Audit report, City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, year ended June 30, 1995

GA
A'Soo ,RI E33 CL4 1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT CITY OF CHICKAMAUGA BOARD OF EDUCATION
A COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA
YEAR ENDED JUNE 30, 1995

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER 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

GENERAL PURPOSE 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

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

BUDGET AND ACTUAL - (NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 CASH AND CASH EQUIVALENTS

25

3 ACCOUNTS RECENABLE

26

SCHEDULE OF REVENUE

4

STATE

27

5

LOCAL AND OTHER

28

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

29

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

LOTTERY PROGRAMS

30

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

31

9

BY PROGRAM

32

10 SCHEDULE OF BOARD MEMBERS

34

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 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

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS -
SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Chickamauga Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the City of Chickamauga Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following par?graph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 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 June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

95ARL-13*

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 financial statements of the Board did not contain a General Fixed Assets Account Group fo 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 year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. 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 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 of the City of Chickamauga Board ofEducation as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated June 14, 1996, on our consideration of the Board's internal control structure and a report dated June 14, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Chickamauga Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Chickamauga Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been
95ARL-13*

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 fourth 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.

CLV:jy 95ARL-13*

Claude L. Vickers State Auditor

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - 1-

UNTY

EXHIBIT "A"

~ Cash and Cash Equivalents
Accounts Receivable
lnYantories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreements
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

s 569,084.67 S 246,582.16 S

26,620.00

30,603.42

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onl~ JUNE 30, 1995 JUNE 30, 1994

s 842,286.83 S 713,850.95

30,603.42

123,178.46

9,396.70 5,064.74

9,396.70 5,064.74

7,316.79 6,100.26

s

55569.00

55,569.00

s

599,688.09 $

261 043.60 $

26,620.00 S

55569.00 S 942,920.69 S 850,446.46

L~IL!III;~ ~C! B.!NC! l;Ql,!ITY
L~ILITII;~
Accounts Payable Salaries Payable Expired Grant Balances Payable Ccntracts Payable Capital Lease Agreements
Total Liabilities
FUNDEOUJTY
Fund Balances Reserwd For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Slate Capital Outlay Projects
Unreserwd Designated For Unemployment Compensation Claims Undesignated
Total Fund Equity

s

217.73 S

4,311.05

2,700.00

22,550.99

39.10

11,503.69
s

$

2,956.83 $

38 365.73 S

$

$

40,681.56

4,435.03

9,396.70 5,064.74
s

$

40,681.56 $

18,896.47 S

61,456.00 494,593.70

203,781.40

$ 596 731.26 $ 222,6TT.87 $

6,000.00
s
6,000.00 S
20,620.00 20,620.00
0.00 20,620.00

s
55569.00 55569.00 $

4,528.78 S 25,250.99 11,542.79 6,000.00 55,569.00
102,891.56 S

6,557.91 22,672.42
1,663.88 12,638.15
43,532.36

$

4,435.03

40,681.56 S

14,069.16

9,396.70 5,064.74 20,620.00

7,316.79 6,100.26

s

80,198.03 S

27,486.21

61,456.00 698 375.10

779,427.89

$ 840,029.13 $ 806,914.10

Total Liabilities and Fund Equity

$ 599,688.09 $ 261 043.60 $

26,620.00 $

55 569.00 $ 942,920.69 $ 850,446.46

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

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30.1995

EXHIBIT"B"

BMNUES
State Funds Federal Fund& Local and Other Funds
Total Revenues

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS

~morandum On~} YEAR ENDED

JUNE 30, 1995

JUNE 301 1994

$ 3.682,137.00 $ 39,036.22 389,986.13
$ ' 4,111,159.35 $

34,267.50 $ 221,349.63 354,270.89
609,888.02 $

0.00 $ 0.00 $

3,716,404.50 $ 260,385.85 744,257.02
4,721,047.37 $

3,499,227.33 249,903.76 776,845.97
4,525,977.06

EXPENDITURES

Current Instruction Support Service& Pupil Service& Improvement of Instructional Service& Educational Media Services General Administration School Administration Bu&ine&& Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay

$ 2,698,700.86 $
134,512.17 39,207.49 112,815.80 261,593.12 284,547.73 53,139.07 400,528.77
456.44 44.49
3,130.00
45,376.84 1,988.36

60,608.80 15,543.18 8,773.99
7,891.26 109,188.45
9,846.92
379,055.67 $

$ 117,596.32

2,759,309.66 $
150,055.35 47,981.48 120,707.06 370,781.57 284,547.73 53,139.07 410,375.69
456.44 44.49
3,130.00 379,055.67
45,376.84 119,584.68

2,787,648.45
103,823.42 75,118.52
110,370.09 298,747.87 275,239.54
47,218.39 321,189.55
1,753.00 5,828.37 348,052.84 55,648.53 217,409.19

Total Expenditures

$ 4,036,041.14 $

590,908.27 $

117,596.32 $ 4,744,545.73 $ 4,648,047.76

Excess of Revenues over (under) Expenditures

$

75,118.21 $

18,979.75 $

-117,596.32 $

-23,498.36 $ -122,070.70

QT!::!ER Fl~CING SOURCES (USES}
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

$

55,569.00

$

55,569.00

29.19 $

132,848.00

132,877.19 $

76,642.21

$

-31,184.19

-101,693.00

-132,877.19

-76,642.21

$

-31184.19 $

-46,094.81 $

132,848.00 $

55,569.00 $

0.00

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

43,934.02 $

-27,115.06 $

15,251.68 $

32,070.64 $

-122,070.70

FUND BALANCE JULY 1 (Restated - See Note 1)

552,797.24

248,748.54

5,368.32

806,914.10

926,411.54

Food Inventory Net Change in Period Donated Commodities Purchased Food

2,079.91 -1,035.52

2,079.91 -1,035.52

717.60 1,855.66

FUND BALANCE JUNE 30

$

596,731.26 $

222,677.87 $

20,620.00 $

840,029.13 $

806,914.10

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

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

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 of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1994
Adjustments

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 3.624.809.00 $ 3,682.137.00

40.000.00

39.036.22

369,000.00

389,986.13

$ 4,033,809.00 $ 4,111,159.35

$ 2.TT4.291.63 $ 2,698,700.86

171,286.38 32,134.00 121,627.12 249,638.05 278,023.91 47,542.50 374,784.10
3,300.00

134,512.17 39,207.49 112,815.80 261,593.12 284,547.73 53,139.07 400,528.TT
456.44 44.49
3.130.00

48,270.53

45,376.84 1,988.36

$ 4,100,898.22 $ 4,036,041.14

$ -67,089.22 $ _ _..;_75'-'-,1.;_;1..;;.8=.2-'-1

$ -31,184.19 $ -31,184.19

$ -67,089.22 $ 567,759.86 -2,511.49

43,934.02 552,797.24

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 24,000.00 $ 34,267.50

185,517.00

221,349.63

253,870.00

354,270.89

$ 463,387.00 $ 609,888.02

$ 54,756.00 $ 60,608.80

300.00
8,478.00
3,m.oo
810.00

15,543.18 8,773.99 7,891.26 109,188.45

500.00 7,150.00
3TT,901.00

9,846.92 379,055.67

$ 453,672.00 $ 590,908.27

$

9,715.00 $ 18,979.75

$ 55,598.19 -101,693.00
$ -46,094.81

$

9,715.00 $ -27,115.06

111,384.TT

235.331.49

5.66

FUND BALANCE JUNE 30. 1995

$ 498,159.15 $ 596,731.26

$ 121,105.43 $ 208,216.43

The notes to the general purpose financial statements are an integral part of this statement.
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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City ofChickamauga Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a 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 these notes, the financial statements ofthe 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 ofthe City of Chickamauga Board ofEducation. Based upon the application ofthe above criteria, the City of Chickamauga Board is determined to be a component unit ofthe City of Chickamauga, Georgia.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, but do not have the authority to levy taxes or incur bonded indebtedness. The Mayor and City Council determines the amount of tax revenues flowing to the Board.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits 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 CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note I: 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 of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources

(other than for major capital projects) that are legally restricted to expenditures for specified purposes.

These funds are primarily received from the Georgia Department of Education and from the Federal

government to accomplish specific objectives and are required 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.



CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

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 determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 1: Sill.1MARY 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, intergovernmental grants and investment income. Property taxes are considered available if they 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 departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number ofpersonnel 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 were disbursed from the Georgia Department of Education to the
Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had
been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. 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.
RESTATEMENT OF PRIOR YEAR FUND BALANCE In prior years, the risk financing activities for the Board's unemployment compensation liabilities were reported as an expendable trust fund. This fund had a fund balance of $63,979.00 at June 30, 1994. For fiscal year 1995, this fund has been reported as part of the General Fund. The fund balance at July 1, 1994 has been restated as appropriate.
BUDGET
The City of Chickamauga Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable ~nding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is
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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 1: SillvflviARY OF SIGNIFICANT ACCOUNTING POLICIES

prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and with approval ofthe City Council adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

Excess of Revenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, 1994
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)

Special Revenue
Fund
$ -27,115.06 248,748.54
-7,316.79 -6,100.26 $ 208,216.43

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings and N.0.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 loan associations, or insured State chartered building and loan associations.

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CITY OF CIDCKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The City ofChickamauga Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on October 3, 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 year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70. l 03. The City of Chickamauga 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 Chickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

l.O...QQmills

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 purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

INTERFUND TRANSACTIONS

The Board has the following types of interfimd transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

- 10 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose :financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of 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 of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 11 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 2: DEPOSITS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS

At June 30, 1995, the bank balances were $1,156,638.60. 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 - Uncollateralized deposits. {This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1995, as follows:
Risk Category
1
2 3

Bank Balance
$ 200,000.00 0.00
956,638.60

Total

$1,156,638.60

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 is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets, errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

- 12 -

CITY OF CIDCKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 4: RISK MANAGEMENT

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994 1995

$

0;00 $ 3,145.00 $

3,145.00 $

0.00

$

0.00 $ 2,523.00 $

2,523.00 $

0.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The City ofChickamauga Board ofEducation has entered into a lease agreement as lessee for a bus purchase. 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 fiscal year ended June 30, 1995, were as follows:

Balance July 1, 1994 Additions Balance June 30, 1995

Capital Leases

s

0.00

55,569.00

S 55 569 00

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows:

- 13 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT
Fiscal Year Ended June 30
1996 1997 1998 1999 2000
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments
Note 6: CONTINGENT LIABILITIES

Capital Leases
s 12,588.84
12,588.84 12,588.84 12,588.84 12,588.84
s 62,944.20
7,375.20
$ 55,569.00

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.

Note 7: 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).

TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless 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 of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 14 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 7: RETIREMENT PLANS

Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $2,562,179.78; total payroll was $2,816,049.73.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $430,717.47, of which $302,593.72 was made by the Board and $128,123.75 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.

Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1 058 958,000.00

- 15 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 7: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $302,593.72 was actuarially determined and represented .0535% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially 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 in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 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 ofyears 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 ifthe 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 halfofwhat 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 21 employees covered under PSERS for the year ended June 30, 1995.

- 16 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

Note 7: 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 fiscal year 1995 amounted to $684.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 8: SURETY BONDS
The School Superintendent, Mr. Paul R Chambers, is bonded in the amount of $10,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 13657810, on which premium was paid through June 30, 1995.

- 17 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

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

SCHOOL FOOD
SERVICES FUND

BUS ACCOUNT

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 143,218.62 $ 83,783.60 $

8,714.00 $

0.00 $

0.00

9,396.70 5,064.74

$ 157,680.06 $ 83,783.60 $

8,714.00 $

o.oo s____o_._o_o_

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

$

3,528.25

19,692.57

Total Liabilities

$ 23,220.82

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

9,396.70 5,064.74

Unreserved Undesignated

$ 14,461.44 119,997.80 $

Total Fund Equity

$ 134,459.24 $

$ $
83,783.60 $ 83,783.60 $

8,714.00 8,714.00
0.00 $ 0.00 $

Total Liabilities and Fund Equity $ 157,680.06 $ 83,783.60 $

8,714.00 $

0.00 $ 0.00 $

0.00 0.00

------ 0.00 $

0.00

See notes to the general purpose financial statements.

-18-

EXHIBITE

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 301 1995 JUNE 301 1994

$

0.00 $

4,435.03 $

955.09 $

0.00 $

246,582.16 $ 261,411.82

76,743.78

9,396.70 5,064.74

7,316.79 6,100.26

s _ _ _ _5._47_5_.s_2s _ _ _ _ _o_.oo_s _ _ _ _4._43_5_.o_as

955.09 s _ _ _ _o_.oo_s

261,043.60 $ 351,572.65

$

782.80

2,858.42

1,834.60

$

5,475.82

$

955.09

$

955.09

$

75,079.90

$

4,311.05

6,557.91

22,550.99

19,522.42

11,503.69

1,663.88

$

38,365.73 $ 102,824.11

$

0.00 $

$

0.00 $

$

4,435.03

$ 0.00 0.00 $

4,435.03 0.00 $
4,435.03 $

0.00 $ 0.00 $

$

4,435.03

$ 0.00 0.00 $

9,396.70 $ 5,064.74
18,896.47 $ 203,781.40
222,6TT.87 $

7,316.79 6,100.26 13,417.05
235,331.49 248,748.54

$-=====5,=47=5=.8=2$=====0=.0=0$=======4,=43=5=.0=3$

955.09 $

0.00 $

-=====-

261,043.60 $ 351,572.65

-19-

CITY OF CHICKAMAUGA BOARD OF EDUCATION. WALKER COUNTY
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30 1995

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 Maintenance and Operation of Plant Central Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
QT!:!ER FINANCING SOURCES {USES}
Capital Leases 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
Food Inventory Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

SCHOOL FOOD
SERVICES FUND

SUS ACCOUNT

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 27,950.00

$

127,926.32

249,829.62 $ 104,441.27

$ 405,705.94 $ 104,44127 $

0.00 $

6,317.50 $

0.00 $

6,317.50 $

4,819.00 4,819.00

$

$ 106,670.71 9,846.92
$ 379,055.67 $ 379,055.67 $ 116,517.63 $
$ 26,650.27 $ -12,076.36 $

$ 55,569.00 -101,693.00
$ -46,124.00

$ 26,650.27 $ -58,200.36 $

106,764.58

141,983.96

2,079.91 -1,035.52

0.00 $

2,259.00 $

4,087.69

3,899.23
907.95 11.82

0.00 $ 0.00 $

6,346.69 $ -29.19 $

4,819.00 0.00

$ $ 0.00 $ 0.00

29.19 29.19
0.00 $ 0.00

0.00 0.00

FUND BALANCE JUNE 30

$ 134,459.24 $ 83,783.60 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-20-

EXHIBIT"F"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER 2

MATHEMATICS

DEPRIVED

BLOCK GRANT AND SCIENCE

CHILDREN

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

$

34,411.40 $

3,812.00 $

7,000.00 $

37,080.91 $

$ 6,300.00

34,267.50 $ 221,349.63 354,270.89

116,835.01 194,ns.28 353,425.40

$

34,411.40 $ _ _ _-',3'-,,8_12"-."-00"- $

7,000.00 $

37,080.91 $

6,300.00 $

609,888.02 $ ___66_5__.,036'"'"'--'-'-'69_

$

31,649.85

348.66 20.00 $
2,392.89

$

34,411.40 $

$

0.00 $

$

0.00 $

0.00

$

0.00 $

$
3,803.57 8.43
3,812.00 $ 0.00 $

1,174.88 $
1,375.00 15.09

17,281.58 $
13,238.78 6,471.04
89.51

2,564.97 $ 4,435.03 $

37,080.91 $ 0.00 $

4,344.26 $ 1,955.74
6,300.00 $ 0.00 $

60,608.80 $
15,543.18 8,n3.99 7,891.26
109,188.45 9,846.92
379,055.67
590,908.27 $
18,979.75 $

131,734.16
7,245.02 39,874.74
4,549.81 72,198.78
246.20 1,309.65 348,052.84
605,211.20
59,825.49

0.00 $ 0.00

4,435.03 $ 0.00

0.00 $

4,435.03 $

0.00 $ 0.00
0.00 $

$

55,569.00

29.19 $

-101,693.00

$

-46,094.81 $

539.43 -30,000.00
-29,460.57

0.00 $ 0.00

-27,115.06 $ 248,748.54

30,364.92 n,375.44

2,079.91 -1,035.52

717.60 1,855.66 138,434.92

0.00 $

s 222.sn.81

248,748.54

- 21 -

Cash and Cash Equivalents

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1995

EXHIBIT "G"

RENOVATION OF OLD HIGH SCHOOL
BUILDING

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 96-769-096

$

0.00 $

26,620.00 $

TOTALS

JUNE 301 1995

JUNE 30, 1994

2s.620.oo s____1a_._oos_.4_7

LIABILITIES AND FUND EQUITY
LIABILITIES

Contracts Payable

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$

Total Liabilities and Fund Equity

$

$

6,000.00 $

6,000.00$

12,638.15

$ 0.00 0.00 $
0.00 $

20.620.00 .$ 0.00
20,620.00 $
26,620.00 $

20,620.00
0.00 $ 20,620.00 $

5,368.32 5,368.32

2s,620.oo s ____1a_._oo_s_.4_7

See notes to the general purpose financial statements.

- 22-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT"H"

REVENUES Local and Other Funds
EXPENDITURES Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES IUSES} 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

RENOVATION OF OLD HIGH SCHOOL
BUILDING

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 96-769-096

TOTALS

YEAR ENDED

JUNE 301 1995

JUNE 301 1994

$

0.00 $

0.00 $

0.00 $ _ _ _4..;Jp;:::.;:938=.62=-

$ _ _ __.a1.a0.7;..0;'"6"1'-".=3:2a. $ $ _ _ __.-a1.a0.7;.,.;0""6"1"".=3:a2,. $

$

101,693.00 $

$ - - - - ~ - - 101 693.00 $

$

-5,368.32 $

5,368.32

10,535.00 $ -10 535.00 $

117,596.32 $ -117.596.32 $

217.409.19 -212.470.57

31,155.00 $ 31155.00 $ 20,620.00 $
0.00

132,848.00 $ 132,848.00 $ 15,251.68 $
5,368.32

223,880.29 -1<11n1.51
76.102.78
-136.367.79 141,736.11

FUND BALANCE JUNE 30

0.00 $

20,620.00 $

201620.00 $

51368.32

See notes to the general purpose financial statements.

- 23-

cn:v Of CHICKAMAUGA BOARD Of EDUCATION WALKER COUNTY
SCHEDULE OF FEDERAL flNANCIAL ASSISTANCE YEAR ENDED JUNE 3Q 1995

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT
AgricuHure,U.S.Departmentof Through Georgia Department of Education
Food and Nutrition Program Food Services School Breakfast Program
11194 Grant 1995Grant National School Lunch Program
1Sl95Grant Food Dislribution Program (1)
Total U.S. Department of AgricuHure
Education, U.S. Department of Through Georgia Department or Education Drug-Free Schools end Communities Act 1995Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Carry-Over 1995 Regular Chapter2 1995 Regular Titlell Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act TitleVl,B Flow Through 1994 Carry-Over 1995 Regular Preschool Program 1995 Regular Vocational Education - Basic Grants to States High School Program Tech-Prep Education 1994 Grant 1995Grant Through Northwest Georgia Regional Educational Service Agency Vocational Education High School Program Tech-Prep Education 1994 Grant 1995Grant
Total U.S. Department or Education

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.553 $
10.555 10.550
$

10,666.45 $
81,557.47 31,082.21
123,306.13 $

$ 10,666.45
81,557.47 NIA
92,223.92 $

4,620.19 10,666.45
81,557.47 $ 31,082.21
127,926.32 $

(2) (2)
347,973.46 (3) 31,082.21
379,055.67

84.186 $

4,819.00 $

4,819.00 $

4,819.00 $

4,819.00

84.010 84.010
84.151

7,206.00 29,040.00
3,812.00

7,206.00 29,040.00
3,812.00

7,125.00 27,286.40
3,812.00

7,125.00 27,286.40
3,812.00

84.164 84.164

7,000.00

-7.73 7,000.00

7,000.00

2,564.97

84.027 84.027
84.173

1,784.00 36,252.00
6,300.00

1,784.00 36,252.00
6,300.00

828.91 36,252.00
6,300.00

828.91 36,252.00
6,300.00

84.243 84.243

40,000.00

38,416.38

20,692.07

34,357.22

(4)

84.243 84.243
$

4,679.00 140,892.00 $

4,286.00 159,599.72 $

4,679.00 132,459.53 $

{4) 88,988.28

Total Federal Financial Assistance

$ 2641198.13 $

2511823.64 $ 2601385.85 $

4681043.95

The Board had no major programs as defined by the Single Audit Act or 1984.

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

See notes to the general purpose financial statements.

24 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY CASH AND CASH EQUIVALENTS JUNE 30, 1995

SCHEDUL.E "2"

INTEREST BEARING ACCOUNTS
Bank of Chickamauga, Chickamauga, Georgia
N.O.W. Accounts (3.50%) Passbook Savings Account
Cohutta Banking Company, Chatsworth, Georgia
N.O.W. Account (2.615%)
Certificates of Deposit No. 16140 {5.95%) No. 18126 {5.75%) No. 18183 {5.75%) No.18320 {5.85%)

$

219,944.93

11,52129

129,763.93
150,164.32 96,627.56
134,264.80
100,000.oo
s_ _8_42=,2_8_6_.8_3

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

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE 3

Education, Georgia Department of Vocational Education Federal Funds
Northwest Georgia Regional Educational Service Agency Vocational Education
Various Sources Interest Earned
Vista Community Grant Prevention Resources Centers Grant

GENERAL FUND

$

13,665.15

4,679.00 4,735.90 7,523.37

$ =========3==0=,6=0==3=.4=2=-

See notes to the general purpose financial statements.
- 26 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

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 In-School Suspension Mid-term Adjustment School Counselors Grades 4 and 5 Superintendents Base Salary Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Innovative Programs Remedial Summer School Program Special Education Support Cost Teachers' Retirement Lottery Programs Distant Learning Instructional Technology Media Center and Library Equipment
CONTRACT
Education, Georgia Department of Governor's School Leadership Institute

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 2,150,771.00 274,037.00 37,130.00 88,939.00 29,634.00 638,359.00 33,831.00 42,016.00 19,971.00 17,905.00 -109,648.00 443,395.00 $
3,149.01 4,616.28 1,142.30 1,000.00 3,889.41

$
27,950.00
2,200.00 59.00
4,058.50

2,150,771.00 274,037.00 37,130.00 88,939.00 29,634.00 638,359.00 33,831.00 42,016.00 19,971.00 17,905.00 -109,648.00 443,395.00 27,950.00
3,149.01 4,616.28 1,142.30 1,000.00 3,889.41
2,200.00 59.00
4,058.50

2,000.00

2,000.00

$ 3,682,137.00 $

34,267.50 $ -=-==3.i.;.7,..1.6.;;;.i,,.;.;40=4=5...0..

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

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE "5"

Taxes City Wide School Tax
Other Donations Income from Gordon Lee Trust Interest Earned . Sales Adult Meals Lunches Supplemental Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

230,902.00

$

230,902.00

7,700.00 $
22,690.04
111,566.98 17,127.11

98,399.62 5,055.16
17,318.09 186,109.88 43,099.40
4,288.74

7,700.00 98,399.62 27,745.20
17,318.09 186,109.88 43,099.40 111, ,566.98 21,415.85

$

--=-=====...,;::- 389,986.13 $

354,270.89 $

744,257.02

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

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 1995

SCHEDULE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services 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 Other Expenditures
Nonoperating Costs Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 2,662,038.78 $ 721,258.70 21,773.27 34,395.41 10,606.65 63,506.33 3,206.25
19,419.50 10,266.87
3,130.00 34,033.06 154,596.44 114,698.97
63,140.54 12,582.00 8,384.26

154,010.95 $ 34,464.47 2,873.16 36,274.79
11,371.43
361.96 9,943.00
512.13 1,636.90
932.00 48,232.15
5,668.87 182,890.68
715.29 3,302.61 17,454.64

2,816,049.73 755,723.17 24,646.43 70,670.20 10,606.65 74,877.76 3,206.25 361.96 29,362.50 10,779.00 1,636.90 3,130.00 34,965.06 202,828.59 120,367.84 182,890.68 63,855.83 15,884.61 25,838.90

450.00 963.36 97,590.75

80,263.24

450.00 963.36 177,853.99

Total Expenditures

$ 4,036,041.14 $ 590,908.27 $ 4,626,949.41

See notes to the general purpose financial statements. - 29 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS
YEAR ENDED JUNE 30. 1995

SCHEDULE..,.

EXPENDITURES
Operating Costs Supplies
Nonoperating Costs Equipment

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

TOTAL

$

2,200.00 $

59.00 $

1,799.00 $ 2,288.69

4,058.00 2,288.69

Total Expenditures

$

2,200.00 $

59.00 $

4,087.69 s _ _ _e,_,346.....,_.69_

See notes to the general purpose financial statements.

- 30 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE s

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 2,592,759.00 $

1001496.00

$ 2,495,898.32 162,523.29 $ _ _..;1;.;.4.;.i4,.;;,;55;.;4.;.;.7.;;;.9
$ 2,658,421.61

-23,876.80 $ 2,634,544.81

$

o.oo s=====o=.o=o

See notes to the general purpose financial statements. - 31 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30 1995

GEf:lERAL AND CAR~R 1.it&!CATIQN PROGRAMS Kindergarten (i Grades 1 - 3 (") Sub-Total - K-3 Grades 4 - 5 (i Grades 6 - 8 (") Grades 9 -12 (") High School Laboratories (") Vocational Education Laboratories (") Total General and career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs category 111 (") Sub-Tolal - Regular category V (Gifted) (i Total Special Education Programs
REMEDIAL EDUCATION PROGRAM<:> Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development (i Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _,!_

ORIGINAL

MID-TERM

s

147,550.00

s

s 132,795.00

468,135.00

421,321.50

s

s 615,685.00 90

554,116.50 s

247,485.00 90

222,736.50

523,089.00 90

470,780.10

389,881.00 90

350,892.90

212,685.00 90

191,416.50

161,946.00 90

145,751.40

s 2.1so.n1.oo

s s 1,935,693.90

0.00 34,191.00 34,191.00 6,316.00
0.00 0.00 9,455.00 7,691.00 57,653.00

$

158,228.00

$

s 142,405.20

$

158,228.00 90 $

s 142,405.20

115,809.00 90

104,228.10

$

274,037.00

s

246,633.30 $

s

s 37,130.00 90

33,417.00 $

$ 2,461,938.00

$ 2,215,744.20 s

-757.00
-757.00 -8,316.00 -7,073.00 -8,698.00 41,882.00

$

68,654.00 90 s

s 61,788.60

0.00

20.285.00 90

18,256.50

0.00

s

88,939.00

s

s 80,045.10

0.00

$ 2,550,877.00

s 2,295,789.30 S

41,882.00

s

6,985.00

22,649.00

$

s 6,985.00

22,649.00

$

29,634.00 100 $

29,634.00 $

134.00 0.00
134.00

See notes to the general purpose financial statements.

- 32 -

SCHEDULE "9"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

132,795.00 $

133,896.21 $

5,229.79 $

139,126.00

455,512.50

497,555.72

21,408.78

518,964.50

$

588,307.50 $

631,451.93 $

26,638.57 $

658,090.50 $

0.00

229,052.50

261,093.95

8,077.46

269,171.41

0.00

470,780.10

509,187.82

25,985.64

535,173.46

0.00

350,892.90

378,833.42

22,327.65

401,161.07

0.00

200,871.50

223,662.85

17,100.67

240,763.52

0.00

153,442.40

164,856.84

30,212.18

195,069.02

0.00

$ 1,993,346.90 $ 2,169,086.81 $

130,342.17 $ 2,299,428.98

$

141,648.20

$

$

141,648.20 $

97,912.10

$

239,560.30 $

$

24,719.00 $

$ 2,257,626.20 $

125,739.10 $ 125,739.10 $ 76,117.61 201,856.71 $ 30,107.50 $ 2,401,051.02 $

6,025.03 $ 6,025.03 $ 6,048.12 12,073.15 $ 2,139.47 $ 144,554.79 $

131,764.13 131,764.13 82,165.73 213,929.86 32,246.97 2,545,605.81

9,884.07 15,746.37
0.00

$

61,788.60 $

18,256.50

$

80,045.10 $

94,847.30 $
94,847.30 $

$ 17,968.50
17,968.50 $

94,847.30 17,968.50
112,815.80

0.00 288.00

$ 2,337,671.30 $ 2,495,898.32 $

162,523.29 $ 2,658,421.61 $

25,918.44

$

7,119.00

22,649.00

s _ _..,29_.7_68_...,o.o.

$

14,443.86 $

14,443.86

14,630.18

14,630.18

$

29,074.04 $

29,074.04 s_ _ _ _....6.9._,3.,.9.6.

- 33 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY SCHEDULE OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"

BOARD MEMBER ADDRESS
Mr. Dan McDaniel, Chairman (*) 211 English Avenue Chickamauga, Georgia 30707
Mr. D. A Jewell, Vice-Chairman (*)
115 Old Homestead Drive Chickamauga, Georgia 30707
Mr. Grant Parrish (*)
114 Chris Lane
Chickamauga, Georgia 30707
Mr. Steve Tarvin(*)
P. 0. Box365
Chickamauga, Georgia 30707
Mrs. Sandra Townley(*) 300 Gordon Street Chickamauga, Georgia 30707

(*) Denotes Board Members Serving as of June 30, 1995

See notes to the general purpose financial statements.

- 34 -

SECTION IT COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Chickamauga Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City of Chickamauga as of and for the year ended June 30, 1995, and have issued our report thereon dated June 14, 1996. This report was qualified for a scope limitation 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 paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the talcing of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to the City of Chickamauga Board of Education is the responsibility of the 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 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.

95CRL-10

The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 95CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 1996

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

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOUIREJ\tfENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe City of Chickamauga Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated June 14, 1996. This report was qualified for a scope limitation 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 of Chickamauga Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office 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.

95CRL-40

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 Board 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,
L~
Claude L. Vickers State Auditor
CLV:jy 95CRL-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Chickamauga 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 Chickamauga Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated June 14, 1996. This report was qualified for a scope limitation 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 of the fiscal year 1995 general purpose financial statements of the City of Chickamauga Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Chickamauga 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,
if~
Claude L. Vickers State Auditor
CLV:jy 95CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Chickamauga Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERmvrnNT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City of Chickamauga Board of Education as ofand for the year ended June 30, 1995, and have issued our report thereon dated June 14, 1996. This report was qualified for a scope limitation 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 paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management of the City of Chickamauga Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting
95ICL-3

principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation ofthe structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements ofthe City of Chickamauga Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the City of Chickamauga Board of Education's financial statements and this report does not affect our report thereon dated June 14, 1996.
95ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
%~~
Claude L. Vickers State Auditor
CLV:jy 95ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Chickamauga Board of Education
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 of the City of Chickamauga Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated June 14, 1996. This report was qualified for a scope limitation 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 paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have

95ICL-13

addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 14, 1996.

The management of the City of Chickamauga Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level of Effort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Audit Follow-Up/Resolution (7) Administrative Requirements

(5) Applicable Special Tests and Provisions
(6) Other Requirement Claims for Advances and Reimbursements

For all of the internal control structure categories listed above, we obtained an understanding of the design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1995, the City of Chickamauga Board of Education had no major Federal financial assistance programs and expended 53% ofits total Federal financial assistance under the following nonmajor Federal financial assistance programs:

95ICL-13

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act Education of Deprived Children
Individuals with Disabilities Education Act - Title VI, B Flow Through
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor Federal financial assistance programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
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:jy 95ICL-13

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CITY OF CIDCKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation ofDuties Financial Statements Federal Financial Assistance Finding Resolved Audit Control Number 7691-93-01
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 for the City of Chickamauga Board of Education. For the year under review, the Board implemented changes in the separation of employee duties such that appropriate internal controls were in effect.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $6,371.95 Audit Control Number 7691-93-03
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$6,371.95 for the StaffDevelopment Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $6,371.95 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period
AUDIT FOLLOW-UP/RESOLUTION Inadequate Leave Policy Financial Statements Finding Resolved Audit Control Number 7691-93-06
The audit report for the year ended June 30, 1993, noted that the Board paid the bookkeeper for two additional weeks salary described as "pay in lieu ofvacation". Our audit disclosed that the Board did not have an annual leave policy for the bookkeeper which provided for "pay in lieu of vacation". During the year under review, the Board has discontinued this practice.
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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $4,560.51 Audit Control Number 7691-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$4,560.51 for the operations portion ofthe Media Center Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$4,560.51 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $3,136.70 Audit Control Number 7691-94-02
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $3,136.70 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$3,136.70 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Delinquent Completion Report Federal Financial Assistance Finding Resolved Audit Control Number 7691-94-03
The audit report for the year ended June 30, 1994, stated that the Board did not file a final completion report by the required date for the Chapter 1, State Program Improvement Grant, 1994 Program (CFDA 84.218) in accordance with regulations established by the Georgia Department of Education. In the year under review, the Board submitted the required completion report in a timely manner as required.
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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND IMJ>ROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7691-93-02
The audit report for the year ended June 30, 1994, noted that the management ofthe City of Chickamauga Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. 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 inventoiy 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 of all additions and deletions to the General Fixed Assets Account Group.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Benefits for Non-Employee Financial Statements Nonmaterial Noncompliance Audit Control Number 7691-93-04
The audit report for the year ended June 30, 1994, stated that the Board allowed a person to be covered under Teachers' Retirement, health insurance and other benefits allowed employees, even though the person was not an employee ofthe Board. During the year under review, the Board allowed the same person to be covered under the Teachers' Retirement System, health insurance and other benefits allowed employees.
In order to be eligible to be covered under the Teachers' Retirement System a person must be an employee ofa bona fide employer as defined by the Official Code of Georgia Annotated Section 47-3-1 which states in part:
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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Benefits for Non-Employee Financial Statements Nonmaterial Noncompliance Audit Control Number 7691-93-04
"(12) 'Employer' means the State of Georgia, the county or independent board of education, the State Board ofEducation, the Board of Regents of the University of Georgia, or any other agency of and within this state by which a teacher is paid."
"(28) 'Teacher' means: (A) Any ofthe following persons employed not less than halftime by a public school: (I) Persons who supervise the public schools; (II) Classroom teachers; and (III) Persons employed in a clerical capacity;
The person in question, employed by a private organization, was paid through the Board's payroll system, with the organization reimbursing the Board for the person's salary and related benefits. This condition occurred because management failed to adhere to the specific requirements imposed by Official Code of Georgia Annotated Section 47-3-1.
The Georgia Department of Education and the Teachers' Retirement System should review this matter to determine an appropriate resolution.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $26,612.40 Audit Control Number 7691-95-01
For the year under review, the Board reported to the Georgia Department of Education on DE Form 0420 underexpenditures ofQuality Basic Education (QBE) funds of $9,884.07 for the Special Education - Regular Programs; $15,746.37 for the Category V - Gifted, Special Education Programi $288.00 for the Operations portion of the Media Center Program; and $693.96 for Staff Development Programs. The total underexpenditure of $26,612.40 for the various QBE Programs listed above occurred because the Board expended less than the minimum expenditure requirement for these QBE Programs. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
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SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $6,371.95 Audit Control Number 7691-93-03
During the fiscal year ended June 30, 1996, the Georgia Department of Education adjusted the Local Fair Share of the state allotment for Chickamauga City Board of Education by $6,372.00 to refund this underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $4,560.51 Audit Control Number 7691-94-01
For fiscal year 1997 the Georgia Department ofEducation has adjusted the Local Fair Share for Chickamauga City Schools to include a refund of$4,560.51 to cover this underexpenditure.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $3,136.70 Audit Control Number 7691-94-02
For fiscal year 1997 the Georgia Department ofEducation has adjusted the Local Fair Share for Chickamauga City Schools to include a refund of $3,136.70 to cover this underexpenditure.
EXPENDITURES/1.JABILITIES/DISBURSEMENTS Benefits for Non-Employee Financial Statements Nonmaterial Noncompliance Audit Control Number 7691-93-04
We disagree with this finding. The clerical person in question was an employee of Chickamauga Board of Education. Again we refer you to our attorney's letter of August 21, 1995.
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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $26,612.40 Audit Control Number 7691-95-01 This finding will be resolved by Georgia Department ofEducation through a future increase in Board's Local Fair Share of QBE allotments.
Note: The City ofChickamauga Board ofEducation has elected not to provide comments for inclusion in this report other than the above.
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