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AUDIT REPORT CITY OF GAINESVILLE BOARD OF EDUCATION 
HALL COUNTY, GEORGIA YEAR ENDED JUNE 30, 1996 
 
STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET 
ATLANTA. GEORGIA 30334 
 
 CITY OF GAINESVILLE BOARDOF EDUCATION - HALL COUNTY - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES ANDACCOUNT GROUPS 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET ANDACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
6 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
20 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
22 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
24 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
25 
 
FIDUCIARY FUNDTYPE 
 
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
AGENCY FUNDS 
 
26 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
27 
 
2 CASHAND CASHEQUIVALENTS 
 
29 
 
3 ACCOUNTS RECEIVABLE 
 
30 
 
SCHEDULE OF REVENUE 
 
4 
 
STATE 
 
31 
 
5 
 
TAXES AND OTHER 
 
32 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
6 
 
GENERAL ANDSPECIALREVENUE FUNDS 
 
33 
 
7 
 
LOTTERYPROGRAMS 
 
34 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS 
 
8 
 
OVERALL 
 
35 
 
9 
 
BY PROGRAM 
 
36 
 
10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
38 
 
SECTION II 
COMPLIANCE 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJORFEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY - TABLE OF CONTENTS - 
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE 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 
May 20,1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville 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 audited the general purpose financial statements (Exhibits A through D) of the City of Gainesville Board of Education, 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 a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows: 
* School activity accounts are included in the general purpose financial statements as agency funds. 
To conform to generally accepted accounting principles, the activity of these accounts should be included ill the general purpose financial statements in the appropriate fund and fund type. 
96ARL-13 
 
 The aggregate effects on the general purpose financial statements of this variance or omission have not been determined, but are believed to be material. 
In our opinion, except for the effect on the general purpose financial statements of the matter referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the City of Gainesville 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 May 20, 1997, on our consideration ofthe Board's internal control structure and a report dated May 20, 1997, on its compliance with laws and regulations. 
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Gainesville Board of Education taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe City of Gainesville Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effects of the matter referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
~ 
Claude 1. Vickers State Auditor 
CLV:jy 96ARL-13 
 
 CITY OF GAINESVILLE BOARD OF EDUCA nON - HALL COUNTY - 1- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1996 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Prepaid Items 
Inventories Food Donated Commodities Purchased Food 
General Fixed Assets Land Buildings Equipment 
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements 
Total Assets 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 3,598,806.50 $ 
 
134,605.93 $ 
 
223,559.05 
 
1,738,513.29 
 
120,695.33 
 
11,803.80 6,375.44 
 
$ 5,337,319.79 $ 
 
273,480.50 $ 
 
223,559.05 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Funds Held for Others Capital Lease Agreements Long-Term Debt Agreement 
Total Liabilities 
FUND EQUITY 
Investment in General Fixed Assets 
Fund Balances Reserved For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Theater Fund 
Unreserved Deficit Undesignated 
Total Fund Balances 
Total Fund Equity 
 
$ 
 
540,934.30 $ 
 
1,718,468.47 
 
50,032.71 $ 110,456.51 
1,076.09 
 
$ 2,259,402.77 $ 
 
161,565.31 $ 
 
40.00 40.00 
 
$ 
 
26,813.62 
 
$ 12,609.39 
 
11,803.80 6,375.44 
 
$ 
 
39,423.01 $ 
 
18,179.24 
 
3,038,494.01 $ 3,077,917.02 $ $ 3,077,917.02 $ 
 
93,735.95 $ 111,915.19 $ 111,915.19 $ 
 
223,519.05 223,519.05 223,51~05 
 
Total Liabilities and Fund Equity 
 
$ 5,337,319.79 $ 
 
The notes to the general purpose financial statements are an integral part of this statement. 
 
-2- 
 
273,480.50 $ 
 
223,559.05 
 
 EXHIBIT "A" 
 
, DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE AGENCY FUNDS 
 
$ 
 
151,525.78 
 
$ 
 
34,108.34 
 
ACCOUNT GROUPS 
 
GENERAL 
 
GENERAL 
 
FIXED 
 
LONG-TERM 
 
ASSETS 
 
DEBT 
 
TOTALS (Memorandum Only) JUNE 30,1996 JUNE 3D, 1995 
 
$ 4,108,497.26 $ 3,527,678.68 
 
1,893,316.96 
 
1,950,758.61 
 
250,988.00 
 
$ 
 
194,840.76 
 
22,416,029.62 
 
5,437,581.11 
 
11,803.80 6,375.44 
 
15,437.61 5,394.27 
 
194,840.76 22,416,029.62 
5,437,581.11 
 
194,840.76 22,097,002.44 
4,566,209.86 
 
$ 14,784,964.00 320,058.88 
 
14,784,964.00 320,058.88 
 
15,763,125.00 
 
$ 
 
34,108.34 $ 
 
151,525.78 $ 28,048,451.49 $ 15,105,022.88 $ 49,173,467.83 $ 48,371,435.23 
 
$ 
 
43,263.88 
 
$ 
 
$ 
 
43,263.88 $ 
 
$ 
 
-9,155.54 
 
0.00 $ 
 
$ 
 
-9,155.54 $ 
 
$ 
 
-9,155.54 $ 
 
$ 
 
34,108.34 $ 
 
151,525.78 151 ,525.78 
 
$ 
 
43,263.88 $ 
 
175,024.37 
 
591,007.01 
 
500,081.89 
 
1,828,924.98 
 
1,665,016.38 
 
1,076.09 
 
328.95 
 
151,525.78 
 
133,570.60 
 
$ 
 
320,058.88 
 
320,058.88 
 
14,784,964.00 
 
14,784,964.00 
 
15,763,125.00 
 
$ 15,105,022.88 $ 17?20,820.62 $ 18,237,147.19 
 
$ 28,048,451.49 
 
$ 28,048,451.49 $ 26,858,053.06 
 
0.00 0.00 0.00 $ 
 
28,048,451.49 
 
$ 
 
125,371.48 
 
$ 
 
26,813.62 
 
32,401.62 
 
11,803.80 6,375.44 
12,609.39 
 
15,437.61 5,394.27 
16,030.00 
 
$ 
 
57,602.25 $ 
 
194,634.98 
 
-9,155.54 3,355,749.01 
 
3,081,600.00 
 
$ 3,404,195.72 $ 3,276,234.98 
 
$ 31,452,647.21 $ 30,134,288.04 
 
151,525.78 $ 28,048,451.49 $ 15,105,022.88 $ 49,173,467.83 $ 48,371,435.23 
 
-3- 
 
 The notes to the general purpose financial statements are an integral part of this statement. -4- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 3D. 1996 
 
EXHIBIT"C" 
 
The notes to the general purpose financial statements are an integral part of this statement. - 5- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The City of Gainesville Board of Education (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 of the departure from generally accepted accounting principles disclosed in these notes, the financial 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". The primary government consists of all the organizations that compose the legal entity of the City of Gainesville Board of Education. 
Based upon the application of the above criteria, the City of Gainesville Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Gainesville, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards. 
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. 
FUND ACCOUNTING 
The Board uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain governmental functions or activities. 
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
"- 
School activity accounts used to record the operations of the individual schools are included in the general purpose financial statements as agency funds. To conform to generally accepted accounting principles, the financial activity of these accounts, should be recorded in the general purpose financial statements by appropriate fund and fund type. 
- 6- 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL 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 of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups 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 fmancial resources ofthe 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 ofspecific 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. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees as required by House Bill 841 of the 1993 Session of the Georgia General Assembly. 
FIDUCIARY FUND TYPE - the agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: 
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals. 
ACCOUNT GROUPS 
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired or constructed for use by the Board. 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations. 
-7- 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30,1996 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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. Other liabilities, which are not expected to be fmanced from available spendable resources, are reported in the General Long- Term Debt Account Group. 
Agency funds are purely custodial in nature and do not involve measurement of results of operations. 
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 ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. 
Expenditures are generally recognized when the related fund liability is incurred. 
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1995 and ending in early June 1996. Employment contracts for these employment periods typically 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 are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. 
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. 
-8- 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
BUDGET 
 
The City of Gainesville Board of Education'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 of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
 
The budget process begins when the Board's administration prepares a tentative 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 of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report: 
 
Special Revenue 
Fund 
 
FUND BALANCE JULY 1, 1995 
 
$ 153,737.17 
 
Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods 
 
-15,437.61 -5.394.27 
 
Fund Balance July 1,1995 (Budget Basis) 
 
$ 132,905.29 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
 
-39,169.34 
 
FUND BALANCE JUNE 30,1996 (Budget Basis) 
 
$ 93,735.95 
 
- 9- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
CASH AND CASH EQUIVALENTS 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and savings 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. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State. 
 
RECEIVABLES 
 
Receivables consist of grant 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 of Gainesville fixed the property tax levy for the 1995 tax year (calendar year) on June 20, 1995 (levy date). Taxes were due on January 2, 1996. 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 P70.103. The Gainesville City Clerk bills and collects the property taxes for the Board of Education, and in accordance with a contractual agreement with the Board withholds 1% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. 
 
Tax millage rates levied for the 1995 tax year (calendar year) for the City of Gainesville Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
6.27 mills 
~mills 
 
6.81 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 
 
- 10 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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 purchasezd 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. 
GENERAL FIXED ASSETS 
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. 
LONG-TERM DEBT AGREEMENT 
Prior to January 1,1994, the City of Gainesville Board of Education was a component unit of the City of Gainesville, Georgia and was thereby not authorized to issue debt. Accordingly, the City of Gainesville, Georgia issued General Obligation Bonds to provide funds for the acquisition and construction of major school facilities. The general obligation bonds issued during this time are direct obligations and pledge the full faith and credit of the City of Gainesville. However, the City of Gainesville Board of Education is required by House Bill 841 of the 1993 Session of the General Assembly to levy taxes for remittance to the City of Gainesville, Georgia in the amounts necessary to retire this outstanding debt. 
INTERFUND TRANSACTIONS 
The Board has the following types of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
- 11 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30,1996 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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 fmancial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of anyone of or any combination of the following: 
(l) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or 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 of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation 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. 
- 12 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
, 
Note 2: DEPOSITS 
 
CATEGORIZAnON OF DEPOSITS At June 30, 1996, the bank balances were $5,963,968.63. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category I - 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: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 408,636.06 
 
2 
 
350,000.00 
 
3 
 
5,205,332.57 
 
Total 
 
$5,963,968.63 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
Note 4: GENERAL FIXED ASSETS 
 
The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: 
 
Balance July 1, 1995 Additions Deletions Balance June 30, 1996 
 
Land 
 
Buildings 
 
Equipment 
 
Total 
 
$ 194,840.76 $22,097,002.44 $ 4,566,209.86 $26,858,053.06 
 
319,027.18 
 
938,321.58 1,257,348.76 
 
66,950.33 
 
66,950.33 
 
$ 19484076 $22 416,029 62 $ 5.437581 11 $28.048 451 49 
 
- 13 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
Note 5: 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 has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omission, and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with 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 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
$ 
 
1,209.35 $ 4,680.00 $ 
 
4,524.35 $ 
 
1,365.00 
 
$ 
 
1,365.00 $ 
 
0.00 $ 
 
1,365.00 $ 
 
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 6: GENERAL LONG-TERM DEBT 
 
CAPITAL LEASES The City of Gainesville Board of Education has entered into various lease agreements as lessee for buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. At June 30, 1996, the carrying value of general fixed assets acquired under outstanding capital leases was $412,172.00. 
 
- 14 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
Note 6: GENERAL LONG-TERM DEBT 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows: 
 
Balance July 1, 1995 
Additions Deductions 
Payments Balance June 30, 1996 
 
Capital Leases 
 
Long-Term Debt 
Agreement 
 
Total 
 
$ 
 
0.00 $15,763,125.00 $15,763,125.00 
 
412,172.00 
 
412,172.00 
 
92,113.12 
 
978,161.00 1.070.274.12 
 
$ 320,058.88 $14.78496400 $15 10502288 
 
At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
1997 1998 1999 2000 2001 2002 and thereafter 
Total Principal and Interest 
Deduct: Imputed Interest 
Net Present Value of Future Minimum Lease Payments 
 
Capital Leases 
 
Long-Term Debt 
Agreement 
 
Total Debt 
 
$ 92,781.94 $ 978,846.00 $ 1,071,627.94 
 
92,781.94 
 
982,361.00 1,075,142.94 
 
92,781.94 
 
983,576.00 1,076,357.94 
 
92,781.94 
 
984,511.00 1,077,292.94 
 
983,681.00 
 
983,681.00 
 
9,871,989.00 9,871,989.00 
 
$ 371,127.76 $14 784 964 00 $15,15609176 
 
51,068.88 
 
$ 32005888 
 
Note 7: ON-BEHALF PAYMENTS 
 
The Board has recognized revenues and expenditures in the amount of$295,010.14 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies, 
 
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$238,295,56 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$30,257.58 
 
- 15 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
Note 7: 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$26,457.00 
 
Note 8: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996, together with funding available: 
 
Proiect 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
97/96S-776-051 
 
$ 136,875.68 $ 122,694.00 
 
The amounts described in this note are not reflected in the general purpose financial statements. 
 
Note 9: 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. 
 
Note 10: SUBSEQUENT EVENTS 
 
In the subsequent fiscal year, the Board entered into a ten year Lease-Purchase Agreement with Regions Bank for $900,000.00 at a rate of 4.6632% for the purpose of purchasing a building. 
 
Note 11: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION 
 
Substantially all teachers, administrative and clerical personnel employed by local school systems are covered 
 
by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public 
 
employee retirement system (PERS). 
 
" 
 
- 16- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
Note 11: 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 of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution 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 disability or death. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. 
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $12,190,318.78; total payroll was $13,271,240.97. 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the 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 of Trustees 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 $2,049,458.79, of which $1,439,943.61 was made by the Board and $609,515.18 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 
- 17 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
Note 11: RETIREMENT PLANS 
 
salary increases. A standardized measure of the 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 ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$I,439,943.61 was actuarially determined and represented .2371% of total 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 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. " 
 
- 18 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1996 
Note 11: RETIREMENT PLANS 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 of years of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. There were 68 employees covered under PSERS for the year ended June 30, 1996. PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $2,304.00. 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 12: SURETY BONDS The School Superintendent, Dr. Alan H. Zubay, is bonded in the amount of $50,000.00 with the Aetna Casualty and Surety Company, Hartfield, Connecticut, their Bond No. 11S100778311, on which premium was paid through September 1, 1996. 
- 19 - 
 
 See notes to the general purpose financial statements. 
 
- 20- 
 
 EXHIBIT"E" 
 
AND SECONDARY EDUCATION ACT 
 
v 
TITLE II 
 
TITLE VI INNOVATIVE 
 
EISENHOWER EDUCATION 
 
PROFESSIONAL 
 
PROGRAM 
 
DEVELOPMENT STRATEGIES 
 
TITLE VII IMMIGRANT EDUCATION 
 
INDIVIDUALS WITH DISABILITIES EDUCATION ACT 
PARTB . SPECIAL EDUCATION FLOW THROUGH PRESCHOOL 
 
ATHLETIC ACCOUNT 
 
TOTALS JUNE 30,1996 JUNE 3D, 1995 
 
$ 
 
0.00 $ 
 
1,045.00 $ 
 
1.69 
 
$ 
 
1,184.66 $ 49,600.96 $ 166,074.80 $ 189,941.93 
 
3,124.50 $ 16,080.38 
 
1,120.00 
 
120,695.33 
 
107,947.65 
 
11,803.80 6,375.44 
 
15,437.61 5,394.27 
 
$ 
 
0.00 $ 
 
1,045.00 $ 
 
3,126.19 $ 16,080.38 $ 
 
2,304.66 $ 49,600.96 $ 304,949.37 $ 318,721.46 
 
$ 7,520.17 
 
$ 
 
1,045.00 $ 
 
643.88 
 
2,396.47 $ 
 
471.16 
 
2,482.31 
 
6,163.74 
 
1,833.50 
 
$ 
 
1,045.00 $ 
 
3,126.19 $ 16,080.38 $ 
 
2,304.66 
 
$ 
 
31,468.87 $ 
 
50,032.71 
 
110,456.51 
 
1,076.09 
 
28,478.64 42,564.36 93,612.34 
328.95 
 
$ 193,034.18 $ 164,984.29 
 
$ 
 
11,803.80 $ 
 
15,437.61 
 
6,375.44 
 
5,394.27 
 
$ 
 
18,179.24 $ 
 
20,831.88 
 
$ 
 
0.00 s 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 49,600.96 
 
93,735.95 
 
132,905.29 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 49,600.96 $ 111,915.19 $ 153,737.17 
 
$ 
 
0.00 $ 
 
1,045.00 $ 
 
3,126.19 $ 16,080.38 $ 
 
2,304.66 $ 49,600.96 $ 
 
s 304,949.37 
 
318,721.46 
 
- 21 - 
 
 See notes to the general purpose financial statements. 
 
- 22- 
 
 EXHIBIT"F" 
 
AND SECONDARY EDUCATION ACT 
 
"TITLE II 
 
TITLE VI INNOVATIVE 
 
EISENHOWER 
 
EDUCATION 
 
PROFESSIONAL 
 
PROGRAM 
 
DEVELOPMENT STRATEGIES 
 
TITLE VII IMMIGRANT EDUCATION 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
PARTB 
 
SPECIAL EDUCATION 
 
FLOW 
 
THROUGH 
 
PRESCHOOL 
 
ATHLETIC ACCOUNT 
 
TOTALS JUNE 30,1996 JUNE 30,1995 
 
$ 
 
310,173.20 $ 223,372.40 
 
$ 
 
7,668.04 $ 
 
19,911.88 $ 
 
35,083.00 $ 111,228.96 $ 
 
21,120.00 
 
1,395,545.54 
 
1,233,992.92 
 
- - - - - - $ 119,747.87 
 
305,077.61 
 
286,807.01 
 
$ 
 
7,668.04 $ 
 
19,911.88 $ 
 
35,083.00 $ 111,228.96 $ 
 
21,120.00 $ 119,747.87 $ 2,010,796.35 $ 1,744,172.33 
 
$ 
 
17,820.78 $ 
 
35,029.49 $ 18,815.75 $ 
 
1,002.40 
 
$ 
 
752,076.95 $ 
 
573,607.52 
 
$ 
 
7,632.49 
 
35.55 
 
46.10 2,045.00 
 
53.51 
 
92,169.15 244.06 
 
7,013.95 
 
69.02 
13,034.63 $ 
 
97,995.97 
 
99,183.10 10,061.28 
1,168.37 50,000.00 24,935.07 155,860.93 959,333.95 
 
85,108.51 16,941.83 66,031.15 
1,742.80 31,669.06 51,598.08 151,457.61 940,739.70 
 
$ 
 
7,668.04 $ 
 
19,911.88 $ 
 
35,083.00 $ 111,228.96 $ 
 
21,120.00 $ 97,995.97 $ 2,052,619.65 $ 1,918,896.26 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 21,751.90 $ 
 
-41,823.30 $ -174,723.93 
 
$ 
 
2,653.96 $ 
 
1,134.34 
 
-21,400.00 
 
$ 
 
2,653.96 $ 
 
-20,265.66 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 21,751.90 $ 
 
-39,169.34 $ -194,989.59 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
27,849.06 
 
153,737.17 
 
346,045.33 
 
-3,633.81 981.17 
 
2,637.44 43.99 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 49,600.96 $ 
 
111,915.19 $ 153,737.17 
 
- 23- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1996 
 
EXHIBIT"G" 
 
Cash and Cash Equivalents 
 
REGULAR 
 
GEORGIA STATE FINANCING 
 
AND INVESTMENT COMMISSION 
 
PROJECT 
 
PROJECT 
 
96-776-098 
 
97/965-776-051 
 
TOTALS JUNE 30,1996 JUNE 30,1995 
 
$ 223,559.05 $ 
 
0,00 $ 
 
===-======= 0,00 $ 
 
223,559.05 $ 
 
3,023,83 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Accounts Payable 
FUND EQUITY 
Fund Balances Unreserved Undesignated 
 
$ 
 
40,00 
 
223,519,05 $ 
 
0,00 $ 
 
$ 
 
40.00 
 
=0_.0=0_ 
 
223,519.05 $ _ _-=3=,0=23--.8=3- 
 
Total Liabilities and Fund Equity 
 
$ 223,559,05 $ 
 
0,00 $ 
 
0.00 $ 
 
223,559.05 $==~;,;3;,0;2;3.;83~ 
 
See notes to the general purpose financial statements, 
 
- 24- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,1996 
 
EXHIBIT "H" 
 
See notes to the general purpose financial statements. 
 
- 25- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 3D, 1996 
 
EXHIBIT "I" 
 
SPECIAL ACCOUNT ASSETS 
Cash and Cash Equivalents Accounts Receivable 
LIABILITIES Funds Held for Others 
STUDENT ACTIVITIES ACCOUNT ASSETS 
Cash and Cash Equivalents 
LIABILITIES Funds Held for Others 
 
BALANCE JULY 1, 1995 
 
ADDITIONS 
 
DEDUCTIONS 
 
BALANCE JUNE 30, 1996 
 
$ 
 
3,654.97 $ 
 
2,195.46 $ 
 
766.82 $ 
 
5,083.61 
 
1,935.00 
 
1,935.00 
 
0.00 
 
$ 
 
5,589.97 $ 
 
2,195.46 $ 
 
2,701.82 $ ======5=,0=8=3=.6=1= 
 
$ 
 
5,589.97$ 
 
2,195.46 $ 
 
2,701.82 $==~=5,=08=3.=61= 
 
$ 127,980.63 $ 394,297.93 $ 375,836.39 $ 146,442.17 $ 127,980.63 $ 394,297.93 $ 375,836.39 $ 146,442.17 
 
TOTALS - AGENCY FUNDS ASSETS 
Cash and Cash Equivalents Accounts Receivable 
LIABILITIES Funds Held for Others 
 
$ 131,635.60 $ 396,493.39 $ 376,603.21 $ 151,525.78 
 
1,935.00 
 
1,935.00 
 
0.00 
 
$ 133,570.60 $ 396,493.39 $ 378,538.21 $ 151,525.78 
 
$ 133,570.60 $ 396,493.39 $ 378,538.21 $ 151,525.78 
 
See notes to the general purpose financial statements. 
 
- 26- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "1" 
 
FUNb)ING AGENCY PROGRAM/GRANT 
Agriculture, U. S. Department of Direct Summer School Food Service Program for Children 1995 Grant 1996 Grant Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1) 
Total U. S. Department of Agriculture 
Corporation for National and Community Service Through Pioneer Regional Educational Service Agency Learn and Serve America - School and Community Based Programs 
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1995 Regular 1995 Summer 1996 Grant 1996 Summer Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Title VII, Part C Immigrant Education 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1995 Regular 1996 Grant Preschool 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 
 
10.559 $ 
 
9,694.23 
 
(2) 
 
10.559 
 
8,659.45 
 
(2) 
 
10.553 
* 10.555 10.550 
$ 
 
114,797.90 
466,482.41 $ 55,672.98 
655,306.97 $ 
 
(2) 
903,660.97 (3) 55,672.98 
959,333.95 
 
94.004 $ 
 
978.74 $ 
 
978.74 
 
* 84.010 $ * 84.010 * 84.010 * 84.010 
 
10.99 $ 116,301.10 349,855.36 
2,060.80 
 
10.99 116,301.10 349,855.36 
2,060.80 
 
84.281 
 
7,668.04 
 
7,668.04 
 
84.298 
 
19,911.88 
 
19,911.88 
 
84.162 
 
35,083.00 
 
35,083.00 
 
84.027 84.027 
84.173 
 
5.96 111,223.00 
21,120.00 
 
5.96 111,223.00 
21,120.00 
 
84.048 84.243 
 
26,228.93 8,533.06 
 
36,365.64 (3) 16,255.33 (3) 
 
- 27 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30,1996 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Education, U. S. Department of Through Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1996 Grant 
Total U. S. Department of Education 
OTHER FEDERAL ASSISTANCE 
Defense, U. S. Department of Direct Teacher and Teacher's Aide Placement Assistance Program 
 
CFDA NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
84.011 $ $ 
 
76,998.44 $ 775,000.56 $ 
 
76,998.44 792,859.54 
 
$ 
 
5,480.22 
 
(4) 
 
Total Federal Financial Assistance Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
$ 1,436,766.49 $ 1,753,172.23 
 
(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 Summer School Food Service Program for Children and the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program. 
(3) Expenditures for this program include State and Other Funds. Expenditures are not maintained by fund source. 
(4) Expenditures on this program were not maintained by fund source. 
 
See notes to the general purpose financial statements. 
 
- 28 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY CASH AND CASH EQUIVALENTS JUNE 30, 1996 
 
SCHEDULE "2" 
 
NONlNTEREST BEARING ACCOUNTS 
Georgia First Bank, Gainesville, Georgia 
Nations Bank of Georgia, N.A. Gainesville, Georgia 
Regions Bank, Gainesville, Georgia 
Wachovia Bank of Georgia, N.A. Gainesville, Georgia 
INTEREST BEARING ACCOUNTS 
Lanier National Bank, Gainesville, Georgia 
Certificate of Deposit No. 5157 (5.31%) 
Nations Bank of Georgia, N.A. Gainesville, Georgia 
Demand Deposits (Variable) 
Regions Bank, Gainesville, Georgia 
Demand Deposit (Variable) Certificates of Deposit 
No. 2496 (5.31%) No. 2500 (5.28%) No. 100991660 (5.10%) 
Sun Trust Bank of Northeast Georgia, N.A. Athens, Georgia 
Certificate of Deposit No. 4774 (4.25%) Money Market Account (3.06%) 
 
$ 
 
80,217.84 
 
14,477.32 
 
139,830.60 
 
15,632.17 $ 250,157.93 
 
$ 450,000.00 
 
62,563.77 
 
$ 1,129,359.65 
900,000.00 450,000.00 800,000.00 
 
3,279,359.65 
 
$ 
 
10,000.00 
 
13,152.03 
 
23,152.03 
 
3,815,075.45 
 
$ 4,065,233.38 
 
See notes to the general purpose financial statements. - 29 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY ACCOUNTS RECEIVABLE JUNE 30, 1996 
 
SCHEDULE "3" 
 
Agriculture, U. S. Department of Summer School Food Service Program for Children 
City of Gainesville City Wide Bond Tax City Wide School Tax 
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries FY96 Food Services National School Lunch Program Vocational Education State Federal Other State Programs At Risk Summer School Program Mentoring Program Next Generation Schools Lottery Programs Instructional Technology Model Technology Schools Next Generation Schools Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title VII, Part C Immigrant Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool 
Hall County Board of Education Alternative Learning Center Transportation Services 
Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 
Pioneer Regional Educational Service Agency Learn and Serve America - School and Community Based Programs 
Regions Bank Refund for Bank Charges 
Various Sources Transportation Services 
See notes to the general purpose financial statements. 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL 
 
REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ $ 441,843.95 
 
8,659.45 $ 
 
$ 
 
8,659.45 
 
34,108.34 
 
34,108.34 441,843.95 
 
1,197,064.00 
600.00 8,533.06 8,707.34 4,500.00 7,333.00 
 
3,427.76 
4,022.60 12,500.00 14,000.00 
 
41,735.41 5,400.00 
 
44,748.22 3,124.50 
16,080.38 1,120.00 
 
1,197,064.00 3,427.76 600.00 8,533.06 8,707.34 4,500.00 7,333.00 4,022.60 
12,500.00 14,000.00 
44,748.22 3,124.50 
16,080.38 1,120.00 
41,735.41 5,400.00 
 
13,012.42 
 
13,012.42 
 
978.74 21,371.79 
446.00 
 
978.74 21,371.79 
446.QO 
 
$ 1,738,513.29 $ 
 
120,695.33 $ 
 
34,108.34 $ 1,893,316.96 
 
- 30 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "4" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Program Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries - FY 95 Deferred Summer Salaries - FY 96 Food Services Vocational Education Other State Programs Apprenticeship Program At Risk Summer School Program Health Insurance Mentor Teacher Program Mentoring Program Next Generation Schools Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Instructional Technology Model Technology Schools Next Generation Schools Safe Schools Grant Technology Installation 
Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
Office of Treasury and Fiscal Services Public School Employees Retirement 
CONTRACTS Education, Georgia Department of Governor's School Leadership Institute System Information System Project Operations Fee 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
$ 6,439,648.00 
 
$ 
 
921,271.00 
 
52,891,00 
 
271,564.00 
 
79,129,00 
 
1,716,629.00 
 
253,920,00 53,016.00 
343,016.00 215,967.00 402,996.00 
81,042.00 17,154.00 51,530.00 -3,020,549.00 -1,126,033.00 1,197,064.00 
$ 4,161.00 
 
57,776.00 
 
58,239.82 10,650.26 238,295.56 
975.00 4,500.00 7,333.00 
4,316.76 30,257.58 
 
46,352.00 
 
62,545,20 12,500.00 76,000.00 5,000.00 50,000.00 
 
26,457.00 
 
$ 
 
135,383.80 
 
-38.58 500.00 
 
TOTAL 
6,439,648.00 921,271,00 52,891.00 271,564.00 79,129.00 
1,716,629.00 
253,920.00 53,016.00 
343,016.00 215,967,00 402,996.00 
81,042,00 17,154.00 51,530.00 -3,020,549.00 -1,126,033.00 1,197,064.00 57,776.00 4,161.00 
58,239.82 10,650.26 238,295.56 
975.00 4,500,00 7,333.00 46,352.00 4,316.76 30,257.58 
62,545.20 12,500.00 76,000.00 5,000.00 50,000.00 
135,383.80 
26,457.00 
-38.58 
500.00 
 
$ 8,335,902.40 $==~3;;,,;1,;;,Oo,;,173.20 $ 
 
135,383.80 $ ====8=,7=8=1=,4=5=9=.4=0= 
 
See notes to the general purpose financial statements. 
 
- 31 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF TAXES AND OTHER REVENUE YEAR ENDED JUNE 30. 1996 
 
SCHEDULE "5" 
 
Taxes City Wide Bond Tax City Wide School Tax 
Other Sources Compensation for Loss of Assets Donations Interest Earned Jury Duty Fees Milk Court Settlement Rents Sales Adult Meals Breakfast Gate Receipts Lunches Supplemental School Assets Shared Service Contributions Hall County Board of Education Tuition Other 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL 
 
REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 10,550,506.93 
 
$ 
 
845,057.36 $ 
 
845,057.36 
 
10,550,506.93 
 
2,117.39 
$ 
254,533.29 1,745.00 4,077.72 
6,860.55 41,735.41 40,211.00 15,349.60 
 
12,530.90 6,473.28 106.35 
49,702.81 3,739.88 
96,028.71 81,765.18 43,017.75 
11,712.75 
 
1,901.23 
 
2,117.39 12,530.90 262,907.80 
1,745.00 106.35 
4,077.72 
49,702.81 3,739.88 
96,028.71 81,765.18 43,017.75 
6,860.55 
41,735.41 40,211.00 27,062.35 
 
$ 10,917,136.89 $ 
 
305,077.61 $ 
 
846,958.59 $ 12,069,173.09 
 
See notes to the general purpose financial statements. - 32 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "6" 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Tuition Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures 
Nonoperating Costs Principal and Interest Building and Building Improvements Equipment 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTAL 
 
$ 12,417,129.44 $ 
3,689,481.02 36,387.31 
104,043.58 7,536.50 
506,606.84 255,893.68 
55,952.72 46,056.75 59,801.31 43,998.31 17,823.40 29,663.66 448,283.22 410,470.10 
157,663.67 26,200.14 93,917.76 
92,781.94 183,201.61 707,070.80 
 
854,111.53 $ 
218,649.82 5,228.97 
112,202.98 
73,117.03 1,764.56 4,750.00 
5,216.28 162,379.61 
46.00 356,666.02 
12,667.38 10,275.03 
 
13,271,240.97 3,908,130.84 41,616.28 216,246.56 7,536.50 506,606.84 329,010.71 57,717.28 50,806.75 59,801.31 43,998.31 17,823.40 34,879.94 610,662.83 410,516.10 356,666.02 157,663.67 38,867.52 104,192.79 
 
235,544.44 
 
92,781.94 183,201.61 942,615.24 
 
Total Expenditures 
 
$ 19,389,963.76 $ 
 
2,052,619.65 $ 21,442,583.41 
 
See notes to the general purpose financial statements. - 33 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30,1996 
 
SCHEDULE '7" 
 
EXPENDITURES 
Operating Costs Professional and Technical Services Repair and Maintenance Services Supplies 
Nonoperating Costs Equipment 
 
INSTRUCTIONAL TECHNOLOGY 
 
MODEL TECHNOLOGY 
SCHOOLS 
 
NEXT GENERATION 
SCHOOLS 
 
SAFE SCHOOLS 
GRANT 
 
TECHNOLOGY INSTALLATION 
 
TOTAL 
 
$ 
 
2,773,50 $ 
 
280,00 
 
$ 
 
3,053,50 
 
8,827,98 
 
2,945,75 $ 
 
469,23 $ 
 
$ 5,000,00 
 
50,000,00 
 
50,000,00 17,242,96 
 
53,281,70 
 
9,590,23 
 
75,530,77 
 
138,402.70 
 
Total Expenditures 
 
$ 
 
64,883,18 $ 
 
12,815.98 $ 
 
76,000.00 $ 
 
5,000,00 $ 
 
50,000.00 $ 
 
208,699,16 
 
See notes to the general purpose financial statements. 
 
- 34 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "8" 
 
Minimum Expenditure Requirements (Total Allotment) 
Expenditures on Combined Program Basis Salaries (1) (2) 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 
 
$ 7,685,374.00 $ _ _-=2.1.9:~,1=:1.6:.:0:0.. 
 
$ 10,517,404.58 623,153.03 $ _ _--::5:;5=0.!,..1.=5:.2.:.:5..:9:.. 
$ 11,140,557,61 
 
-138,367.07 $ 11,002,190.54 
 
Amount of Underexpenditure for Total Allotment 
 
$ 
 
0,00 $=======0=.0=0 
 
Note: (1) Salary accruals (July and August 1996 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
(2) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
See notes to the general purpose financial statements. - 35 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION HALL COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM 
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996 
 
GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (0) Grades 1  3 (0) Sub-Total- K3 Grades 4  5 (0) Grades 6 8 (0) Grades 9  12 (0) High School Laboratories (0) Vocational Education Laboratories (0) Total General and Career Education Programs 
SPECIAL EDUCATION PROGRAMS RegUlar Programs Category " (0) Category III (0) Category IV (0) 
sue-rctat- RegUlar 
Category V (Gifted) (0) Total Special Education Programs 
REMEDIAL EDUCATION PROGRAM (0) Total Thirteen Weighted Programs 
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs 
Total Thirteen Weighted and Media Center Programs 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development Programs (0) Identifies Thirteen Weighted Programs, (1) Salary accruals (July and August 1996 Deferred 
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL 
 
% 
 
ORIGINAL 
 
MIDTERM 
 
$ 
 
844,736.00 
 
$ 
 
760,262,40 $ 
 
0.00 
 
1,885,824.00 
 
1,697,241.60 
 
$ 2,730,560.00 90 $ 2,457,504.00 $ 
 
0.00 
 
822,574.00 90 
 
740,316.60 
 
1,317,012.00 90 
 
1,185,310.80 
 
611,774.00 90 
 
550,596.60 
 
682,087.00 90 
 
613,878.30 
 
275,641.00 90 
 
248,076.90 
 
$ 6,439,648.00 
 
$ 5,795,683.20 $ 
 
0.00 
 
$ 
 
714,108.00 
 
$ 
 
642,697.20 $ 
 
0.00 
 
$ 
 
714,108.00 90 $ 
 
642,697.20 $ 
 
207,163.00 90 
 
186,446.70 
 
$ 
 
921,271.00 
 
$ 
 
829,143.90 $ 
 
$ 
 
52,891.00 90 $ 
 
47,601.90 $ 
 
$ 7,413,810.00 
 
$ 6,672,429.00 $ 
 
$ 
 
221,536,00 90 $ 
 
199,382.40 $ 
 
50,028.00 90 
 
45,025.20 
 
$ 
 
271,564.00 
 
$ 
 
244,407.60 $ 
 
$ 7,685,374.00 
 
$ 6,916,836.60 $ 
 
0.00 
0.00 0.00 0.00 
0.00 0.00 
0.00 
 
$ 
 
19,540.00 
 
59,589.00 
 
$ 
 
19,540.00 $ 
 
59,589.00 
 
$ 
 
79,129.00 100 $ 
 
79,129.00 $ 
 
(2) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
0.00 0.00 
 
See notes to the general purpose financial statements. 
 
- 36 - 
 
 SCHEDULE "9" 
 
"TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES (1)(2) 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
760,262.40 $ 
 
1,697,241.60 
 
$ 2,457,504.00 $ 
 
740,316.60 
 
1,185,310.80 
 
550,596.60 
 
613,878.30 
 
248,076.90 
 
$ 5,795,683.20 $ 
 
1,014,435.90 $ 2,472,299.98 3,486,735.88 $ 1,158,724.19 1,707,280.72 1,325,699.64 
660,114.82 285,693.80 8,624,249.05 $ 
 
27,845.10 $ 85,594.65 113,439.75 $ 69,403.34 139,185.92 50,391.35 48,603.41 34,719.50 455,743.27 $ 
 
1,042,281.00 2,557,894.63 3,600,175.63 $ 1,228,127.53 1,846,466.64 1,376,090.99 
708,718.23 320,413.30 9,079,992.32 
 
0.00 0.00 0.00 0.00 0.00 0.00 
 
$ 
 
642,697.20 
 
$ 
 
277,273.71 $ 842,795.20 166,209.12 
 
4,681.02 $ 78,648.02 
2,407.75 
 
281,954.73 921,443.22 168,616.87 
 
$ 
 
642,697.20 $ 
 
1,286,278.03 $ 
 
85,736.79 $ 1,372,014.82 
 
0.00 
 
186,446.70 
 
184,039.50 
 
7,030.49 
 
191,069.99 
 
0.00 
 
$ 
 
829,143.90 $ 
 
1,470,317.53 $ 
 
92,767.28 $ 1,563,084.81 
 
$ 
 
47,601.90 $ 
 
85,907.37 $ 
 
1,642.04 $ 
 
87,549.41 
 
0.00 
 
s 6,672,429.00 $ 10,180,473.95 $ 
 
550,152.59 $ 10,730,626.54 
 
$ 
 
199,382.40 $ 
 
336,930.63 
 
$ 
 
336,930.63 
 
0.00 
 
45,025.20 
 
$ 
 
73,000.44 
 
73,000.44 
 
0.00 
 
$ 
 
244,407.60 $ 
 
336,930.63 $ 
 
73,000.44 $ 
 
409,931.07 
 
$ 6,916,836.60 $ 10,517,404.58 $ 
 
623,153.03 $ 11,140,557.61 $ 
 
0.00 
 
$ 
 
19,540.00 
 
59,589.00 
 
$ 
 
66,446.19 $ 
 
66,446.19 
 
12,907.69 
 
12,907.69 
 
$ 
 
79,353.88 $ 
 
79,353.88 $ =====.==;;0;.0;0" 
 
- 37 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "10" 
 
BOARD MEMBER ADDRESS 
Mr. Kelvin Simmons, Chairman (*) 3641 Brownwell Court Gainesville, Georgia 30504 
Ms. Ruth Bruner (*) 1024 Dixon Drive Gainesville, Georgia 30501 
Mr. J. Randall Frost (*) P. O. Box 3280 Gainesville, Georgia 30503 
Ms. Lee Highsmith (*) 938 Memorial Drive Gainesville, Georgia 30501 
Mr, Willie Mitchell (*) 795 College Avenue Gainesville, Georgia 30501 
Mr, Warren Stribling 1281 Springdale Road, N. E. Gainesville, Georgia 30501 
(*) Denotes Board Members Serving as of June 30, 1996 
 
COMPENSATION 
 
TRAVEL 
 
$ 
 
1,500,00 
 
1,500.00 $ 
 
36.50 
 
1,500.00 
 
750.00 
 
1,500.00 
 
750.00 
 
$ 
 
7,500.00 $ =========36=.=50= 
 
See notes to the general purpose financial statements. 
 
- 38 - 
 
 SECTION II COMPLIANCE 
 
 CLAUDE L. VICKERS 
STATEAUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
May 20,1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Board of Education 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the City of Gainesville Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 20, 1997. This report was qualified for a departure 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 Gainesville Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 
 
96CRL-10 
 
 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-IO 
 
 CLAUDE L. VICKERS 
STATEAUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
May 20,1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the City of Gainesville Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 20, 1997. This report was qualified for a departure 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 Gainesville Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: 
 
(1) Political Activity 
 
(5) Allowable Costs/Cost Principles 
 
(2) Civil Rights 
 
(6) Drug-Free Workplace Act 
 
(3) Cash Management 
 
(7) Audit Follow-Up/Resolution 
 
(4) Federal Financial Reports 
 
(8) Administrative Requirements 
 
Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 
 
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 of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Gainesville Board of Education 
had n"ot complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
L~ 
Claude L. Vickers State Auditor 
CLV:jy 96CRL-40 
 
 CLAUDE L. VICKERS 
STATEAUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
May 20,1997 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the City of Gainesville Board of Education 
 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the City of Gainesville Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 20, 1997. This report was qualified for a departure 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 Gainesville Board of Education's compliance with the requirements goverrung: 
 
(1) Types of Services Allowed or Unallowed 
 
(5) Applicable Special Tests and Provisions 
 
(2) Eligibility 
(3) Matching, Level of Effort, 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 Gainesville 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 of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (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 Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. 
 
In our opinion, the City of Gainesville 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, 
 
~.  ~ / / 
 
4' 
 
Claude L. Vickers State Auditor 
 
CLV:jy 96CRL-80 
 
 CLAUDE L. VICKERS 
STATEAUDITOR 
(404) 6562174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.\., Suite 214 Atlanta, Georgia 30334-8400 
May 20,1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the City of Gainesville Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 20, 1997. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
In connection with our audit of the fiscal year 1996 general purpose financial statements of the City of GainesvilleBoard 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 A128, "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 Gainesville Board of Education'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 to our attention that caused us to believe that the City of Gainesville Board of Education had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV: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 
May 20,1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Board of Education 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the City of Gainesville Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 20, 1997. This report was qualified for a departure 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 ofthe City of Gainesville 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 of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation 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-2 
 
 In planning and performing our audit of the general purpose financial statements of the City of Gainesville Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose 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 a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. 
As described in the Schedule of Findings and Improper or Questioned Costs, the reportable condition was noted in the following control category: 
Cash and Cash Equivalents 
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 and not be detected within a timely period by employees in the normal course of performing their assigned functions. 
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable condition described above is not a material weakness. 
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. 
ReS:lSUbmitted, ~ 
 
CLV:jy 96ICL-2 
 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATEAUDITOR 
(404) 656-2174 
 
DEPARTl\1ENT OF AUDITS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
May 20, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Board of Education 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the City of Gainesville Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 20, 1997. This report was qualified for a departure 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 Gainesville Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 20, 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 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 and about whether the City of Gainesville 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 May 20, 1997. 
96ICL-5 
 
 The management ofthe City of Gainesville Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliancewith applicablelaws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
For the purposes of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: 
 
GENERAL REQUIREMENTS 
 
SPECIFIC REQUIREMENTS 
 
(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(1) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level of Effort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(4) Reporting 
 
(6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (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 whether they have been placed in operation, and we assessed control risk. 
 
During the year ended June 30, 1996, the City of Gainesville Board of Education expended 65% of its total Federal financial assistance under major Federal financial assistance programs. 
 
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 of the Board's major Federal financial assistance programs, which 
 
96ICL-5 
 
 are identified in the Schedule of Federal 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. 
v 
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A materialweakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elementsdoes not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. 
 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
 
aReS 
 
submitted, ~ 
 
Claude L. Vickers State Auditor 
 
CLV:jy 96ICL-5 
 
 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7761-95-01 
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$5,588.00 for the Staff Development - Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $26,813.62 Audit Control Number 7761-95-02 
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$26,813.62 for the Staff Development - 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$26,813.62 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. 
CURRENT YEAR 
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7761-96-01 
As of June 30, 1996, the City of Gainesville Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows: 
- 1- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
CURRENT YEAR 
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7761-96-01 
"The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section...The aggregate of the face value of such surety bond, and the market value of securities pledged, shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance." 
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments. 
GENERAL LEDGER Failure to File Completion Report Timely Financial Statements Nonmaterial Noncompliance Audit Control Number 7761-96-02 
The Board failed to file completions report in a timely manner for the Instructional Technology, Distance Learning, Safe Schools, Model Technology, and Technology Installation Lottery programs as required by guidelines established by the Georgia Department of Education. The due date was July 31, 1996, but the completion reports were submitted on September 27, 1996 and March 5, 1997. This deficiency occurred because management neglected the reporting deadlines imposed upon the Board by the Georgia Department of Education. 
Appropriate procedures should be implemented by the Board to ensure that completion reports are submitted by the required due date. 
-2- 
 
 SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1996 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $26,813.62 Audit Control Number 7761-95-02 
This finding is a result of inaccurate information being distributed by the Georgia Department of Education concerning the maximum amount of funds eligible for transfer between Professional and Staff Development. It is anticipated that in the year this amount is added to the Board's local fair share that an offset will also be included in the mid-term adjustment so that the Board will not realize a loss of funds. 
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7761-96-01 
We concur with this fmding, however, this finding was incurred during the merger of First National Bank and Regions Bank and the subsequent transfer of investment safekeeping. 
GENERAL LEDGER Failure to File Completion Report Timely Financial Statements Nonmaterial Noncompliance Audit Control Number 7761-96-02 
We concur with this finding, however, it should be noted that all other completion reports were filed in a timely manner.