program

$ 6,022.92 12,013.57 1,228.45 6,285.73 2,795.56

$ 28.346,23

- 21 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is remitted to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus as follows.
REGULAR- An amount of unexpended general appropriations available to the State for reappropriation in subsequent years.
LOTTERY FOR EDUCATION - An amount of unexpended lottery appropriations available for future reappropriation for Lottery for Education.
COMPENSATED ABSENCES Compensated absences represent obligations of the Department relating to employee's rights to receive compensation for future absences based upon seIVices already rendered. This obligation relates only to vesting accumulating annual leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount will not be liquidated with expendable available financial resources. Funds are provided in the appropriation of funds each year to the Department to cover the cost of annual leave paid to terminated employees.
The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position 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.
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Department's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Department's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation.

- 22 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds of the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, 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.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements.
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.
Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Department or by its agent in the Department's name.
Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Department's name.
-23 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVEST:MENTS

CATEGORIZATION OF DEPOSITS Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution or by its trust department or agent, but not in the Department's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

~l.526 374 85 $ 3 123 704 12 $ 822 549 58 $ 50 619.47 $ 2.250,535,07

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount of the investment balance as of June 30, 1995, shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services and is not subject to risk categorization.

Type ofInvestment

Carrying Amount

Market Value

State Investment Pool

$ 122,238.55 $ 122,238.55

NOTE 3: OPERATING LEASES

The Department has entered into certain agreements to lease real property and equipment which are classified as operating leases. These leases generally contain provisions that, at the expiration date ofthe original term of the lease, the Department has the option of renewing the lease on a year-to-year basis. Future minimum commitments for operating leases as ofJune 30, 1995, are listed below. Amounts are included only for multiyear leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

1996

$ 145,817 90

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1995, totaled $213,063.06.

NOTE 4: INSTALL:MENT PURCHASE COMMITMENTS

The Department of Education acquires certain property and equipment through multi-year installment purchases with varying terms and options. The majority of these agreements contain fiscal funding clauses in accordance with O.C.G.A. 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not

- 24 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 4: INSTALLMENT PURCHASE COMMITMENTS

available. If renewal of such agreements is reasonably assured, however, installment purchases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

At June 30, 1995, future minimum commitments under installment purchases for equipment are as follows:

Fiscal Year Ending June 30

1996 1997 1998 1999 2000

$ 60,648.34 57,289.85 48,992.76 23,773.47 1,663.50

Total Future Minimum Commitments

$ 192,367.92

Less: Amounts Representing Interest

22,649.50

Present Value ofFuture Minimum Commitments

$ 169.718 42

NOTE 5: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1994

$23,563,489.23

Additions Deductions

5,633,696.97 437,173.26

Balance June 30, 1995

$28,760,012.94

- 25 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 6: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1995, follows:

Compensated Absences

Balance July 1, 1994

$ 2,912,306.95

Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits Current Year Purchases
Deductions

48,355.19 3,699.18

Balance June 30, 1995

$2,964,361.32

Installment Purchase Commitments

Total

$ 172,556.20 $ 3,084,863.15

67,170.00 70,007.78

48,355.19 3,699.18
67,170.00 70,007.78

$ 169,718.42 $ 3.134.079.74

NOTE 7: RISK MANAGEMENT

Public Entity Risk Pool

The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government ofthe State of Georgia and units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

Other Risk Management

The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance is purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Department of Education is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.

- 26-

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"G"

NOTE 8: DEFERRED COMPENSATION PLAN
The State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, p,roperty, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1995.
NOTE9: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Department ofEducation participates in the Employees' Retirement System of Georgia ("ERS"), a singleemployer, defined benefit plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. The Department's payroll for the year ended June 30, 1995, for employees covered by ERS was $21,365,523.5 I. The Department's total payroll for all employees was $27,572,800.62.
Benefits The benefit structure of ERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age.

-27 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE9: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofannual compensation and 4.75% ofannual compensation paid by the Department on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Department also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1995, the ERS employer contribution rate for the Department amounted to 14.93% of covered payroll and included the 4.75% contributed on behalf of the employee referred to above. Contributions are also made on amounts paid for accumulated leave of retiring employees.
Total contributions to the plan made during fiscal year 1995 amounted to $3,457,097.08, of which $3,190,028.04 was made by the Department and $267,069.04 was made by employees. These contributions met the requirements ofthe plan.
Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure ofthe present value ofpension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent ofthe funding method used to determine contributions to the plan.
The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following:
1) The present value offuture pension benefits paid was computed using a discounted rate of7.5 percent. This rate is also the same rate assumed to be earned on investments in the plan in future years.
2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases:

- 28 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE9: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

Age

Percentage

20

9.5%

25

8.5%

30

6.5%

35

6.0%

40 to 65

5.7%

3) ERS has the authority to grant cost-of-living adjustments by state statute. As of June 30, 1994, cost-ofliving adjustments have been included in the pension benefit obligation.

The total unfunded pension benefit obligation ofERS as of June 30, 1994, was $310,149,000, as follows:

Pension Benefit Obligation:

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but
Not Yet Receiving Benefits

$ 2,227,653,000

Current Employees

Accumulated Contributions

648,516,000

Employer-Financed Vested

1,085,190,000

Employer-Financed Nonvested

1,206,805,000

Total Pension Benefit Obligation

$5,168,164,000

Net Assets Available for Benefits

4,858,015,000

Unfunded Pension Benefit Obligation

$ 310,149,000

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as ofthe same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

-29-

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE9: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Funding Policy
The ERS funding policy provides for periodic employer contributions at actuarially determined rates that,
expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when
due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Department's contribution was actuarially determined and represented 1.24% of total contributions made by all participating employers.

Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.

Trend Information Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description

.

The Department ofEducation participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing

multiple,-employer public employee retirement system (PERS) established by the General Assembly of Georgia

for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia.

The Department's payroll for the year ended June 30, 1995, for employees covered by TRS was

$5,269,831.38. The Department's total payroll for all employees was $27,572,800.62.

Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of 55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits 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. Any member who has between 25 and 30 years of creditable service and is at least 55 years of age shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below

- 30-

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE9: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Benefits age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement benefits also include death and disability benefits whereby the 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 benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability.

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.

Contributions Required and Contributions Made Employees ofthe Department who are covered by TRS are required to pay 5% of their gross earnings to TRS. The Department makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions to the plan made during fiscal year 1995 amounted to $885,396.21, of which $622,041.01 was made by the Department and $263,355.20 was made by employees. These contributions represented 11.81% (Department) and 5% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited projected benefits. This pension 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 and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of the 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 similar PERS. The total unfunded pension benefit obligation of TRS as of June 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation Net assets available for benefits, at cost Unfunded pension benefit obligation

$ 15,313,743,000.00 14,254,785,000.00
$ 1,058,958,000 00

- 31 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE9: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Pension Benefit Obligation
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The Department's contribution for the year ended June 30, 1995, of $622,041.01 was actuarially determined and represented .1101% of total contributions made by all participating employers.
Trend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Department of Education participates in the Georgia Defined Contribution Plan ("GDCP") which is a single-employer defined contribution plan established by the Georgia General Assembly in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Employees' Retirement System Board of Trustees. The Department's payroll for the year ended June 30, 1995, for employees covered by GDCP was $444,715.78. The Department's total payroll for all employees was $27,572,800.62.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board. If a member has less than $ 3,500 credit to his/her account, the Board has the option ofrequiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member.

- 32 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"G"

NOTE9: RETIREMENTPLANS

GEORGIA DEFINED CONTRIBUTION PLAN

Contributions and Vesting Total contributions made by employees during fiscal year 1995 amounted to $33,353.67 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.

NOTE I0: LEAVE POLICIES

Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.

Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length ofcontinuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences.

Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.

NOTE 11: NONMONETARY TRANSACTIONS

Certain programs administered by the Federal government provide donated commodities to the Department ofEducation in lieu ofmonetary assistance. An analysis of nonmonetary assistance received based on values assigned by the Federal government during the year under review is reflected below:

Grant

Agriculture, U. S. Department of Food Distribution Emergency Food Assistance Program

$28,079,521.00 $ 2,445,654.00

In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the revenues and expenditures associated with the nonmonetary assistance are not reflected on Exhibit "C", Statement of Funds Available and Expenditures.

NOTE 12: CONTINGENCIES

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Department expects such amounts, if any, to be immaterial to its overall financial position.

- 33 -

DEPARTMENT OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 12: CONTINGENCIES
Litigation, claims and assessments filed against the Department ofEducation, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department ofAdministrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995.
NOTE 13: BONDING INFORMATION
The State Superintendent of Schools and all employees ofthe Department ofEducation are bonded under a Public Employees Blanket Bond written by Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Department to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance ofDuty Coverage insures the Department to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.
All employees ofthe Department of Education are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 012292 6 and 626 012294 4, on which premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Department to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 34-

SUPPLEMENTARY INFORMATION - 35 -

ASSETS
Cash and Cash Equivalents
Accounts Receivable StatB Appropriation Federal Financial Assistance Other
Inventories Supply Donated Food

DEPARTMENT OF EDUCATION COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30, 1995

"A" DEPARTMENT OF
EDUCATION

"B" LOTTERY FOR
EDUCATION

EXHIBIT"H" TOTAL

$

$

27,623,906.13 $

81,878,641.87

510271889.14

$

114,530,437.14 $

$

71,940.74

11307,370.07

$

1,3791310.81

898,854.67 $

898,854.67

138,569,171.16 $ 1381569,171.16 $

166,193,077.29 81,878,641.87 51027,889.14
25310991608.30

$

71,940.74

113071370.07

$

1,379,310.81

Total Assets

$

1151909?47.95 $

1391468,025.83 $ 25513771773.78

LIABILITIES AND FUND EQUITY
Liabilities Cash Overdraft Accounts Payable Contracts Payable Grants Payable Payroll Withholdings
Total Liabilities
Fund Equity Fund Balances Reserved Federal Financial Assistance
Inventories
Supply Donated Food
Food Distribution Program Emergency Food Assistance Program Georgia School for the Deaf School Improvements Lottery for Education Teacher Honorarium Payment Technology General Obligation Bond Funds Other Reserves Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity

$

3,263,471.07

7,724,139.68 $

5,345,699.50

94,461,694.05

3321216.03

$

111 I1271220.33 $

$ 59,297,192.57
10,000.00 76,582,962.44
4354.25
135,894,509.26 $

3,263,471.07 67,021,332.25
5,355,699.50 171,044,656.49
336,570.28
247,021,729.59

$

267,161.57

85,000.00

116,177.61 1,191,192.46

38,922.60 3,758.56 300.00 5,464.78
28,346.23

$

267,161.57

85,000.00

116,177.61 1,191,192.46

38,922.60 3,758.56 300.00 5,464.78
28,346.23

3,046,203.81 - - - - - - - $ _ _ _.;;;..31._,_57_3_._,5;;..;1""6.;.;;.57.,.,

$

4z7821527.62 $

3,5731516.57 $

3,046,203.81 3,573,516.57
81356,044.19

Total Liabilities and Fund Equity

$

115,909?47.95 $

13914681025.83 $ 2551377,773.78

See notes to the financial statements.

-36-

DEPARTMENT OF EDUCATION COMBINING STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS}
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT NI"

FUND BALANCES - JULY 1
Reserved Unreserved
Designated Surplus Regular Lottery for Education
ADDITIONS
Adjustments to Prior Year's Accounts Payable Grants Payable
Change in Reserve for Inventory Donated Food Program Food Distribution Program Emergency Food Assistance Program
Excess of Funds Available over Expenditures Exhibit"J"
Reimbursement of Prior Year's Expenditures Grants Other
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1994
Adjustments to Prior Year's Accounts Receivable
Refund of Local Grant - Indigent Care Reserved Fund Balance Carried Over from
Prior Year as Funds Available
FUND BALANCES - JUNE 30
(To Exhibit "H")

"A" DEPARTMENT OF
EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$

2,626,636.06

$

2,626,636.06

2,629,643.20 $

754,516.84

2,629,643.20 754,516.84

$

5,256,279.26 $

754,516.84 $

6,010,796.10

$

761,152.24 $

7,135.11 $

768,287.35

27,448,016.96

724,231.31

28, 172,248.27

-135,877.86 67,424.00

-135,877.86 67,424.00

-27,812,348.37

-133,919.51

-27,946,267.88

3,109,113.29 93,554.52

2,976,069.66

6,085,182.95 93,554.52

$

3,531,034.78 $

3,573,516.57 $

7,104,551.35

$

2,629,643.20 $

754,516.84 $

3,384,160.04

9,116.00 115,215.09

9,116.00 115,215.09

1,250,812.13

1,250,812.13

$

4,004,786.42 $

754,516.84 $

4,759,303.26

$

4,782,527.62 $

3,573,516.57 $

8,356,044.19

See notes to the financial statements.

- 37 -

DEPARTMENT OF EDUCATION
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"J'

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund Budget Adjustments
Less: Lapsed Funds
Total State Appropriation
FEDERAL REVENUES
OTHER REVENUES RETAINED Audit Contracts Contract - Honorariums Professional Standards Commission Donation Macon Lions Club Equipment Funding for Vocational Education High School Program Georgia State Financing and Investment Commission Grants Environmental Science Program (State School) Georgia Academy for the Blind French Cultural Services Georgia Family Connection Initiative Lettie Pate Evans Foundation Next Generation School Grants State Teacher of the Year Program United States Senate Youth Program Indirect Services Funding Department of Administrative Services Lottery Proceeds Service Centers Calhoun Gainesville Moultrie Swainsboro State Schools Atlanta Area School for the Deaf Georgia Academy for the Blind Georgia School for the Deaf Reimbursements For Lost Slides For Overpayment For Postage Expense For School Lunch and Milk Program For School Nurses Training For Telephone Expenses For Workshop Expenses Rents Received Sales Photocopies and Publications VICieoFees
Total Other Revenues Retained
Total Revenues

"A"
DEPARTMENT OF EDUCATION

s-
LOTTERYFOR
EDUCATION

TOTAL

$

3,424,038,321.00 $

83,573,783.00

187,000.00

-1.110.160.00

$

3,506,688,944.00 $

3,000.000.00

$ - - - =3.5=03.= 688.944.00 $
$ _ _ __.::5;..1:..5:,.,::4..:7..;6:::,c319.70

$

665,206.60

522,663.57

1,245.00

6,777,672.00

500.00 15,740.74 625,000.00 50,000.00 879,336.53 6,000.00
1,000.00
340,000.00

825.00 842.50 325.00 1,667.00
34,550.00 44,786.00 15,961.39
52.22 1,208.38 1,963.18 180,392.67 26,083.32
5.16 2,012.36 2,188.70
73,499.20 274626.50
$ _ _ _ _.1.:0...:,5.=4=5:.c353.02
$ _ _ _.4...,:0.i.2::=9.,:7...1.:.0.::,c616.72 $

107,300,000.00 $ 126,37o.n3.oo

3,531,338,321.00 209,944,556.00 187,000.00 -1.110.160.00

s 233,670,n3.oo 3,740,359,717.00

3.281.899.00

6.281.899.00

230,388.874.00 $ 3.7341on.818.oo $ 515,476,319.70

$

665,206.60

522,663.57

1,245.00

a.n1,612.oo

500.00 15,740.74 625,000.00 50,000.00 879,336.53 6,000.00
1,000.00
340,000.00

825.00 842.50 325.00 1,667.00

34,550.00 44,786.00 15,961.39

52.22 1,208.38 1,963.18 180,392.67 26,083.32
5.16 2,012.36 2,188.70

73,49920 274,626.50

$

10,545,353.02

230,388,874.00 $ 4,260,099,490.72

See notes to the financial statements.

- 38-

DEPARTMENT OF EDUCATION
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30, 1995

EXHIBIT"J'

FUNDS AVAILABLE
CARRY-OYER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance Inventories France-Mediadion and Vocational Mission Programs Georgia-Lorraine Exchange Program Georgia School for the Deaf School Improvements Legislative Video Program Mellon School/College Collaboration Grant School Nurse Program State Teacher ol the Year Program United States Senate Youth Program Vocational Education General Obligation Funds
Total Carry-Over from Prior Year

DEPARTMENT OF EDUCATION

LOTTERY FOR EDUCATION

TOTAL

$

1,104,179.48

85,000.00

13,227.45

1,228.45

38,719.23 500.00 20.83 571.93
1,855.54 2,392.32 3116.90

$ _ _ _ _ _1;.,:,2::;.;:50=.;,8;.;.1;;:;2;.;.13"-

$

1,104,179.48

85,000.00

13,227.45

1,228.45

38,719.23 500.00 20.83 571.93
1,855.54 2,392.32 3,116.90

$

1,250,812.13

Total Funds Available

$

4,030,961,428.85 $

230,388,874.00 $ 4,261,350,302.85

EXPENDITURES
PERSONAL SERVICES
Salaries and Wages Employer"s Contributions for:
F.I.C.A. Retirement Health Insurance Pen.onal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Assessments by Merit System
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Tuition and Scholarships Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing
MOTOR VEHICLE PURCHASES

$

27,218,244.02

1,640,878.51 3,929,777.73 3,068,598.10
278,730.00 41,858.00
449,512.00 136 901.47

$ _ _ _ _3ac6=,:7...6.;:4..,;4.i.9=9.83

$

44,514.40

1,439,912.45

745,869.60

281,780.88

51,503.15

2,139.00

1,426,932.82

222,748.73

302 844.35

$ _ _ _ _..4..,..5_1'-8'-,-2-4-=5-.-3~8~

$ _ _ _ _-'1-',-0~7"-6'-7"'3-"1".-4'-8~

$ _ _ _ _ _1=31-'6=62=.0"0-

$

27,218,244.02

1,640,878.51 3,929,777.73 3,068,598.10
278,730.00 41,858.00
449,512.00 136,901.47

$

36,764,499.83

$

44,514.40

1,439,912.45

745,869.60

281,780.88

51,503.15

2,139.00

1,426,932.82

222,748.73

302,844.35

$

4,518,245.38

$

1,076,731.48

$

131,662.00

See notes to the financial statements.

- 39-

DEPARTMENT OF EDUCATION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"J'

EXPENDITURES
EQUIPMENT
Equipment Purchases Lease/Purchase cl Equipment Rental cl Equipment
COMPUTER CHARGES
0lher Costs Supplies and Materials Repairs and Maintenanc:e 0lher Operating Expenses (See Schedule)
Software Equipment
Equipment Purchases Rental cl Equipment Per Diem, Fees and Contracts Per Diem and Fees Contracts Computer Billings, DOAS
REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER OIEM, FEES AND CONTRACTS
Per Diem and Fees
Contracts
CAPITAL OUTLAY
Per Diem, Fees and Contracts Contracts
OTHER
UTILITIES
QBE FORMULA GRANTS: Kindergarten\Grades 1- 3 Grades4-8 Grades9-12 High School Laboratories Vocational Education Laboratories Special Education Gifted Remedial Education Staff Development and Professional Development Media Indirect Cost

DEPARTMENT OF EDUCATION

LOTTERY FOR EDUCATION

TOTAL

$

220,204.01

70,439.58

28831.46

$ _ _ _ _.....;::3:..;.19~47;.:5c:.::.05=-

$

220,204.01

70,439.58

28,831.46

$ _ _...;::3:.;.19;:;.i,4..:.;7;.;;;5;.;.;;.05;=.

$

193,737.46

3,611,768.24

299,592.06

125,608.17

3,306,302.99 7,066.19

400,546.00 3,462,319.23 1,207,033.89

$ _ _ ___,;1c:2,:,6..:..13:.i,9::.;7'-'4"".2=3 $ _ _ _ _..:.1l..:4=.94..:.,.1.:..:04=--=.2=-2

$ _ _ _ _.,:.11..:c1.:,;66:.,.4.:.;1:.;.7.:;:.2;=.0

$

1,559,167.98

24,125,513.55

$ _ _ _.....;::2:::5,:,684=,68=.,1.:::.5:::.3

$ _ _ _ _ _.:.25:.i=:000=.00=

$ _ _ _ _.......:7..:..75=34:!:9:..::.80=

$

800,183,642.00

764,882,110.00

297,405,987.00

157,120,167.00

108,414,205.00

309,288,077.00

45,180,921.00

67,899,853.00

30,126,581.00

92,728,016.00

625,247,059.00

$

193,737.46

3,611,768.24

299,592.06

125,608.17

3,306,302.99 7,066.19

400,546.00 3,462,319.23 1,207,033.89

$ _ _1~2,_6_13~,9_7_4.2_3_

$ _ _.:.J1lt.:.494:a...;..J.1;,;.;;;04..;.;:,22:;. $ _ _..:.J1,i.;.166=-,4;..:.1.:,.:7.20~

$

1,559,167.98

24,125,513.55

$ ______2_5_,_..__.6..8..4..,.6. 8~1-.5..3~

s_ _ _=25~,ooo~~oo-
$ _ ___,;.77.:.:5:;.,34a....;.;a.9=.80.a..
$ 800,183,642.00 764,882,110.00 297,405,987.00 157,120,167.00 108,414,205.00 309,288,077.00 45,180,921.00 67,899,853.00 30,126,581.00 92,728,016.00 625,247,059.00

See notes to the financial statements.

40.

EXPENDITURES

DEPARTMENT OF EDUCATION
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1995

"A"
DEPARTMENT OF EDUCATION

"B" LOTTERY FOR
EDUCATION

EXHIBIT"J" TOTAL

QBE FORMULA GRANTS: Pupil Transportation Local Fair Share Mid-Term Adjustment Reserve
OTHER CATEGORICAL GRANTS: Equalization Formula Sparsity Grants In School Suspension Special Instructional Assistance Middle School Incentive Special Education Low-Incidence Grants
NON-QBE GRANTS: Education of Children of Low-Income Families Retirement (H.B. 2n and H.B. 1321) Instructional Services for the Handicapped Tuition for the Multi-Handicapped Severely Emotionally Disturbed School Lunch (Federal) School Lunch (State) Supervision and Assessment of Students and Beginning Teachers and Performance-Based Certification Regional Education Service Agencies Georgia Leaming Resources System High School Program Special Education in State Institutions Governor's Scholarships Counselors Even Start Salaries and Travel of Public: Librarians Public: Library Materials Talking Book Centers Public: Library M & 0 Child Care Lunch Program (Federal) Chapter II - Block Grant Flow Through
Payment of Federal Funds to Board of
Technical and Adult Education Education of Homeless Children/Youth Innovative Programs Next Generation School Grants Limited English - Speaking Students Program Drug-Free School (Federal) At Risk Summer School Program Emergency Immigrant Education Program Title II Math/Science Grant (Federal) Robert C. Byrd Scholarship (Federal) Health Insurance - Non-Cert. Personnel and
Retired Teachers Pre-School Handicapped Program Mentor Teachers Nutrition Education Advanced Placement Exams

$

133,357,336.00

-635,201,965.00

70,767,219.00

$ _ _----=2=,86'-"-'-7~,3""99'"",2:..:08=-00~

$

149,779,502.00

3,257,609.00

21,906,464.00

59,211,783.00

66,129,306.00

483,628.00

$ _____3__0__0__.._,,768~,2=9'--2~-00~

$

170,268,470.97

5,185,712.00

59,252,742.21

1,047,293.70

40,369,243.00

202,115,138.43

25,571,964.00

2,022,308.57 7,264,296.00 3,603,974.49 31,574,463.78 4,097,533.00 2,972,200.00 6,717,000.00 2,448,485.00 11,838,868.38 5,505,248.94
934,520.00 4,039,391.00 30,126,533.78 8,100,763.00

14,862,910.72 655,330.47
1,208,875.00 1,447,000.00 9,027,195.00 8,513,874.22 4,691,269.86
312,864.00 5,238,971.73
513,000.00

99,047,892.00 15,226,209.00
1,236,710.00 131,943.00
1,771,560.00

$ 133,357,336.00 -635,201,965.00 70,767,219.00
$ 2,867,399,208.00
$ 149,779,502.00 3,257,609.00
21,906,"64.00 59,211,783.00 66,129,306.00
483,628.00
$ 300,768,292.00
$ 170,268,470.97 5,185,712.00
59,252,742.21 1,047,293.70
40,369,243.00 202,115,138.43
25,571,964.00
2,022,308.57 7,264,296.00 3,603,974.49 31,574,463.78 4,097,533.00 2,972,200.00 6,717,000.00 2,448,485.00 11,838,868.38 5,505,248.94
934,520.00 4,039,391.00 30,126,533.78 8,100,763.00
14,862,910.n 655,330.47
1,208,875.00 1,447,000.00 9,027,195.00 8,513,874.22 4,691,269.86
312,864.00 5,238,971.73
513,000.00
99,047,892.00 15,226,209.00
1,236,710.00 131,943.00
1,771,560.00

See notes to the financial statements.

- 41 -

EXPENDITURES

DEPARTMENT OF EDUCATION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30 1995

"A"
DEPARTMENT OF EDUCATION

"B" LOTTERY FOR
EDUCATION

EXHIBIT"J" TOTAL

NON-QBE GRANTS: Serve America Program Family Connection Grants Youth Apprenticeship Grants Remedial Summer School
Altiamative Programs Superintendent's Base Salary
Environmental Science Grants Pay for Performance State and Local Education Systemic
LOTTERY FOR EDUCATION Pre-Kindergarten for 4-year-olds Personal Sarvices Salaries and Wages Employer's Contributions for: F.1.CA Retirement Health Insurance Personal Liability Insurance Assessments by Merit System OtherCosts Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses (Sae Schedule) Duplicating and Rapid Copy Publications and Printing Travel Equipment Equipment Purchases Computer Charges Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
Lottery Grants Applied Technology Labs Next Generation Schools Drug and Anti-VIOience Education Alternative Programs Educational Technology Centers Distant Leaming - Satellite Dishes Model Technology Schools Instructional Technology Capital OUtlay - Lottery

$

351,427.00

3,195,000.00

2,000,000.00

1,874,991.25

7,240,788.00

1,228,175.00

100,000.00

1,048,000.00

56,000.00

$ _ _ __,;;;.806=,.,0a.a36"'"'"1'..a.36=c.a.50.c..

$

351,427.00

3,195,000.00

2,000,000.00

1,874,991.25

7,240,788.00

1,228,175.00

100,000.00

1,048,000.00

56,000.00

$ 806.036.136.50

$

354,556.60 $

354,556.60

10,871.44 44,410.07 '44,319.49
3,420.00 1,599.80

10,871.44 '44,410.07 44,319.49
3,420.00 1,599.80

24,905.47 1,213.85 60.00
n.oo

24,905.47 1,213.85 60.00
n.oo

75,291,336.00 3,426.08
25,668.73 448.54
19,874.47

75,291,336.00 3,426.08
25,668.73 448.54
19,874.47

48,512.40

48,512.40

3,657.44 1,489.62

3,657.44 1,489.62

45667.84

45,667.84

$

75,925,509.84 $

75,925,509.84

12,280,040.00 500,000.00
1,000,000.00 8,471,564.00
877,582.00 4,206,507.00 10,499,998.00 31,237,453.00 61,405,934.00

12,280,040.00 500,000.00
1,000,000.00 8,471,564.00
877,582.00 4,206,507.00 10,499,998.00 31,237,453.00 61,405,934.00

Sae notes to the financial statements.

- 42-

DEPARTMENT OF EDUCATION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT"J'

EXPENDITURES QittE8
LOTTERY FOR EDUCATION LoUe!yGrants Technology Installation Postsecondary Options Safe Schools Grant
Total Other
Total Expenditures Excess of Funds Available over Expenditures

DEPARTMENT OF EDUCATION

LOTTERY FOR EDUCATION

TOTAL

$

18.989.992.00 $

1.128,213.67

4,000,000.00

$ _ ____23,=0=,5:2:2.i,.793.51 $

18,989.992.00 1,128,213.67 4,000,000.00
230,522.793.51

$

3,974,978,986.30 $ - - ~ 2~30~ ,522-,793.51 $ 4,2051501,TT9.81

$

4,058.773.TT7.22 $

230.522.793.51 $ 4.289,296.570.73

-27,812,348.37

-133,919.51

-27,946,267.88

$

4,030,961,428.85 $ --====23=0,3=8=8,874.00 $ 4126113501302.85

See notes to the financial statements.

- 43-

DEPARTMENT OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABjLmEs
ADUCIARYFUNDTYPE-AGENCYFUNOS
YEAR ENDED JUNE 30, 1995

EXHIBIT"K"

FUND
Area IV School Service Center Atlanta Area School for the Deaf
Student Activities Account Vending Machine Account Barber, Janette, Fund Charitable Contributions Civil Rights Act d 1964, TIiie IV Equity Workshop Edenfiekl,Myrtice,Fund Educational Technology Training English as a Secondary or Olher Language Education Financial Assistance FFine Al1s Education Advisory Council Georgia Academy for the Blind Student Activities Account Georgia Association d Distributive Education Clubs d America Georgia Curriculum Director's Account Georgia School for the Deaf Athletic Account Clemmons, Polly, Fund Jones, Jesse Forbes, Memorial Fund Kroger Account Miscellaneous Account Needy Children's Fund Registration Account Student Activities Account Student Bank Vocational Projects Fund Work Incentive Account Hazardous Materials and School Maintenance Section Instructional Technology Account Instructional Technology Division Meeting Account International Education Fund International Exchange Program Fund Leadership Skills Development Programs Leadership Skills Development Workshop
Library for the Blind
Middle Georgia School Service Center National Conference on Governor's Schools Nutrition Seminar Programs d Education and Career
Exploration Conference Account Professional Prac:tices Commission Public School Recruitment Services Public School Standards (Parental
Involvement) Quality Basic Education Collaboration
Conferenc:e Fund
Related Vocational Instruction Enrichment Camp
Sachsen-Anhalt Exchange Safe Schools School Improvement Conference Fund School Improvement Workshop School Renewal Fund Schools d Excellence
See notes to the financial statements.

ASSETS/ LIABILITIES JULY1 1 1994

ADDITIONS

DELETIONS

ASSETS/ LIABILITIES JUNE 30, 1995

$

1,410.00 $

983.76 $

42624

$

3,813.84

1,102.48

8,603.94

37.76

15,19724 5,046.01 463.64 2,902.74

10,617.81 5,340.76 1,105.00 2,940.50

8,39327 807.73
7,962.58

19.70 8,922.70
350.53

10,389.80 362.32
2,663.81

9,913.93 2,882.44

495.57 9,285.02
131.90

4,03522 48.89

2,500.00 5,000.00

2,500.00 5,000.00

4,03522 48.89

188,019.52

49,293.44

63,366.93

173,946.03

31,24423 10,786.35

108,566.39 30,809.76

101,673.75 29,200.66

38,136.87 12,395.45

4,460.96 460.57
1,258.86 973.81
1,974.15 58,583.33
3,573.78 146.09
2,509.48 732.73
3,583.36

17,554.55 53.48 35.81
1,808.26 1,813.36 7,310.00 3,490.21 63,930.04
54.00

18,256.15 102.88 101.00 430.00
3,349.33 1,153.12 8,139.61 3,463.83 65,525.91

3,759.36 411.17
1,193.67 543.81 433.08
59,243.57 2,744.17
1n.41
913.61 786.73 3,583.36

1,595.28 3,992.05

37,705.00

36,997.16

1,595.28 4,699.89

2,325.10 2,971.65 196,927.60 12,505.33
24.89 4,058.36
6724
13,571.06

6,835.00
22,107.07 60,291.93
325.00 4,410.00 7,785.00 1,440.00

5,751.08
96,796.12 60,399.57
24.89 189.95 4,371.25 7,785.00 5,886.73

3,409.02 2,971.65 122,238.55 12,397.69
4,193.41 105.99
9,124.33

275.10 1,114.07 2,576.59

6,292.00 6,216.96 6,725.00

4,394.83 5,692.04 6,125.10

2,17227 1,638.99 3,176.49

180.85

90.00

90.85

625.46

625.46

48,101.50 537.94
2,637.68 11,446.00
2,333.48

77,575.93
10,000.00 1,824.00
14,256.00 143.49
23,950.50

94,060.17
10,000.00 3,601.62
23,355.16
24,918.08

31,617.26 537.94
860.06 2,346.84
143.49 1,365.90

-44-

DEPARTMENT OF EDUCATION
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES EIPUCIARY FUND TYPE - AGENCY FUNDS VEAR ENDED JUNE 30, 1995

EXHIBIT"K"

FUm2
Single Parent Conference Fund Special Needs Program Conference Fund Special Services Conference Account Special Student Services Account Staff Conference Fund State Board Awards State Board of Education"s Fund Statistical Services Advisory Committee
and Conference Fund Superintendent"s Fund Support Staff Dewloprnent Fund Teacher Assessment and Agent Account
(Leadership Development Seminars) Tech Prep Conference Account Vocational Administrators' Account Vocational Education Accounts
Business Education Fund Future Business Leaders of America Georgia Association of American
Industrial Arts Student Association, lnc:orporatad
Georgia Association of Future Farmers of America District I Pig Chain Fund Vocational Agriculture Teachers' Fund District II Vocational Agriculture Teac:hers' Fund District Ill Vocational Agriculture Teachers' Fund Dunn, J.E., Scholarship Fund Northwest District (District IV) Regular Agent Account
Georgia Association of Future Homemakers of America
Georgia Association of Vocational Industrial Clubs of America
Homemaking Teachers' Conference Misc:ellaneous Vocational Agriculture Fund Society of Georgia Vocational Agriculture
Teac:hel's Benefits Association, The Vocational Industrial Clubs of America
Vocational Oc:c:upalion Clubs of America Worksite Wellness

ASSETS/ LIABILITIES JULY1, 1994

ADDITIONS

DELETIONS

ASSETS/ LIABILITIES JUNE 30, 1995

$

3,455.00 $

249.73 $

$

-84.69

27,967.93

17,818.76

364.50

25,106.81

26,530.00

27,831.11

6,178.44

128.99

4,500.00

128.99

3,693.58

2,620.04

3,205.27 10,064.48
364.50 23,805.70
6,178.44 4,500.00 1,073.54

12.00 106.58

750.00

106.58

12.00 750.00

2,448.65 10,619.52
4,088.69

67,695.90 18,030.50

372.51 73,984.86 19,409.80

2,076.14 4,330.56 2,709.39

1,089.47 63,940.48

60.00 127,420.54

618.95 126,827.27

530.52 64,533.75

45,562.10

59,826.30

74,936.03

30,452.37

5,406.69 5,031.95

13,145.16

7,860.80

8,541.86

3,983.67

2,545.26

6,731.48 4,178.67 1,376.87 60,059.36
53,424.46
39,675.88 8,583.82 2,057.50
44,309.09
75,233.97 17.01

59,476.03 169.64
2,634.32 381,678.81
112,767.11
104,395.22 19,266.00 1,102.18
12,869.47
111,529.45 763.76

61,779.65
1,321.06 395,938.41
104,666.95
121,813.28 21,961.52 1,741.68
5,967.46
142,700.71 371.04

5,406.69
10,316.31
9,980.27
4,427.86 4,348.31 2,690.13 45,799.76
61,524.62
22,257.82 5,888.30 1,418.00
51,211.10
44,062.71 409.73

$ 1.120,993.24 $ 1,778,554.73 $ 1,940,684.03 $====958==,863=-94=

See notes to the financial statements.

-45-

DEPARTMENT OF EDUCATION
SCHEDULE OF APPROVED BUDGET
"A" DEPARTMENT Of EDUCATION YEAR ENDED JUNE 30 1995

SCHEDULE "1"

FUNDS AVAILABLE
REVENUES
State Appropriation FederalRew,nues Other Rew,nues Retained

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

GOVERNOR'S EMERGENCY FUND

BUDGET ADJUSTMENTS

TOTAL

$ 3,424,038,321.00 $ 534,046,280.00 1,621.108.00

83,573,783.00 $ 9,385,753.00 29,933.00

187,000.00 $

-1,110,160.00 $ 3,506,688,944.00

165,767,665.00

709,199,698.00

9,875.105.00

11,526,146.00

$ 31959i705i709.oo $

921989.469.00 $

187 000.00 $ 17415321610.00 $ 4,2271414?88.00

EXPENDITURES

Peraonal Services

$

Regular Operating Expenses

Travel

Motor Vehicle Purchases

Equipment

Computer Charges

Real Estate Rentals

Telecommunications

Per Diem, Fees and Contracts

Cepital Outlay

Utilities

QBE Formula Grants:

Kindergarten\Grades 1- 3

Grades4-8

Grades 9-12

High School Laboratories

Vocational Education Laboratories

Special Education

Gifted

Remedial Education

Staff Dellelopment and Professional

Dellelopment

Media

Indirect Co6t

Pupil Transportation

Local Fair Share

Mid-Term Adjustment ReseNe

Teacher Salary Schedule Adjustment

Other categorical Grants:

Equalization Formula

Sparsity Grants

In School Suspension

Special Instructional Assistance

Middle School Incentive

Special Education Low-Incidence Grants

Non-OBEGrants:

Education c:I Children c:I Low-Income Families

Retirement (H.B. 272 and H.B. 1321)

Instructional Services for the Handicapped

Tuition for the Multi-Handicapped

Severely Emotionally Disturbed

School Lunch (Federal)

School Lunch (State)

Supervision and Assessment c:I students and

Beginning Teachels and Performance-

Based Certification

Regional Education Service Agencies

Georgia Leaming Resources System

High School Program

Special Education in state Institutions

Governor's Scholarships

Counselors

Vocational Research and Curriculum

Elll!flstart

Salaries and Travel c:I Public Librarians

Public Library Materials

38,964,163.00 $ 3,958,764.00 1,063,842.00 138,000.00 366,586.00
12,521,311.00 1,495,141.00 1,242,587.00
16,866,139.00 25,000.00
764,752.00
775,391,628.00 735,657,774.00 286,005,522.00 151,108,426.00 104,603,623.00 299,194,977.00
43,433,599.00 65,783,964.00
29,835,699.00 89,791,383.00 615,148,563.00 130,609,130.00 -835,320,498.00
116,776,474.00
149,778,370.00 3,609,604.00
20,872,296.00 57,066,117.00 61,396,016.00
416,000.00
198,714,081.00 4,950,000.00
51,519,023.00 1,841,080.00
37,229,829.00 165,074,766.00
24,758,747.00
1,500,000.00 7,001,200.00 3,300,462.00 21,979,854.00 3,991,103.00 2,972,200.00 6,448,277.00
258,213.00 1,375,160.00 10,760,927.00 5,149,409.00

189,954.00 775,822.00 $ 137,474.00
4,170.00 -126,376.00
43,875.00 9,531,663.00
131,000.00
-800,000.00 118,533.00 71,434,084.00 -887,516.00
2,653,916.00
-100,000.00
3,675,710.00 274,466.00 35,000.00 47,000.00 2,000.00

See notes to the financial statements.

-46'-

$ 21,000.00
2,500.00

214,881.00 $ 598,587.00 184,311.00
72,224.00 499,739.00
19,200.00 51,784.00 1,489,383.00
5,500.00

39,368,998.00 5,354,173.00 1,385,627.00 138,000.00 442,980.00
12,894,674.00 1,514,341.00 1,338,246.00
27,889,685.00 25,000.00
901,252.00

24,792,014.00 29,224,336.00 11,400,465.00
6,011,741.00 3,810,582.00 10,093,100.00 1,747,322.00 2,115,889.00

800,183,642.00 764,882,110.00 297,405,987.00 157,120,167.00 108,414,205.00 309,288,077.00
45,180,921.00 67,899,853.00

163,500.00

294,882.00 2,936,633.00 9,924,996.00 3,695,820.00
-827,925.00 -116,088,958.00

30,130,581.00 92,728,016.00 625,237,059.00 133,504,950.00 -835,201,965.00 70,806,159.00
0.00

1,132.00 -351,995.00 1,034,168.00 2,145,666.00 2,079,374.00
67,628.00

149,779,502.00 3,257,609.00
21,906,464.00 59,211,783.00 66,129,306.00
483,628.00

431,044.00 235,712.00 7,793,961.00
3,144,942.00 144,411,484.00
931,952.00

199,145,125.00 5,185,712.00
59,312,984.00 1,841,080.00
40,374,771.00 309,486,250.00
25,590,699.00

684,400.00 263,275.00 311,118.00 9,863,502.00
268,723.00
1,100,000.00 1,165,000.00
468,174.00

2,184,400.00 7,264,475.00 3,611,580.00 35,519,066.00 4,265,569.00 2,972,200.00 6,717,000.00
293,213.00 2,522,160.00 11,925,927.00 5,619,583.00

DEPARTMENT OF EDUCATION &;Hl;;Ql,ll.E OF APPROVl;;D BUQQ~
"A" DEPARTMENT OF EDUCATION YEAR ENDED JUNE 30 1995

SCHEDULE"1"

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

EXPENQITURE

Non-QBE Grants:

Talking Book Centeis

$

Public Library M & 0

care Child

Lunch Program (Federal)

Chapter II - Block Grant Flow Through

Payment c:J Federal Funds to Board of

Technical and Adult Education

Education c:J Homeless Children/Youth

Innovative Programs

Next Generation School Grants

Limited English - Speaking Students Program

Drug-Free School (Federal)

At Risk Summer School Program

Emergency Immigrant Education Program

Title II Math/Science Grant (Federal)

Robert C. Byrd Scholarship (Federal)

Health Insurance - Non-Cert. Personnel and

Retired Teachers

Pre-School Handicapped Program

Mentor Teachers

Nutrition Education

Advanced Placement Exams

Serve America Program

Family Connection Grants

Youth Apprenticeship Grants

RernedmlSummerSchool

Alternative Programs

Superintendent's Base Salary

Environmental Science Grants

Pay for Performance

State and Local Education Systemic

934,522.00 4,039,395.00 37,880,233.00 10,019,305.00
13,311,012.00 $ 186,700.00
2,349,999.00 500,000.00
8,601,007.00 12,505,800.00
3,691,270.00 228,500.00
4,570,112.00 253,000.00
99,047,892.00 14,602,242.00
1,250,000.00 57,035.00
1,100,400.00 356,000.00
2,575,000.00 2,000,000.00 1,876,182.00 7,500,000.00 1,130,820.00
100,000.00 1,650,000.00

3,782,791.00 353,550.00
1,000,000.00 84,364.00
235,971.00 260,000.00
112,858.00 671,160.00
-250,000.00 -602,000.00

GOVERNOR'S EMERGENCY FUND

BUDGET ADJUSTMENTS

$

$

136,843.00

1,000,000.00 426,188.00
1,062,218.00

433,086.00

624,051.00

24,984.00 625,000.00

97,355.00 1587119.00

TOTAL
934,522.00 4,039,395.00 37,880,233.00 10,019,305.00
17,093,803.00 677,093.00
2,349,999.00 1,500,000.00 9,027,195.00 13,568,018.00 4,691,270.00
312,864.00 5,239,169.00
513,000.00
99,047,892.00 15,226,293.00
1,250,000.00 169,893.00
1,771,560.00 380,984.00
3,200,000.00 2,000,000.00 1,876,182.00 7,250,000.00 1,228,175.00
100,000.00 1,048,000.00 1,587,119.00

$ 3.959?05.709.00 $

92,989,469.00 $

187 000.00 $ 174 532 610.00 $ 4,2271414?88.00

See notes to the financial statements.

-47 -

FUNDS AVAILABLE
REVENUES
state Appropriation
EXPENDITURES
Pre-Kindergarten for 4-year~ Applied Technology Labs Nmcl Generation School& Drug and Anti-VIOience Education AltematM! Programs Educational Technology Centers Distant Leaming - Satellite Dishes Model Technology Schools 11'18tructional Technology C8pilal outlay - Lottery Technology Installation Poataecondary Options Safe School& Grant

DEPARTMENT OF EDUCATION SCHEDULE OF Al'PRQVED BUDGET
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1995

SCHEOULE"2"

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

BUDGET ADJUSTMENTS

TOTAL

s

101,300,000.00 S

126,370:773.00 S

0.00 $

23316701n3.oo

s

80,000,000.00 $

-1,785,000.00 $

6,300,000.00

7,300,000.00

500,000.00

1,000,000.00

8,500,000.00

900,000.00

2,300,000.00

1,921,839.00

7,800,000.00

2,700,000.00

31,238,000.00

61,405,934.00

18,990,000.00

600,000.00

4,000,000.00

$

101,300,000.00 $

126,370:773.00 $

~75,400.00 $ 75,400.00 0.00
600,000.00

n,539,600.oo 13,600,000.00
500,000.00 1,000,000.00 8,575,400.00
900,000.00 4,221,839.00 10,500,000.00 31,238,000.00 61,405,934.00 18,990,000.00 1,200,000.00 4,000,000.00

0.00 $

233,670:773.00

See notes to the financial statements.

-48-

DEPARTMENT OF EDUCATION CASH AND CASH EQUIVALENTS
JUNE 30, 1995
NONINTEREST BEARING ACCOUNTS Bank South, N.A., Atlanta, Georgia First Floyd Bank, cave Spring, Georgia First Union National Bank of Georgia, Atlanta, Georgia Middle Georgia Bank, Fort Valley, Georgia NationsBank of Georgia, N.A., Atlanta, Georgia NationsBank of Georgia, N.A., Valdosta, Georgia Trust Company Bank, Atlanta, Georgia Trust Company Bank of Middle Georgia, Macon, Georgia United Bank and Trust, Rockmart, Georgia Wachovia Bank of Georgia, Atlanta, Georgia
INTEREST BEARING ACCOUNTS Bank South, N.A., Atlanta, Georgia First Commerce Bank, Lexington, Georgia First Floyd Bank, cave Spring, Georgia First Liberty Bank, Swainsboro, Georgia First Union National Bank of Georgia, Atlanta, Georgia Georgia State Department of Education Credit Union, Atlanta, Georgia NationsBank of Georgia, N.A., Cedartown, Georgia NationsBank of Georgia, N.A., Douglasville, Georgia NationsBank of Georgia, N.A., Tifton, Georgia Trust Company Bank of Middle Georgia, Macon, Georgia United Bank and Trust, Rockmart, Georgia Wachovia Bank of Georgia, Macon, Georgia Funds on Deposit with Office of Treasury and Fiscal Services State Investment Pool
Cashon Hand

SCHEDULE "3"

$ -313,356.47 22,299.40 142,212.04 131.90
390,870.25 2,743.13
-2,851,926.27 13,700.00 1,418.00
469?84.72 $ -2,122,123.30

$

65,219.40

4,427.86

1,193.67

4,837.00

11,124.49

158,287.46

51,661.47

6,666.02

10,316.31

173,535.74

2,690.13

410.29

1221238.55

612,608.39

111883.84

See notes to the financial statements.

-49-

DEPARTMENT OF EDUCATION INVESTMENTS JUNE 30, 1995

SCHEDULE "4"

INVESTMENT TYPE
Certificates of Deposit Bank of Banks County, Homer, Georgia No. 51445039
First Community Bank of Tifton, Tifton, Georgia
No.150203362
First Liberty Bank, Swainsboro, Georgia
No. 26410
First Union National Bank of Georgia, Atlanta, Georgia
No. 123-8759958 No. 123-8759909
NationsBank of Georgia, NA, Atlanta, Georgia
No. 1340868-0002
NationsBank of Georgia, N.A, Douglasville, Georgia
No. 9100-0001 No. 9100-0002

PURCHASE DATE
January 22, 1995 March 3, 1995 December 9, 1994 April 24, 1995 May 2, 1995 April 29, 1993 October 30, 1994 October 30, 1994

MATURITY DATE
July 21, 1995 March 3, 1996 September 9, 1995 December 20, 1995 December 16, 1995 October 29, 1995 October 30, 1995 October 30, 1995

AMOUNT

$

23,547.37

5,406.69

5,143.27

10,326.36 22,611.86

13,391.82

12,390.46 121560.78

$ 105,378.61

See notes to the financial statements.

- 50-

DEPARTMENT OF EDUCATION SCHEDULE OF GOVERNOR'S EMERGENCY FUND
YEAR ENDED JUNE 30, 1995
Ocmulgee Regional Library System - To Assist the M. E. Roden Memorial Library with their Renovation Project
School Improvement Conference Appffng County Board of Education - To Assist with the Purchase of a Security
Fence for the Appling County Middle School Dade County Board of Education - Purchase Band Uniforms for the High School Rabun County Board of Education - Assist with Renovations to the Central Office Butts County Board of Education - Assist with the Purchase of a Vehicle for the
Jackson High School Band Houston County Board of Education - Assist with Installation of Fencing for
Softball and Physical Education Facilities for the High School School Improvement Workshop Oconee Regional Library - Assist with the Purchase of a Van for the Laurens
County Library Schools of Excellence 1995 Georgia Teacher of the Year Tattnall County Board of Education -Assist with the Construction of an
Agricultural Show facility at the High School DeKalb County Public Library - Assist with the Purchase of a Braille Printer for
the Clarkston Branch

SCHEDULE "5"

$

10,000.00

11,000.00

20,000.00 8,000.00 4,000.00

10,000.00

12,000.00 10,000.00

18,000.00 62,000.00
2,500.00

15,000.00

4,500.00

$ =====1=8=7'=00=0=.0=0

See notes to the financial statements.

- 51 -

DEPARTMENT OF EDUCATION SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1995

PROGRAM

.Agriculture, U.S. Department of

Food Distribution

Direct

School Breakfast Program

Direct

National School Lunch Program

Direct

Special Milk Program for Children

Direct

Child and Adult Care Food Program

Direct

State Administrative Expenses for Child Nutrition

Direct

Nutrition Education and Training Program

Direct

Emergency Food Assistance Program (Administrative Costs)

Direct

Corporation for National and Community Service

Leam and Serve America

School and Community Based Programs

Direct

Education, U.S. Department of

.

Desegregation Assistance, Civil Rights Training, and Advisory

Services

Direct

Education of Children with Disabilities in State Operated or

Supported Schools

Direct

Title I - Grants to Local Educational Agencies

Direct

Migrant Education - Basic State Grant Program

Direct

Educationally Deprived Children - State Administration

Direct

Title 1 Program for Neglected and Delinquent Children

Direct

Services for Children with Deaf-Blindness

Direct

Special Education - Grants to States

Direct

Special Education Special Education Personnel Development

and Parent Training

Direct

Public Library Services

Direct

.

Interlibrary Cooperation and Resource Shanng

Direct

Vocational Education - Basic Grants to States

Direct

.

Vocational Education - Consumer and Homemaking Educat10n

Direct

Educational Research and Development

Direct

Chapter 2 - State Block Grants

Improvement

Direct

Public Library Construction and Technology Enhancement

Direct

CFDA NUMBER
10.550 10.553 10.555 10.556 10.558 10.560 10.564 10.568
94.004
84.004
84.009 84.010 84.011 84.012 84.013 84.025 84.027
84.029 84.034 84.035 84.048 84.049 84.117
84.151 84.154

See notes to the financial statements.

-52-

SCHEDULE6"

AMOUNT

$

27,573.49

42,584,211.69

159,494,066.14

22,468.00

29,395,231.26

2,411,654.07

236,325.21

881,108.46

358,371.99

235,261.33
785,578.05 150,450,171.40
3,844,208.45 1, 145,053.52
558,388.39 252,947.86 52,297,348.47
147,916.10 1,920,669.47
405,236.87 29,308,245.55
1,350,345.56 39,750.00
s,1B0,1ss.n 18,282.33

DEPARTMENT OF EDUCATION SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1995

PROGRAM
Education, U.S. Department of Immigrant Education Direct Eisenhower Mathematics and Science Education - State Grants Direct Special Education - Preschool Grants Direct Vocational Education - Community Based Organizations Direct Byrd Honors Scholarships
Direct
Safe and Drug-Free Schools - State Grants Direct
Christa McAuliffe Fella.Yships Direct
BHingual Education Support Services Direct
Education for Homeless Children and Youth Direct
Even Start - State Educational Agencies Direct
Capital Expenses Direct
State Program Improvement Grants Direct
Tech-Prep Education Direct
Foreign Languages Assistance Direct
Goals 2000 - State and Local Education Systemic Improvement Grants Direct
Health and Human Services, U. S. Department of Acquired Immunodeficiency Syndrome (AIDS) Activity Direct Head Start Direct Medical Assistance Program Direct Cooperative Agreements to Support Comprehensive School Health Programs to Prevent the Spread of HIV and Other Important Health Problems Direct
Labor, u. s. Department of
Job Training Partnership Act Through Georgia Department of Labor Through Georgia Department of Technical and Adult Education
National Science Foundation Education and Human Resources Direct
Transportation, U.S. Department of State and Community Highway Safety Through Georgia Department of Public Safety

CFDA NUMBER
84.162 84.164 84.173 84.174 84.185 84.186 84.190 84.194 84.196 84.213 84.216 84.218 84.243 84.249
84.276
93.118 93.600 93.TT8
93.938
17.250 17.250
47.076
20.600

See notes to the financial statements.

-53-

SCHEDULE s-

AMOUNT

$

298,991.88

4,677,292.12

8,157,113.19

385,390.71

513,000.00

7,180,728.53

29,509.00

73,395.18

646,620.28

1,845, 179.90

6,048.00

586,744.65

2,STT,792.01

543,955.74

56,000.00

-1,105.46 138,049.90 50,745.85

367,759.48 -610.20
15,409.05 -21,694.21
-606.33

$ s1si416,319.10

DEPARTMENT OF EDUCATION SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30, 1995
"A" DEPARTMENT OF EDUCATION
REGULAR OPERATING EXPENSES
Clipping Services Court Reporter Services and Transcripts Examinations and Testing Freight, Express and Storage Linen Service and Outside Laundry Other Student Expenses Production of Films, Tapes and Recordings Registration Fees Seminars and Training Student Meals Student Medical Expenses Subscriptions and Dues Test Scoring Services

COMPUTER CHARGES
Freight, Express and Storage Operations Fee- Student Information System Project Seminars and Training Subscriptions and Dues

"B" LOTTERY FOR EDUCATION OTHER Pre-Kindergarten for 4-Year-olds Subscriptions and Dues
See notes to the financial statements.

- 54-

SCHEDULE "7"

$

1,111.50

270.10

1,685.19

409,454.90

6,680.30

4,724.83

14,713.32

44,549.40

490,977.43

2,627.21

13,061.98

434,026.66

3,050.00

$ 1,426,932.82

$

3,374.65

283,000.00

995.00

12,222.41

$ 299,592.06

----- $

3,426.08

DEPARTMENT OF EDUCATION RECONCILIATION OF TRAVEL YEAR ENDED JUNE 30, 1995
Total per Annual Supplement Accruals June 30, 1994 June 30, 1995 Adjustment Prior Year's Accounts Payable
Total per Report

SCHEDULE "8"
$ 1,100,912.36 -5,498.93 1,104.52 88.00
$ 1,096,605.95

See notes to the financial statements.

- 55 -

DEPARTMENT OF EDUCATION SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES
YEAR ENDED JUNE 30, 1995

SCHEDULE "9"

BUDGET FUND
"A" DEPARTMENT OF EDUCATION Regular Computer Charges
"B" LOTTERY FOR EDUCATION Pre-Kindergarten for 4-Year-olds

SALARIES

TRAVEL

PER DIEM AND FEES

$ 27,218,244.02 $

1,076,731.48 $

1,559,167.98 400,546.00

354,556.60

19,874.47

45,667.84

$ 27,572,800.62 $ 1,096,605.95 $ 2,005,381.82

See notes to the financial statements.

-56-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

DEPARTMENT OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status of findings disclosed in the report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status ofFinding

414-94-01 414-94-02 414-94-03 414-94-04 414-94-05 414-94-06 414-94-07 414-94-08

See Audit Control Number 414-95-02 See Audit Control Number 414-95-03 See Audit Control Number 414-95-04 See Audit Control Number 414-95-05 Corrective Action Implemented Corrective Action Implemented See Audit Control Number 414-95-01 Corrective Action Implemented

PRIOR YEAR

COMPLIANCE WITH LAWS AND REGULATIONS Instructions to Boards ofEducation Not Consistent With the Official Code of Georgia Financial Statements Audit Control Number 414-95-01

The audit report for the year ended June 30, 1994, noted that the Department of Education issued written instructions for the 1993 and 1994 fiscal years to boards of education regarding expenditure requirements relative to StaffDevelopment - Cost ofInstruction (CIS) and Professional Development Stipend (PDS) funds that were not consistent with the Official Code of Georgia (OCGA) 20-2-182.

The guidance provided in the above reference memorandums has resulted in the various boards of education inappropriately expending PDS funds of approximately $2,114,000.00 and $4,315,000.00 for the fiscal years ending 1993 and 1994, respectively.

As of June 30, 1995, the Department of Education had not requested refunds from affected boards of education. The Department should develop procedures whereby instructions given to subrecipients are consistent with laws and regulations. The Department ofEducation should request appropriate refunds from affected boards of education.

DEPARTMENT OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements EXPENDITURES/LIABILITIES/DISBURSEMENTS - Financial Statements Agency Funds - Deficiencies in Accounting Procedures Audit Control Number 414-95-02
The audit report for the year ended June 30, 1994, noted several deficiencies concerning agency fund cash accounts. For the year under review, certain ofthese deficiencies were corrected. However, an examination of current year accounting procedures disclosed the following deficiencies in accounting procedures and internal controls which are in need of corrective action:
(1) Certain disbursements were not supported by adequate documentation. All disbursements should be supported by adequate documentation to demonstrate proper disbursement and accounting of funds.
(2) Certain disbursements did not appear to be in compliance with the intent ofthe fund. Steps should be taken to ensure that records ofa fund include documentation stating specific disbursements which are allowable for the fund. A listing of approved allowable disbursements would reduce the likelihood ofquestionable disbursements.
(3) Checks were issued to certain individuals for services rendered; however, there were no corresponding W-2's or 1099's issued. Procedures should be implemented to issue W-2's or 1099's to individuals as is appropriate.
(4) Certain deposits for the Vocational Education Accounts, Georgia Association American Industrial
Arts Student Association, Incorporated and Georgia Association of Future Farmers of America, District ID, Vocational Agriculture Teacher's Fund accounts were not made on a timely basis. Procedures should be implemented to ensure that all funds received are deposited promptly.
(5) A check issued from the Georgia Academy for the Blind, Student Activities Account included one check made payable to, signed, and endorsed by the custodian of the account. Although documentation was available for the disbursement; measures should be taken to prevent this practice.
Although the accounting department sent instructions to the custodians of the agency funds during fiscal year 1995, deficiencies continued to exist. The Department should continue efforts to ensure that proper accounting procedures are utilized in maintaining agency funds.

DEPARTMENT OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequacies in Operation ofProperty Management System Major/Nonmajor Programs Audit Control Number 414-95-03
The audit report for the year ended June 30, 1994, noted deficiencies in the controls over general fixed assets. For the year under review, our examination included a review of the internal accounting controls utilized by the Department ofEducation in maintaining their State Property System. This review consisted oftesting the system for compliance with Federal and State equipment laws and regulations. Procedures were also completed to verify the accuracy ofthe total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group. The following conditions relating to inappropriate accounting practices were found to exist:
(a) Equipment additions were not properly updated on the inventory system.
(b) 1 capital lease equipment item was not properly recorded on the inventory system.
In addition, a sample of equipment items was selected to test the accuracy of the Department's general fixed assets records. Of the 123 equipment items selected for physical inspection, the following deficiencies were noted:
(a) 1 item was located in a location other than the location indicated in the property inventory system.
(b) 4 items could not be located.
During the physical inspection sample, 3 items of equipment were located which were not included in the equipment inventory records.
The Department ofEducation is required to maintain equipment inventories in accordance with provisions of 0MB Circular A-102 and the State Property System Manual. The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining equipment inventories. As a result of these discrepancies, we were unable to determine the validity ofthe total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with provisions of 0MB Circular A-102 and the State Property System Manual.
Federal Grantor Agencies Affected: U. S. Department of Agriculture U.S. Department ofEducation U.S. Department of Health and Human Services

DEPARTMENT OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
MONITORING SUBRECIPIENTS Subrecipient Audit Reports Not Received Within the Required Time Period Federal Financial Assistance Major/Nonmajor Programs Audit Control Number 414-95-04
The audit report for the year ended June 30, 1994, noted that a substantial number of subrecipient audit reports had not been submitted within the time period required by 0MB Circular A-128 and A-133. The Circulars state that subrecipients subject to the reporting requirements should submit audit reports no later than thirteen months after the end of the audited period.
As part of our examination for the year under review, we examined tracking documents used by the Department of Education to determine the status of subrecipient audit reports for the year ended June 30, 1994. Ofthe 445 subrecipients identified on the tracking documents, 135 had not submitted their audits within the thirteen month period as required by 0MB Circulars A-128 and A-133. This noncompliance is due to subrecipient audits not being performed in a timely manner and/or not being submitted from the Department of Audits on a timely basis.
A subsequent review of the status of the 135 audits not submitted by the due date, indicated that 119 of the reports had been submitted by December 10, 1995. It was noted during our examination that the Department ofEducation utilized a program review stafffor interim compliance reviews of all subrecipients in accordance with the foregoing provisions ofOMB Circulars A-128 and A-133.
Federal Grantor Agencies Affected: U. S. Department of Agriculture Corporation For National and Community Service U.S. Department ofEducation U. S. Environmental Protection Agency U.S. Department ofHealth and Human Services U.S. Department ofLabor
MONITORING SUBRECIPIENTS Subrecipient Reviews Not Performed Within the Required Time Period Federal Financial Assistance Emergency Food Assistance Program (Food Commodities) - CFDA 10.569 Nonmajor Programs Audit Control Number 414-95-05
The audit report for the year ended June 30, 1994, noted that four subrecipient reviews conducted by the Department of Education had not been performed within the allotted time period as required by Federal regulation 7 CFR, Chapter 11, Section 251.10(e)(2) which states, in part, as follows:

DEPARTMENT OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
MONITORING SUBRECIPIENTS Subrecipient Reviews Not Performed Within the Required Time Period Federal Financial Assistance Emergency Food Assistance Program (Food Commodities)- CFDA 10.569 Nonmajor Programs Audit Control Number 414-95-05
"(2) Unless specific exceptions are approved in writing by the FNS Regional Office, the State monitoring system shall include (I) an annual review of all emergency feeding organizations within the State..."
As part ofour examination for the fiscal year ended June 30, 1995, we reviewed tracking documents used by the Department ofEducation to monitor the status of subrecipient reviews for the Federal fiscal year ended September 30, 1994. Ofthe 24 subrecipients identified on the tracking documents, 10 had not been reviewed within the allotted time period. This noncompliance was caused by the Department's failure to follow regulations for monitoring subrecipients. The Department should establish appropriate internal control structure policies and procedures to ensure that all subrecipients are reviewed in accordance with Federal regulations.
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Overexpenditure of Budget Unit Object Class Financial Statements Audit Control Number 414-95-06
The total approved budget for the Department of Education - "A" Budget Unit provided for expenditures totaling $4,227,414,788.00. A comparison ofanticipated funds available and budgeted expenditures to actual funds available and expenditures by object class indicates that the object class QBE Formula Grants - Indirect Cost was overspent in the amount of $10,000.00. This overexpenditure is in violation of Section 80 ofthe Amended Appropriations Act of 1994-1995. The overexpenditure was caused by the Department's failure to monitor the expenditure of funds against the budgeted expenditures by object class.
The Department should review its internal control procedures over budget operations, design procedures which would prohibit the expenditure offunds in excess ofbudget approval, and implement those procedures to strengthen the controls over the budget function.

DEPARTMENT OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR/SUBSEQUENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements EXPENDITURES/LIABILITIES/DISBURSEMENTS - Financial Statements Agency Funds - Deficiencies in Accounting Procedures "State Board ofEducation's Fund" "Council of Chief State School Officers" "Superintendent's Fund" Audit Control Number 414-95-07
As a part of our examination, we reviewed, in detail, the operations of various agency funds administered by the Department ofEducation as follows:
The operations of the "State Board of Education's Fund" formerly known as "Superintendent's Orientation" were reviewed. This activity included all receipts for fiscal year 1989 through November 1995 and disbursements for fiscal year 1990 through November 1995. The following items were noted:
1. Most ofthe individual receipts deposited to the fund are from numerous individuals in the form of registration fees for conferences, meetings, retreats or donations for plaques, awards or retirement functions. The notable exception is two receipts totaling $25,019.53 deposited in August 1991 and December 1993 which were derived from the dissolution of the "Southeastern Education Improvement Laboratory" located in North Carolina. The proceeds derived from the dissolution of this non-profit corporation were divided among several southeastern states because it was operated for the benefit of these states. Since these funds were donated to the State of Georgia with no strings attached, they should have been reported as revenue collections and deposited in the state treasury. Total receipts into the "State Board of Education's Fund", including the proceeds from the above mentioned dissolution, since fiscal year 1989 were approximately $35,000.00.
2. The disbursements contain numerous items consistent with expected conference, seminar or meeting expenses. There were also various disbursements for plaques or awards for individuals, some ofwhich had no apparent revenue source. In addition to these, however, there were several other disbursement items which are improper or questionable. They include the following:
A. Meal expenses for dinner guests of the previous State Superintendent. B. Meal expenses for staff while not on travel status. C. Beverages for Board members. D. Meal expenses for guests ofBoard members. E. A transfer of$13,131.81 to another agency account entitled "Council of Chief State School
Officers." F. A transfer of$750.00 to a newly created agency account entitled "Superintendent's Fund."

DEPARTMENT OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR/SUBSEQUENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements EXPENDITURES/LIABILITIES/DISBURSEMENTS - Financial Statements Agency Funds - Deficiencies in Accounting Procedures "State Board ofEducation's Fund" "Council of Chief State School Officers" "Superintendent's Fund" Audit Control Number 414-95-07
As a result ofthe transfers from the fund discussed above, we reviewed the transactions in the "Council ofChiefState School Officers" fund. This fund was established for the annual conference ofthis national association held in Atlanta in 1991. Other than the transfers from the "State Board ofEducation's Fund" all ofthe receipts were donations from various corporations. All of the disbursements are consistent with those expected for such a conference. This account was closed in fiscal year 1993.
The transfer into the newly created "Superintendent's Fund" in the amount of $750.00 oc~urred in May 1995. The disbursements to date either were not supported by adequate documentation or did not appear to be in compliance with the intent ofthe fund.
The Department of Education should implement procedures to ensure that receipts and disbursements of agency funds are in compliance with all laws and regulations. The Department should implement procedures to ensure that disbursements are supported by adequate documentation to demonstrate proper disbursement and accounting offunds. Such procedures should include written documentation stating specific disbursements which are allowable from each fund.