GA
A800
.RI
S33
53 .
\9Clj3/ci4-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT CITY OF JEFFERSON BOARD OF EDUCATION
A COMPONENT UNIT OF THE CITY OF JEFFERSON, GEORGIA
YEAR ENDED JUNE 30, 1994

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

25

3 ACCOUNTS RECEIVABLE

26

SCHEDULE OF REVENUE

4

STATE FUNDS

27

5

LOCAL AND OTHER FUNDS

28

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

29

7

LOTTERY PROGRAMS

30

8

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

33

10

BY PROGRAM

34

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

SECTION ID
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Jefferson Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the financial statements (Exhibits A through D) ofthe City of Jefferson Board ofEducation, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

94ARL-23

As described in the notes to the financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the financial statements. To conform to generally accepted accounting principles, these accounts should be included in the financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in die third paragraph, and except for the effects on the financial statements of the matters referred to in the preceding paragraph, the financial statements present fairly, in all material respects, the financial position of the City ofJefferson Board of Education as ofJune 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the financial statements of the City of Jefferson Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the financial statements of the City ofJefferson Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.
94ARL-23

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
t:L-~
Claude L. Vickers State Auditor
CLV:jg 94ARL-23

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY -I-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1994

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Prepaid Items Amount to be Provided in Future Years
For Payment of Capital Lease Agreements
Total Assets

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

119,562.13 $

154,486.28

74,228.35

80,898.23

2,510.00

7,632.24 642.72

$

196,300.48 $

243,659.47

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities , Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 149,150.55 $

35,791.31 25,688.10
1,574.50 70,242.20

$ 1491150.55 $ 1331296.11

$

$

17,144.57

164.70

7,632.24 642.72

$

17,144.57 $

8,439.66

301005.36

1011923.70

$

47149.93 $

1101363.36

$

196,300.48 $

2431659.47

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

EXHIBIT"A"

TYPES CAPITAL
PROJECTS FUND

$

5,776.30 $

2,815.00

FIDUCIARY FUND TYPE
TRUST FUND
0.00

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum Onl:t:l JUNE 3011994 JUNE 3011993

$

279,824.71 $

311,879.49

27,232.48

157,941.58

68,033.79

7,632.24 642.72
2,510.00

9,399.19 1,113.05

$

303,033.26

303,033.26

221,570.02

$

8,591.30 $

0.00 $

303,033.26 $ 751,584.51 $ 639,228.02

$

81591.30

$

8,591.30

0.00 $

$

8,591.30 $

$

8,591.30 $

$ 184,941.86 $

51,048.22

25,688.10

22,509.76

1,574.50

9,894.00

70,242.20

$

303,033.26

3031033.26

221,570.02

$

303,033.26 $

5851479.92 $

3051022.00

0.00 $ 0.00 $
0.00 $

$

164.70

17,144.57 $

6,676.92

$ 0.00 0.00 $

7,632.24 642.72
81591.30
34,175.53 $
1311929.06
166,104.59 $

9,399.19 1,113.05 8,591.30
25,780.46
3081425.56
3341206.02

303,033.26 $ 751,584.51 $ 639,228.02

- 3-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

REVENUES
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Service Operations Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In OperatillfJ Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory Donated Commodities July 1 June30 Purchased Food July 1 June30
FUND BALANCE JUNE 30
The notes to the financial statements are an integral part of this statement. -4-

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

2,911,743.44 $

885,204.25

$

3.7961947.69 $

99,482.00 278,142.92 1381436.24
5161061.16

$ 2,591,259.68 $
124,070.47 38,786.39 93,412.06
127,201.44 295,694.28
48,563.83 441,216.61 102,115.17 86,345.36
558.26 15,555.85
57,169.68

40,085.76 211848.15

$

410831882.99 $

$

-286,935.30 $

164,647.61 3,096.26 6,749.31
21,243.40 6,672.89 165.96
279,351.10
4811926.53 341134.63

$

121,549.00

$

$

121,549.00 $

$

-165,386.30 $

212,536.23

0.00 0.00 34,134.63 78,466.01

-9,399.19 7,632.24
-1,113.05 642.72

$

s _ _ _ 47,149.93

1_10__.36_3._36_

EXHIBIT"B"

TYPES CAPITAL
PROJECTS FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS {Memorandum Onl;r:)
YEAR ENDED JUNE 301 1994 JUNE 30, 1993

$

0.00 $ 3,011,225.44

$ 3,011,225.44 $ 2,901,927.68

278,142.92

278,142.92

235,610.38

110231640.49 $

14,254.65

1,037,895.14

9011023.09

$

0.00 $ 41313,008.85 $

14,254.65 $ 4,327,263.50 $ 4,038,561.15

$ 2,755,907.29

$ 2,755,907.29 $ 2,340,559.60

127,166.73

127,166.73

116,714.40

38,786.39

38,786.39

103,159.03

93,412.06 $

48,596.38

142,008.44

99,528.61

133,950.75

270.75

134,221.50

122,337.04

295,694.28

295,694.28

247,430.04

48,563.83

48,563.83

37,728.24

462,460.01

462,460.01

512,575.10

102,115.17

102,115.17

87,196.59

93,018.25

93,018.25

63,571.79

558.26

558.26

15,721.81

15,721.81

279,351.10

279,351.10

261,863.60

57,169.68

57,169.68

63,805.26

$

0.00

0.00

0.00

32,008.41

40,085.76 211848.15

40,085.76 21,848.15

1,912.84 8127.16

$

0.00 $ 415651809.52 $

48,867.13 $ 4,614,676.65 $ 4,098,537.71

$

0.00 $ -252,800.67 $ -341612.48 $ -287,413.15 $ -59,976.56

$ 121,549.00

$ 121,549.00 $ 204,610.00

$

0.00

0.00 $

0.00

0.00

5,561.99

0.00

-5,561.99

$

0.00 $ 121,549.00 $

0.00 $ 121,549.00 $ 204,610.00

$

0.00 $ -131,251.67 $

-34,612.48 $ -165,864.15 $

144,633.44

8,591.30

299,593.54

34,612.48

334,206.02

191,449.16

-9,399.19 7,632.24
-1,113.05 642.72

-9,399.19 7,632.24
-1,113.05 642.72

-11,212.80 9,399.19
-1,176.02 1 113.05

$

0.00 $ 166,104.59 $ 334,206.02

-5-

CITY OF JEFFEBSON BOABD OF EDUCATION - JACKSON COUNTY QOMBINED ST~TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT"C-

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPEt::!DITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Service Operations Food Services Operation Other Operations of Non-Instructional Services
Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
QIHER FINM::!CING SOURCES
Other Sources
Excess of Revenues and Other Financing Sources
over (under) Expenditures
E!.!ND BALANCE JULY 1, 1993
AQJUSTMENTS
Prior Year (Net)
FQQQ l~NTORY
Donated Commodities July 1, 1993 June 30, 1994
Purchased Food July 1, 1993 June 30, 1994

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE ~NFAVORABLg}

$ 3,011,225.44 $ 278,142.92
1,023,640.49
$ 4,313,008.85 $

0.00 $ 3,011,225.44 $ 2,924,838.00 $

278,142.92

174,038.00

1,023,640.49

948,455.00

0.00 $ 4,313,008.85 $ 4,047,331.00 $

86,387.44 104,104.92 75,185.49
265,677.85

$ 2,755,907.29 $
127,166.73 38,786.39 93,412.06
133,950.75 295,694.28
48,563.83 462,460.01 102,115.17
93,018.25 558.26
15,721.81 279,351.10
57,169.68 61,933.91
$ 4,565,809.52 $
$ -252,800.67 $

0.00 $ 2,755,907.29 $ 2,604,533.00 $

127,166.73 38,786.39 93,412.06 133,950.75 295,694.28 48,563.83 462,460.01 102,115.17 93,018.25
558.26 15,721.81 279,351.10 57,169.68 61,933.91

174,670.00 90,654.00 103,211.00 131,403.00 296,317.00 41,874.00 288,395.00 73,776.00 10,166.00
4,900.00
253,649.00 56,045.00

0.00 $ 4,565,809.52 $ 4,129,593.00 $

0.00 $ -252,800.67 $ -82,262.00 $

-151,374.29
47,503.27 51,867.61
9,798.94 -2,547.75
622.72 -6,689.83 -174,065.01 -28,339.17 -82,852.25 4,341.74 -15,n1.81 -25,702.10 -1,124.68 -61,933.91
-436,216.52
-170,538.67

121,549.00

0.00

121,549.00

0.00

$ -131,251.67 $ 299,593.54

0.00 $ -10,512.24

-131,251.67 $ 289,081.30

-82,262.00 $ 330,754.51

121,549.00
-48,989.67 -41,673.21

-35,133.50

35,133.50

-9,399.19

9,399.19

0.00

0.00

7,632.24

-7,632.24

0.00

0.00

-1,113.05

1,113.05

0.00

0.00

642.72

-642.72

0.00

0.00

FUND BALANCE JUt::!E ~. 1994

$ 166.104.59 $

-8,274.96 $ 157,829.63 $ 213,359.01 $

-55,529.38

The notes to the financial statements are an integral part of this statement -6-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXIIlBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City ofJefferson Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent, appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the City of Jefferson Board of Education. Based upon the application ofthe above criteria, the City ofJefferson Board ofEducation is determined to be a component unit ofthe City of Jefferson, Georgia for financial reporting purposes.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, but do not have the authority to levy taxes or incur bonded indebtedness: The City Council determines the amount oftax revenues flowing to the Board.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 7-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXHIBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the financial statements.
The financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund cpuld be accounted for as an enterprise fund~ however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor capital facilities.
FIDUCIARY FUND 1YPE - the trust fund used to account for assets held by a government unit in a trustee capacity. This fund include:
EXPENDABLE TRUST FUND A.M. Robaus Memorial Library Fund - the fund used to account for the principal and earnings which may be expended to provide library books and equipment.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
- 8-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTYEXIIlBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994
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 and the expendable trust fund 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 decreases (i.e., expenditures) 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 financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be.used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available 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 departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
- 9-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXHIBIT "D" NOTES TO THE FINANCIAL STATEtvffiNTS JUNE 30, 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The City ofJefferson Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the-Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The City ofJefferson fixed the property tax levy for the 1993 tax year (calendar year) on November 15, 1993 (levy date). Taxes were due on January 15, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria ofGASB codification section P70.103. The City of Jefferson Clerk bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board.
- 10 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXHIBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 1993 tax year (calendar year) for the City of Jefferson Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

12.90 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 1994, are recorded as prepaid items.

INTERFUND TRANSACTIONS

The Board has the following type 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 reimburi~d.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations 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. The A.H.
Robaus Memorial Library Fund has been reclassified from Nonexpendable Trust Fund to Expendable Trust Fund in the comparative data to confirm to the current year classifications.

- 11 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXHIBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists ofany one of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the ~tate ofGeorgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or

ofthe State of Georgia,



(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,

(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $647,799.75. The amounts ofthe total bank balances are classified into three categories of credit risk:

. Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.

- 12 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXHIBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

Note 2: DEPOSITS

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, 1994, as follows:
Risk Category 1 2
3
Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance $ 215,375.20
401,102.56 31,321.99
$ 647,799.75

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total ofSl,845.08 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The City ofJefferson Board of Education has entered into various lease agreements as lessee for buses and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date oftheir inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Balance July 1, 1993

Capital Leases $ 221,570.02

Additions

121,549.00

Deductions Balance June 30, 1994

- 13 -

40,085.76 $ JQJ,QJJ.26

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTYEXIDBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

Note 5: GENERAL LONG-TERM DEBT

At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items are:

Fiscal Year Ended June 30
1995 1996 1997 1998 1999 2000 and thereafter
Total Principal and Interest

Capital Leases
$ 61,933.91 51,459.30 51,459.30 51,459.30 41,116.92 153,511.27
$ 410,940.00

Deduct: Imputed Interest Net Present Value ofFuture
Minimum Lease Payments
Note 6: SIGNIFICANT COMMITMENTS

$ 107,906.74
$ 303,033.26

At June 30, 1994, the Board had encumbrances in the amount of $85,859.10 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of$84,997.00 are available to fund these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms Computers in Classrooms Distant Learning
Media Center and Library Equipment
Safe Schools Grant

$

300.00

13,954.50

1,137.00

26,935.00

43,532.60

$ 85,859.10

The amounts described in this note are not reflected in the financial statements.

Note 7: 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.

- 14 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXHIBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994
Note 7: CONTINGENT LIABILITIES
The Board is a defendant in a legal proceeding pertaining to a matter incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the financial statements.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
-
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is
entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had
the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $2,536,726.57; total payroll was $2,841,021.32.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required to contribute 6% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of
Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was
11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
- 15 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTYEXIIlBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

Note 8: RETIREMENT PLANS

Total contributions made during fiscal year 1994 amounted to $451,791.23, ofwhich $299,588.31 was made by the Board and $152,202.92 was made by employees. These contributions represented 11.81 % (Board) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will.be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292,000,00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$299,588.31 was actuarially determined and represented .0574% oftotal c~ntributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION 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 ofGeorgia.

- 16 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY EXHIBIT "D" NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994
Note 8: RETIREMENT PLANS
PSERS provides 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 of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half 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 24 employees covered under PSERS for the year ended June 30, 1994.
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 1994 amounted to $764.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
Dr. Donald Rooks, School Superintendent through August 1, 1994, was bonded in the amount of$50,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B75004.
The School Superintendent, Mr. Herbert W. Garrett, effective August 2, 1994, is bonded in the amount of $50,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B701575, on which premium is paid through July 1, 1995.
- 17 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1994

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity
See notes to the financial statements.

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 122,436.79 $

60,671.50

1,028.74

31,129.20 $

8,087.58

7,632.24 642.72

$ 131,740.49 $

- - - - - 91,800.70 $

8,087.58

$

$

4,268.29 $ 21,558.50

17,273.54

70,242.20

$

21,541.83 $

91,800.70 $

356.58 2,394.84 5,336.16
8,087.58

$

7,632.24

642.72

$

8,274.96

101,923.70 $

$ 110,198.66 $

0.00 $ 0.00 $

0.00 0.00

$ 131,740.49 $

- - - - - 91,800.70 $

8,087.58

-18 -

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE II -

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

39.88

$

1,000.00 $ 184,148.17 $

95,528.51

2,875.19 $

2,803.50 $

33,805.02

1,169.00

80,898.23

3,108.54

7,632.24 642.72

9,399.19 1,113.05

$

2,915.07 $

2,803.50 $

33,805.02 $

2,169.00 $ 273,321.36 $ 109,149.29

$

1,064.30 $

28,241.01

$

29,661.89

$

2,915.07

2,485.61 $

2,169.00

35,791.31 $

8,343.98

3,078.40

25,688.10

22,339.30

1,574.50

1,574.50

70,242.20

$

2,915.07 $

2,638.80 $

33,805.02 $

2,169.00 $ 162,958.00 $

30,683.28

$

164.70

$

164.70

7,632.24 $ 642.72

9,399.19 1,113.05

$

164.70

$

8,439.66 $

10,512.24

$

0.00

0.00 $

0.00 $

0.00

101,923.70

67,953.77

$

0.00 $

164.70 $

0.00 $

0.00 $ 110,363.36 $

78,466.01

$

2,915.07 $

2,803.50 $

33,805.02 $

2,169.00 $ 273,321.36 $ 109,149.29

-19-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPEC~LREVENUEFUND YEAR ENDED JUNE 30, 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Central Support Services Community Service Operations Food Services Operation Other Operations of Non-Instructional Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over ~nder) Expenditures
FUND BALANCE JULY 1
Food Inventory Donated Commodities July 1 June 30 Purchased Food July 1 June 30
FUND BALANCE JUNE 30
See notes to the financial statements.

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 22,688.00 $ 152,196.79 138,436.24
$ 313,321.03 $

76,794.00 $
76,794.00 $

54,672.40 54,672.40

$ 55,550.60 $ 21,243.40

51,121.94 701.66
2,848.80

$ 279,351.10

$ 279,351.10 $ $ 33,969.93 $

76,794.00 $ 0.00 $

54,672.40 0.00

$ 33,969.93 $ 78,466.01
-9,399.19 7,632.24 -1,113.05
642.72
$ 110,198.66 $

0.00 $

0.00

0.00

0.00

----- 0.00 $

0.00

- 20 -

EXHIBIT"F"

AND SECONDARY EDUCATION ACT

TITLE II-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, 8

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

6,754.19 $

$ _ _ _6;..:.,7;...;5_.;.4.;..;..1.,:_9 $

5,523.25 $

56,827.29 $

5,523.25 $

56,827.29 $

$ 2,169.00
2,169.00 $

99,482.00 $ 278,142.92 138,436.24
516,061.16 $

22,586.00 235,610.38 139,635.40
397,831.78

$

6,740.29 $

5,249.77 $

45,985.01

$ 164,647.61 $

66,894.35

13.90

97.75 11.03

2,296.85
3,875.58
4,503.89 $ 165.96

2,169.00

3,096.26
6,749.31 21,243.40
6,672.89 165.96
279,351.10

1,153.43 11,603.66
1,733.14
9,073.60
261,883.60 13,207.68

$

6,754.19 $

5,358.55 $

56,827.29 $

2,169.00 $ 481,926.53 $ 365,549.46

$

0.00 $

164.70 $

0.00 $

0.00 $

34,134.63 $

32,282.32

1,696.55

$

0.00 $

164.70 $

0.00 $

0.00 $

34,134.63 $

33,978.87

0.00

0.00

0.00

0.00

78,466.01

46,363.72

------ ----- $

0.00 $

164.70 $

-9,399.19 7,632.24
-1,113.05 642.72

-11,212.80 9,399.19
-1,176.02 1,113.05

----- 0.00 $

0.00 $ 110,363.36 $

78,466.01

- 21 -

Cash and Cash Equivalents Accounts Receivable

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNlY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1994

EXHIBIT"G"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

91-779-077

779-002

779-003

TOTALS JUNE 301 1994 JUNE 30, 1993

$

5,453.45 $

3,137.85

$

8,591.30

_ _ _ _ _ _ $ _ _"""2_,8_1__5_.0__0_

2,815.oo s _ _2_8..._1, _43_.oo_

Total Assets

$

5453.45 $

3,137.85 $

2,815.00 $

11 i4oe.30 s _ _2_8,.,1..,43.....,.oo,..

LIABILITIES AND FUND EQUITY

LIABILmEs

Cash 0\/erdraft Contracts Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For State Capital Outlay Projects

$

Unreserved

Undesignated

Total Fund Equity

$

5,453.45 $ 0.00
5,453.45 $

$

2,815.00 $

2,815.00 $

9,657.70

9,894.00

$

2,815.00 $

2,815.00 $

19,551.70

3,137.85 $ 0.00
3,137.85 $

0.00 $ 0.00 0.00 $

8,591.30 $ 0.00
8,591.30 $

8,591.30 0.00
8.591.30

Total Liabilities and Fund Equity

$

5453.45 $

3,137.85 $

2,815.00 $

11,406.30 s _ _2_8,.1, _4..,3._oo_

See notes to the financial statements.

-22-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30 1994

EXHIBIT"H"

REVENUES State Funds

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

91-779-077

779-002

779-003

TOTALS YEAR ENDED JUNE 301 1994 JUNE 301 1993

$

0.00 $

0.00 $

0.00 $

0.00 $

28,143.50

EXPENDITURES
Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing
u. .
FUND BALANCE JULY 1

$

0.00 $

0.00 $

$

0.00 $

0.00 $

$

0.00 $

0.00 $

5,453.45

3,137.85

0.00 $ 0.00 $

0.00 $ 0.00 $

32,008.41 -3,864.91

3,865.41

0.00 $ 0.00

0.00 $ 8,591.30

0.50 8,590.80

FUND BALANCE JUNE 30

$ 5,453.45 $ 3,137.85 $

0.00 $

a.ss1.30 s _ _ _a_._ss_1_.30_

See notes to the financial statements.

-23-

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994 Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1994 Regular Chapter2 Block Grant - Flow Through 1994 Regular Trtlell Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act Title VI, B Flow Through 1992 Regular 1993 Carry-Over 1994 Regular Innovative Program 1994 Regular Preschool Program 1992 Regular 1994 Regular
Total U.S. Department of Education

CFDA

AWARDS

NUMBER IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 $ 28.550.28 $

10.555 10.555 10.550

101,707.40 21,939.11

$ 152,196.79 $

28,550.28$
918.88 100,678.66 NIA
130,147.82 $

28,550.28
101,707.40$ 211939.11
152,196.79 $

(2)
257,411.99 (3) 211939.11
279,351.10

84.010 84.010 $

$ 54,690.00

84.151

6,922.00

443.08 48,331.40 $

54,672.40$

3,879.00

6,754.19

54,672.40 6,754.19

84.164 84.164

7,000.00

97.75 4,196.50

97.75 5,425.50

97.75 5,260.80

84.027 84.027 84.027

1,000.00 42,706.00

84.027

15,000.00

84.173 84.173

2,169.00

$ 129,487.00 $

-35.19 1,000.00 22,022.27
-531.41 1,000.00 80,403.40 $

1,000.00 42,706.00 13,121.29
2,169.00 125,946.13 $

1,000.00 42,706.00 13,121.29
2,169.00 125,781.43

Total Federal Financial Assistance

$ 281,683.79 $

2101551.22 $ 278,142.92 $

4051132.53

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

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.

See notes to the financial statements.

- 24 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30. 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
First Commerce Bank, Commerce, Georgia
N.O.W. Account (2.25%)
First National Bank of Jackson County, Jefferson, Georgia
N.O.W. Account (2.38%)
Southtrust Bank of Georgia, N.A., Atlanta, Georgia
N.O.W. Account (2.50%)

$ 121,109.88 143,714.83 15,000.00
$ 279,824.71

See notes to the financial statements.

- 25 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "3"

Education, Georgia Department of Food Services National School Lunch Program Lottery Programs Distant Learning Computers in Classrooms Federal Funds Elementary and Secondary Education Act Chapter 1 Education of Deprived Children Chapter 2 Block Grant - Flow Through Title II Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act Title VI, B Flow Through Preschool Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,028.74
1,199.70 29,929.50

$ 1,028.74
1,199.70 29,929.50

8,087.58 2,875.19
2,803.50
33,805.02 1,169.00

8,087.58 2,875.19
2,803.50
33,805.02 1,169.00

Georgia State Financing and Investment Commission Reimbursement on Construction Project

$ 2,815.00

2,815.00

Jefferson, City of City Wide School Tax

$ 71,127.50

71,127.50

Jefferson High School Special Use of School Buses

1,777.45

1,777.45

Northeast Georgia Regional Educational Service Agency Reimbursement for Supplies

1,323.40

1,323.40

$ 74,228.35 $ 80,898.23 $ 2,815.00 $ 157,941.58

See notes to the financial statements.

- 26 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education. Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education other State Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and Performance-' Based Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant
Georgia Public Telecommunication Commission Lottery Program Distant Learning

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 1,700,160.00 396,617.00 13,170.00 75,105.00 24,487.00 507,640.00
25,320.00 7,660.00
50,382.00 34,049.00 48,251.00 -259,439.00 262,259.00
$ 1,218.00
7,200.00 12,531.00

$ 1,700,160.00 396,617.00 13,170.00 75,105.00 24,487.00 507,640.00

22,688.00

25,320.00 7,660.00
50,382.00 34,049.00 48,251.00 -259,439.00 262,259.00 22,688.00
1,218.00

7,200.00 12,531.00

2,450.00 2,683.44

2,095.40 39,045.50
1,199.70 8,475.00 21,243.40

2,450.00 2,683.44
2,095.40 39,045.50
1,199.70 8,475.00 21,243.40

4,735.00

4,735.00

$ 2,911,743.44 $

99,482.00 $ 3,011,225.44

See notes to the financial statements.

- 27 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

City Wide School Tax

City of Jefferson

$

727,317.73

$

Other After School Program Fees Dividends on Investments Donations Jefferson School System Foundation Gain on Sale of Investments Interest Earned Recovery from Antitrust Milk Lawsuit Reimbursement of Salaries Rents Sales Lunches and Breakfasts Shared Service Contributions City of Commerce Board of Education Jackson County Board of Education

22,673.92
4,457.03 5,091.83 $ 15,190.00 1,410.00
63,264.27 45,799.47

$

366.84

2,459.75 1,070.04

13,887.81

134,906.45

TOTAL
727,317.73
22,673.92
366.84
4,457.03 13,887.81 7,551.58 1,070.04 15,190.00 1,410.00
134,906.45
63,264.27 45,799.47

$

885,204.25 $

138,436.24 $ 14,254.65 $ 1,037,895.14

See notes to the financial statements.

- 28 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 2,667,998.56 $ 173,022.76 $ 2,841,021.32

540,595.55

31,644.48

572,240.03

5,276.51

2,185.11

7,461.62

17,837.39

551.53

18,388.92

2,999.77

2,999.77

19,161.46

19,161.46

118,345.28

24,410.60

142,755.88

53,269.00

53,269.00

16,658.40

750.65

17,409.05

7,834.00

7,834.00

1,596.74

1,596.74

50,785.77

3,900.00

54,685.77

42,446.79

2,533.89

44,980.68

82,508.61

36,115.19

118,623.80

126,340.10

126,340.10

127,801.98

127,801.98

12,218.29

471.20

12,689.49

3,656.76

1,487.00

5,143.76

2,283.98

2,283.98

5,997.12

170.00

6,167.12

61,933.91 245,735.74

75,285.40

61,933.91 321,021.14

Total Expenditures

$ 4,083,882.99 $ 481,926.53 $ 4,565,809.52

See notes to the financial statements.

- 29 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1994

EXPENDITURES Operating Costs Repair and Maintenance Services Supplies Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

2,095.40

$

- - - - - $ _ _3_9...,.0. 4_5._5_0

1,199.70

$

2,095.40 $

39,045.50 $ ========1=,1=9=9.=70=

See notes to the financial statements.

- 30 -

SCHEDULE "7"

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING

TOTAL

$

21,243.40

$

$ _ _ _8...,.4._7_5._00_ - - - - - $ _ _ _4...,.7._3_5._00_

21,243.40 3,295.10
52,255.50

$

8,475.00 $

21,243.40 $

4,735.00 $ ====7=6,=79=4=.00=

- 31 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF EXPENDITURES BY OBJECT
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1994

SCHEDULE "8"

EXPENDITURES
Operating Costs Professional and Technical Services
Nonoperating Costs Equipment

$

270.75

48,596.38

Total Expenditures

$ 48,867.13

See notes to the financial statements.

- 32 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1994

SCHEDULE "9"

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

THIRTEEN
WEIGHTED AND
MEDIA CENTER PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 2,216,668.00 $

24,487.00

$ 2,293,874.19 109,852.38 $
$ 2,403,726.57 $

17,017.09 17,017.09

-16,944.06

$ 2,386,782.51 $

-2,559.31 14,457.78

$

------ 0.00 $

10,029.22

See notes to the financial statements.

- 33 -

CllY OF JEFFERSON BOARD OF EDUCATION JACKSON COUNlY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALllY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1994

QENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (") Grades 1 - 3 (") Sub-Total - K-3 Grades 4 - 5 (") Grades 6 - 8 (") Grades 9 -12 (*) High School Laboratories (") Vocational Education Laboratories(") Total General and Career Education Programs
SPECIAb E~ATION PROGRAMS Regular Programs Category I (") Category II (") Category "' (") Category IV (") Itinerant Supplemental Speech Sub-Total Regular Category V (Gilled) (*) Total Special Education Programs
REMEQIAL, EDUCATI~ PROGRAM (:l MEDIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
-
STAFF DEVELQEMENT PROGRAMS (1) Cost IX Instruction Prolessional Development
Total staff Development
(") Identifies Thirteen Weighted Programs.
Note: (1) $2,848.95 IX the allotment for Professional De\lefopment has been transferred to Cost IX Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL

%

ORIGINAL

MID-TERM

REQUIRED

$

205.822.00

$

185,239.80 $

498,984.00

449,085.60

$

704,806.00 90 $

634.325.40 $

250,659.00 90

225,593.10

359,394.00 90

323,454.60

200,314.00 90

180,282.60

106,997.00 90

96,297.30

77990.00 90

70,191.00

$ 1,700,160.00

$ 1,530,144.00 $

0.00 $

185,239.80

7,980.00

457,065.60

7,980.00 $

642,305.40

225,593.10

5,600.00

329,054.60

180,282.60

18,653.00

114,950.30

-1,980.00

68 211.00

30,253.00 $ 1,560,397.00

$

384,963.00

$

346,466.70 $

0.00 $

346,466.70

$

384,963.00 90 $

346,466.70 $

11 654.00 90

10,488.60

$

396,617.00

$

356,955.30 $

$

13,170.00 90 $

11,853.00 $

$

75,105.00 90 $

67,594.50 $

0.00 $ 0.00 0.00 $ 0.00 $ 1,363.00 $

346,"66.70 10488.60
356,955.30 1\853.00 68,957.50

$ 2,185,052.00

$ 11966,546.80 $

31,616.00 $ 1,998,162.80

$

8,342.95 100 $

8,342.95 $

16144.05 100

16144.05

0.00 $

8,342.95 16144.05

$

24,487.00

$

24,487.00 $

0.00 $

24,487.00

$ 2,209,539.00

$ 1,991,033.80 $

31,616.00 $ 2,022,649.80

- 34

SCHEDULE "10 "

REQUIRED ALLOTMENT

DISTRIBUTION BY RESPECTIVE PORTIONS

SALARIES

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

REQUIRED

ACTUAL

ALLOTMENT

ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

180,662.40 $

186,105.52

441 619.80

436,821.27

$

622,282.20 $

622,926.79 $

219,065.40

251,624.34

318,892.50

318,454.07

172,782.90

322,979.87

110,334.60

112,867.65

61,539.30

136,723.11

$ 1,504,896.90 $ 1,765,575.83 $

$

4,577.40 $

4,833.38

15 445.80

15 779.43

0.00

$

20,023.20 $

20,612.81 $

0.00

6,527.70

8,158.08

438.43

10,162.10

10,171.68

0.00

7,499.70

8,678.42

0.00

4,615.70

4,646.29

0.00

6,671.70

6,802.00

438.43

$

55,500.10 $

59,069.28 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

$

7,660.80 $

70,278.46

99,003.60

116,938.54

220,637.70

217,886.84

10,214.10

0.00

$

337,516.20 $

405,103.84 $

10 215.00

21,770.52 $

$

347,731.20 $

426,874.36

$

11 655.90 $

22,753.50 $

$

54657.40 $

78,670.50 $

$ 1,918,941.40 $ 21293,874.19 $

$

0.00

$

0.00

$

0.00

$

0.00

$

369.90 $ 1,993.50 5,652.00
328.50 216.90 389.70
8,950.50 $
273.60
9 224.10 $
197.10 $
14,300.10 $

802.49 1,934.79 31,827.23
946.46
35,510.97 $ 275.61 $
35 786.58 254.96 $
14,741.56 $

438.43

$

79,221.40 $

109,852.38 $

0.00 0.00
0.00 0.00
0.00

$

8,342.95 $

10,902.26 $

16,144.05

6,114.83

0.00 10,029.22

$

24,487.00 $

11,011.09 $ _ _ _ _1_0_,0_2_9_2_.2.

$ 1 918,941.40 $ 2,293,874.19 $ _ _ _ _ _43....,84..3.

$

103,708.40 $

126,869.47 $ _ _ _ _1_0_,0_2_9_2__2

- 35 -

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1994

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Ronald K. Hopkins, Chairman (*) P.O. Box429 Jefferson, Georgia 30549
Mr. Mark Arnold (*) 2146 Athens Highway Jefferson, Georgia 30549
Mrs. Guy Dean Benson(*) 90 Deerwood Lane Jefferson, Georgia 30549
Mr. Byrd M. Bruce 171 Washington Street Jefferson, Georgia 30549
Mr. Derrell Crowe (*) 1315 Old Swimming Pool Road Jefferson, Georgia 30549
Mr. Willie Hughey (*) 500 Martin L. King, Jr. Drive Jefferson, Georgia 30549
Mr. Horace Jackson(*) P.O. Box396 Jefferson, Georgia 30549

COMPENSATION

TRAVEL

$

525.00 $

681.09

350.00

43.68

350.00

350.00

350.00

350.00

$

2,275.00$

724.77

(*) Denotes Board Members Serving as of June 30, 1994

See notes to the financial statements.

- 36 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofJefferson 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 financial statements of the City of Jefferson Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 14, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to City of Jefferson Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions of laws, 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.
94CRL-10

The results of our tests indicate that, with respect to the items tested, the City of Jefferson Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jg 94CRL-I0

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofJefferson Board ofEducation

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

Ladies and Gentlemen:

We have audited the financial statements of the City of Jefferson Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 14, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the financial statements.

We have applied procedures to test the City of Jefferson Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office ofManagement 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 ofwhich is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-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 Jefferson 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.

CLV:jg 94CRL-40

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W_, Suite 214 Atlanta, Georgia 30334-8400
March 14, 1995

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

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

Ladies and Gentlemen:

We have audited the financial statements of the City of Jefferson Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 14, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the financial statements.

In connection with our audit of the fiscal year 1994 financial statements of the City of Jefferson Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994_ As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg:

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

94CRL-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 ofJefferson Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t:L__~
Claude L. Vickers State Auditor
CLV:jg 94CRL-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
March 14, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofJefferson Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of the City of Jefferson Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 14, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the financial statements_
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement_
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures_
In planning and performing our audit of the financial statements of the City of Jefferson Board ofEducation for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure.

94ICL-3

The management of the City of Jefferson Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of 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.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or ope~~tion 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 financial statements.

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

(I) Accounting Controls (Overall)

(2) Cash and Cash Equivalents

(3) General Fixed Assets

94ICL-3

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 financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all ofthe reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe City of Jefferson Board ofEducation's financial statements and this report does not affect our report thereon dated March 14, 1995.
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.
Re2submi/tt7.edL,~~~

CLV:jg 94ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Jefferson Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the financial statements of the City of Jefferson Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 14, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the fipancial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the City of Jefferson Board of Education complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as .inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's financial statements and to report on the internal control structure in accordance with 0MB 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
94ICL-15

addressed internal control structure policies and procedures relevant to our audit of the financial statements in a separate report dated March 14, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

(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 ofthe design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1994, the City ofJefferson Board ofEducation had no major Federal financial
assistance programs and expended 57% ofits total Federal financial assistance under the following nonmajor Federal financial assistance programs:

94ICL-15

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act Chapter 1 - Education ofDeprived Children
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as described above that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other pwpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~u:~
Claude L. Vickers State Auditor
CLV:jg 94ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Delinquent Program Reports Federal Financial Assistance Finding Resolved Audit Control Number 7791-93-04
The audit report for the year ended June 30, 1993, stated that the Board failed to file several final completion reports by the required date in accordance with regulations established by the GeC!rgia Department of Education. In the year under review, final completion reports for all programs were filed as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount $1,219.82 Audit Control Number 7791-93-05
The audit report for the year ended June 30, 1993, stated that the Board had underexpenditures of Quality Basic Education (QBE) funds of$1,219.82 for the salaries portion of the Special Education - Gifted Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $5,457.10 Audit Control Number 7791-93-06
;,,
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $5,457.10 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. These funds 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.

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Financial Records Federal Financial Assistance Finding Resolved Audit Control Number 7791-93-08
The audit report for the year ended June 30, 1993, reported that a comparison of the City of Jefferson Board ofEducation's project completion report for Education for Economic Security Act - Title Il - 1993 Regular Program (CFDA 84.164) to the accounting records revealed that the project completion report was not supported by total expenditures recorded for this program in the accounting records. The Georgia Department of Education reviewed this matter and determined that the Board's corrective action plan was acceptable, without a reclaim of funds.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7791-93-01
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. In the year under review, no improvement in the separation of employee duties was noted. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
...
Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "l" of this report are affected by this finding.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Accounting/Internal Control Deficiencies Reportable Condition - Material Weakness Audit Control Number 7791-93-02
The audit report for the year ended June 30, 1993, noted weaknesses in internal controls and deficiencies in
the Board's accounting system related to journal entries. For the year under review, these problems continued to exist. Journal entries were made without written authorization, documentation, or explanation. This

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Accounting/Internal Control Deficiencies Reportable Condition - Material Weakness Audit Control Number 7791-93-02
condition resulted from management's failure to properly maintain control over adjusting journal entries. The Board should implement procedures to ensure that all journal entries are properly authorized and documented prior to recording in the accounting records.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7791-93-03
The audit report for the year ended June 30, 1993, noted that the management of the City of Jefferson Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish General Fixed Assets Account Group within the formal accounting records. This condition results in the financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
EMPLOYEE COMPENSATION Payroll Reporting Financial Statements Nonmaterial Noncompliance Audit Control Number 7791-93-07
The audit report for the year ended June 30, 1993, noted that the City of Jefferson Board ofEducation had made payments for Sick Leave Incentive Pay and for Honoraria in the amounts of $2,250.00 and $450.00 respectively to employees without making payroll deductions and without reporting appropriately on W-2's. For the year under review, the Board again made payments for Sick Leave Incentive Pay and for Honoraria in the amounts of$300.00 and $1,950.00 respectively without making the appropriate payroll deductions and failed to include these payments on the employees W-2 statement. This condition resulted from management's decision to not process the above payments through the payroll system.

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
EMPLOYEE COMPENSATION Payroll Reporting Financial Statements Nonmate,rial Noncompliance Audit Control Number 7791-93-07
Internal controls should be established by the Board to ensure that payroll deductions are properly made from all salaries or compensation paid and appropriately reported on W-2's as required by State and Federal laws and regulations.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7791-94-01
As of June 30, 1994, the City of Jefferson Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code ofGeorgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any one 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 ofthe face value ofsuch surety bond, the face or par value of securities pledged, and the amount of deposit insurance shall be equal to not less than 110 percent of the public funds being secured...after the deduction ofthe 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 ofbank balances to ensure compliance at all times with State laws governing deposits and investments.

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount $438.43 Audit Control Number 7791-94-02
For the year under review, the City of Jefferson Board ofEducation had underexpenditures of Quality Basic Education (QBE) funds of $438.43 for the salaries portion of the General and Career Education Grades 6 8 Program. This noncompliance resulted from management's failure to expend the required allotment for this QBE program. These funds 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.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $10,029.22 Audit Control Number 7791-94-03
For the year under review, the Board reported to the Georgia Department ofEducation on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $10,902.26 for Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than the 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost of Instruction program purposes resulting in an underexpenditure of $10,029.22 for the minimum required allotment of$16,144.05 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
...

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount $1,219.82 Audit Control Number 7791-93-05
It is the opinion of the Jefferson City Board that this matter can only be dealt with through the Georgia Department ofEducation.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $5,457.10 Audit Control Number 7791-93-06
The Jefferson City Board ofEducation does not agree with finding. We followed written instructions by the Georgia Department ofEducation on the allowable expenditure ofthese funds. However, we have recently received documentation that the amount in question will be taken away from our local fair share but given back to us in mid-term adjustment.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7791-93-01
Due to current staffing positions we have separated office and accounting duties as -much as possible.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Accounting/Internal Control Deficiencies Reportable Condition - Material Weakness Audit Control Number 7791-93-02
We have now implemented controls to have written authorization to adjusting journal entries made to the books.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7791-93-03
We accept this finding and realize that it will continue until we have general fixed assets recorded on the books.

CITY OF JEFFERSON BOARD OF EDUCATION - JACKSON COUNTY SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1994
EMPLOYEE COMPENSATION Payroll Reporting Financial Statements Nonmaterial Noncompliance Audit Control Number 7791-93-07
Procedures have been implemented to correct this finding. All stipends paid to employees will be issued on a W-2 form.
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7791-94-01
Procedures are now in place to have all funds properly collateralized at all the banks with balances.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount $438.43 Audit Control Number 779J-94-02
Steps are in place to monitor all funds and make sure all monies are expended.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $10,029.22 Audit Control Number 7791-94-03
We do not agree with this finding. We followed written instructions by the Georgia Department of Education on the allowable expenditures for these funds. However, we have recently received documentation that the amount in question will be taken away from our local fair share but given back to us in mid-term adjustment.