Audit report, City of Americus Board of Education, Americus, Georgia, six months ended December 31, 1994

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

AUDIT REPORT CITY OF AMERICUS BOARD OF EDUCATION
AMERICUS, GEORGIA SIX MONTHS ENDED DECEMBER 31, 1994

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

D

COMBINING BALANCE SHEET

16

E

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

20

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

22

3 ACCOUNTS RECEIVABLE

23

SCHEDULE OF REVENUE

4

STATE FUNDS

24-

5

LOCAL AND OTHER FUNDS

25

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

27

7

LOTTERY PROGRAMS

28

8 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

30

CITY OF AMERICUS BOARD OF EDUCATION. SUMTER COUNTY - TABLE OF CONTENTS -
SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the City of Americus Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through C) of the City of Americus Board ofEducation, as ofand for the six months ended December 31, 1994, as listed in the table ofcontents. These financial statements are the responsibility ofthe Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraphs, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office ofManagement and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at December 31, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The City ofAmericus Board ofEducation discontinued its operations on December 31, 1994. We performed our audit subsequent to December 31, 1994 and accordingly we were unable to determine whether the City of Americus Board ofEducation had internal control structure policies and procedures in place to provide
94ARL-23X

reasonable assurance it is managing Federal financial assistance programs in compliance with applicable laws and regulations as required by 0MB Circular A-128, and to ensure compliance with laws and regulations, noncompliance with which could have a material impact on the financial statements as required by Government Auditing Standards.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose fi_nancial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the six months ended December 31, 1994, a portion ofsalaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to December 31, 1994. Also funds received, subsequent to December 31, 1994, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the period year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the six months ended December 31, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
* The general purpose financial statements of the Board did not include a Combined Statement of
Revenues, Expenditures and Changes in Fund Balances - Actual and Budget - Governmental Fund Types. This statement should be included to conform to generally accepted accounting principles.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraphs, the general purpose financial statements present fairly, in all material respects, the financial position ofthe City of Americus Board ofEducation as of December 31, 1994, and the results ofits operations for the period then ended, in conformity with generally accepted accounting principles.
As discussed in Note 9 to the general purpose financial statements, the City of Americus Board ofEducation discontinued its operations on December 31, 1994, at which time all assets (including properties) and Fund Equity were transferred to the Sumter County Board ofEducation.
94ARL-23X

Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe City ofAmericus Board ofEducation taken as a whole. The combining statements (Exhibits D and E) and the financial schedules (Schedules I through 8 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements ofthe City of Americus Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fifth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
. .d : ~

CLV:gp 94ARL-23X

Claude L. Vickers State Auditor

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY -1-

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP DECEMBER 31 1994

EXHIBIT"A"

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTAL (Memorandum Onll)

$

286,952.16 $

204,TT3.95

$

491,726.11

48,679.20

180,425.34

229,104.54

13,655.96 23,620.89
$

395029.50

13,655.96 23,620.89
395029.50

Total Assets

335,631.36 $

422,676.14 $

395,029.50 $

1,153,337.00

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

$

Salaries Payable

Expired Grant Balances Payable

Capital Lease Agreement

Total Liabilities

$

FUND EQUITY

Fund Balances Reserved For Bus Replacement Funds For Expired Grant Balances/Questioned
Costs For Inventories
Food Donated Commodities
Purchased Food

$ Unreserved
Undesignated

Total Fund Equity

$

21,639.58 $
21 839.58 $
114,996.55 69,080.80
184,077.35 $ 129714.43 313,791.78 $

16,410.41 73,386.12
1,181.15 $
90977.68 $
13,655.96 23,620.89 37,476.85 294221.61 331,698.46

$ 395029.50 395029.50 $
$
$

38,249.99 73,386.12
1,181.15 395029.50 507 846.76
114,996.55 69,080.80
13,655.96 23,620.89 221,554.20 423936.04 645,490.24

Total Liabilities and Fund Equity

$

335,631.36 $

422,676.14 $

395029.50 $

1,153337.00

The notes to the general purpose financial statements are an integral part of this statement. -2-

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES SIX MONTHS ENDED DECEMBER 31 1994

EXHIBIT "B"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation cf Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Nonlnstructional Services
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 1994
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL (Memorandum Onlll

$ 4,590,389.48 $ 120,826.21 705,614.38

245,113.97 $ 932,543.31 230,080.87

$ 5,416,830.07 $ 1,407,738.15 $

4,835,503.45 1,053,369.52
935,695.25
6,824,568.22

$ 3,744,092.97 $

516,439.72 $

180,591.77 253,386.06 128,140.00
40,046.17 419,801.27
67,267.50 445,759.99 144,401.11
7,993.73 23,322.80
48,990.55 68,110.28

27,279.54 35,306.96 102,646.63 42,527.37
13,821.76 4,413.99
29,438.60 757,225.64
3,940.00

15,631.25 3,217.02

30,006.42 6,175.53

$ 5,590,752.47 $ 1,569,222.16 $

$ -173,922.40 $ -161,484.01 $

4,260,532.69
207,871.31 288,693.02 230,786.63
82,573.54 419,801.27
67,267.50 459,581.75 148,815.10
7,993.73 52,761.40 757,225.64 52,930.55 68,110.28
45,637.67 9,392.55
7,159,974.63
-335 406.41

$

$

-33,335.99

$

-33,335.99 $

33,335.99 $ 33,335.99 $

$ -207,258.39 $ -128,148.02 $

521,050.17

436,208.23

4,863.37 18,774.88

33,335.99 -33,335.99
0.00
-335,406.41 957,258.40
4,863.37 18,774.88

FUND BALANCE DECEMBER 31 1994

$

313,791.78 $

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

331,698.46 $

645,490.24

-4

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXIIlBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City ofAmericus Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance ofa school board elected by the voters and a Superintendent, appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the City of Americus.
Based upon the application of the above criteria, the City of Americus Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Americus, Georgia.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and the authority to determine the millage rate at which school taxes are levied.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
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CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXEilBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department ofEducation and from the Federal government to accomplish specific objectives and are r-equired to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
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CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXHIBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes and intergovernmental grants. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts are disbursed from the Georgia Department of Education to the Board in the same twelve months. It has been the policy of the Board to record the expenditure for these salaries and fringe benefits, and the related revenue from the State, in the accounting period when received or paid in cash, rather than in the period when earned. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the six months ended December 31, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The City ofAmericus Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXHIBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City ofAmericus Board ofEducation adopted a budget for the fiscal year July 1, 1994 through June 30, 1995. However, a budget comparison is not included in these general purpose financial statements because the financial statements included in this report are for the period July 1, 1994 through December 31, 1994. A comparison between the annual budget and the financial statements presented in this report would not be meaningful. To conform to generally accepted accounting principles, a Combined Statement of Revenue, Expenditures and Changes to Fund Balances - Actual and Budget - Governmental Fund Types should be included in this report.

CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and Joan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The City of Americus fixed the property tax levy for the 1994 tax year (calendar year) on October 20, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal period are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70. l 03. The City of Americus Clerk bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board.

The tax millage rate levied for the 1994 tax year (calendar year) for the City of Americus Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

~mills

INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of

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CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXHIBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at December 31, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these general purpose financial statements.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbunements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
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CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXHIBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994
Note 2: DEPOSITS
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At December 31, 1994, the bank balances were $940,155.44. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - U ncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
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CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXlilBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994

Note 2: DEPOSITS

The Board's deposits are classified by risk category at December 31, 1994, as follows:

Risk Category

Bank Balance

1

$ 300,000.00

2

640,155.44

3

0.00

Total

$ 940 155 44

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Claims are paid from the fund in which the employee's salary is charged. During the six months period, a total of$4,295.00 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASE The City ofAmericus Board ofEducation has entered into a lease agreement as lessee for a computer system. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date ofits inception.

The changes in General Long-Term Debt during the six months ended December 31, 1994, were as follows:

Capital Lease

Balance July 1, 1994

$ 440,667.17

Additions

0.00

Deductions

45 637.67

Balance December 31, 1994

$ 395 029 50

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CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXHIBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994

Note 5: GENERAL LONG-TERM DEBT

At December 31, 1994, payments due, by fiscal year which includes principal and interest for these items are:

Fiscal Year Ended June 30

Capital Leases

1995 1996 1997

$ 111,172.00 166,202.21 166 202.23

Total Principal and Interest

$ 443 576.44

Deduct: Imputed Interest

$ 48 546.94

Net Present Value of Future Minimum Lease Payments

$ 395 029 50

Note 6: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.

Note 7: ACCUMULATED EMPLOYEES' LEAVE

Twelve month employees earn vacation annually according to years of service with fifteen days being the maximum number of days earned. Upon retirement or termination of employment, the Board may compensate the employee for accumulated vacation leave not to exceed twenty-four days at their current daily rate. See Note 1 - Compensated Absences

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

- 12 -

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXEilBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994
Note 8: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the six months ended December 31, 1994, was $4,057,509.62; total payroll was $4,480,068.29.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For the six months period that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during the six months period amounted to $682,002.57, of which $479,191.49 was made by the Board and $202,811.08 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
- 13 -

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXIIlBIT "C" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994

Note 8: RETIREMENT PLANS

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ 1 090 292 000 00

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

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substaatially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia.

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. 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 provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

There were 65 employees covered under PSERS for the six months ended December 31, 1994.

- 14 -

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY EXIIlBIT "C" NOTES TO TiiE GENERAL PURPOSE FINANCIAL STATEMENTS
DECEMBER 31 1994
Note 8: RETIREMENT PLANS PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees of the Board made during the six months period amounted to $984.00. Note 9: DISSOLUTION OF CITY OF AMERICUS BOARD OF EDUCATION On November 2, 1993, the citizens ofthe City of Americus voted to dissolve the City of Americus Board of
Education and its respective operations and merge with the Sumter County Board of Education. As of the
date of dissolution, January 1, 1995, all assets (including property) and all indebtedness of the City of Americus Board ofEducation were assumed by the Sumter County Board ofEducation. As a result of this action, all unresolved audit findings and questioned costs outstanding as of December 31, 1994 will be the responsibility ofthe Sumter County Board ofEducation. Note 10: SURETY BONDS Mr. Don Hicks, School Superintendent from July 1, 1994, through July 14, 1994, was bonded in the amount of $10,000.00 with the Hartford Insurance Company of the Southeast, Maitland, Florida, their Bond No. PEBLT7411. The School Superintendent, Dr. Howard H. Hendley, effective July 15, 1994, through December 31, 1994 was bonded in the amount of $30,000.00 with the Hartford Insurance Company of the Southeast, Maitland, Florida, their Bond No. RN 4684324.
- 15 -

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY COMBINING BALANCE SHFET SPECIAL REVENUE FUND DECEMBER 31 1994

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

AFTER SCHOOL TIME ENRICHMENT
PROGRAM

$ 216,986.09 $

641.67 $

120.41

90,596.83

1,754.41 $

146.60

13,855.96 23,620.89

Total Assets

$ 345,059.77 $

641.67 $

1,874.82 $

146.60

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

949.51

12,411.80

$

$ 13,361.31 $

$ 641.67 641.67 $

$ 13,855.96 23,620.89
$ 37,476.85 294,221.61 $
$ 331,698.46 $

0.00 $ 0.00 $

$ 409.47 1,456.22
9.13 1,874.82 $
0.00 $ 0.00 $

- 146.60 146.60
0.00 0.00

Total Liabilities and Fund Equity

$ 345,059.77 $

641.67 $

1,874.82 $

146.60

See notes to the general purpose financial statements.

-16-

EXHIBIT"D"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE 11-

CHAPTER 1

EISENHOWER

EDUCATION OF CHAPTER2

MATHEMATICS

DEPRIVED BLOCK GRANT - AND SCIENCE

EVEN

CHILDREN FLOW THROUGH EDUCATION

START

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT
TITLE VI, B FLOW
THROUGH

TOTAL

$

16,285.69 $

0.00 $

18.20

$ 234,052.06

54,798.88

$ 26,258.79 $

6,869.83

180,425.34

13,855.96 23,620.89

$

71,084.57 $

0.00 $

18.20 $ 26,258.79 $

6,869.83 $ 451,954.25

$

14,483.74

56,600.83

$

71,084.57

$ 26,258.79 $

2,872.72 $ 29,278.11

567.69

16,410.41

2,917.27

73,386.12

$

18.20

512.15

1,181.15

$

18.20 $ 26,258.79 $

6,869.83 $ 120,255.79

$

0.00 $

$

0.00 $

$

71,084.57 $

0.00 $ 0.00 $
0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

18.20 $ 26,258.79 $

$ 13,855.96 23,620.89

$ 37,476.85

0.00

294,221.61

0.00 $ 331,698.46

6,869.83 $ 451,954.25

-17-

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND SIX MONTHS ENDED DECEMBER 31 1994

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

AFTER SCHOOL TIME ENRICHMENT
PROGRAM

REVENUES

State Funds Federal Funds Local and Other Funds

$ 45,967.00 $ 199,146.97

385,724.53

$

197,386.09

12,248.76 $

3,940.00

Total Revenues

$ 629,077.62 $ 199,146.97 $

12,248.76 $

3,940.00

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Service Operations
Debt Service Principal Interest

$ 90,909.64 $
16,399.39 35.46
102,646.63
13,500.00 1,425.84
$ 757,225.64
6,274.64 1,291.36

1,277.01 10,880.15
91.60
$

3,940.00

Total Expenditures

$ 757,225.64 $ 232,482.96 $

12,248.76 $

3,940.00

Excess of Revenues over (under) Expenditures

$ -128, 148.02 $ -33,335.99 $

0.00 $

0.00

OTHER FINANCING SOURCES

Operating Transfers In

33,335.99

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ -128, 148.02 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1 1994

436,208.23

0.00

0.00

0.00

Food Inventory- Net Change in Period Donated Commodities Purchased Food

4,863.37 18,774.88

FUND BALANCE DECEMBER 31 1994

$ 331,698.46 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEII-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT AND SCIENCE

EVEN

CHILDREN FLOW THROUGH EDUCATION

START

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT
TITLE VI, B FLOW
THROUGH

TOTAL

$

427,737.84 $

15,990.24

$ 443,728.08 $

28,691.00 $ 28,691.00 $

681.80 $ 26,258.79 $ 681.80 $ 26,258.79 $

$ 47,260.59 16,704.54

245,113.97 932,543.31 230,080.87

63,965.13 $ 1,407,738.15

$

372,638.92

41,650.56 $ 29,438.60

$ 75.05

$ 443,728.08 $

$

0.00 $

23,731.78 4,884.17
28,691.00 $
0.00 $

$ 24,664.34 $

634.50 47.30

456.64 83.91
. 1,053.90

681.80 $ 0.00 $

26,258.79 $ 0.00 $

26,949.81 $ 516,439.72

34,637.00
206.22 237.85 1,934.25

27,279.54 35,306.96 102,646.63 42,527.37 13,821.76
4,413.99 29,438.60 757,225.64
3,940.00

30,006.42 6,175.53

63,965.13 $ 1,569,222.16

0.00 $ -161,484.01

$

0.00 $

0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

33,335.99

0.00 $ -128,148.02

0.00

436,208.23

4,863.37 18,774.88

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 331,698.46

-19-

!;;ITY QF l!M~Bl!.\JS BOARQ QF EQ!,!f;;ATIQN - SUMTEB f;;Q!,!NTY Ctl~QUI ~ OF FEDERAi FINAN(;;IAI ASSISIAN(;;E SIX MONTHS ENDED DECEMBF.R 31 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994Grant 1995 Grant National School Lunch Program 1994Grant 1995 Grant Food Distribution Program (1)

10.553 10.553
10.555 10.555 10.550

$ 90,029.46
264,426.28 31 268.79

24,611.55 75,166.88 $

90,029.46

23,249.62 221,136.03 NIA

264,426.28 $ 31268.79

(2)
725,956.85 (3) 31268.79

Total U.S. Department of Agriculture

385,724.53

344,164.08

385724.53 $

757225.64

Education, U.S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1994Grant 1994 Carry-Over 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Regular 1994 Carry-Over 1995 Regular Chapter2 Block Grant - Flow Through 1995 Regular Tftlell Eisenhower Mathematics and Science Education 1995 Regular Even Start 1993 Carry-Over 1994 Grant Individuals with Disabilities Education Act TltleVl,B Flow Through 1994Regular 1994 Carry-Over 1995 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1995Grant Through Sumter County Board of Education Elementary and Secondary Education Act Even Start 1995 Grant

84.186 84.186 $ 84.186
84.010 84.010 84.010
84.151
84.164 84.213 84.213
84.027 84.027 84.027
84.048
84.213

$ 2,440.00 10,629.00
63,604.00 524,296.00
28,691.00
15,775.00
7,087.00 97,128.00
63,114.00
26258.79

3,091.31 2,440.00 $ 8,063.48

2,430.87 $ 9,817.89

2,430.87 9,817.89

104,954.42 63,604.00 312,000.00

63,604.00 364,133.84

28,691.00

28,691.00

63,604.00 380, 124.08 (3)
28,691.00

700.00
8,197.00 25,858.04

681.80

681.80

5,277.39 7,087.00 36,600.00

6,574.85 40,685.74

6,574.85 57,390.28 (3)

63,114.00

63,114.00

(4)

26258.79

26258.79

Total U. S. Department of Education

$ 839,022.79 $

669,677.64 $ 605,992.78 $

575573.56

- 20 -

CfTY OF AMERICUS BOARD OF EDUCATION SUMTER COUNTY SCHEDULE Of FEDERAL FINANCIAL ASSISTANCE SIX MONTHS ENDED DECEMBER 31 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Federal Emergency Management Agency

Through Georgia Emergency Management

Agency

Disaster Assistance

FEMA-1033-DR-GA

83.516 $ 25440.00 $

4102.00 $ 25440.00

(4)

Health and Human Services, U. S. Department of Through Georgia Department of Human Resources Child Care and Development Block Grant Act After School Time Enrichment Program 427-93-42046

93.673

$

4121.61 $

3940.00 $

3940.00

OTHER FEDERAL ASSISTANCE

Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program 1994Grant 1995 Grant

$

10,744.92

$ 32272.21

16140.39 $ 32272.21

(4)

Total U. S. Department of Defense

$ 32272.21 $

26885.31 $ 32272.21

Total Federal Financial Assistance

$ 1 282 459.53 $

1 048 950.64 $ 1 053 369.52 $ 1 336739.20

The Major Program is identified by an asterisk (") in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Elcpenc:lilures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Elcpenc:lttures for this program include Slate, and/or Local and Other Funds. Elcpenc:lttures are not maintained by fund source.
(4) Elcpenc:lttures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

21

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY ANALYSIS OF CASH AND CASH EQUIVALENTS DECEMBER 31 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Citizens Bank of Americus, Americus; Georgia
Money Market Account (3.16%)
Sumter Bank and Trust Company, Americus, Georgia
N.O.W. Account (2.80%)
OTHER
Petty Cash

$ 271,149.36 220,336.75 $ 491,486.11 240.00 $ 491,726.11

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

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY ACCOUNTS RECEIVABLE DECEMBER 31 1994

SCHEDULE "3"

Americus, City of Banquet Sales
Army, U.S. Department of R.O.T.C. Program
Community Affairs, Georgia Department of Merger Grant
Education, Georgia Department of Food Services State Funds - House Bill 782 School Breakfast Program National School Lunch Program Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act TIiie VI, B - Flow Through .
Human Resources, Georgia Department of Childcare and Development Block Grant Act After School Time Enrichment Program
Office of the Governor Federal Emergency Management Agency Georgia Emergency Management Agency
Sumter County Board of Education Contracted Meals Even Start Shared Service Contributions
West Central Georgia Community Action Council Contracted Meals Rents
Various Sources Returned Checks

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

1,050.00 $

1,050.00

$

16,131.82

16,131.82

2,000.00

2,000.00

6,701.00 14,862.58 43,290.25
1,754.41
52,133.84
4,085.74

6,701.00 14,862.58 43,290.25
1,754.41
52,133.84
4,085.74

21,338.00 2,295.00
3,289.45
3,624.93

146.60
7,770.15 26,258.79
5,449.13 16,842.60
80.25

146.60
21,338.00 2,295.00
7,770.15 26,258.79
8,738.58
16,842.60 3,624.93
80.25

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

48,679.20 $

180,425.34 $

229,104.54

!;;ITY OF AMEBICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF STATE REVENUE
SIX MONTHS ENDED DECEMBER 31 1994

SCHEDULE 4

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Al Risk - Summer School Grades 4 - 8 Remedial Summer School School Counselor's Grades 4 and 5 Superintendent's Base Salary Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant Through Sumter County Board of Education Pre-Kindergarten Program
Community Affairs, Georgia Department of Merger Grant
Georgia Emergency Management Agency Reimbursement for Flood Damage

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 2,663,556.00 371,248.00 142,934.00 112,757.00 65,542.00 790,117.00
78,209.00 24,466.00 109,983.00 140,132.00 34,474.00 -412,212.00 406,782.00
$ 13,873.22 8,735.26 9,987.00
1,196.00
25,000.00
3,610.00

$
45,967.00
2,316.00 17,500.00
4,975.00 68,073.64 13,500.00 92,782.33

2,663,556.00 371,248.00 142,934.00 112,757.00 65,542.00 790,117.00
78,209.00 24,466.00 109,983.00 140,132.00 34,474.00 -412,212.00 406,782.00 45,967.00
13,873.22 8,735.26 9,987.00 1,196.00
2,316.00 17,500.00
4,975.00 68,073.64 13,500.00
92,782.33

25,000.00

3,610.00

$ 4 590,389.48 $

245,113.97 $ 4,835,503.45

See notes to the general purpose financial statements. - 24 -

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF LOCAL AND OTHER REVENUE SIX MONTHS ENDED DECEMBER 31 1994

SCHEDULE "5"

Taxes City Wide School Tax
Other Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Rents Sales Breakfast Lunches School Assets Other Shared Service Contributions Sumter County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 559,037.17

$ 559,037.17

38,535.55

6,514.38 5,161.95 $
240.00 21,749.58

4,615.66 30.00

3,844.01 54,931.80 13,500.00 118,462.15

16,743.37 56,884.94
747.44

32,694.78 2,002.47

38,535.55
6,514.38 9,777.61
270.00 21,749.58
3,844.01 54,931.80 13,500.00 118,462.15
49,438.15 56,884.94
2,749.91

$ 705,614.38 $ 230,080.87 $ 935,695.25

See notes to the general purpose financial statements. - 25 -

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES SIX MONTHS ENDED DECEMBER 31 1994

SCHEDULE"6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 3,852,365.58 $ 1,063,015.98 12,112.61 77,434.97 10,238.40 40,120.59 8,916.13 22,126.04 3,618.26 33,526.22 20,191.30
50,988.27 47,884.91 101,137.85 137,913.87
30,49328 12,105.75

627,702.71 $ 174,161.28
2,522.85 30,400.48
880.30 104.95 3,895.36
129.62 2,530.59 2,070.10
24,831.79 104,035.15 20,441.26 268,627.60
4,627.14 2,772.82 6,514.38

4,480,068.29 1,237,177.26
14,635.46 107,835.45
10,238.40 41,000.89
9,021.08 26,021.40
3,618.26 33,655.84 22,721.89 2,070.10 50,988.27 72,716.70 205,173.00 158,355.13 268,627.60 35,120.42 14,878.57 6,514.38

18,848.27 47,714.19

36,181.95 256,791.83

55,030.22 304,506.02

$ 5,590,752.47 $ 1,569,222.16 $ 7,159,974.63

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

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS SIX MONTHS ENDED DECEMBER 31 1994

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Communications Supplies Books, Textbooks and Periodicals
Nonoperating Costs Principal and Interest Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

$

2,316.00 $

5,180.00

3,828.00 8,492.00

$

2,316.00 $===17...5;;;;0;;;,D.;;;DD;;.

See notes to the general purpose financial statements. - 28 -

SCHEDULE '7"

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

37,654.63

$

4,975.00

3,738.00 60,017.00

$

4,975.00 $

101 ,409.63 $

71,958.62 19,630.04
599.39 321.58 211.74 60.96

$

71,958.62

19,630.04

599.39

321.58

45,362.37

60.96

$

13,500.00

7,566.00 86,984.00

92,782.33 $

13,500.00 $ 232,482.96

- 29 -

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
SIX MONTHS ENDED DECEMBER 31 1994

SCHEDULE "8"

BOARD MEMBER ADDRESS
Mr. Fred McLaughlin, Chairman (') 536 East Jefferson Street Americus, Georgia 31709
Mr. Russ Childers(*) P. 0. Box 1547 Americus, Georgia 31709
Mr. Michael D. Coley(*) 223 Brookdale Drive Americus, Georgia 31709
Mrs. Edith Ann Green (*) 311 Harvey Lane Americus, Georgia 31709
Mrs. Kay C. Guttenberg (*) 313 West Glessner Street Americus, Georgia 31709
Mrs. Julie Ann Higgins (*) 204 Rigas Road Americus, Georgia 31709
Mr. M. Clark Lamb, Jr. (*) 1105 Felder Street Americus, Georgia 31709
Mrs. Lorena Sabbs (*) P. 0. Box 1185 Americus, Georgia 31709
Mr. Thomas Edward Sims, Sr. (*) 1322 Faith Street Americus, Georgia 31709

COMPENSATION

TRAVEL

$

1,000.00 $

414.38

1,050.00

398.00

1,000.00

411.02

900.00

408.50

900.00 1,200.00

450.00

500.00

408.50

800.00

398.00

(*) Denotes Board Members Serving as of December 31, 1994
See notes to the general purpose financial statements. - 30 -

$

7,800.00 $

2,438.40

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Americus Board of Education
CO:MPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City of Americus Board ofEducatio_n as of and for the six months ended December 31, 1994, and have issued our report thereon dated March 24, 1995. This report was qualified for various scope limitations and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraphs, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at December 31, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The City ofAmericus Board ofEducation discontinued its operations on December 31, 1994. We performed our audit subsequent to December 31, 1994 and accordingly we were unable to determine whether the City of Americus Board of Education had internal control structure policies and procedures in place to ensure compliance with laws and regulations, noncompliance with which could have a material impact on the general purpose financial statements.
Compliance with laws, regulations, contracts, and grants applicable to City of Americus Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's
94CRL-10X

compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

The results of our tests indicate that, with respect to the items tested, the City of Americus Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

This report is intended for the information of management, the Federal cognizant audit agency and other

Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a

matter of public record.

z:~

Claude L. Vickers State Auditor

CLV:gp 94CRL-I0X

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent arid Members of the City of Americus Board of Education

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the City of Americus Board ofEducation as of and for the six months ended December 31, 1994, and have issued our report thereon dated March 24, 1995. This report was qualified for various scope limitations and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the City ofAmericus Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the six months ended December 31, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-40X

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Americus Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-40X

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Americus Board of Education

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the City of Americus Board ofEducation as of and for the six months ended December 31, 1994, and have issued our report thereon dated March 24, 1995. This report was qualified for various scope limitations and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the City ofAmericus Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance program, which is identified in the Schedule ofFederal Financial Assistance, for the six months ended December 31, 1994. The management of the City ofAmericus Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80X

Except as discussed in the following paragraphs, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the City of Americus Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at December 31, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the City of Americus Board of Education's compliance with the requirements listed in the second paragraph of this report.
The City ofAmericus Board ofEducation discontinued its operations on December 31, 1994. We performed our audit subsequent to December 31, 1994 and accordingly we were unable to determine and report whether the City of Americus Board of Education had internal control structure policies and procedures in place to provide reasonable assurance it is managing Federal financial assistance programs in compliance with applicable laws and regulations as required by 0MB Circular A-128.
In our opinion, the City of Americus Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance program for the six months ended December 31, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
7~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-80X

CLAUDE L. VICKERS
STATE AUDITOR (404)6S6-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Americus Board of Education

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the City of Americus Board ofEducation as of and for the six months ended December 31, 1994, and have issued our report thereon dated March 24, 1995. This report was qualified for various scope limitations and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe six months period financial statements of the City of Americus Board of Education, we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the six months ended December 31, 1994. As noted in our Single Audit Report on the Internal Control Structure Used in Administering Federal Financial Assistance, we were unable to ascertain if the City of Americus Board of Education had internal control structure policies and procedures in place to provide reasonable assurance it was managing Federal financial assistance programs in compliance with applicable laws and regulations as required by 0MB Circular A-128. However, as required by the Circular, we did perform auditing procedures on selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City ofAmericus Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120X

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Americus Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~-~
Claude L. Vickers State Auditor
CLV:gp 94CRL-120X

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Americus Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City of Americus Board of Education as of and for the six months ended December 31, 1994, and have issued our report thereon dated March 24, 1995. This report was qualified for various scope limitations and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraphs, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at December 31, 1994, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.
The City ofAmericus Board ofEducation discontinued its operations on December 31, 1994. We performed our audit subsequent to December 31, 1994, and accordingly, we were unable to determine and report whether the City of Americus Board of Education had internal control structure policies and procedures in place to ensure compliance with laws and regulations, noncompliance with which could have a material impact on the general purpose financial statements.

94ICL-D1

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-Dl

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Americus Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe City of Americus Board of Education as of and for the six months ended December 31, 1994, and have issued our report thereon dated March 24, 1995. This report was qualified for various scope limitations and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the City of Americus Board of Education's compliance with requirements applicable to a major Federal financial assistance program and have issued our opinion thereon dated March 24, 1995.
Except as discussed in the following paragraphs, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City of Americus Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at December 31, 1994, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.
The City of Americus Board ofEducation discontinued its operations on December 31, 1994. We performed our audit subsequent to December 31, 1994, and accordingly, we were unable to determine and report whether the City of Americus Board of Education had internal control structure policies and procedures in place to
94ICL-D2

provide reasonable assurance it was managing Federal financial assistance programs in compliance with applicable Jaws and regulations as required by 01\,ffi Circular A-128.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
?,.::~
Claude L. Vickers State Auditor
CLV:gp 94ICL-D2

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SIX MONTHS ENDED DECEMBER 31 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $30,317.80 Audit Control Number 7601-93-04
The audit report for the year ended June 30, 1993, stated that the City of Americus Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of$30,317.80 for the Staff Development Professional Development Stipends Program. For the period under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $38,763.00 Audit Control Number 7601-94-01
The audit report for the year ended June 30, 1994, stated that the City of Americus Board of Education had an underexpenditure of Quality Basic Education (QBE) funds of$38,763.00 for the Staff Development Professional Development Stipends Program. For the period under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
AUDIT FOLLOW-UP/RESOLUTION Reimbursement Requisitions not Supported by Accounting Records Federal Financial Assistance Amount: $588.13 Audit Control Number 7601-94-03
The audit report for the year ended June 30, 1994, reported that the Board received $588. 13 from the Georgia Department ofEducation for the National School Lunch Program (CFDA 10.555), as reimbursements of meals served at the Eastview Center in excess ofmaximum allowable reimbursements which could have been claimed by the Board. During the period under review, this questioned cost was not refunded.
The $588.13 questioned costs should be refunded to the Georgia Department of Education. Additionally, the Georgia Department of Education should review this matter to determine if additional amounts should be refunded.

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SIX MONTHS ENDED DECEMBER 31 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Schoolwide Project Expenditure Documentation Federal Financial Assistance Audit Control Number 7601-94-04
The audit report for the year ended June 30, 1994, stated that the Board could not provide documentation sufficient to determine iffunds expended per pupil in the Schoolwide project equaled or exceeded the amount of funds expended per pupil served in other schools for the Elementary and Secondary Education Act Chapter 1 (CFDA 84.010) program as required by 34 CFR 200.36(c)(l)(i).
The Department of Education should review this matter to determine appropriate resolution of this finding.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation ofDuties Audit Control Number 7601-92-01
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures. Our audit noted no improvement regarding adequate separation of employee duties.
This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions.
PRIORYEAR/CURRENTPERIOD
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7601-94-02
The audit report for the year ended June 30, 1994, noted that the Board had chosen not to maintain a systemwide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the period under review, no action was taken by the Board to establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles.

CITY OF AMERICUS BOARD OF EDUCATION - SUMTER COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SIX MONTHS ENDED DECEMBER 31 1994
PRIORYEAR/CURRENTPERIOD
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7601-94-02
Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained for all additions and deletions to the General Fixed Assets Account Group.
Note: The City ofAmericus Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.