Audit report, City of Social Circle Board of Education, a component unit of the city of Social Circle, Georgia, year ended June 30, 1994

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

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

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIIlBITS

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

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

22

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

23

3 ACCOUNTS RECEIVABLE

24

SCHEDULE OF REVENUE

4

STATE FUNDS

25

5

LOCAL AND OTHER FUNDS

26

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

27

7

LOTTERY PROGRAMS

28

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

29

9

BYPROGRAM

30

10 SCHEDULE OF BOARD MEMBERS

32

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

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~ep~rfmenf .of J\unifs
254 WASHINGTON STREET, SW. ROOM 214
J\thmht, .eorJia 30334-8400
February 9, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Social Circle 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) of the City of Social Circle Board of Education, 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.
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.
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.

94ARL-23

* 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 ofthese variances or omissions have not been determined, but are believed to be material.
In our opinion, 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 ofthe City of Social Circle Board ofEducation as ofJune 30, 1994, and the results of its 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 Social Circle Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which includes the Schedule ofFederal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the financial statements of the City of Social Circle Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
t:1~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-23

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY -I-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 1994

EXHIBIT "A"

ASSETS

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

ACCOUNT GROUP

TOTALS

GENERAL

(MemorandLlll Only)

LONG-TERM DEBT

J-U-N-E--3--0-, --1-9-9-4---JU-N-E---3-0-,--1-9-9-3

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

$ 260,533.21 $ 385.81

92,767.98$ 160,895.84

44,885.03

7,025.02

5,110.15 1,841.43

$

$ 514,197.03 $ 806,808.17

52,295.86

16,168.87

5,110.15 1,841.43

6,788.80 2,439.72

58,641.16

58,641.16

87,098.00

------------- -------------

Total Assets

$ 260,919.02
===========

$ 144,604.59
============

$==1=6=7=,=9=2=0=.8=6$====5==8=,6==4=1=.-1=6$===6=3=2,=0=85=.=6=3

$===9=1=9,=3=0=3.=5=6

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payab1e

$

Salaries Payable

Expired Grant Balances Payable

Contracts Payable

Retainages Payable

Unearned Lottery Funds

Capital Lease Agreements

28,332.41 $ 5,242.66

37,706.01 11,950.72 1,103.89
$ 2,481.07

1,166.50 45,277.25
$

Total Liabilities

$ 33,575.07 $ 53,241.69 $ 46,443.75$

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal

Pre>grams

For Expired Grant Balances/

Questioned Costs

$

For Inventories

Food

Donated Conmodities

Purchased Food

For State Capital Outlay

Projects

$ 23,539.90

1,144.46 5,110.15 1,841.43

Unreserved Undesignated

$ 23,539.90$ 8,096.04 203,804.05 83,266.86$ 121,477.11

Total Fund Equity

$ 227,343.95$ 91,362.90$ 121,477.11

$ 58,641.16

66,038.42 $ 17,193.38 1,103.89 1,166.50 45,277.25 2,481.07 58,641.16

7,580.69 17,518.32 3,344.43 24,294.30 87,098.00

58,641.16$ 191,901.67 $ 139,835.74

$ 1,144.46$ 23,539.90

156.29 5,193.44

5,110.15 1,841.43

6,788.80 2,439.72

134,254.46
------------- -------------
$ 31,635.94 $ 148,832.71

408,548.02 630,635.11
------------- -------------

$ ---4--4-0-,1--8-3-.9--6

$ 779,467.82
-------------

Total Liabilities and

Fund Equity

$ 260,919.02
============

$ 144,604.59
============

$ 167,920.86
========-=-=

$--===5=8-,=6=4=1=.=1-6$==6-3--2-;0=8-5-.-6=3

$---=9=19--,3=0=3=.5-6-

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

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandl.lTI Only)
YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

REVENUES

State Funds Federal Funds Local and Other Funds

$3,352,926.60$ 195,037.38$ 69,831.62 $3,617,795.60$ 3,311,922.06

379,821.45

379,821.45 410,059.30

878,891.71 116,480.96 252,519.12 1,247,891.79 1,127,624.91

Total Revenues

$ 4,231,818.31 $ 691,339.79 $ 322,350.74$ 5,245,508.84$ 4,849,606.27

EXPENDITLRES

Current Instruction Support Services Pupil Services Improvenent of Instructional Services Educational Media Services General Administration School Adninistration Business Adninistration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest
Total Expenditures

$ 2,758,270.43 $ 209,121.19

$ 2,967,391.62 $ 2,704,460.99

96,567.57 51,088.03 124,387.35 153,399.89 343,490.43 373,308.52 149,297.58 69,431.22 25,061.76

23,203.38 7,669.52 15,300.54 8,415.59
533.35 17,312.36 18,687.00 1,253.07 37,521.31 353,742.06

119,770.95 58,757.55 139,687.89 161,815.48 343,490.43
533.35 390,620.88 167,984.58 70,684.29 62,583.07 353,742.06

91,517.13 29,902.29 131,470.43 149,884.25 315,795.01
325.20 346,857.49 254,280.80 83,841.26 71,074.06 363,667.56

51,273.20

51,273.20

44,098.57

2,000.00$ 660,128.09 662,128.09 300,745.38

28,456.84

28,456.84

3,595.48
-------------

-------------

-------------

3,595.48
-------------

-------------

$4,227,628.30$ 694,759.37 $ 660,128.09 $ 5,582,515.76 $ 4,887,920.42

Excess of Revenues over (under) Expenditures $ 4,190.01 $ -3,419.58 $ -337,777.35 $ -337,006.92 $ -38,314.15

OTHER FINANCING SOLRCES (USES)

Capital Lease Operating Transfers In Operating Transfers Out

87,098.00

$ 10,591.65 $ 325,000.00 $ 335,591.65 $ 117,951.45

$ -335,591.65

-335,591.65 -117,951.45

Total Other Financing Sources (Uses)

$ -335,591.65 $ 10,591.65 $ 325,000.00 $

0.00 $ 87,098.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other

Financing Uses

$ -331,401.64 $

FUND BALANCE JULY 1

558,745.59

7,172.07 $ -12,777.35 $ -337,006.92 $ 48,783.85 86,467.77 134,254.46 779,467.82 721,455.45

Food Inventory Donated Cannodities July 1 June 30 Purchased Food July 1 June 30

-6,788.80 5,110.15

-6,788.80 5,110.15

6,788.80

-2,439.72

-2,439.72

-------------

------1-,8-4--1-.4--3

-------------

1,841.43
-------------

2,439.72
-------------

FUND BALANCE JUNE 30

$===2=2==7=,3=4=3=.=9=5$ ====9==1=,=3=6=2=.=9=0$ ===1==2=1=,4=7=7=.=1=1-

$ 440,183.96
=============

$====7=7=9=,4=6==7=.8=2=

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

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

ACTUAL

ACTUAL

PER

PER

EXHIBIT "B" ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federa 1 Funds Local and Other Funds
Total Revenues

$3,617,795.60$ 379,821.45
1,247,891.79 $5,245,508.84$

0.00 $ 3,617,795.60 $3,583,142.18$ 34,653.42

379,821.45 354,044.00

25,777.45

1,247,891.79 831,918.94 415,972.85

o.oo $ 5,245,508.84 $ 4,769,105.12 $ 476,403.72

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Acininistration School Adninistration Business Adninistration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Total Expenditures

$ 2,967,391.62 $

0.00 $ 2,967,391.62 $ 3,083,443.41 $ 116,051.79

119,770.95 58,757.55 139,687.89 161,815.48 343,490.43
533.35 390,620.88 167,984.58 70,684.29 62,583.07 353,742.06

119,770.95 58,757.55 139,687.89 161,815.48 343,490.43
533.35 390,620.88 167,984.58 70,684.29 62,583.07 353,742.06

149,502.24 55,168.98 182,934.87 151,791.45 337,358.55
735.00 405,681.58 191,691.83 72,207.51 73,355.56 346,171.81

29,731.29 -3,588.57 43,246.98 -10,024.03 -6,131.88
201.65 15,060.70 23,707.25 1,523.22 10,772.49 -7,570.25

51,273.20

51,273.20

55,417.26

4,144.06

662,128.09

662,128.09

2,000.00 -660, 128. 09

32,052.32

32,052.32

-32,052.32

------------- ------------- ------------- ------------- -------------

$5,582,515.76$

0.00 $ 5,582,515.76 $5,107,460.05$ -475,055.71

Excess of Revenues over (under) Expenditures $ -337,006.92 $

0.00 $ -337,006.92 $ -338,354.93 $ 1,348.01

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 335,591.65$ -335,591. 65

0.00 $ 335,591.65$ -335,591.65

0.00 $ 335,591.65 -335,591.65

Total Other Financing Sources

(Uses)

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other

Financing Uses

$ -337,006.92 $

FUND BALANCE JULY 1, 1993

779,467.82

0.00 $ -337,006.92 $ -338,354.93 $ 1,348.01 -9,228.52 770,239.30 802,296.47 -32,057.17

ADJUSTMENTS

Prior Year (Net) FOOD INVENTORY

0.00

-2,704.17

2,704.17

Donated Commodities July 1 1993 June 36, 1994
Purchased Food July 1 1993 June 36, 1994

-6,788.80

6,788.80

0.00

0.00

5,110.15

-5,110.15

0.00

0.00

-2,439.72

2,439.72

0.00

0.00

1,841.43

-1,841.43

0.00

0.00

------------- ------------- ------------- ------------- -------------

FUND BALANCE JUNE 30, 1994

$===4=4==0=,1=8=3=.=9=6$=====-6==,9=5=1==.5=8= $===4==3=3=,2=3==2=.3=8= $===4==6=1=,2=3==7=.3=7= $===-=2=8=,=0=0=4=.9=9=

The notes to the financial statements are an integral part of this statement.
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CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Social Circle Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance ofa school board composed of seven members; five members elected by the public and two members appointed by the Mayor and City Council of Social Circle; 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 ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant 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 Social Circle. Based upon the application of the above criteria, the City of Social Circle Board ofEducation is determined to be a component unit of the City of Social Circle, Georgia for financial reporting purposes.
Board members have decision making authority, the power to designate management, the ability to significantly influence oper~tions, but do not have the authority to levy taxes or incur bonded indebtedness. The Board is required to submit a budget to the City Council for approval. The City Council determines the amount of tax revenues flowing to the Board.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results 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 activ.ities.
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.

- 5-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the financial statements.
The financial statements account for all State, Federal, Local and Other Funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board ofeducation.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
- 6-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants, and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days.after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 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 of Education 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.
BUDGET
The City of Social Circle Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval 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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and with approval of the City Council adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
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CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES

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 of Social Circle fixed the property tax levy for the 1993 tax year (calendar year) on October 28, 1993 (levy date). Taxes were dueon December 28, 1993. 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 of GASB codification section P70. l 03. The City of Social Circle Clerk bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board.

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

School Operations

9.05 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

- 8-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results 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.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the State of Georgia,
- 9-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note 2: DEPOSITS

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $893,702.33. 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.

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

Bank Balance

1

$ 100,000.00

2

793,702.33

3

0.00

Total

$ 893,702,33

Note 3: NON-MONETARY TRANSACTIONS

DONATED COMMODITIES 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

- 10 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note 3: NON-MONETARY TRANSACTIONS

DONATED SCHOOL BUS On May 17, 1994, the City of Social Circle Board of Education received title to a 1995, 72 passenger, school bus. The purchase price of $39,938.00 was paid by the City Council of the City of Social Circle. The revenues and expenditures for this transaction are not reflected in these financial statements.

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, no claims were paid.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASE The City of Social Circle Board ofEducation has entered into a lease agreement as lessee for the purchase of buses. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as ofthe date of its inception.

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

Balance July 1, 1993 Deductions Balance June 30, 1994

Capital Lease
$ 87,098.00
28,456.84
$ 58,641.16

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
Total Principal and Interest Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Lease $ 32,052.32 32,052.32 $ 64,104.64
5 463.48
$ 58,641 16

- 11 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of $73,716.58 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department of Education has funding available to the Board in the amount of $73,658.63 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:

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

$ 38,525.00 3,000.00
32,101.63 89.95

$ 73,716.58

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.

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 of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 12 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "D"

Note 8: RETIREMENT PLANS

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

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $2,820,378.70; total payroll was $3,166,368.35.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $502,310.09, of which $333,087.26 was made by the Board and $169,222.83 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 of June 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

- 13 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

Note 8: RETIREMENT PLANS

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 $333,087.26 was actuarially determined and represented .0638% of total contributions 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 of Georgia.

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years 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 of what the employee would have received upon retirement.

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

There were 27 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.

- 14 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

Note 8: RETIREMENT PLANS
Total contributions from employees of the Board made during fiscal year 1994 amounted to $904.00. 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. John T. Burks, School Superintendent through August 14, 1994, was bonded in the amount of$5,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 02-0170-0167276-7.
The School Superintendent, Mr. Larry Harmon, effective August 15, 1994, is bonded in the amount of $5,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 020170-10994-94-5, on which premium is paid through August 15, 1995.

- 15 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON 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 Unearned Lottery Funds
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

SCHOOL

DRUG-FREE

FOOD

SCHOOLS AND

SERVICES

LOTTERY

COMMUNITIES

FUND

PROGRAMS

ACT

------------- ------------- -------------

$ 87,305.04 $ 2,443.07 $

0.00

2,609.66

35,375.37

5,110.15 1,841.43
------------- ------------- -------------

$ 96,866.28 $ 37,818.44 $

0.00

============= ============= =============

$ 1,072.68 $ 35,325.27 5,575.16 12.10 2,481.07
------------- -------------
$ 6,647.84 $ 37,818.44
------------- -------------

$

5,110.15

1,841.43

-------------

$ 6,951.58

----8--3-,2--6-6-.8--6

$

0.00

-------------

$

0.00

-------------

$ 90,218.44 $

0.00 $

0.00

------------- ------------- -------------

$ 96,866.28 $ 37,818.44 $

0.00

============= ============= =============

See notes to the financial statements.

- 16 -

EXHIBIT "E"

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1
------------EDUCATION OF
DEPRIVED CHILDREN

CHAPTER 2 ------------B(OCK GRANT -
FLOW THROUGH

TITLE II EISENHOWER MATHEMATICS AND SCIENCE EDUCATION

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 2,127.00$ 6,400.00

173.22 $ 1,144.46$

68.61 $

$ 500.00

93,261.40 $ 44,885.03

79,488.29 15,909.87

5,110.15 1,841.43

6,788.80 2,439.72

$ 8,527.00$

173.22 $ 1,144.46 $

68.61 $

500.00 $ 145,098.01 $ 104,626.68

============= ============= ============= ============= ============= ============= =============

$ 1,308.06
6,375.56 843.38 $

173.22

------------- -------------

$ 8,527.00 $

173.22

------------- -------------

$

493.42 $

493.42

37,706.01 $ 2,514.98

11,950.72

12,299.50

$

68.61

6.58

1,103.89

3,344.43

2,481.07
------------- ------------- ------------- -------------

$

68.61 $

500.00 $ 53,735.11 $ 18,158.91

------------- ------------- ------------- -------------

$ 1,144.46

$ 1,144.46 $

156.29

$ 1,144.46

5,110.15

6,788.80

1,841.43

2,439.72

------------- -------------

$ 8,096.04 $ 9,384.81

$

0.00 $

0.00

0.00 $

0.00 $

0.00

83,266.86

77,082.96

$

0.00 $

0.00 $ 1,144.46 $

0.00 $

0.00 $ 91,362.90 $ 86,467.77

$ 8,527.00$

173.22 $ 1,144.46 $

68.61 $

500.00 $ 145,098.01 $ 104,626.68

============= ============= ============= ============= ===-===-===-- -============ =============

- 17 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE 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 Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Land and Land Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory Donated Commodities July 1 June 30 Purchased Food July 1 June 30

SCHOOL FOOD SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 22,232.00$ 172,805.38

209,903.97

$

116,480.96

$ 348,616.93 $ 172,805.38$

7,738.00 7,738.00

$ 120,065.26$
19,457.39 1,126.93 2,898.37

$ 352,893.36

14,673.95 12,374.00
340.80
2,000.00

$ 352,893.36$ 172,936.70$

$ -4,276.43 $

-131.32 $

7,720.93 17.07
7,738.00 0.00

10,460.33

131.32

$ 6,183.90 $

0.00 $

0.00

86,311.48

0.00

0.00

-6,788.80 5,110.15
-2,439.72 1,841.43

FUND BALANCE JUNE 30 See notes to the financial statements.

$ 90,218.44$

0.00 $

0.00

============= ============= =============

- 18 -

EXHIBIT "F"

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1
------------EDUCATION OF
DEPRIVED CHILDREN

CHAPTER 2 ------------BLOCK GRANT FLOW THROUGH

TITLE II EISENHOWER MATHEMATICS ANO SCIENCE
EDUCATION

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 195,037.38 $ 19,640.00

$ 86,820.89 $

8,173.78 $

7,000.00 $ 48,915.39 $ 11,269.42

379,821.45

409,800.30

116,480.96

118,657.33

------------- ------------- ------------- ------------- ------------- ------------- -------------

$ 86,820.89
-------------

$

B,173.78

-------------

$

7,000.00

-------------

$ 48,915.39
-------------

$ -----1-1-,-2-6-9-.-4-2

$ 691,339.79
-------------

$ 548,097.63
-------------

$ 69,493.91

$

3,096.12 $

8,744.97 $ 209,121.19 $ 117,680.82

4,246.42 $ 2,330.88
2,638.41 6,313.00
949.57
848.70

$ 8,155.75
18.03

5,996.39 15.44

3,570.01 324.24
6,034.17 533.35
303.50 35,054.00

175.98 221.96
2,126.51

23,203.38 7,669.52
15,300.54 8,415.59
533.35 17,312.36 18,687.00
1,253.07 37,521.31 353,742.06

1,147.24 6,919.30 9,973.33 8,925.46
275.20 6,280.87
5,062.00 4,808.47
44,115.77 363,667.56

2,000.00
------------- ------------- ------------- ------------- ------------- ------------- -------------

$ 86,820.89
-------------

$------8-,1-7--3-.7--8

$------6-,0-1--1-.8-3-

$-----4-8-,9--1-5-.3--9

$ 11,269.42
-------------

$ 694,759.37
-------------

$ 568,856.02
-------------

$

0.00 $

0.00 $

988.17 $

0.00 $

0.00 $ -3,419.58 $ -20,758.39

10,591.65

16,951.45

$

0.00 $

0.00 $

988.17 $

0.00 $

0.00 $

7,172.07 $ -3,806.94

0.00

0.00

156.29

0.00

0.00

86,467.77

81,046.19

-6,788.80 5,110.15
-2,439.72 1,841.43

6,788.80 2,439.72

$

0.00 $

0.00 $ 1,144.46 $

0.00 $

0.00 $ 91,362.90 $ 86,467.77

============= ============= ===========-- =======-===-- ==========-== ============= =============

- 19 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1994

EXHIBIT "G"

ASSETS
Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 94-786-078

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 121,477.11 $

39,418.73 $ 160,895.84 $ 158,548.76

7,025.02

7,025.02

Total Assets

$ 121,477 .11 $ 46,443.75 $ 167,920.86$ 158,548.76
============= ============= ============= =============

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

1,166.50 $

1,166.50

45,277.25

45,277.25 $ 24,294.30

------------- ------------- -------------

$ 46,443.75 $ 46,443.75 $ 24,294.30
------------- ------------- -------------

$ 134,254.46

$ 121,477 .11 $

0.00 $ 121,477.11

0.00

------------- ------------- ------------- -------------

$ 121,477.11 $

0.00 $ 121,477.11 $ 134,254.46

------------- ------------- ------------- -------------

Total Liabilities and Fund Equity $ 121,477.11 $ 46,443.75$ 167,920.86 $ 158,548.76
============= ============= ============= =============

See notes to the financial statements.

- 20 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION -------------
PROJECT 94-786-078

TOTALS
---------------------------YEAR ENDED
---------------------------JUNE 30, 1994 JUNE 30, 1993

REVENUES

State Funds Local and Other Funds
Total Revenues
EXPENDITURES

$

0.00 $ 69,831.62 $ 69,831.62 $ 59,333.40

252,519.12

252,519.12

153,486.19

------------- ------------- ------------- -------------

$

0.00 $ 322,350.74 $ 322,350.74 $ 212,819.59

------------- ------------- ------------- -------------

Current Support Services Business Administration
Capital Outlay Building and Building Improvements

$

50.00

$

3,522.89 $ 656,605.20 $ 660,128.09

300,745.38

------------- ------------- ------------- -------------

Total Expenditures

$ 3,522.89 $ 656,605.20 $ 660,128.09 $ 300,795.38
------------- ------------- ------------- -------------

Excess of Revenues over (under) Expenditures $ -3,522.89 $ -334,254.46 $ -337,777.35 $ -87,975.79

OTHER FINANCING SOURCES

Operating Transfers In

125,000.00

200,000.00

325,000.00

101,000.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

FUND BALANCE JULY 1

121,477.11 $ -134,254.46 $

0.00

134,254.~6

-12,777.35 $ 134,254.46

13,024.21 121,230.25

FUND BALANCE JUNE 30

$ 121,477.11 $
=============

0.00 $ 121,477.11 $ 134,254.46
============= =============

See notes to the financial statements.

- 21 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AW~DS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994 Contract Food Services School Breakfast Program 1993 Grant 1994 Grant National School Lunch Program 1994 Grant Food Distribution Program (1)

10.558 $ 1,581.56 $ 1,581.56 $ 1,581.56

(2)

10.553

5,306.22

10.553

38,266.23

37,019.34

38,266.23

(2)

10.555 147,051.50 145,688.73 147,051.50 $ 329,888.68(3)

10.550

23,004.68

N/A

23,004.68

23,004.68

------------- ------------- ------------- -------------

Total U. S. Department of Agriculture

$ 209,903.97 $ 189,595.85$ 209,903.97 $ 352,893.36
------------- ------------- ------------- -------------

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Comnunities Act 1994 Grant Elementary .and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1993 SL11111er - 1993 Regular 1993 SL11111er - 1994 Regular 1993 Carry-Over 1994 Regular Chapter 2 Block Grant - Flow Through 1994 Regular Title II . Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act Title VI, B Flow Through 1993 Regular 1993 Carry-Over 1994 R~ular Preschool Program 1993 Regular 1993 Carry-Over 1994 Regular Vocational Education - Basic Grants to States High School Program Supplementary State Grant 1993 Grant

84.186 $ 84.010 84.010 84.010 84.010 84.010 84.151 84.164 84.164 84.027 84.027 84.027 84.173 84.173 84.173 84.253

7,738.00$
695.00 59,981.00 8,347.00 7,000.00 6,930.00 42,054.00 6,976.00 11,568.00

7,738.00$ 10,392.94
-532.01 28,469.27
695.00 52,100.00 8,347.00
7,000.00 -2,338.36 6,930.00 42,054.00
-470.34 6,976.00 3,800.00
259.00

7,738.00$
28,469.27 695.00
57,656.62 8,173.78 7,000.00 6,930.00 41,985.39 6,976.00 4,293.42

7,738.00
28,469.27 695.00
57,656.62 8,173.78
156.29 5,855.54
6,930.00 41,985.39 6,976.00 4,293.42

Total U. S. Department of Education

$ 151,289.00$ 171,420.50$ 169,917.48 $ 168,929.31

Total Federal Financial Assistance

$ 361,192.97 $ 361,016.35 $ 379,821.45$ 521,822.67
============= ============= ============= ============

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 normonetary assistance for donated comnodities received and/or cons1R11ed by the system during the current fiscal year.
(2) Expenditures for this 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.

- 22 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY ANALYSIS OF CASH AND CASH EQUIVALENTS JUNE 30, 1994

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Georgia Central Bank, Social Circle, Georgia
N.O.W. Checking Accounts (2.75%)

$ 514,197.03

See notes to the financial statements.

- 23 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY ACCOUNTS RECEIVABLE JUNE 30. 1994

SCHEDULE "3"

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Lottery Programs Computers in Classrooms Media Center and Library Equipment
Safe Schools Grant Federal Programs
ESEA - Chapter 1 Education of Deprived Children
Individuals with Disabilities Education Act Title VI, B - Preschool Program

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

Internal Revenue Service

Tax Refund

$

$

1,246.89

1,362.77

5,416.95 2,898.37 27,060.05

6,400.00

500.00

$

1,246.89

1,362.77

5,416.95 2,898.37 27,060.05

6,400.00

500.00

385.81

$

7,025.02

7,025.02 385.81

$

385.81 $ 44,885.03 $

7,025.02 $ 52,295.86

============= ============= ============= =============

See notes to the financial statements.

- 24 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Program Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Innovative Programs Preschool Handicapped Program State Preschool Program Supervision and Assessment of Student and Beginning Teachers and Performance-Based Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant

$ 1,846,249.00 238,248.00 69,835.00 81,072.00 26,921.00 565,877.00
96,652.00 29,254.00 71,588.00 49,733.00 62,458.00 17,649.00 -188,459.00 358,388.00
$
3,520.00 13,786.31 4,169.39
50.00 3,935.90

22,232.00
2,316.00 14,532.95 2,898.37 126,010.11 27,047.95

$1,846,249.00 238,248.00 69,835.00 81,072.00 26,921.00 565,877.00
96,652.00 29,254.00 71,588.00 49,733.00 62,458.00 17,649.00 -188,459.00 358,388.00 22,232.00
3,520.00 13,786.31
4,169.39
50.00 3,935.90
2,316.00 14,532.95 2,898.37 126,010.11 27,047.95

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

$ 69,831.62

69,831.62

OTHER Education, Georgia D~partment of Reimbursement for Student Information System

2,000.00

2,000.00

$3,352,926.60$ 195,037.38$ 69,831.62 $ 3,617,795.60
============= ============= ============ =============

See notes to the financial statements.

- 25 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30 1 1994

SCHEDULE "5"

City Wide School Tax From Social Circle, City of
Other Donations Georgia Power Company Standridge Color Corporation Other Interest Earned Jury Duty Fees Legal Settlement State of Georgia v. Dairymen, Incorporated et al. Rents Sales Lunches and Breakfast School Assets Shared Service Contributions Jackson County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

$ 564,218.94

$ 250,000.00$ 814,218.94

1,500.00 25,000.00
110.00 8,060.85$
175.00

2,118.37

1,812.00
650.00
23,107.21 227,895.83 26,361.88

493.27 113,869.32

2,519.12

1,500.00 25,000.00
110. 00 12,698.34
175.00

493.27 1,812.00
113,869.32 650.00
23,107.21 227,895.83
26,361.88

$ 878,891.71 $ 116,480.96 $ 252,519.12$ 1,247,891.79

============

============= =============

See notes to the financial statements.

- 26 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON 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 Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Tuition Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 2,905,640.49 $ 618,323.15 6,706.56 16,413.13 695.00 115,482.47 21,614.31 18,492.00 14,006.37 1,600.00
4,000.50 67,066.96 109,890.87 127,033.63
40,818.27 460.00
6,994.18

260,727.86 $ 3,166,368.35

50,007.65

668,330.80

2,867.37

9,573.93

9,295.13

25,708.26

695.00

19,481.38

134,963.85

21,614.31

18,492.00

14,006.37

1,600.00

1,566.35

1,566.35

4,000.50

52,937.61

120,004.57

78,264.19

188,155.06

16,741.23

143,774.86

160,222.07 160,222.07

496.39

41,314.66

288.00

748.00

1,873.14

8,867.32

32,052.32 120,338.09

2,000.00 37,991.00

32,052.32 2,000.00
158,329.09

$4,227,628.30$ 694,759.37 $ 4,922,387.67

See notes to the financial statements.

- 27 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1994

SCHEDULE "7"

MEDIA CENTER

COMPUTERS

AND

SAFE

ALGEBRA

IN

LIBRARY PRE-KINDERGARTEN SCHOOLS

CLASSROOMS CLASSROOMS EQUIPMENT

PROGRAM

GRANT

TOTAL

------------ ------------ ------------ ---------------- ------------ ------------

EXPENDITURES
------------

Operating Costs

Salaries

Employee Benefits

Travel of Employees

Professional and Technical

Services

Repairs and Maintenance

Services

Other Purchased Services

Supplies

$

Dues and Fees

Other Expenditures

2,447.32 $

5,378.95$

$ 2,898.37

58,067.67 13,258.30 1,683.39

$ 58,067.67 13,258.30 1,683.39

5,459.70

5,459.70

$ 340.80 20,730.11 288.00 583.14

14,584.00 12,463.95

14,584.00 340.80
43,918.70 288.00 583.14

Nonoperating Costs Land and Land Improvements Equipoont

2,000.00

2,000.00

9,154.00

23,599.00

32,753.00

------------ ------------ ------------ ---------------- ------------ ------------

Total Expenditures $ 2,447.32 $ 14,532.95$ 2,898.37 $

126,010.11 $ 27,047.95$ 172,936.70

============ ============ ============ ================ ============ =======-=~==

See notes to the financial statements.

- 28 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1 1994

SCHEDULE "8"

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

$ 2,253,053.00 $ 26,921.00

$ 2,417,553.43 253,284.27 $ 27,889.76
$2,670,837.70$ 27,889.76 -43,315.35 -5,986.70
$2,627,522.35$ 21,903.06

$

0.00 $ 5,017.94

See notes to the financial statements.

- 29 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 1994

GENERAL 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
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*)
g:i:gg~t III'cll
Category IV (*) Itinerant Supplemental Speech
Sub-Total - Regular Category V (Gifted) (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*) MEDIA CENTER PROGRAMS

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

.L

ORIGINAL

MID-TERM

REQUIRED

$ 221,722.00 478,381.00
$ 700,103.00 90 274,813.00 90 413,960.00 90 238,204.00 90 104,298.00 90 114,871.00 90

$ 199,549.80$ 430,542.90
$ 630,092.70$ 247,331.70 372,564.00 214,383.60 93,868.20 103,383.90

$ 1,846,249.00

$1,661,624.10$

0.00 $ 0.00 $
18,028.00 -269.00

199,549.80 430,542.90 630,092.70 247,331.70 372,564.00 232,411.60 93,599.20 103,383.90

17,759.00$ 1,679,383.10

$ 230,213.00

$ 207,191.70$

0.00 $ 207,191.70

$ 230,213.00 90 8,035.00 90
$ 238,248.00 $ 69,835.00 90 $ 81,072.00 90

$ 207,191.70 $ 7,231.50
$ 214,423.20 $ $ 62,851.50 $ $ 72,964.80 $

0.00 $
0.00 $ -110.00 $
0.00 $

207,191.70 7,231.50
214,423.20 62,741.50 72,964.80

Total Thirteen Weighted and Media Center $ 2,235.404.00

$ 2,011,863.60.$ 17,649.00$ 2,029,512.60

STAFF DEVELOPMENT PROGRAMS (1) Cost of Instruction Professional Development

$ 9,185.75 100 $ 9,185.75 $

17,735.25 100

17,735.25

0.00 $ 9,185.75 17,735.25

Total Staff Develonent

$ 26,921.00

$ 26,921.00 $

0.00 $ 26.921.00

$ 2,262,325.00

$ 2,0381784.60 $ 17,649.00 $ 2.056,433.60

(*) Identifies Thirteen Weighted Programs.

Note: (1) $3,129.75 of the allotment for Professional Develonent has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.

See notes to the financial statements.

- 30 -

SCHEDULE "9"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNOEREXPENOITURE
FOR REQUIRED ALLOTMENT

$ 194,283.00$ 182,718.04

$ 5,266.80$

5,951.25

416,747.70

472,865.59

13,795.20

19,813.76

$ 611,030.70$ 655,583.63 $

0.00

$ 19,062.00 $ 25,765.01 $

0.00

239,558.40

290,113.24

0.00

7,773.30

11,302.23

0.00

361,225.80

479,721.31

0.00

11,338.20

17,486.54

0.00

221,118.90

346,930.40

0.00

11,292.70

53,635.68

0.00

89,374.60

84,490.62

4,883.98

4,224.60

42,275.81

0.00

89,643.60

158,334.48

0.00

13,740.30

27,170.68

0.00

$1,611,952.00 $ 2,015,173.68$

4 883.98

$ 67,431.10 $ 177,635.95 $

0.00

$ 3,513.60$ 64,861.20 123,668.10 9,368.10 129.60 260.10
$ 201,800.70$ 7,026.30
$ 208,827.00 $ $ 61,733.70 $ $ 56,232.00 $

842.34 59,059.41 132,280.04
1,306.95
193,488.74 $ 35,077.07 $ 228,565.81 76,331.73 $ 97,482.21 $

$1,938,744.70$ 2,417,553.43 $

8,311.96 0.00
0.00 0.00
13,195.94

$

184.50

1,423.80$ 15,114.78

3,454.20

32,289.61

328.50

$ 5,391.00 $ 205. 20
$ 5,596.20$ $ 1,007.80$ $ 16,732.80 $

47,404.39 $ 463.57 $
47,867.96 875.22 $
26,905.14 $

$ 90,767.90$ 253,284.27 $

0.00 0.00
132.58 0.00
132.58

$1,938,744.70$ 2,417,553.43 $=====13..,,=19=5=.9===4

$ 9,185.75 $ 17,735.25

15,172.45$ 12,717.31

0.00 5 017.94

$ 26,921.00 $ 27,889.76 $===5-01.,.7..,.9..,.4

$ 117,688.90 $ 281,174.03 $=====5='=15=0=.5==2

- 31 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF BOARD MEMBERS YEAR ENDED JUNE 30, 1994

BOARD MEMBER ADDRESS
Mr. Hal W. Dally, Chairman(*) 317 N. Cherokee Road Social Circle, Georgia 30279
Ms. Vickie Gasaway(*) P.O. Box 710 Monroe, Georgia 30655
Mr. Doug Hawkins 920 Lakewood Drive Social Circle, Georgia 30279
Mr. Drayton Kines(*) Route 3, Box 660 Covington, Georgia 30209
Mr. Thomas Knox(*) 400 Fairplay Drive Social Circle, Georgia 30279
Mr. Tim Lemonds (*) 603 Lakewood Drive Social Circle, Georgia 30279
Ms. Anne Peppers P. 0. Box 81 Social Circle, Georgia 30279
Mr. Jimmie Phillips 310 Carver Drive Social Circle, Georgia 30279
Mr. John Pittard(*) 246 E. Hightower Trail Social Circle, Georgia 30279
Ms. Grace Sanford(*) P. O. Box 762 Social Circle, Georgia 30279
Mr. Bill Thornton P. 0. Box 466 Social Circle, Georgia 30279
(*) Denotes Board Members Serving as of June 30, 1994

See notes to the financial statements.

- 32 -

SCHEDULE "10"

SECTION II COMPLIANCE

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~epc:trfmenf nf J\unifs
254 WASHINGTON STREET, S. W ROOM 214
J\tlauht, enrgia 30334-8400
February 9, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Social Circle Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofthe City of Social Circle Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to City of Social Circle Board of Education 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.
The results of our tests indicate that, with respect to the items tested, the City of Social Circle Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-I0

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epnrtm.eut nf J\units
254 WASHINGTON STREET, S. W ROOM 214
J\thmta, eorgia 30334-8400
February 9, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the City of Social Circle 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 ofthe City of Social Circle Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified 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 Social Circle Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 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 of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-50

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 Social Circle Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-50

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~epartment nf J\uhib.;
254 WASHINGTON STREET, S.W. ROOM 214
J\tlanhl, <fii.eorgia 30334-8400
February 9, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Social Circle 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 ofthe City of Social Circle Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified 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 ofthe City of Social Circle 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 governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Social Circle Board of Education had not complied, in all material respects, with those requirements.

94CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp 94CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.eparfm.ettf nf J\.uoifs
254 WASHINGTON STREET. S.W. ROOM 214
J\thmta, @orgia 30334-8400
February 9, 1995

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the City of Social Circle Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the :financial statements ofthe City of Social Circle Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
In planning and performing our audit of the financial statements of the City of Social Circle Board of Education 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.
The management ofthe City of Social Circle 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, 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.
94ICL-3

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:

(1) 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 operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the 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) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the 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 of the reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe City of Social Circle Board ofEducation's financial statements and this report does not affect our report thereon dated February 9, 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.
Respectfully submitted,

CLV:gp 94ICL-3

Claude L. Vickers State Auditor

CLAUDE L. VICKERS STATE AUDITOR (404) 6562174
TAX RATIO (404) 6560494

~eparfmeuf of J\uh-ifs
254 WASHINGTON STREET, S. W. ROOM 214
/\tlcmia, ~cor_gia 30334-8400
February 9, 1995

FINANCIAL AUDITS (404) 6562180
PROGRAM AUDITS (404) 6562006

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City of Social Circle 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 ofthe City of Social Circle Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState 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 Social Circle Board of Education complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
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 ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the financial statements in a separate report dated February 9, 1995.
The management ofthe City ofSocial Circle 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.
94ICL-15

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 of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the 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

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

(I) 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 Requirements

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

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

During the year ended June 30, 1994, the City of Social Circle Board of Education had no major Federal :financial assistance programs and expended 62% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act - Chapter I Education ofDeprived Children

94ICL-15

We performed tests of controls, as required by O1\.IB 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 a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted
in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~d2
Claude L. Vickers
State Auditor
CLV:gp 94ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $4,541.69 Audit Control Number 7861-93-03
The audit report for the year ended June 30, 1993, stated that the City of Social Circle Board ofEducation had underexpenditures of Quality Basic Education (QBE) funds of $4,525.14 for the Special Education Programs and $16.55 for the Remedial Education Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditures as required. The total amount of $4,541.69 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $651.75 Audit Control Number 7861-93-04
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure ofQuality Basic Education (QBE) funds of $651.75 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$651.75 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7861-93-01
The audit report for the year ended June 30, 1993, disclosed that the Board had not provided for adequate separation of employee duties in the performance of accounting functions and related procedures. During the year under review, our audit noted no improvement regarding adequate separation of employee duties.

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON 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 Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7861-93-01
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: Federal financial assistance programs affected by this finding are as follows: Food and Nutrition Program (CFDA 10.550, 10.553, 10.555 and 10.558) Chapter 1 Program (CFDA 84.010)
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7861-93-02
The audit report for the year ended June 30, 1993, noted that the Board did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records due to lack ofguidance from the Department ofEducation on this matter. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions anddeletions to the General Fixed Assets Account Group.
CURRENT YEAR
EXPENDITURES/LIABil.JTIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $13,328.52 Audit Control Number 7861-94-01
For the year under review, the Board had underexpenditures of Quality Basic Education (QBE) funds of $4,883.98 for the salaries portion ofthe High School Laboratories Program, $8,311.96 for the salaries portion of the Special Education Programs and $132.58 for the operations portion of the Remedial Education

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON 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: $13,328.52 Audit Control Number 7861-94-01
Program. These underexpenditures were the result ofthe Board failing to monitor program expenditures in relation to required allotments. The underexpenditures of $13,328.52 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.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $5,017.94 Audit Control Number 7861-94-02
For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $15,172.45 for the 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 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction program purposes resulting in an underexpenditure of$5,017.94 for the minimum required allotment of $17,735.25 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. The underexpenditure of$5,107.94 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7861-94-03
Our audit disclosed that the Board failed to submit a corrective action plan for the 1993 audit report as required by 0MB Circular A-128 to the Georgia Department of Education from whom the Board received funds for the following programs:

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7861-94-03
Food and Nutrition Program (CFDA 10.550, 10.553, 10.555 and 10.558) Chapter 1 Program (CFDA 84.010)
The Board should implement procedures to submit corrective action plans in a timely manner.
REPORTING Failure to Refund Unexpended Grant Balance Financial Statements Nonmaterial Noncompliance Amount: $2,481.07 Audit Control Number 7861-94-04
Accounting records applicable to the Pre-Kindergarten Lottery Program reflected an unexpended grant balance of$2,481.07 at June 30, 1994. Instructions pertaining to project completion reports require that unexpended grant balances be refunded to the Georgia Department of Education. Although a completion report was submitted to the Georgia Department of Education as required, personnel of the Board did not include a refund check with the project completion report as required. Accordingly, the unexpended grant balance of $2,481.07 should be refunded to the Georgia Department ofEducation.
Note: The City of Social Circle Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.