Audit report, City of Decatur Board of Education, a component unit of the City of Decatur, Georgia, year ended June 30, 1996

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AUDIT REPORT CITY OF DECATUR BOARD OF EDUCAnON
A COMPONENT UNIT OF THE CITY OF DECATUR, GEORGIA - YEAR ENDED JUNE 30, 1996

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

CITY OF DECATUR BOARD OF EDUCATION - DEKALB 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

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

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

27

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

28

2 CASH AND CASH EQUIVALENTS

30

3 INVESTMENTS

31

4 ACCOUNTS RECEIVABLE

32

SCHEDULE OF REVENUE

5

STATE

33

6

TAXES AND OTHER

34

CITY OF DECATIJR BOARD OF EDUCATION - DEKALB COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

35

8

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

37

10

BY PROGRAM

38

11 SCHEDULE OF COMPENSATION AND IRAVEL OF BOARD MEMBERS

40

SECTIONll
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

CITY OF DECATOR BOARD OF EDUCATION - DEKALB COUNTY - TABLE OF CONTENTS -
SECTION ill INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION V PERTINENT VIEWS OF RESPONSffiLE OFFICIALS PERTINENT VIEWS OF RESPONSffiLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 19, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Decatur Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have a'Jdited the general purpose financial statements (Exhibits A through D) of the City of Decatur Board ofEducation, component unit ofthe City ofDecatur, Georgia, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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 to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To confonn 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, 1996, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department ofEducation for the State's share ofthese 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, 1995, were improperly recorded in the year ended June 30, 1996. To confonn 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 on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the City of Decatur Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 19, 1997, on our consideration ofthe Board's internal control structure and a report dated February 19, 1997, on its compliance with law~ and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe City ofDecatur Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the City ofDecatur Board ofEducation. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such infonnation 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 pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:jy 96ARL-13

,.
CITY OF DECATUR BOARD OF EDUCAnON - DEKALB COUNTY - 1-

CITY OF DECATUR BOARD OF EDUCATION pEKALB COUNTY
COMBINED BALANCE SHEET
ALL FUND TYPES JUNE 30, 1996

EXHIBIT "A"

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30, 1995

$ 1,984.133.45 $ 128,563.36 $ 384.226.00 $ 2.496.922.81 $ 4.035.n8.26

2.279,941.47

2.279,941.47

674,582.06

276.062.31

324.787.15

600,849.46

1.371,415.98

10,6n.76 8,683.66

10.6n.76 8,683.66

10.377.61 7.817.67

Total Assets

$ 4,540,137.23 $ 472.711.93 $ 384,226.00 $ 5,397,075.16 $ 6,099,921.58

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable
Total Liabilities
FUND EqUITY
Fund Balances Reserved For C<)ntinuation of Federal Programs For E:.<pired Grant Balances/Questioned Costs FQr Inventories Food Donated Commodities Purchased Food For Capital OuUay Projects
Unreserved Undesignated
Total Fund Equity

$

80.610.85 $

$

80,610.85 $

$

$

13,459,34

$

13.459.34 $

4,446,067.04

$ 4,459,526.38 $

53,140.78 139,250.18
192,390,96
1,170.09
10,6n.76 8,683,66
$ 20.531,51 $ 259,789.46 280,320.97 $

$
$
$
384,226.00 384,226.00 $
0.00 384,226,00 $

$ 133.751.63 139,250.18
273,001.81 $
1,170.09 13,459,34 $
10,677.76 8.683.66
384,226.00 418.216.85 $ 4,705,856,50 5,124,073.35 $

30.074.25 41,066.36 95.484.02 1.850,000.00 36,919.45 2,053,544.08
23.792.50
10,3n.61 7,817.67 34,226.00 76,213.78 3,970,163.72 4,046,377.50

Total Liabilities and Fund Equity

$ 4,540,137.23 $ 472,711.93 $ 384,226,00 $ 5,397,075,16 $ 6,099,921.58

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

CITY OF DECATUR BOARD OF EDUCATION DEKALB COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES )'EAR ENDED JUNE 30, 1996

EXHIBIT"B"

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

CITY OF DECATUR BOARD OF EDUCATION - DEKAlB 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. 1996

EXHIBIT"C"

FUND BALANCE JUNE 30. 1996

$ 4,206,217.47 $ 4,459,526.38

$ 200,958.13 $ 260,959.55

.,

The notes to the general purpose financial statements are an integral part of this statement. - 4-

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City ofDecatur Board ofEducation (Board) was established under the laws of the 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 ofthe departures from generally accepted accounting principles disclosed in these notes, the fmancial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting EntitY". Based upon the application of the above criteria, the City ofDecatur Board is determined to be a component unit of the City ofDecatur, Georgia.
Board m ~mbers 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 City ofDecatur, Georgia provides a substantial majority offunding for the operations ofthe Board, consequently, the Board is deemed to have a financial benefit/burden relationship with the City of Decatur, Georgia as defined by GASH.
FUND ACCOUNTING
The Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the 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.
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.
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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1996
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose financial statements account for all State, Federal, Taxes 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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational 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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the BQard within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1996
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 1996, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The City c.fDecatur 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 funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget 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 budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the ~.ocality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, DCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
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 fund balance as reflected on Exhibit "B" of this report:
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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 1995

$ 302,987.57

Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods

-10,377.61 -7,817.67

Fund Balance July 1, 1995 (Budget Basis)

$ 284,792.29

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

-23,832.74

FUND BALANCE JUNE 30, 1996 (Budget Basis)

$ 260959.55

CASHAND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,
}\
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

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 ofDecatur fixed the property tax levy for the 1995 tax year (calendar year) on June 21, 1995 (levy date). Taxes were due on July 1, 1995 and could be paid in two installments on July 1,1995 and October 1, 1995 (due dates). The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.1 03. The City of Decatur Clerk bills and collects the property taxes for the Board of Education and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1995 tax year (calendar year) for the City ofDecatur Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

25.00 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). 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.

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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXlllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1996
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types of interfund tran~actions:
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 reimburst-d.
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 AND INVESTMENTS
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 ofsecurities 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 pl~ced in demand deposit checking accounts.
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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996
.,. Note 2: DEPOSITS AND INVESTMENTS
Acceptable security for deposits consists of anyone 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 of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the Qse ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $3,296,814.23. 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, 1996, as follows:
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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1996

Note 2: DEPOSITS AND INVESTMENTS

Risk Category 1 2 3 Total

Bank Balance
$ 300,000.00 2,996,814.23 0.00
$ 3,296,814.23

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $2,279,941.47 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal
Services for the Local Government Investment Pool does not provide for investment in derivatives or similar
investments.

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast 'Uld 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 illness or injuries to employees; natural disaster; and unemployment compensation.

The Board participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized onJuly 1, 1994 to develop and administer a plan to reduce risk ofloss on account ofgeneral liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with two companies according to their specialty for property, boiler and machinery, general liability and automobile risks. Payment of excess insurance for the system varies by line of coverage. Property and blanket bond coverage was purchased to cover 100% of specific losses in excess of $100,000.00 per occurrence, up to $100,000,000.00 for each occurrence. Boiler and machinery coverage was purchased to cover 100% of specific losses in excess of $100,000.00 per occurrence. General liability coverage was purchased to cover 100% of specific losses in excess of $250,000.00 per occurrence. Auto liability"'was purchased to cover 100% of specific losses in excess of$100,000.00 per occurrence after member deductible.

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CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

Note 4: RISK MANAGEMENT

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster in 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 expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1995 1996

Beginning of Year Liability

$

0.00

$

0.00

Claims and Changes in Estimates
$ 9,245.00 $ 3,745.00

Claims Paid
$ 9,245.00 $ 3,745.00

End of Year Liability

$

0.00

$

0.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,OOO,OOO.OOofloss.

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$357,549.01 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$300,913.37

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $26,591.64

- 13 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996
NoteS: ON-BEHALF PAYMENTS
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $30,044.00
Note 6: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
The Board is a defendant in a legal proceeding pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 7: ACCUMULATED EMPLOYEES' LEAVB
Regular:fi U-time, twelve (12) month employees earn vacation leave with pay. Employees earn from ten (10) to fifteen (15) days per year based on years ofcontinuous service with a maximum accumulation of thirty (30) days. Upon retirement from the school system, employees may be paid for unused vacation leave up to a maximum of twenty (20) days at the current rate of pay or $100.00 per day, whichever is less.
Regular employees earn sick leave with pay at a rate of one (1) to fifteen (15) days per year based on years of continuous service with a maximum accumulation ofone-hundred and five (105) days. When an employee, eligible for contract renewal, retires from the school system with a minimum often (10) years of continuous service, and is able to draw retirement from the state retirement system, that employee may be paid for accumulated sick leave up to a maximum of one hundred (100) days at the rate of $20.00 per day. See Note 1 - Compensated Absences
Note 8: RETIREMENT PLANS
TEACHERS RETmEMENT 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).
....
- 14 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXIllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1996
" Note 8: RETIREMENT PLANS
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 ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. 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 dis~bility or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $11,017,405.07~ total payroll was $12,235,111.61.
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 1996 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 1996 amounted to $1,852,027.41, of which $1,301,155.73 was made by the Board and $550,871.68 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
- 15 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

Note 8: RETIREMENT PLANS

salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were v~lued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The BoarJ's contribution for the year ended June 30, 1996 of$1,301,155.73 was actuarially determined and represented .2143% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

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 of age 65. A member applying for service retirement with 1 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....

- 16 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY EXlllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996
Nme8: RETmEMENTPLANS Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. There were 68 employees covered under PSERS for the year ended June 30, 1996. PSERS CONTRIBUTIONS REQUmED 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 ofthe Board made during fiscal year 1996 ~ounted to $2,272.00 Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30,1996, was $9,817,769.80. Note 9: SURETY BONDS The School Superintendent, Dr. Don L. Griffith, is bonded in the amount of $100,000.00 with the American Manufacturers Mutual Insurance Companies, Long Grove, Illinois, their Bond No. 35E 877 927-01, on which premium was paid through August 1, 1996.
- 17 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 1996

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

Total Assets

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

Total Liabilities and Fund Equity See notes to the general purpose financial statements.

-18 -

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 302,59227 $ 14,748,16 $

0,00

8,002,04 32,762,00

10,677,76 8.683,66

$ 329.955,73 $ 47.510.16 $

..0.....0...0..

$ 3,566.23 $ 12,193.24 47,238,62 35,316,92
$ 50.804,85 $ 47,510.16

$ 10,677.76 8,683.66
$ 19.361.42 259,789,46 $
$ 279,150.88 $

0.00 $ - - - -0,0-0
0.00 $ ----;...;..;0;,0..0.

$ 329,955.73 $ 47,510.16 $

....0.,.-.0,;,,0

EXHIBIT"E" Page 1

Ii

FAMILY CONNECTION

NEXT GENERATION
SCHOOLS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE 1/

INNOVATIVE

LOCAL

EISENHOWER EDUCATION

EDUCATIONAL EVEN PROFESSIONAL PROGRAM

AGENCIES

START DEVELOPMENT STRATEGIES

$

3,077.96

$

1,319.35 $

0.00

$ 21,425.01 $ 83,122.77

66,215.00 $ 66,492.42

$ 21,425.01 $ 83,122.77 $ 69,292.96 $ 66,492.42 $

1,319.35 $

0_.0.;.0

$

8,521.01 $ 79,789.44

$ 60,476.81

12,904.00

3,333.33 $

14,913.86

6,015.61 $

54,379.10

$ 21,425.01 $ 83,122.77 $ 69,292.96 $ 66,492.42 $

149.26 .:..14:.:;9;,.=.2:;;..6

$

1,170.09

$

$

~O.;.;;,O~O $

0.00 $ _ _~-",O.;.;;,O",,-O$ _-----'0.....;..0_0

$

..::;O.;.;;,O~O $

0.00 $

...:.O.:..=.O~O $

0.00 $

$ 21,425.01 $ 83,122.77 $ 69,292.96 $ 66,492.42 $

1,170.09

0.00 $ - - - -0.0-0

1,170.09 $

. .;;. 0;.,;;. 0.;;. 0

1,319.35 $

0_.0.0..

-19-

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

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

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

SAFE AND
DRUG-FREE SCHOOLS

$

0.00 $

0.00 $

0.00

Total Assets

$

0.00 $

0.00 $ _ _.....0...0...-0

LIABILITIES AND FUND EQUITY
L1ABILlTIE8
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food

Unreserved

Undesignated

$

Total Fund Equity

$

Total Liabilities and Fund Equity

$

See notes to the general purpose financial statements.

-20 -

0.00 $ 0.00 $
0.00 $

0.00 $ _ _----=.0:.;:,.0.=..0 0.00 $ _ _----=.0:.;:,.0.=..0
....
0.00 $ _ _.....0...0...-0

EXHISIT"E" Page 2

VOCATIONAL EDUCATION CHILD CARE
FEDERAL. DEVELOPMENT

STEWARTS. MCKINNEY HOMELESS
ASSISTANCE ACT
EDUCATION FOR HOMELESS CHILDREN AND YOUTH

TOTALS JUNE 30,1996 JUNE 30,1995

$

1,391.24

$

0.00 $

323,128.98 $

284,589.20

924.30 $

45,843.61

324,787.15

464,835.21

10,6n.76 8,683.66

10,3n.61 7,817.67

$

2,315.54 $

45,843.61 $

0.00 $ 667,2n.55 $ 767,619.69

$

$

2,315.54

$ 2,315.54 $

45,n8.36 65.25
45,843.61

$

194,565.62 $

314,663.45

53,140.78

17,565.20

139,250.18

95,484.02

36,919.45

$

386,956.58 $

464,632.12

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

$ 2,315.54 $

45,843.61 $

$

1,170.09

$ 0.00 0.00 $

10,6n.76 $ 8,683.66 20,531.51 $
259,789.46
280,320.97 $

10,3n.61 7,817.67 18,195.28
284,792.29
302,987.57

0..0...0.... $

667,2n.55 $

767,619.69

- 21 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services Ger-eral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general purpose financial statements.

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 57,962,98 $ 644,971.63 292,111,34
$ 995,045.95 $

701,980.44 $ 701,980.44 $

32,992.00 32,992.00

$
$ 1,020,048.78 $ 1,020,048.78 $ $ -25,002.83 $

653,670.12 $ 18,167.33 1,446.18 10,955.00 6,167.05 11,550.00 24.76
701,980.44 $ 0.00 $

32,992.00
32,992.00 0.00

$ -25,002.83 $ 302,987.57 300.15 865.99
$ 279,150.88 $
- 22-

0.00 $

0.00

0.00

0.00

0.00 $

..I,
0.00

EXHIBIT "FlO Page 1

,..

FAMILY CONNECTION

NEXT GENERATION
SCHOOLS

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE"

INNOVATIVE

LOCAL

EISENHOWER

EDUCATION

EDUCATIONAL

EVEN

PROFESSIONAL

PROGRAM

AGENCIES

START

DEVELOPMENT STRATEGIES

$ 50,000.00 $ 83,122.77 $ 441,215.00 $

203,203.30 $

37,804.77 $

19,896.00

$ 50,000.00 $ 83,122.77 $ 441,215.00 $

203,203.30 $ _ _----:;;.3.;..l7,..;..804~.7..:_7$ _ _....;,.19;;;.!,,8,;;;.;9;.;;,6,;.;;.0~0

$

3,109.00 $

492.52 $ 403,694.48 $

46,P91.00

80,616.08 2,014.17

2,215.15 22,815.40

12,489.97

67,492.23 $
26,729.27 3,375.87
86,557.21
2,428.07 16,620.65

177.63 $
36,336.63 120.42

19,853.34 42.66

$ 50,000.00 $ 83,122.77 $ 441,215.00 $

$

0.00 $

0.00 $

0.00 $

203,203.30 $ _ _---"'-36;;;.!,,6.:..;3;....;4....;,..6~8$ _ _....;,.19;;;.!,,8,;;;.;9;.;;,6,;.;;.0~0

0.00 $

1,170.09 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00 $

1,170.09 $

0.00

0.00

0.00

0.00

0.00

0.00

0.00

$

0.00 $

0_.0=0 $

,,;,0;,;;,.0,;.,0 $

0,;,;.0._0 $

- 23-

- - - - - 1,170.09 $

0.00

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services Ge1eral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30 See notes to the general purpose financial statements,

-24 -

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

$ 127,922,00 $ 33,000.00 $ 10,345,00 $ 127,922,00 $ 33,000.00 $ 10,345.00

$ 105,415.30 $
21,357,22 786.52
362.96

33,000,00 $

10,345.00

$ 127,922,00 $

$

0,00 $

33,000,00 $ 0.00 $

10,345,00 0,00

$

0,00 $

0,00 $

0,00

0.00

0.00

0,00

."

$

0.00 $

0,00 $

0.00

EXHISIT"F" Page 2

VOCATIONAL EDUCATION CHILD CARE
FEDERAL DEVELOPMENT

STEWARTS. MCKINNEY HOMELESS
ASSISTANCE ACT
EDUCATION FOR HOMELESS CHILDREN AND YOUTH

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$ $ 85,123.56
$ 85,123.56 $

71,126.20 57,508.76 $
210.54
128,845.50 $

$ 24,082.00

997,184.39 $ 1,685,072.02
292,321.88

911,741.50 1,677,083.37
269,468.45

24,082.00 $ 2,974,578.29 $ 2,858,293.32

$ 80,835.85 $
3,452.11 e;2.01 213.59

57,455.19$
3,083.25
1,322.22 432.53
18,506.98

$ 85,123.56 $

$

0.00 $

48,110.56 128,910.73 $
-65.23 $

23,190.54 $ 1,481,378.20 $ 1,321,523.78

821.01 70.45

76,598.82 132,132.80
169,759.33 432.53
29,329.86 28,170.65
12,514.73 1,020,048.78
48,110.56

127,653.37 212,194.42
10,212.39 121,429.04
596.64 28,803.85 16,591.03
369.28 13,023.90 913,141.92 40,380.54

24,082.00 $ 2,998,476.26 $ 2,805,920.16

0.00 $

-23,897.97 $

52,373.16

$

0.00 $

0.00

65.23
0.00 $ 0.00

65.23

5,929.89

0.00 $ 0.00

-23,832.74 $ 302,987.57

58,303.05 247,977.63

300.15 865.99

-5,320.99 2,027.88

$ _ _....,;.O~.O,;,.O$

0_.0_0 $

~.;.O.~OO;.,,$

280,320.97 $

302,987.57

- 25-

CITY OF DECATUR BOARD OF EDUCATION DEKALB COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1996

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

RENFROE MIDDLE SCHOOL
ROOF REPAIR

CENTRAL OFFICE
PROJECT

TOTALS JUNE 30,1996 JUNE 30,1995

$

350,000.00 $ 34,226.00 $

384,226.00 $

3.4.,.2.2..6..0..0.

FUND EQUITY
Fund Balances Reserved For Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

350,000.00 $ 34,226.00 $ 384,226.00 $

34,226.00

0.00

0.00

0.00

0.00

$

350,000.00 $ 34,226.00 $ 384,226.00 $ _ _.3.4..,226;;;;;;,;;;.,..0.0.

....

See notes to the general purpose financial statements.

- 26-

CITY OF PECATUR BOARD OF EpUCATION - PEKALB COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1996

EXHIBIT -H"

REVENUES None Recorded
EXPENDITURES Capital Outlay Building and BUilding Improvements
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1
FUND BALANCE JUNE 30

RENFROE MIDDLE SCHOOL
ROOF REPAIR

CENTRAL OFFICE PROJECT

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

0,00 $

0,00 $

0,00 $

0,00

$

0.00 $

0.00 $

0.00 $

32,744,00

$

0,00 $

0.00 $

0,00 $ -32,744,00

$

350,000,00

$

350,000.00

$ 350,000,00 $ $ 350,000.00 $

5,530.00 -5,530,00
0,00

$

350,000.00 $

0.00 $ 350,000.00 $ -32,744,00

0.00

34,226,00

34,226.00

66,970.00

$

350,000.00 $ 34,226.00 $ 384,226.00 $ _ ....3.4_,.-22.6...0.0_

See notes to the general purpose financial statements.

- 27-

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996

SCHEDULE "1 "

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S, Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Contract Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Direct
P. L. 81-874
1996 Grant Through Georgia Department of Education
Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996 Grant Even Start 1996 Grant Title" Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant
Individuals with Disabilities Education Act
Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant
Safe and Drug-Free Schools 1996 Grant
Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $

28,766.07

(2)

10.553
* 10.555 10.550
$

119,561.05
436,697.33 $
59,947.18
644,971.63 $

(2)
960,101.60 (3) 59,947.18
1,020,048.78

84.041 $

15,197.00

(5)

* 84.010 84.213 84.281 84.298

441,215.00 $
203,203.30

441,215.00 203,203.30

37,804.77

36,634.68

19,896.00

19,896.00

84.027 84.173 84.186

127,922.00 33,000.00 10,345.00

127,922.00 33,000.00 10,345.00

84.048 84.243

57,882.35 27,241.21

57,882.35},
27,241.21

- 28 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

,.
FUNDING AGENCY PROGRAM/GRANT
Education, U, S. Department of Through Georgia Department of Education Stewart B, McKinney Homeless Assistant Act Education for Homeless Children and Youth 1996 Grant
Total U. S. Department of Education
Health and Human Services, U. S. Department of Through Georgia Department of Human Resources Child Care Development Block Grant 427-93-500046
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program 1996 Grant

CFDA UMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84,196 $ $

24,082,00 $ 997,788,63 $

24,082,00 981,421,54

93.037 $

57,508.76 $

57,784.53 (3)

$

43,392.32

(4)

Total Federal Financial Assistance

$ 1,743,661.34 $ 2,059,254.85

Major Programs are identified by an asterisk (*) in front of the CFDA number.
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program and the Child and Adult Care Food Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State, and/or Taxes and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

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

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Wachovia Bank of Georgia, Atlanta, Georgia
INTEREST BEARING ACCOUNTS
Fidelity National Bank, Atlanta, Georgia
N.O.W. Account (2.55%) Certificate of Deposit No. 16482 (5.59%)
Wachovia Bank of Georgia, Atlanta, Georgia
Commercial Checking Account (1.00%)

$

66.30

$ 292,592.27 10,000.00

302,592.27

2,194,264.24

$ 2,496,922.81

See notes to the general purpose financial statements. - 30 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY INVESTMENTS JUNE 3D, 1996

SCHEDULE "3"

INVE"STMENT POOL
Office of Treasury and Fiscal Services Local Government Investment Pool (5.361%)

$ 2,279,941.47

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

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY ACCOUNTS RECEIVABLE JUNE 30.1996

SCHEDULE "4"

Children and Youth Services, Georgia Department of Child Care Development Program
City of Decatur Board of Commissioners City Wide School Tax
City of Decatur Recreation Department Reimbursement for Tuition
Defense, U. S. Department of Department ofthe Army R.O.T.C. Program
DeKalb County Board of Health Shared Services Contribution
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Other State Programs Next ...;eneration Schools Tuition for the Multi-Handicapped Lottery Program Alternative School Program Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Even Start Contract Governor's School Leadership Institute Other Reimbursement for Substitute Teachers
Health and Human Services, U. S. Department of Child Care Development Program
Human Resources, Georgia Department of Family Connection
Office of Planning and Budget, State of Georgia Georgia Challenge Program
Office of School Readiness Pre-Kindergarten Program
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

14,794.85 $

14,794.85

$ 250,193.n

250,193.n

1,665.00

1,665.00

10,802.02 2,055.00

10,802.02 2,055.00

8,221.58

4,528.32 3,473.72
924.30
83,122.n
2,300.00

4,528.32 3,473.72
924.30
83,122.n
8,221.58
2,300.00

947.32
1n.62

66,215.00 66,492.42
31,048.76 21,425.01

66,215.00 66,492.42
947.32
1n.62
31,048.76
21,425.01

2,000.00

2,000.00

30,462.00

30,462.00
.\

$

276,062.31 $

324,787.15 $ 600,849.46

- 32 -

CITY OF DECATUR BOARD OF EDUCATION - DEKAlB COUNTY
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30.1996

SCHEDULE "5"

" AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Vocational Laboratory Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Mid-term Adjustment Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs A1temative Programs At-Risk Summer School Program Family Connection Heallh Insurance Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Tu..ion for the Multi-Handicapped Lottery Programs Allemative School Program Instructional Technology Pre-Kindergarten Program Safe Schools Grant Technology Installation
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Children and Youth Services, Georgia Department of Child Care Development Program
Education, Georgia Department of Governor's School Leadership Institute
Office of Planning and BUdget, State of Georgia Georgia Challenge Program
OTHER Education, Georgia Department of Reimbursement for Substitute Teachers

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 4,661,255.00 1,458,845.00 229,505.00 225,064.00 224,125.00 71,074.00 1,445,695.00
59,391.00 21,957.00 176,791.00 166,314.00 80,084.00 14,106.00 201,275.00 77,295.00 -1,655,077.00 90,071.00
$
19,996.19 10,131.21
300,913.37 10,920.00
3,193.29 26,591.64 49,329.48

$ 4,661,255.00 1,458,845.00 229,505.00 225,064.00 224,125.00 71,074.00 1,445,695.00

57,962.98

59,391.00 21,957.00 176,791.00 166,314.00 80,084.00 14,106.00 201,275.00 77,295.00 -1,655,077.00 90,071.00 57,962.98

50,000.00
83,122.77 32,992.00

19,996.19 10,131.21 50,000.00 300,913.37 10,920.00 83;122.77 32,992.00
3,193.29 26,591.64 49,329.48

2,299.00 144,417.44 285,000.00
2,000.00 90,000.00

2,299.00 144,417.44 285,000.00
2,000.00 90,000.00

178,264.00

178,264.00

30,044.00

30,044.00

. 947.32 20,000.00
177.62

71,126.20

71,126.20 947.32

20,000.00

177.62

$ 8,020,014.12 $

997,184.39 $ 9,017,198.51

See notes to the general purpose financial statements.

- 33 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY SCHEDULE OF TAXES AND OTHER REVENUE YEAR ENDED JUNE 30. 1996

SCHEDULE "6"

Taxes City Wide School Tax
Other Sources Compensation for Loss of Assets Contracted Services DeKalb County Board of Health DeKalb Children's Initiative United Way in DeKalb County Oakhurst Projects Insurance Recovery Interest Earned Lost and Damaged Books Medicaid Service in School Based Settings Reimbursements for Salaries Agnes Scott College DeKalb County Board of Commissioners Geol'gia State University Phoenix School Rents Sales Adult Meals Contracted Meals Lunches Supplemental Other Shared Service Contributions DeKalb County Board of Education DeKalb County Board of Health Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 9,379,148.73

$ 9,379,148.73

2,186.84

2,186.84

11,070.00

45,000.00 1,800.00
136,580.20 $ 5,169.92 10,148.06

6,806.58

900.00 3,204.53
177.65 3,233.00 30,590.11

38,287.40 11,189.25 138,488.87 62,320.96 35,018.28

21,700.41 28,650.00 312,260.75 23,807.47

210.54

11,070.00
45,000.00 1,800.00
143,386.78 5,169.92
10,148.06
900.00 3,204.53
177.65 3,233.00 30,590.11
38,287.40 11,189.25 138,488.87 62,320.96 35,018.28
21,700.41 28,650.00 312,260.75 24,018.01

$ 10,015,627.67 $ 292,321.88 $ 10,307,949.55
....

See notes to the general purpose financial statements. - 34 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE '7"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

EXPENDITURES

Operating Costs

Salaries

$ 10,851,621.13 $ 1,383,490.48 $ 12,235,111.61

Employee Benefits

3,469,228.91

352,510.74

3,821,739.65

Travel of Employees

24,709.48

14,913.15

39,622.63

Professional and Technical Services

228,933.40

151,549.74

380,483.14

Compensation and Travel of Board Members

8,851.62

8,851.62

Water, Sewer and Cleaning Services

70,090.52

70,090.52

Repair and Maintenance Services

385,170.86

127,093.57

512,264.43

Rents

1,290.49

92.83

1,383.32

Insurance

45,974.00

515.25

46,489.25

Communications

71,917.29

4,738.17

76,655.46

Tuition

145,380.60

27,343.71

172,724.31

Shared Services

2,745.00

2,745.00

Other Purchased Services

33,747.32

4,408.86

38,156.18

Supplies

563,914.12

215,506.63

779,420.75

Ene-gy

442,841.78

442,841.78

Food Usage

5,789.14

503,406.60

509,195.74

Books, Textbooks and Periodicals

81,983.01

1,245.90

83,228.91

Dues and Fees

27,326.59

7,444.02

34,770.61

Interest Expense

60,575.46

60,575.46

Other Expenditures

44,336.58

16,033.32

60,369.90

Nonoperating Costs Equipment

427,376.13

188,183.29

615,559.42

Total Expenditures

$ 16,993,803.43 $ 2,998,476.26 $ 19,992,279.69

See notes to the general purpose financial statements. - 35 -

C!!Y Of QECAWR BOARQ Of EDUCATION DEKALB COUNTY SCHEDULE Of EXPENDITURES BY OBJECT
LOlTERY PROGRAMS YEAR ENDED JUNE 30 1996

SCHEDULE "8"

ALTERNATIVE SCHOOL PROGRAM

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

EXPENDIWRES

Operating Costs salaries Employee Benefits Travel of Employees Proressional and Technical Services Repairs and Maintenance Other Purchased Services SUpplies Books, Textbooks and Periodicals $ Dues and Fees Other Expenditures

$ 2,299.00

$
15,103.09 29,769.37

316,851.54 87,308.75 485.13 16,092.35 $ 24.76 26,794.91
50.00 2,717.79

2,000.00 $

$
82,382.07 817.25
6,800.68

Nonoperating Costs Equipment

99,544.98

12.938.77

TOTAL
316,851.54 87,308.75 485.13 16,092.35 99,485.16 24.76 57,381.53 9,099.68 50.00 2,717.79
112,483.75

Total Expenditures

$

2,299.00 $

144,417.44 $

463,264.00 $

2,000.00 $

90,000.00 $ 701,980.44

See notes to the general purpose financial statements.

- 36 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

,.
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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 7,000,069.00 $ _ _-..:1:..;:8.:..!7,~72::.:::5~.0;;;;..0

$ 8,648,225.46 613,680.24 $ _ _--=5:.;.1=..!2,=-61:...:5~.1.::...0
$ 9,261,905.70

-293,850.73 $ 8,968,054.97

Amount of Underexpenditure for Total Allotment

$

0.00 $====~O~.O~O

See notes to the general purpose financial statements. - 37 -

CITY OF QECAT\JR BOARD OF EDUCATION PEKALB COUNTY ANALYSIS OF MINIMUM EXPENDITURE REOUIREMENTS. BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDEO JUNE 30 1996

GENERAL ANp CAREER EDUCATION PROGRAMS
n KIndergarten
Grades 1 3 C1 Sub-Total K3
Grades 4 5 C1 Grades 6 8 C1
n Grades 9 12
High School Labonltories C1 Vocational Education Labonltories C1
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs Category I C1 Category II CO) Category III C1 Category IV C1 Sub-Total RegUlar Category V CGifted) CO) Total Special Education Programs
REMEDIAL EQUCATION PROGRAM (1
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media center Programs
Total Thirteen Weighted and Media center Programs
STAFF DEVELOPMENT PROGRAMS
Cost or Instruction
Professional Development
Total Staff Development Programs CO) Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ...!-

ORIGINAL

MID-TERM

$

665.885.00

$

599.296.50 $

1,432,736.00

1,289,462.40

$ 2.098,621.00 90 $ 1.888,758.90 $

668,667.00 90

601,800.30

1.055,115.00 90

949.603.50

399,943.00 90

359,948.70

438.909.00 90

395,018.10

225,064.00 90

202,557.60

$ 4,886,319.00

$ 4,397,667.10 $

0.00 0.00 201,275.00 201,275.00

$ 1,196,061.00

$ 1,076,454.90 $

0.00

$ 1,196,061.00 90 $ 1,076,454.90 $

262,784.00 90

236,505.60

$ 1,458,845.00

$ 1,312,960.50 $

$

229,505.00 90 $

206,554.50 $

$ 6,574,669.00

$ 5,917,202.10 $

0.00
0.00 0.00 201,275.00

$

182,562.00 90 $

164,305.80 $

0.00

41,563.00 90

37,406.70

$

224,125.00

$

201,712.50 $

0.00

$ 6,798,794.00

$ 6,118,914.60 $

201,275.00

$

17,505.00

$

17,505.00 $

0.00

53,569.00

53,569.00

0.00

$

71,074.00 100 $

71,074.00 $

0.00

....

see notes to the general purpose financial statements.

- 38

SCHEDULE "10"

TOTAl REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

599,296.50 $

706,460.20 $

22,247.25 $

728.707.45

1,289,462.40

1,411,504.67

65,331.22

1,476,835.89

$ 1,888.758.90 $ 2,117.964.87 $

87,578.47 $ 2,205,543.34 $

0.00

601,800.30

756,833.09

57,981.96

814,815.05

0.00

949,603.50

1.280,486.25

73,914.16

1.354,400.41

0.00

561,223.70

643,929.99

84,063.19

727.993.18

0.00

395,018.10

671,904.48

9,351.87

681.256.35

0.00

202,557.60

546,914.51

28,265.86

575,180.37

0.00

$ 4,598,962.10 $ 6,018,033.19 $

341,155.51 $ 6,359,186.70

$ 1,076,454.90 $

108,712.11 $ 259,829.25 1,216,407.18
65,515.02

1,649.78 $ 1,945.62 155,135.29 1,868.85

110,361.89 261,774.87 1,371,542.47 67,381.87

$ 1,076,454.90 $ 1,650,463.56 $

160,597.54 $ 1,811,061.10

0.00

236,505.60

287,132.45

8,049.06

295,181.51

0.00

$ 1,312,UO.50 $ 1,937,596.01 $

168,646.60 $ 2,106,242.61

$

206,554.50 $

275,685.67 $

2,812.99 $

278,498.66

0.00

$ 6,118,477.10 $ 8,231,314.87 $

512,615.10 $ 8,743,929.97

$

164,305.80 $

416,910.59

$

416,910.59

0.00

37,406.70

$

101,065.14

101,065.14

0.00

$

201,712.50 $

416,910.59 $

101,065.14 $

517,975.73

$ 6,320,189.60 $ 8,648,225.46 $

613,680.24 $ 9,261,905.70 $

0.00

$

17,505.00

53,569.00

$ _ _.;"71,:;,,O:;,;7..;:4~.OO~

$

48,294.33 $

48,294.33

22,779.67

22,779.67

$

71,074.00 $

71,074.00 $

.,;;0;,;;.00,;;"

- 39 -

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 3D. 1996

SCHEDULE "11"

BOARD MEMBER ADDRESS
Ms. Edith A. Hambie, Chairman (*) 144 Park Drive Decatur, Georgia 30030
Ms. Susan Cobleigh (*) 125 Superior Avenue Decatur, Georgia 30030
Mr. Don Denard (*) 714 South Candler Road Decatur, Georgia 30030
Mr. James F. Eley (*) 207 Driftwood Terrace Decatur, Georgia 30030
Ms. Clyde S. Nash 129 McClean Street Decatur, Georgia 30030
Ms. Sara S. Turnipseed (*) 115 Glenn Circle Decatur, Ceorgia 30030

COMPENSATION

TRAVEL

$

330.00 $

4,341.76

375.00

468.36

345.00

884.59

285.00

730.54

15.00

460.37

285.00

331.00

$

1,635.00 $===7,=!:,2=1=6,;,;;;.6=2

(*) Denotes Board Members Serving as of June 3D, 1996

See notes to the general purpose financial statements.

- 40 -

'Ii
SECTIONll COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 19, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City ofDecatur Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have a'ldited the general purpose financial statements of the City of Decatur Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 19, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
Compliance with laws, regulations, contracts, and grants applicable to the City of Decatur Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-I0

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 96CRL-IO

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 19, 1997

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

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

Ladies and Gentlemen:

We have ?udited the general purpose financial statements of the City of Decatur Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated February 19, 1997. This report was qualified 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 Decatur Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-UplResolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-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 ofthis report. With respect to items not tested~ nothing came to our attention that caused us to believe that the City ofDecatur Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
tf'~
Claude L. Vickers State Auditor
CLV:jy 96CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 19, 1997

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

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

Ladies and Gentlemen:

We have ?udited the general purpose financial statements of the City of Decatur Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 19, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the City ofDecatur Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1996. The management of the City of Decatur Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

96CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and Office ofManagement and Budg~t (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the City ofDecatur Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the City of Decatur Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 96CRL-80

.. Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 19, 1997

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

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

Ladies and Gentlemen:

We have ?udited the general purpose financial statements of the City ofDecatur Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 19, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1996 general purpose financial statements of the City ofDecatur Board ofEducation 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 (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(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 Decatur Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

96CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing
came,t.o our attention that caused us to believe that the City ofDecatur Board ofEducation had not complied,
in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:jy 96CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 19, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofDecatur Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have 81Jdited the general purpose financial statements of the City of Decatur Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 19, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
The management of the City of Decatur 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 ofan 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 ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
96ICL-3

In planning and petfonning our audit ofthe general purpose financial statements ofthe City ofDecatur Board ofEducation for the year ended June 30, 1996, we obtained an understanding of the internal control structure.
With r,.e. spect 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 detennine our auditing procedures for the purpose of expressing our opinion on the. general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur anti not be detected within a timely period by employees in the normal course of petforming their assigned functions.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.

These conditions were considered in determining the nature, timing, and extent of the procedures to be petformed in our audit of the City ofDecatur Board ofEducation's financial statements and this report does not affect our report thereon dated February 19, 1997.

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 96ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 19, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofDecatur Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe City of Decatur Board of Education as of and for the ye?r ended June 30, 1996, and have issued our report thereon dated February 19, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the City of Decatur Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated February 19, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits ofState and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City of Decatur Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 19, 1997.
96ICL-7

The management of the City ofDecatur Board ofEducation 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 ofan 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 of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also,. projection ofany evaluation ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-UplResolution (8) 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 of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1996, the City of Decatur Board of Education expended 50% of its total Federal financial assistance under major Federal financial assistance programs.

96ICL-7

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's abilitY to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe City ofDecatur Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated February 19, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 96ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7731-93-03
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$1O,333.16 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $13,459.34 Audit Control Number 7731-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Edt. cation (QBE) funds of$13,459.34 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 ofEducation to refund this underexpenditure as required. The underexpenditure of$13,459.34 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 Inadequate Accounting Procedures Financial Statements Finding Resolved Audit Control Number 7731-95-01
The audit report for the year ended June 30, 1995, noted that the Board's accounting procedures were inadequate to provide for adequate internal control over cash assets of the Board. For the year under review, internal control procedures were implemented by the Board to safeguard its cash assets.
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SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

CITY OF DECATUR BOARD OF EDUCATION - DEKALB COUNTY PERTINENT VIEWS OF RESPONSffiLE OFFICIALS YEAR ENDED JUNE 30, 1995
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIRE1\.1ENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7731-93-01
Due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels that it has provided for the most appropriate assignment of duties with the number ofpersonnel available to perform the accounting function. With staff limitation, this finding can not be totally resolved. Outside consultant reviews bank: statements and bookkeeping records on a monthly basis.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7731-93-02
Fixed assets and inventories are maintained, but they are not maintained as part of the accounting records. The Board has decided not to pursue the recording of general fixed assets on the financial statements until the state department provides guidelines.