GA 
A?.00 .f<I 1::33 
55 
190,4-95 
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, 1995 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
3 
 
C 
 
STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
6 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
18 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
20 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
22 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
23 
 
SCHEDULES 
 
I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
24 
 
2 CASH AND CASH EQUIVALENTS 
 
26 
 
3 ACCOUNTS RECEIVABLE 
 
27 
 
SCHEDULE OF REVENUE 
 
4 
 
STATE 
 
28 
 
5 
 
LOCAL AND OTHER 
 
29 
 
 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 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
31 
 
7 
 
LOTTERY PROGRAMS 
 
32 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
8 
 
OVERALL 
 
35 
 
9 
 
BY PROGRAM 
 
36 
 
1O SCHEDULE OF BOARD MEMBERS 
 
38 
 
SECTION II 
COMPLIANCE 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
SECTION III 
INTERNAL CONTROL 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
 CITY OF 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 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 2, 1996 
 
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 of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
Ladies and Gentlemen: 
We have audited the general purpose financial statements (Exhibits A through D) of the City of Social Circle Board ofEducation, component unit of the City of Social Circle, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
 
95ARL-13* 
 
 * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general purpose 
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
* The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the City of Social Circle Board of Education as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated April 2, 1996, on our consideration of the Board's internal control structure and a report dated April 2, 1996, on its compliance with laws and regulations. 
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of 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 of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Social Circle Board of Education. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
95ARL-13* 
 
 A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
 
CLV:jy 95ARL-13* 
 
Re~~ 
Claude L. Vickers State Auditor 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY - 1- 
 
 - WA TON COUNTY T 
ROUP 
 
EXHIBIT"A" 
 
~ cash and cash Equivalents Accounts Receivable Inventories 
Food Donated Commodities Purchased Food 
Amount to be Provided in Future Years 
For Payment ct capital Lease Agreements 
Total Assets 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
$ 334,590.97 $ 
 
82,346.34 $ 
 
40,285.24 
 
10,233.51 
 
19,101.74 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS (Memorandum Onl;tl JUNE 30, 1995 JUNE 30, 1994 
 
$ 
 
457,222.55 $ 
 
514,197.03 
 
29,335.25 
 
52,295.86 
 
3,455.36 1,438.28 
 
3,455.36 1,438.28 
 
5,110.15 1,841.43 
 
$ 
 
30 195.28 
 
30,195.28 
 
58 641.16 
 
$ 
 
344 824.48 $ 
 
106 341.72 $ 
 
40285.24 $ 
 
30 195.28 $ 
 
521,646.72 $ 
 
632,085.63 
 
LIABILITI!;; At:,!Q F!,!NQ EQUITY 
LIABILITIES 
Accounts Payable salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Unearned Lottery Funds capital Lease Agreements 
Total Liabilities 
FUt:,lDEQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/ Questioned Costs For Inventories Food Donated Commodities Purchased Food 
Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
$ 
 
29,934.72 $ 
 
14,167.06 
 
5,641.50 
 
19,481.20 
 
8,644.27 
 
$ 
 
8,874.78 
 
31,410.46 
 
$ 
 
$ 
 
35,576.22 $ 
 
42 292.53 $ 
 
40 285.24 $ 
 
$ 
 
$ 
 
23,626.71 
 
$ 
 
23,626.71 $ 
 
285,621.55 
 
$ 309,248.26 $ 
 
13.24 
3,455.36 1 438.28 4,906.88 59142.31 $ 64049.19 $ 
 
0.00 0.00 
 
$ 
 
344 824.48 $ 
 
106341.72 $ 
 
40 285.24 $ 
 
$ 
30195.28 30 195.28 $ 
 
44,101.78 $ 25,122.70 
8,644.27 8,874.78 31,410.46 
30,195.28 
148 349.27 $ 
 
66,038.42 17,193.38 
1,103.89 1,166.50 45,277.25 2,481.07 58641.16 
191 901.67 
 
$ 
 
13.24 $ 
 
1,144.46 
 
23,626.71 
 
23,539.90 
 
3,455.36 1 438.28 
 
5,110.15 1 841.43 
 
$ 
 
28,533.59 $ 
 
31,635.94 
 
344,763.86 
 
408 548.02 
 
$ 
 
373,297.45 $ 
 
440 183.96 
 
30 195.28 $ 
 
521,646.72 $ 
 
632 085.63 
 
The notes to the general purpose 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 
ALL GOVERNMENTAL FUND TYP.ES YEAR ENDED JUNE 30 1995 
 
EXHIBIT"B" 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services 
Capital Outlay Debt Service 
Principal Interest 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES} 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory  Net Change in Period Donated Commodities Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
FUND 
 
TOTALS (Memorandum Only) 
YEAR ENDED JUNE 30, 1995 JUNE 30. 1994 
 
$ 3.806,290.29 $ 25,687.86 
1,065,716.80 
 
443,546.81 $ 381,279.53 109,795.86 
 
6,545.95 $ 171 474.42 
 
4,256,383.05 $ 406,967.39 
1,346,987.08 
 
3,617,795.60 379,821.45 
1,247,891.79 
 
$ 4,897,694.95 $ 934,622.20 $ 178,020.37 $ 6,010,337.52 $ 5,245,508.84 
 
$ 3,163,336.45 $ 
150,441.53 47,194.21 127,879.73 196,411.92 393,053.75 
362,960.64 150,284.62 
71,674.72 
56,666.94 
28,445.88 3,606.44 
$ 4,751,956.83 $ 
$ 145,738.12 $ 
 
406,896.38 
51,506.08 9,676.39 
43,345.50 7,471.80 
531.88 10,024.91 5,048.00 
29,059.42 418,772.84 
$ 
982,333.20 $ -47 711.00 $ 
 
$ 
340,876.06 340,876.06 $ -162,855.69 $ 
 
3,570,232.83 $ 2,967,391.62 
 
201,947.61 56,870.60 171,225.23 
203,883.72 393,053.75 
531.88 372,985.55 155,332.62 
71,674.72 29,059.42 418,772.84 56,666.94 340,876.06 
 
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 51,273.20 662,128.09 
 
28,445.88 3606.44 
 
28,456.84 3,595.48 
 
6,075,166.09 $ 5,582,515.76 
 
-64 828.57 $ -337,006.92 
 
$ 
$ _ _-63'-'-'-',8'-"3"'3.c..81~ 
$ -63,833.81 $ 
 
22,455.23 $ 22,455.23 $ 
 
41,378.58 $ 41,378.58 $ 
 
63,833.81 $ -63,833.81 
 
335,591.65 -335,591.65 
 
0.00 $ _ _ _ _~0-~00- 
 
$ 
 
81,904.31 $ 
 
227,343.95 
 
-25,255.77 $ 91,362.90 
 
-121,477.11 $ 121,477.11 
 
-64,828.57 $ 440,183.96 
 
-337,006.92 779,467.82 
 
-1,654.79 -403.15 
 
-1,654.79 -403.15 
 
-1,678.65 -598.29 
 
FUND BALANCE JUNE 30 
 
$ 309,248.26 $ 
 
64,049.19 $ 
 
0.00 $ 
 
373,297.45 $ =====44=0:!.'=183==.96= 
 
The notes to the general purpose financial statements are an integral part of this statement. . 3. 
 
 Lf 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1995 
 
EXHIBIT"C" 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services 
Debt Service Principal Interest 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1, 1994 
Adjustments 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 3,917,454.00 $ 3,806,290.29 25,687.86 
971,981.23 1,065,716.80 
$ 4,889,435.23 $ 4,897,694.95 
 
$ 3,322,151.91 $ 3,163,336.45 
 
179,381.76 50,236.11 135,253.54 157,593.27 407,996.42 
 
150,441.53 47,194.21 127,879.73 196,411.92 393,053.75 
 
375,693.19 182,919.64 
TT,483.71 35,000.00 52,648.99 59,073.85 
 
362,960.64 150,284.62 71,674.72 
56,666.94 
 
28,445.88 3,606.44 
 
$ 5,035,432.39 $ 4,751,956.83 
 
$ -145,997.16 $ 145,738.12 
 
$ -63,833.81 $ -63,833.81 
 
$ -145,997.16 $ 301,225.42 60.70 
 
81,904.31 227,343.95 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 296,600.00 $ 443,546.81 
 
330,908.00 
 
381,279.53 
 
112,100.00 
 
109,795.86 
 
$ 739,608.00 $ 934,622.20 
 
$ 254,427.00 $ 406,896.38 
 
28,085.00 24,338.00 
1,661.00 5,319.00 
 
51,506.08 9,676.39 43,345.50 7,471.80 
 
500.00 8,804.00 3,438.00 
 
531.88 10,024.91 5,048.00 
 
29,456.00 398,840.00 
 
29,059.42 418,TT2.84 
 
$ 754,868.00 $ 982,333.20 $ -15,260.00 $ -47,711.00 
 
$ 22,455.23 
 
$ 22,455.23 
 
$ -15,260.00 $ -25,255.TT 
 
91,128.89 
 
84,411.32 
 
-7,573.78 
 
FUND BALANCE JUNE 30. 1995 
 
$ 155,288.96 $ 309,248.26 
 
$ 68,295.11 $ 59,155.55 
 
The notes to the general purpose financial statements are an integral part of this statement. -5- 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 1: 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 of the departures from generally accepted accounting principles disclosed in these notes, the financial statements ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. 
- The more significant 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". Based upon the application of the above criteria, the City of Social Circle Board of Education is determined to be a component unit of the City of Social Circle, Georgia. 
Based upon the application of the above criteria, the City of Social Circle Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in that area encompassed by the City of Social Circle. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards. 
Board members have decision making authority, the power to designate management, the ability to significantly influence operations, but do not have the authority to levy taxes or incur bonded indebtedness. The 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, consequently, t.he Board is deemed to have a financial benefit/burden relationship with the City of Social Circle as defined by GASB. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. 
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
 
- 6- 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose 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 of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be a9counted 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. 
 
- 7- 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
 
- 8- 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
BUDGET 
 
The City of Social Circle Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper 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 of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report: 
 
Excess of Revenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses 
Fund Balance July 1, 1994 
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods 
Fund Balance June 30, 1995 (Budget Basis) 
 
Special Revenue 
Fund 
$ -25,255. 77 91,362.90 
-5,110.15 -1 841.43 $ 59,15555 
 
- 9- 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 1: Sl.ThTMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
CASH AND CASH EQUIVALENTS 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (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 general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The City of Social Circle fixed the property tax levy for the 1994 tax year (calendar year) on October 20, 1994, (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The City of Social Circle Clerk bills and collects the property taxes for the Board of Education, and remits the taxes collected to the Board. 
 
The tax millage rate levied for the 1994 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 
 
11.73 mills 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
- 10 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INTERFUND TRANSACTIONS 
The Board has the following types of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY -TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note.2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
 
- 11 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 2: DEPOSITS 
 
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $708,360.63. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. {This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1995, as follows: 
Risk Category 
1 2 3 
 
Bank Balance 
$ 100,000.00 608,360.63 0.00 
 
Total 
 
$ 708,360.63 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
- 12 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation. 
 
The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, and job related illnesses or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster in the past three years. 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two fiscal years. 
 
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 of the date of its inception. 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows: 
 
Capital Lease 
 
Balance July 1, 1994 
 
$ 58,641.16 
 
Deductions 
 
28,445.88 
 
Balance June 30, 1995 
 
At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows: 
 
- 13 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Fiscal Year Ended June 30 
 
Capital Lease 
 
1996 
 
$ 32,052.32 
 
Deduct: Imputed Interest 
 
1 857.04 
 
Net Present Value ofFuture Minimum Lease Payments 
 
$ 30,195.28 
 
Note 6: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1995. 
 
Project 
 
Unearned Executed Contracts 
 
Social Circle High School Renovation Local Project 
 
$ 4 156.30 
 
The amount described in this note is not reflected in the general purpose 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). 
 
- 14 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 8: RETIREMENT PLANS 
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
- Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. 
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $3,237,377.22; total payroll was $3,701,436.29. 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%. 
Total contributions made during fiscal year 1995 amounted to $544,203.50, of which $382,334.33 was made by the Board and $161,869.17 was made by employees. These contributions represented I 1.81% (Board) and 5% (employees) of covered payroll. 
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected 
 
- 15 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 8: RETIREMENT PLANS 
 
salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. 
 
Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows: 
 
Total pension benefit obligation 
 
$15,313,743,000.00 
 
Net assets available for benefits, at cost 
 
14,254,785,000.00 
 
Unfunded pension benefit obligation 
 
 $ 1,058,958.000.00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $382,334.33 was actuarially determined and represented .0676% of total contributions made by all participating employers. 
 
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. 
 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) 
 
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. 
 
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment 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. 
 
- 16 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 
 
EXHIBIT "D" 
 
Note 8: RETIREMENT PLANS 
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number 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. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. 
There were 29 employees covered under PSERS for the year ended June 30, 1995. 
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees of the Board made during fiscal year 1995 amounted to $900.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00. 
- 
Note 9: SURETY BONDS 
Mr. Larry Harmon, School Superintendent through November 13, 1995, was bonded in the amount of $5,000.00 with the Western Surety Company, Sioux City Falls, South Dakota, their Bond No. 68436408. 
The School Superintendent, Mr. Robert Edward Waller, effective November 14, 1995, is bonded in the amount of$5,000.00 with the RLI Insurance Company, Peoria, Illinois, their Bond No. RSB613410, on which premium is paid through November 20, 1996. 
 
- 17 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1995 
 
ASSETS Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Total Assets 
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 
 
ELEMENTARY 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
DRUG-FREE SCHOOLS AND COMMUNITIES 
ACT 
 
CHAPTER 1 EDUCATION OF 
DEPRIVED CHILDREN 
 
$ 75,619.83 $ 7,139.32 $ 
 
0.00 
 
940.74 
 
11,419.00 
 
$ 
 
3,000.00 
 
3,455.36 1,438.28 
$ 81,454.21 $ 18,558.32 $ 
 
------- 0.00 $ 
 
3,000.00 
 
$ 
 
1,761.90 $ 11,323.50 
 
15,656.36 
 
7,234.82 
 
$ 17,418.26 $ 18,558.32 
 
$ 
 
183.28 
 
498.22 
 
2,318.50 
 
$ 
 
3,000.00 
 
$ 3,455.36 1,438.28 
$ 4,893.64 59,142.31 $ 
$ 64,035.95 $ 
 
0.00 $ 0.00 $ 
 
$ 81,454.21 $ 18,558.32 $ 
 
0.00 $ 
 
0.00 
 
0.00 $ 
 
0.00 
 
--------- 0.00 $ 
 
3,000.00 
 
See notes to the general purpose financial statements. 
 
-18- 
 
 EXHIBIT"E" 
 
AND SECONDARY EDUCATION ACT 
 
TITLE II- 
 
EISENHOWER 
 
CHAPTER2 
 
MATHEMATICS 
 
BLOCK GRANT - 
 
AND SCIENCE 
 
FLOW THROUGH 
 
EDUCATION 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLE VI, 8 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TOTALS JUNE 30, 1995 JUNE 30, 1994 
 
$ 
 
64.45 $ 
 
13.24 
 
$ 
 
276.12 $ 
 
83,112.96 $ 
 
93,261.40 
 
$ 
 
3,742.00 
 
19,101.74 
 
44,885.03 
 
3,455.36 1,438.28 
 
5,110.15 1,841.43 
 
$ 
 
64.45 $ 
 
13.24 $ 
 
3,742.00 $ 
 
276.12 $ 
 
- - - - - 107,108.34 $ 
 
145,098.01 
 
$ 
 
64.45 
 
$ 
 
64.45 
 
$ 
 
583.34 
 
$ 
 
766.62 $ 
 
493.42 
 
583.44 
 
14,167.06 
 
37,706.01 
 
1,506.34 
 
19,481.20 
 
11,950.72 
 
1,068.88 $ 
 
276.12 
 
8,644.27 
 
1,103.89 
 
2,481.07 
 
$ 
 
3,742.00 $ 
 
276.12 $ 
 
43,059.15 $ 
 
53,735.11 
 
$ 
 
13.24 
 
$ 
 
13.24 $ 
 
1,144.46 
 
3,455.36 1,438.28 
 
5,110.15 1,841.43 
 
$ 
 
13.24 
 
$ 
 
4,906.88 $ 
 
8,096.04 
 
$ 
 
0.00 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
59,142.31 
 
83,266.86 
 
$ 
 
0.00 $ 
 
13.24 $ 
 
0.00 $ 
 
0.00 $ 
 
64,049.19 $ 
 
91,362.90 
 
$ 
 
------ 64.45 $ 
 
13.24 $ 
 
3,742.00 $ 
 
276.12 $ 
 
- - - - - 107,108.34 $ 
 
145,098.01 
 
-19- 
 
 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, 1995 
 
ELEMENTARY 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
DRUG-FREE SCHOOLS AND COMMUNITIES 
ACT 
 
CHAPTER 1 EDUCATION OF 
DEPRIVED CHILDREN 
 
REVENUES 
 
State Funds Federal Funds Local and other Funds 
 
$ 
 
25,468.00 $ 418,078.81 
 
237,538.05 
 
$ 
 
109,795.86 
 
5,192.00 $ 
 
70,351.67 
 
Total Revenues 
 
$ 372,801.91 $ 418,078.81 $ 
 
5,192.00 $ 
 
70,351.67 
 
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 
 
$ 326,188.19 
45,977.31 $ 933.46 
36,186.63 
 
6,897.67 
 
$ 418,676.72 
 
2,502.55 
 
$ 5,175.32 
16.68 
 
51,495.14 
752.39 7,299.28 3,127.24 5,048.00 2,631.47 
96.12 
 
Total Expenditures 
 
$ 418,676.72 $ 418,685.81 $ 
 
5,192.00 $ 
 
70,449.64 
 
Excess of Revenues over (under) Expenditures $ 
 
-45,874.81 $ 
 
-607.00 $ 
 
0.00 $ 
 
-97.97 
 
OTHER FINANCING SOURCES 
 
Operating Transfers In 
 
21,750.26 
 
607.00 
 
97.97 
 
Excess of Revenues and Other Financing Sources 
 
over (under) Expenditures 
 
$ 
 
-24,124.55 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
FUND BALANCE JULY 1 
 
90,218.44 
 
0.00 
 
0.00 
 
0.00 
 
Foodlnventory- Net Change in Period Donated Commodities Purchased Food 
 
-1,654.79 -403.15 
 
FUND BALANCE JUNE 30 
 
$ 
 
64,035.95 $ 
 
0.00 $ 
 
------- 0.00 $ 
 
0.00 
 
See notes to the general purpose financial statements. 
 
- 20 - 
 
 EXHIBIT"F" 
 
AND SECONDARY EDUCATION ACT 
 
TITLE II - 
 
EISENHOWER 
 
CHAPTER2 
 
MATHEMATICS 
 
BLOCK GRANT - 
 
AND SCIENCE 
 
FLOW THROUGH 
 
EDUCATION 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLE VI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 
 
$ 
 
6,804.55 $ 
 
6,681.26 $ 
 
42,865.12 $ 
 
$ _ _ _ _6~,8-~_-_55_$ _ _ _ _6~,6_8_1_.2_6$ _ _ _4_2~,8_6_5._12_$ 
 
$ 11,846.88 
11,846.88 $ 
 
443,546.81 $ 381,279.53 109,795.86 
 
195,037.38 379,821.45 116,480.96 
 
934,622.20 $ _ _6_9__.1,_33_9_.7_9 
 
$ 
 
380.08 
 
$ 
 
16,986.09 $ 
 
11,846.88 $ 
 
406,896.38 $ 
 
209,121.19 
 
$ 6,406.48 
17.99 
 
7,797.39 15.09 
 
353.45 945.54 122.76 531.88 
23,925.40 
 
51,506.08 9,676.39 
43,345.50 7,471.80 531.88 10,024.91 5,048.00 
29,059.42 418,772.84 
 
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 
 
2,000.00 
 
$ 
 
6,804.55 $ 
 
7,812.48 $ 
 
42,865.12 $ 
 
11,846.88 $ 
 
982,333.20 $ 
 
694,759.37 
 
$ 
 
0.00 $ 
 
-1,131.22 $ 
 
0.00 $ 
 
0.00 $ 
 
-47,711.00 $ 
 
-3,419.58 
 
22,455.23 
 
10,591.65 
 
$ 
 
0.00 $ 
 
-1,131.22 $ 
 
0.00 $ 
 
0.00 $ 
 
-25,255.77 $ 
 
7,172.07 
 
0.00 
 
1,144.46 
 
0.00 
 
0.00 
 
91,362.90 
 
86,467.77 
 
-1,654.79 -403.15 
 
-1,678.65 -598.29 
 
$ 
 
0.00 $ 
 
13.24 $ 
 
0.00 $ 
 
0.00 $ 
 
64,049.19 $ _ _ _91_,3_6_2_.9_0 
 
- 21 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1995 
 
EXHIBIT"G" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
Total Assets 
LIABILITIES AND FUND EQUITY LIABILITIES 
Contracts Payable Retainages Payable 
Total Liabilities FUND EQUITY 
Fund Balances Unreserved Undesignated 
Total Liabilities and Fund Equity 
 
REGULAR 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
PROJECT 94-786-078 
 
TOTALS JUNE 301 1995 JUNE 30, 1994 
 
$ 40,285.24 $ 
 
0.00 $ 
 
40,285.24 $ 160,895.84 
 
7,025.02 
 
$ 40,285.24 $ 
 
0.00 $ 
 
- - - - - 40,285.24 $ 
 
167,920.86 
 
$ 
 
8,874.78 
 
31,410.46 
 
$ 40,285.24 
 
$ 
 
0.00 $ 
 
$ 40,285.24 $ 
 
$ 
 
8,874.78 $ 
 
1,166.50 
 
31,410.46 
 
45,277.25 
 
$ 
 
40,285.24 $ 
 
46,443.75 
 
0.00 $ 
 
0.00 $ 
 
121,477.11 
 
0.00 $ 
 
40,285.24 $ 
 
167,920.86 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 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. 1995 
 
EXHIBIT "H" 
 
REVENUES State Funds Local and Other Funds Total Revenues 
EXPENDITURES Capital Outlay Building and Building Improvements 
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES 
Operating Transfers In Excess of Revenues and Other Financing Sources 
over (under) Expenditures FUND BALANCE JULY 1 
Residual Equity Transfer 
FUND BALANCE JUNE 30 
 
REGULAR 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
PROJECT 94-786-078 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 301 1995 
 
JUNE 301 1994 
 
$ 
 
$ 
 
171 474.42 
 
$ 
 
171 474.42 $ 
 
6.545.95 $ 6 545.95 $ 
 
6.545.95 $ 171 474.42 
178,020.37 $ 
 
69.831.62 252,519.12 
322,350.74 
 
$ 
 
340,691.62 $ 
 
$ -169,217.20 $ 
 
41,378.58 
 
$ 
 
-127,838.62 $ 
 
121,4TT.11 
 
6,361.51 
 
$ 
 
0.00 $ 
 
184.44 $ 6,361.51 $ 
 
340,876.06 $ -162,855.69 $ 
 
660,128.09 -337,m.35 
 
6,361.51 $ 0.00 
-6,361.51 
 
41 378.58 
-121,4TT.11 $ 121,4TT.11 
0.00 
 
325,000.00 
-12.m.35 134,254.46 
 
0.00 $ 
 
o.oo $ _ _ _12_1_,4_n_._1_1 
 
See notes to the general purpose financial statements. 
 
- 23- 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1995 
 
SCHEDULE 1 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
AWARDS 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 1995 Contract Food Services School Breakfast Program 1994 Grant 1995 Grant National School Lunch Program 1994 Grant 1995 Grant Food Distribution Program (1) 
 
10.558 $ 
 
3,053.95 $ 
 
10.553 10.553 
10.555 10.555 10.550 
 
46,584.42 
161,465.17 26,434.51 
 
3,053.95 $ 
 
3,053.95 
 
1,246.89 45,643.68 
1,362.77 161,465.17 N/A 
 
46,584.42 
161,465.17 $ 26,434.51 
 
(2) 
(2) 392,242.21 (3) 
26 434.51 
 
Total U.S. Department of Agriculture 
 
$ 237,538.05 $ 
 
212 772.46 $ 237,538.05 $ 
 
418,676.72 
 
Education, U.S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Regular 1994 Carry-Over 1995 Regular 1994Summer Chapter 2 Block Grant - Flow Through 1994 Regular 1995 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act Title VI, B Flow Through 1894 Regular 1994 Carry-Over 1995 Regular Preschool Program 1994 Regular 1994 Carry-Over 1995 Regular Vocational Education - Basic Grants to States Tech - Prep Education 1995 Grant Through Georgia Department of Human Resources Drug-Free Schools and Communities Act 1995 Contract 
 
84.186 $ 
84.010 84.010 84.010 84.010 
84.151 84.151 
84.164 84.164 
84.027 84.027 84.027 84.173 84.173 84.173 
84.243 
84.186 
 
5,192.00 $ 
2,320.00 30,469.00 41,859.00 
6,869.00 
7,000.00 
842.00 43,092.00 
7,274.00 5,600.00 9,870.00 
2,500.00 
 
5,192.00 $ 
 
5,192.00 $ 
 
5,192.00 
 
5,556.62 2,320.00 26,400.00 38,631.67 
-173.22 6,869.00 
 
2,320.00 29,400.00 38,631.67 
6,804.55 
 
2,320.00 29,497.97 (3) 38,631.67 
6,804.55 
 
-318.74 7,000.00 
 
-318.74 7,000.00 
 
825.72 6,986.76 
 
-68.61 842.00 39,350.00 
493.42 7,274.00 4,849.00 
9,870.00 
 
842.00 42,023.12 
7,274.00 4,572.88 
9,870.00 
 
842.00 42,023.12 
7,274.00 4,572.88 
(4) 
 
2,500.00 
 
2,500.00 
 
2,560.00 (3) 
 
- 24 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION -WALTON COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1995 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Education. U.S. Department of Through Northeast Georgia Regional Educational Service Agency Carl Perkins Vocational and Applied Technology Education Act of 1990 Applied Curriculum 1994 Grant 1995 Grant 
Total U.S. Department of Education 
 
CFDA NUMBER 
 
AWARDS IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDSl 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
84.048 $ 84.048 
$ 
 
5,200.86 $ 8117.00 
176,204.86 $ 
 
5,200.86 $ 2 384.41 
164 172.41 $ 
 
5,200.86 8,117.00 
169,429.34 $ 
 
(4) !4l 
147 530.67 
 
Total Federal Financial Assistance 
 
$ 413,742.91 $ 
 
376,944.87 $ 406,967.39 $ 
 
566,207.39 
 
The Board had no major programs as defined by the Single Audit Act of 1984. 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. 
(4) Expenditures on this program were not maintained by fund source. 
 
See notes to the general purpose financial statements. 
 
 25  
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY CASH AND CASH EQUIVALENTS JUNE 30, 1995 
 
SCHEDULE "2" 
 
INTEREST BEARING ACCOUNTS 
Georgia Central Bank, Social Circle, Georgia 
N.O.W. Checking Accounts (2.75%) 
 
$ 457,222.55 
 
See notes to the general purpose financial statements. - 26 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY ACCOUNTS RECEIVABLE JUNE 30. 1995 
 
SCHEDULE "3" 
 
Education, Georgia Department of Food Services School Breakfast Program Lottery Program Instructional Technology Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act 
Title VI, B - Flow Through Other 
At Risk Summer School Program Northeast Georgia Regional Educational Service Agency 
Carl Perkins Vocational and Applied Technology Education Act of 1990 - Applied Curriculum Federal Funds 
Social Circle Rotary Club Donation 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 
 
940.74 $ 
 
11,419.00 
 
940.74 11,419.00 
 
$ 
 
2,500.92 
 
3,000.00 3,742.00 
 
3,000.00 3,742.00 2,500.92 
 
5,732.59 2,000.00 
 
5,732.59 2,000.00 
 
$ 
 
10,233.51 $ 
 
19,101.74 $ ===:,;29~,335~-~25= 
 
See notes to the general purpose financial statements. 
 
- 27 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995 
 
SCHEDULE 4 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 - 5 Superintendent's Base Salary Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs Ai Risk Summer School Program _ Mentor Teacher Program Pay for Performance Program Pre-School Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Applied Technology Labs Distant Leaming Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant 
Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 1,943,761.00 281,357.00 66,582.00 84,663.00 27,599.00 580,175.00 
104,486.00 30,017.00 79,405.00 42,237.00 66,212.00 116,956.00 19,971.00 18,785.00 -201, 713.00 367,683.00 
$ 79,999.93 
4,089.22 690.00 
76,000.00 12,439.00 
1,138.19 3,757.95 
 
25,468.00 
23,689.07 
50,546.00 100,000.00 
6,300.00 49,886.05 32,101.63 155,466.11 
89.95 
 
$ 1,943,761.00 281,357.00 66,582.00 84,663.00 27,599.00 580,175.00 
104,486.00 30,017.00 79,405.00 42,237.00 66,212.00 
116,956.00 19,971.00 18,785.00 
-201, 713.00 367,683.00 
25,468.00 79,999.93 
23,689.07 4,089.22 690.00 
76,000.00 12,439.00 
1,138.19 3,757.95 
50,546.00 100,000.00 
6,300.00 49,886.05 32,101.63 155,466.11 
89.95 
 
- - - - - $ ___6.,54;..;._5._9~5 
 
6,545.95 
 
$ 3,806,290.29 $ 443,546.81 $ 
 
6,545.95 $ 4,256,383.05 
 
See notes to the general purpose financial statements. 
 
- 28 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30. 1995 
 
SCHEDULE "5" 
 
City Wide School Tax From Social Circle. City of 
Other Donations A. P. Henderson Georgia Power Company Social Circle Rotary Club Interest Earned Jury Duty Fees Lost and Damaged Books Sales Breakfast and Lunches Shared Service Contributions Jackson County Board of Education Northeast Georgia Regional Educational Service Agency Social Circle Recreation Department Tuition Other 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 700.000.00 
 
$ 170.000.00 $ 870.000.00 
 
826.17 1.500.00 2.000.00 5.488.91 $ 
451.00 441.50 
 
2,432.09 
 
107.363.77 
 
24,668.65 
 
4,789.31 18,876.86 294,229.88 12,444.52 
 
1.474.42 
 
826.17 1.500.00 2.000.00 9.395.42 
451.00 441.50 
107,363.77 
24,668.65 
4,789.31 18,876.86 294,229.88 12,444.52 
 
$ 1,065,716.80 $ 109,795.86 $ 171,474.42 $ 1,346,987.08 
 
See notes to the general purpose financial statements. 
 
- 29 - 
 
  CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "6" 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer and Cleaning Services Repair and Maintenance Services Rents 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 Equipment 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTAL 
 
$ 3,382,684.84 $ 672,869.41 12,857.17 14,010.70 826.50 100,263.28 21,026.42 44,765.00 13,917.63 1,500.00 
4,007.50 16,996.49 105,812.50 129,549.35 
36,480.51 5,128.49 
10,299.46 
 
318,751.45 $ 68,262.38 
4,815.39 13,416.02 
10,720.48 
1,147.44 
1,832.10 23,925.40 
3,743.43 129,804.81 24,251.54 172,653.89 
6,906.27 685.00 
4,459.86 
 
3,701,436.29 741,131.79 17,672.56 27,426.72 826.50 110,983.76 21,026.42 44,765.00 15,065.07 1,500.00 1,832.10 27,932.90 20,739.92 235,617.31 153,800.89 172,653.89 43,386.78 5,813.49 14,759.32 
 
32,052.32 146,909.26 
 
196,957.74 
 
32,052.32 343,867.00 
 
Total Expenditures 
 
$ 4,751,956.83 $ 
 
982,333.20 $ 5,734,290.03 
 
See notes to the general purpose financial statements. - 31 - 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Repair and Maintenance Services Communications Other Purchased Services Supplies Dues and Fees Other Expenditures 
Nonoperating Costs Equipment 
Total Expenditures 
 
ALTERNATIVE SCHOOL 
PROGRAM (1) 
 
APPLIED TECHNOLOGY 
LABS 
 
DISTANT LEARNING 
 
$ 
 
15,300.00 
 
4,304.58 
 
520.01 3,564.48 $ 
 
$ 5.66 
 
3,554.05 3,000.00 
 
50,841.00 
 
99,994.34 
 
$ 
 
74,530.07 $ 
 
100,000.00 $ =====6=,5=54=.0=5 
 
Note 1: Includes Other State funds/expenditures totaling $23,689.07. 
 
See notes to the general purpose financial statements. - 32 - 
 
 SCHEDULE "7" 
 
INSTRUCTIONAL TECHNOLOGY 
 
MEDIA CENTER AND 
LIBRARY EQUIPMENT 
 
PRE-KINDERGARTEN PROGRAM 
 
SAFE SCHOOLS 
GRANT 
 
TOTAL 
 
$ 
 
$ 
 
41,996.20 $ 
 
23,492.68 
 
7,947.80 
 
$ 
 
49 944.00 $ 
 
8,608.95 32,101.63 $ 
 
82,540.80 18,779.81 2,702.80 6,475.62 
627.43 2,502.55 36,479.52 $ 
200.00 3,673.08 
1,484.50 
155,466.11 $ 
 
$ 89.95 
 
97,840.80 23,084.39 
2,702.80 6,475.62 3,554.05 1,147.44 2,502.55 108,628.49 
200.00 3,673.08 
168,876.59 
 
89.95 $ ===4=18=,6=8=5=.8=1 
 
- 33 - 
 
 b\CLV)\L 
34 
 
 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, 1995 
 
SCHEDULE "8" 
 
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis 
Salaries Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
THIRTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS 
 
$ 
 
2,493,319.00 $ 
 
100,219.00 
 
$ 
 
2,769,013.65 
 
151,552.51 $ _ _ _ _12_9...,.0_6_8_.9_2 
 
$ 
 
2,920,566.16 
 
-40,317.20 $ _ _.=,;2,!,;:.88.:..;0;.:;:,2:.;4.;;.;8.;,;;.96;;_ 
 
$ 
 
0.00 $ ======0.=00= 
 
See notes to the general purpose financial statements. - 35 - 
 
 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. 1995 
 
GENERAL AND CAREER l;;DUCATION PROGRAMS Kindergarten (j Grades 1  3 (i Sub-Total K-3 Grades 4  5 (i Grades 6  8 (i Grades 9-12 (i High School Laboratories (j Vocational Education Laboratories (j Total General and Career Education Programs 
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (i Category II (i Category Ill (j Category IV (j Sub-Total Regular Category V (Gifted) (j Total Special Education Programs 
REMEDIAL EDUCATION PROGRAM el 
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS 
Salaries Operations 
Total Media Center Programs 
Total Thirteen Weighted and Media Center Programs 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development (j Identifies Thirteen Weighted Programs. 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL 
 
% 
 
ORIGINAL 
 
MID-TERM 
 
$ 
 
199.270.00 
 
$ 
 
179.343.00 $ 
 
538,095.00 
 
484,285.50 
 
$ 
 
737.365.00 90 $ 
 
663,628.50 $ 
 
263,276.00 90 
 
236,948.40 
 
449,338.00 90 
 
404,404.20 
 
264,877.00 90 
 
238,389.30 
 
110,285.00 90 
 
99,256.50 
 
118,620.00 90 
 
106,758.00 
 
$ 1,943,761.00 
 
$ 1,749,384.90 $ 
 
0.00 0.00 98,028.00 
18,928.00 116,956.00 
 
$ 
 
272,853.00 
 
$ 
 
245,567.70 $ 
 
0.00 
 
$ 
 
272,853.00 90 $ 
 
245,567.70 $ 
 
8,504.00 90 
 
7,653.60 
 
$ 
 
281,357.00 
 
$ 
 
253,221.30 $ 
 
$ 
 
66,582.00 90 $ 
 
59,923.80 $ 
 
$ 2,291,700.00 
 
$ 2,062,530.00 $ 
 
0.00 
0.00 0.00 116,956.00 
 
$ 
 
66,022.00 90 $ 
 
59,419.80 $ 
 
0.00 
 
18,641.00 90 
 
16,776.90 
 
$ 
 
84,663.00 
 
$ 
 
76,196.70 $ 
 
0.00 
 
$ 2,376,363.00 
 
$ 2,138,726.70 $ 
 
116,956.00 
 
$ 
 
6,502.00 
 
$ 
 
6,502.00 $ 
 
0.00 
 
21,097.00 
 
21,097.00 
 
0.00 
 
$ 
 
27,599.00 100 $ 
 
27,599.00 $ 
 
0.00 
 
See notes to the general purpose financial statements. 
 
 36  
 
 SCHEDULE"9" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
179,343.00 $ 
 
227,830.71 $ 
 
4,166.09 $ 
 
231,996.80 
 
484,285.50 
 
551,073.92 
 
18,247.02 
 
569,320.94 
 
$ 
 
663,628.50 $ 
 
778,904.63 $ 
 
22,413.11 $ 
 
801,317.74 $ 
 
0.00 
 
236,948.40 
 
288,118.77 
 
9,790.80 
 
297,909.57 
 
0.00 
 
502,432.20 
 
529,695.32 
 
18,457.38 
 
548,152.70 
 
0.00 
 
238,389.30 
 
414,877.23 
 
28,051.05 
 
442,928.28 
 
0.00 
 
99,256.50 
 
95,624.54 
 
4,531.17 
 
100,155.71 
 
0.00 
 
125,686.00 
 
187,651.48 
 
38,986.67 
 
226,638.15 
 
0.00 
 
$ 1,866,340.90 $ 2,294,871.97 $ 
 
122,230.18 $ 2,417,102.15 
 
$ 
 
245,567.70 
 
$ 
 
2.90 53,499.71 $ 201,523.03 
1,630.22 
 
$ 1,039.58 4,392.52 
 
2.90 54,539.29 205,915.55 
1,630.22 
 
$ "245,567.70 $ 
 
256,655.86 $ 
 
5,432.10 $ 
 
262,087.96 
 
0.00 
 
7,653.60 
 
41,110.37 
 
1,198.35 
 
42,308.72 
 
0.00 
 
$ 
 
253,221.30 $ 
 
297,766.23 $ 
 
6,630.45 $ 
 
304,396.68 
 
$ 
 
59,923.80 $ 
 
73,878.84 $ 
 
208.29 $ 
 
74,087.13 
 
0.00 
 
$ 2,179,486.00 $ 2,666,517.04 $ 
 
129,068.92 $ 2,795,585.96 
 
0.00 
 
$ 
 
59,419.80 $ 
 
102,496.61 
 
$ 
 
102,496.61 
 
0.00 
 
16,776.90 
 
$ 
 
22,483.59 
 
22,483.59 
 
0.00 
 
$ 
 
76,196.70 $ 
 
102,496.61 $ 
 
22,483.59 $ 
 
124,980.20 
 
$ 2,255,682.70 $ 2,769,013.65 $ 
 
151,552.51 $ 2,920,566.16 $ 
 
0.00 
 
$ 
 
6,502.00 
 
21,097.00 
 
$ _ _ _21_._s99_.oo_ 
 
$ 
 
12,203.30 $ 
 
12,203.30 
 
15,308.89 
 
15,308.89 
 
$ 
 
27,512.19 $ 
 
21,s12.19 $ _ _ _ _ _ _86_.a_1 
 
 37  
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF BOARD MEMBERS YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "10" 
 
BOARD MEMBER ADDRESS 
Mr. Hal W. Dally, Chairman (*) 317 North Cherokee Road Social Circle, Georgia 30279 
Ms. Vickie Gasaway (*) P.O. Box710 Monroe, Georgia 30655 
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 
Mr. J~hn H. Pittard (*) 246 East Hightower Trail Social Circle, Georgia 30279 
Ms. Grace Sanford (*) P. 0. Box762 Social Circle, Georgia 30279 
 
(*) Denotes Board Members Serving as of June 30, 1995 
 
See notes to the general purpose financial statements. 
 
- 38 - 
 
 SECTION II COMPLIANCE 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 2, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members of the City of Social Circle Board of Education 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the City of Social Circle Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated April 2, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
Compliance with laws, regulations, contracts, and grants applicable to the City of Social Circle Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 
 
95CRL-10 
 
 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:jy 95CRL-10 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 2, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the City of Social Circle Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the City of Social Circle Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated April 2, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have applied procedures to test the City of 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 ofFederal Financial Assistance, for the year ended June 30, 1995: 
 
( 1) Political Activity 
 
(5) Allowable Costs/Cost Principles 
 
(2) Civil Rights 
 
(6) Audit Follow-Up/Resolution 
 
(3) Cash Management 
 
(7) Administrative Requirements 
 
(4) Federal Financial Reports 
 
Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 
 
95CRL-40 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Social Circle Board of Education had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
t:P~~ 
Claude L. Vickers State Auditor 
CLV:jy 95CRL-40 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 2, 1996 
 
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 of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the City of Social Circle Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated April 2, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
In connection with our audit ofthe fiscal year 1995 general purpose financial statements of the City of Social Circle Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govemmg: 
 
(1) Types of Services Allowed or Unallowed 
 
(2) Eligibility 
 
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Social Circle Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 
 
95CRL-120 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Social Circle Board of Education had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
t:t~~ 
Claude L. Vickers State Auditor 
CLV:jy 95CRL-120 
 
 SECTION III INTERNAL CONTROL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 2, 1996 
 
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 of Education 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the City of Social Circle Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated April 2, 1996. This report was qualifi~ for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
The management 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 ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
95ICL-3 
 
 In planning and performing our audit of the general purpose financial statements of the City of Social Circle Board of Education for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 
 
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. 
 
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted 
in the following control categories: 
 
(1) Accounting Controls (Overall) 
 
(2) General Fixed Assets 
 
A material weakness is a reportable condition in which the design or operation of one or more of the internal 
 
control structure elements does not reduce to a relatively low level the risk that errors or irregularities in 
 
amounts that would be material in relation to the general purpose financial statements being audited may occur 
 
and not be detected within a timely period by employees in the normal course of performing their assigned 
 
functions. 
 
 
 
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that both reportable conditions disclosed above are also considered to be material weaknesses. 
 
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe City of Social Circle Board of Education's general purpose financial statements and this report does not affect our report thereon dated April 2, 1996. 
 
95ICL-3 
 
 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~ ~ 
Claude L. Vickers State Auditor 
CLV:jy 95ICL-3 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 2, 1996 
 
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 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the City of Social Circle Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated April 2, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
In planning and performing our audit for the year ended June 30, 1995, 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 general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 2, 1996. 
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. 
95ICL-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 general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection 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 
 
(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(1) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level of Effort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(4) Reporting 
 
(6) Audit Follow-Up/Resolution (7) Administrative Requirements 
 
(5) Applicable Special Tests and Provisions 
(6) Other Requirement Claims for Advances and Reimbursements 
 
For all of the internal control structure categories listed above, we obtained an understanding of the design 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, 1995, the City of Social Circle Board of Education had no major Federal financial assistance programs and expended 57% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs: 
 
Food and Nutrition Program Food Services National School Lunch Program 
 
95ICL-15 
 
 Elementary and Secondary Education Act - Chapter 1 Education of Deprived Children 
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 
We noted 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 granter 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. 
 
Re~ 
 
CLV:jy 95ICL-15 
 
Claude L. Vickers State Auditor 
 
 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, 1995 
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, reported that the Board had an underexpenditure 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 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 Meet Expenditure Requirements Financial Statements Amount: $651.75 Audit Control Number 7861-93-04 
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $651. 75 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $651. 75 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 Meet Expenditure Requirements Financial Statements Amount: $13,328.52 Audit Control Number 7861-94-01 
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$4,883.98 for the salaries portion of the High School Laboratories Program, $8,311.96 for the salaries portion of the Special Education Programs and $132.58 for the operations portion ofthe Remedial Education Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditures as required. The total amount 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. 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $5,017.94 Audit Control Number 7861-94-02 
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $5,017.94 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $5,017.94 - 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 Finding Resolved Audit Control Number 7861-94-03 
The audit report for the year ended June 30, 1994, reported that the Board failed to submit a corrective action plan for the 1993 audit report to the Georgia Department of Education as required by 0MB Circular A-128. During the year under review, a corrective action plan was filed with the Georgia Department of Education as required. 
AUDIT FOLLOW-UP/RESOLUTION Failure to Refund Unexpended Grant Balance Financial Statements Finding Resolved Audit Control Number 7861-94-04 
The audit report for the year ended June 30, 1994, reported that the Board had an unexpended grant balance of$2,481.07 for the Pre-Kindergarten Lottery Program which should be returned to the Georgia Department ofEducation. A review of the underlying documentation revealed that the actual unexpended grant balance was $2,480.07, and this amount was refunded to the Georgia Department of Education during the year under revtew. 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 
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, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures. In the year under review, no improvement in adequate separation of employee duties was noted. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff 
Note: All Federal Financial Assistance Programs listed in the Schedule of Federal Financial Assistance, Schedule 111 11 of this report are affected by this finding. 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Report-able Condition - Material Weakness Audit Control Number 7861-93-02 
The audit report for the year ended June 30, 1994, noted that the management of the City of Social Circle Board of Education had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete arid not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
 
 CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 
CURRENT YEAR 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $86.81 Audit Control Number 7861-95-01 
For the year under review, the City of Social Circle Board of Education reported to the Georgia Department ofEducation on DE form 0420 an underexpenditure of Quality Basic Education (QBE) funds of$86.81 for the Staff Development Program. This questioned cost occurred because the Board expended less than the minimum expenditure requirement for this QBE Program. The underexpenditure of $86.81 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. 
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.