GA A800 ,RI E33 V;J. 11'B-'lt STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334 AUDIT REPORT CITY OF VALDOSTA BOARD OF EDUCATION LOWNDES COUNTY YEAR ENDED JUNE 30, I 994 CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY - TABLE OF CONTENTS - SECTION! 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 3 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET GOVERNMENTAL FUND TYPES 7 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 20 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 22 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 24 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 25 SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 26 2 ANALYSIS OF CASH AND CASH EQUIVALENTS 28 3 INVESTMENTS 29 4 ACCOUNTS RECEIVABLE 30 SCHEDULE OF REVENUE 5 STATE FUNDS 31 6 LOCAL AND OTHER FUNDS 32 CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY -TABLE OF CONTENTS- SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES SCHEDULE OF EXPENDITURES BY OBJECT 7 GOVERNMENTAL FUND TYPES 33 8 LOTTERY PROGRAMS 34 9 FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND 35 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 10 OVERALL 37 11 BY PROGRAM 38 12 SCHEDULE OF IRAVEL OF BOARD MEMBERS 40 SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY - TABLE OF CONTENTS - SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SECTION! FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 19, 1995 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe City of Valdosta Board ofEducation INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through D) of the City of Valdosta Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General ofthe 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. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 94ARL-14 As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. * 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, 1994, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opirtion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and 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 Valdosta Board ofEducation as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles. Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe City ofValdosta Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose 94ARL-14 financial statements ofthe City of Valdosta Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as proyided for by Official Code of Georgia Annotated Section 50-6-24. "d:~:a Claude L. Vickers State Auditor CLV:jy 94ARL-14 CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY - 1- ?. ;\'11 D~~l CITY OF VALDOSTA BOARD OF EDUCATION - LOI/NOES COUNTY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 1994 EXHIBIT "A" Cash and Cash Equ'tval ents Investments Accounts Receivable Inventories Food Donated Ccmoodities Purchased Foad Consumab1e Suppl i es GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND TOTALS (Memorandum Only) JUNE 30 1994 JUNE 30 1993 292,506.lB 5,507.00 $ 298,013.18 $ 510,482.15 $2,322,339.83 717,120.93 $3,26B,624.75 94,493.00 6,402,578.51 5,866,400.69 32,826.82 249,899.31 B33,176.4B 1,115,902.61 346,631.59 66 274.87 98,422.74 52,474.88 98,422.74 52,474.88 66 274.87 127,301.85 35,349.18 54 251.81 Total Assets $2 421 441.52 $1 410 424.04 $4 101 801.23 $ 100 000.00 $ 8 033 666.79 $ 6 940 417 .27 LIABILITIES AND FUND FOtJ!TY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Explred Grant Balances Payable Retainages Payable Deferred Revenue Total liabilities 470,408.57 $ $ 79,941.42 256,833.72 3,380.07 175 262.11 641,156.28 23,141.08 386,582.19 $ 470 408.57 $ 515 417 .32 $1 050 879.55 $ 1,111,564.85 $ 103,082.50 256,833.72 3,380.07 386,582.19 175 262.11 605,915.84 106,218.69 269,861.68 5,085.58 61 640.00 $ 2 036 705.44 $ 1 048 721.79 FUND EQUITY Fund Balances Reserved For Bus Replacerrent Funds For Continuation of Federal Programs For Expired Grant Balances/ Questioned Costs For Inventories Food Donated Canrodities Purchased Food Supplies For State Capital Outlay Projects 307,921.75 67,794.96 66,274.87 2,765.38 98,422.74 52,474.88 69 619.72 307,921.75 $ 345,264.97 2,765.38 547 .84 67,794.96 33,685.40 98,422.74 52,474.88 66,274.87 69 619.72 127,301.85 35,349.18 54,251.81 472 727 .00 $ 441,991.58 $ 153,663.00 $ 69,619.72 665,274.30$ 1,069,128.05 Unreserved Undesignated 1 5D9 041.37 741 343.72 2 981 301.96 $ 100 000.00 5 331 687.05 4 822 567.43 Total Fund Equity $1 951 032.95 $ 895 006.72 $3 050 921.68 $ 100 000.00 $ 5 996 961.35 $ 5 891 695.48 Total Liabilities and Fund Equity $2 421 441.52 $1 410 424.04 $4 101 801.23 $ 100 000.00 $ 8 033 666.79 $ 6 940 417 .27 The notes to the general purpose financial statements are an integral part of this statement. - 3- CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994 GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND TOTAL REVENUES State Funds Federa 1 Funds loca 1 and Other Funds $1B,131 ,9B7 .31 $ 461,091.82 124,017.40 3,548,230.00 5 383 984 .14 67B 138.24 3,772,216.00 $22,365,295.13 3,672,247.40 111 466.B8 6 173 589.26 Total Revenues $23 639 988.85 $ 4 6B7 460.06 $ 3 883 6B2.88 $32 211 131.79 EXPENDITURES Current Instruction Support Services Pupi 1 Services Improvement of Instructi ona 1 Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Pl ant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services Capital Outlay $15,665,924.51 $ 1,863,863.09 510,362.46 689,605.08 673,831.20 391,242.77 1,492,486.90 176,337.27 2,320,365.67 660,962.14 36,233.58 18,154.50 36,582.45 21,169.20 40,479.43 126,416.06 21,5B8.41 64,345.28 39,189.69 49,721.22 223,365.78 2,127,704.29 242,309.08 $17,529,787.60 546,944.91 710,774.28 714,310.63 517,658.83 1,514,075.31 176,337.27 2,384,710.95 700,151.83 85,954.80 241,520.28 2,127,704.29 242,309.08 4 601 872. 45 4 601 872. 45 _ Total Expenditures $22 877 Bl5.16 $ 614 424.90 $ 4 601 872.45 $32 094 112.51 Excess of Revenues over (under) Expenditures 762 173.69 $ 73 035.16 $ -718 189.57 $ 117 019.28 OTHER FINANCING SOURCES [USESl Operating Transfers In Operating Transfers Out $ -369 993. 67 17.99 $ 369,975.6B $ 369,993.67 -369 993. 67 Tota 1 Other Financing Sources (Uses) -369 993.67 $_ _ _~17~-~9~9 $ 369 975.68 $ 0.00 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY I 392,180.02 $ 1,55B ,852. 93 73,053.15$ -348,213.89 $ 117,019.28 B33,706.98 3,399,135.57 5,791,695.48 Food Inventory - Net Change in Period Donated Commodities Purchased Food 63,073.56 -74 B26.97 63,073.56 -74 826.97 FUND BALANCE JUNE 30 $ 1 951 032.95 $ 895 006.72 $ 3 050 921.68 $ 5 896 961.35 The notes to the general purpose financial statements are an integral part of this statement. - 4- EXHIBIT "B" FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND TOTALS (Memorandum 0n1 y) YEAR ENDED JUNE 30 1994 JUNE 30 1993 $22,365,295.13 $17,478,556.15 3,672,247 .40 3,895,583.35 955 00 6 181 544.26 6 093 415.63 7 955 00 $32 219 086.79 $27 467 555.13 7,955.00 $17,537,742.60 $17,102,460.78 546,944.91 710,774.28 714,310.63 517,658.83 1,514,075.31 176,337.27 2,384,710.95 700,151.83 85,954.80 241,520.28 2,127,704.29 510,687.93 645,174.25 655,644.36 420,831.39 1,457,753.20 226,959.99 2,145,187.50 581,370.94 149,293.31 334,578.40 1,824,465.56 242,309.08 4 601 872 .45 208,602.99 796 778. 83 7 955.00 $32 102 067 51 $27 059 789.43 ____.o...,.o.,_o $ 117 019 28 $ 407 765. 10 369,993.67 -369 993.67 571,277.15 -571 277.15 ----"'o..,o.,_o $ oo o.oo $ 117,019.28$ 407,765.70 100,000.00 5,891,695.48 5,448,065.27 63,073.56 -74 826.97 -50,997 .35 86 861.86 100 000.00 $ 5 996 961.35 $ 5 891 695.48 - 5- Co EXHIBIT "C" ACTUAL PER EXHIBIT "B" ACTUAL PER ADJUSTMENTS BUDGET BASIS BUDGET VARIANCE FAVORABLE (UNFAVORABLE) REVENUES State Funds Federa1 Funds Local and Other Funds $22,365,295.13 $ 3,672,247.40 6,173,5B9.26 0.00 $22,365,295.13 $20,755,110.39 $ 1,610,184.74 3,672,247.40 3,469,BBB. 68 202,358.72 6,173,589.26 5,806,750.19 366,839.07 Total Revenues EXPENDITURES - - - - $32,211,131.79 $ 0.00 $32,211,131.79 $30,031,749.26 $ 2,179,382.53 Current Su~:n Instruction ~:~~l ~:: Improvement of Instructional Services Educational Medi a Services General Adninistration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Centra1 Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services Capital Outlay $17,529,787.60 $ 546,944.91 710,774.28 714,310.63 517,658.83 1m:mJ} 2,384,710.95 700,151.83 85,954.80 241,520.28 2,127,704.29 242,309.08 4,601,872.45 0.00 $17,529,787.60 $17,649,393.50$ JJ9,605.90 546,944.91 710,774.28 714,310.63 517,658.83 1m:mJ} 2,384,710.95 700,151.83 2~U~Jg 2,127,704.29 242,309.08 4,601,872.45 540,270.09 698,270.34 685,067.60 rgti~rn 527,654.24 1 2,320,967.01 m:~5U~ 18,354.50 1,980,271.29 247,469.23 4,026,906.00 -6,674.82 -12,503.94 -29 ,243.03 9,995.41 40,002.13 16,339.66 -63,743.94 -8,116.30 -2~i:nu~ -147 ,433.00 -57tmJ~ Total Expenditures - - - - $32,094,112.51 $ 0.00 $32,094,112.51 $31,242,422.99 $ -851,689.52 Excess of Revenues over (under) Expenditures Jl7,019.28 $_ _ _o_.o_o $ u1,019.28 $-1,210,673.73 $1,327,693.01 OTHER FINANCING SOURCES (USES) Other Sources Other Uses 369,993.67 $ -369,993.67 0.00 $ 369,993.67 $ 331,674.00 $ 38,319.67 -369,993.67 -331,674.00 -38,319.67 Total Other Financing Sources (Uses) 0.00 $ 0.00 $ 0.00 $ 0.00 $- - - -0.-00 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ Jl7 ,019.28 $ 0.00 $ Jl7,019.28 $-1,210,673.73 $1,327,693.01 FUND BALANCE JULY I, 1993 5,791,695.48 -162,651.03 5,629,044.45 5,882,764.35 -253,719.90 FOOD INVENTORY - NET CHANGE IN PERIOD Donated Ccmoodi ti es Purchased Food 63,073.56 -74,826.97 -63,073.56 74,826.97 0.00 0.00 0.00 0.00 FUND BALANCE JUNE 30, 1994 $ 5,896,961.35 $ -150,897.62 $ 5,746,063.73 $ 4,672,090.62 $ 1,073,973.11 The notes to the general purpose financial statements are an integral part of this statement. - 7- CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXIIlBIT "D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City ofValdosta Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent, appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. The more significant of the Board's accounting policies are described below. REPORTING ENTITY In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the City of Valdosta Board ofEducation. Based upon the application of the above criteria, the City of Valdosta Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Valdosta, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards. Board members were elected by the public and have decision making authority, the power to designate management the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. FUND ACCOUNTING The Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. - 8- CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXIIlBIT "D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial stafements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally.accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 a=unt for all financial resources ofthe Board except those required to be a=unted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to a=mplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be a=unted 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. FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: EXPENDABLE TRUST FUND Self-Insured Employee Benefit Fund - the fund used to account for unemployment compensation contributions and expenditures. - 9- CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXIIlBIT "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 and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. - 10 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXHIBIT"D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUDGET The City ofValdosta Board of Education has a legally authorized nonappropriated budget which is fonnally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval 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 adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance. CASH AND CASH EQUIVALENTS COMPOSffiON OF DEPOSITS Cash and.cash equivalents consist ofdeposits (mcluding savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. INVESTMENTS COMPOSmON OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following: (1) Obligations issued by the State of Georgia orby other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation ofthe United States government, (5) Prime banker's acceptances, - 11 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXHIBIT"D" Note 1: SUMMARY OF SIGNlFlCANT ACCOUNTING POLICIES (6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations ofother political subdivisions ofthe State ofGeorgia. 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 Valdosta fixed the property tax levy for the 1993 tax year (calendar year) on October 20, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70. l 03. The City Clerk bills and collectsthe property taxes for the City of Valdosta Board ofEducation and remits the taxes collected to the Board. The tax millage rate levied for the 1993 tax year (calendar year) for the City of Valdosta Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 2.12 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 offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The - 12 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXHIBIT"D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles. CONSUMABLE SUPPLIES Inventories of consumable supplies shown are at cost (first-in, first-out) on the Combined Balance Sheet. Consumable supplies are recordeo as inventories at the time of purchase and expenditures are recorded when consumed. Reported inventories are equally offset by a reservation of fund balance which indicates that they do not constitute resources available for discretionary expenditures, even though they are a component of net current assets. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the 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. DEFICIT FUND BALANCE The fund reporting a deficit fund balance position at June 30, 1994, which is not readily apparent on the general purpose financial statements is as follows: Fund Type/Fund Name Deficit Balance Special Revenue Fund Athletic Fund $._="'J.,.6.,.).,,3""6"'3""6 Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by - 13 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXHIBIT"D" Note 2: DEPOSITS AND INVESTMENTS surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than I IO percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or ofthe State of Georgia, (4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, - (6) Industria! 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, 1994, the bank balances were $2,217,716.88. 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.) - 14 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS flJNE 30 I994 EXHIBIT"D" Note 2: DEPOSITS AND INVESTMENTS The Board's deposits are classified by risk category at June 30, 1994, as follows: Risk Category 1 2 3 Total CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: Bank Balance $ 216,275.42 1,971,715.00 29 726.46 $ 2 217 716 88 Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. At June 30, 1994, the carrying amount of the Board's total investments was $6,402,578.51 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. 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 I - Inventories Note 4: RISK MANAGEMENT The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. The year end balance in the fund is maintained at $100,000.00. Claims are paid from this fund during the year and transfers in or out ofthe General Fund are used to maintain the established year end balance. During fiscal year 1994, a total of $7,955.00 was paid in claims. - 15 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXHIBIT"D" Note 5: SIGNIFICANT COMMITMENTS At June 30, 1994, the Board had encumbrances in the amount of$129,778.90 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of $129,572.11 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows: Computers in Classrooms Media Center and Library Equipment $ 31,131.83 98 647.07 $ )29 778 90 The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1994. Project 94-792-081 Unearned Executed Contracts $ I 513 69) 88 The amounts described in this note are not reflected in the financial statements. Note 6: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements. Note 7: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). - 16 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS TIJNE30 1994 EXHIBIT"D" Note 7: RETIREMENT PLANS TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 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 ofthe members 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 members 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 members contributions are refunded with interest. The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $15,833,818:94; . total payroll was $17,883,979.66. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%. Total contributions made during fiscal year 1994 amounted to $2,820,008.91, of which $1,869,972.93 was made by the Board and $950,035.98 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll. TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. - 17 - CITY OF VALDOSTA BOARD OF EDUCATION LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXHIBIT"D" Note 7: RETIREMENT PLANS Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows: Total pension benefit obligation $13,912,014,000.00 Net assets available for benefits, at cost Unfunded pension benefit obligation 12 821 722 000.00 $ I 090 292 ooo oo The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, I994 of $1,869,972.93 was actuarially determined and r-epresented .3585% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia. PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after IO years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe 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. - 18 - CITY OF VALDOSTA BOARD OF EDUCATION. LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994 EXHIBIT"D" Note 7: RETIREMENT PLANS Members become fully vested after ten years of service. If a member terminates with Jess than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. There were 216 employees covered underPSERS for the year ended June 30, 1994. PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $6,880.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June30, 1994, was $9,150,000.00. Note 8: SURETY BONDS The School Superintendent, Mr. Walter G. Altman, III, is bonded in the amount of $20,000.00 with the Western Surcty Company, Sioux Falls, South Dakota, their Bond No. 68255388, on which premium is paid through June 30, 1995. - 19 - (lllffi' ASSETS Cash ard Cash ~ivalents lnvesb!elts Aa:ants Receivable Inventories Food lmat.d Camn:Jities Purchasej Food El.ElHTARY NO som. FlXD SERVICES A.NJ -STATE PRESOIXl. lwl!Cll'PED -LOTTERY !Rl.6 FREE som.s NO aJM.NITIES ,er OW'TERl Ell.CATlil Services llllJl'OllelEITt of Instructicnal Services Ecil::aticnal He:!ia Services General ldninistratia, Schx>l Adninistratia, K3intenance ard ~ratia, of Plant Stlmlt Transportatia, Services Csrt:ral Siwort Services ott-er Siwort Services Focxl Services ~tia, Total Elcplmitures E,ccess of Revenues Oller (tnler) Elcplmitures OTlfR FINAIC!Nl so:.RCES 71,061.00 $ 121,556.17 $ 79,170.34 $ 40,479.43 61,364.23 11,702.98 183.04 225.71 $ 2,106,507.23 ---- $ 2,106,507.23 $ 71,061.00 $ 235,102.81 $ 79,579.09 $ 57,843.02 $ 0.00 $ -17.99 $ 0.00 $ 9,664.76 $ 1,290,710.49 6,127.73 11,848.n 118,266.53 49,721.22 - - - - 9,664.76 $ 1,482,674.74 0.00 $ 0.00 ~ting T ~ In 17.99 E,ccess of Revenues and otll!r Financing Soorces ow,r (in:ler) Elcplmitures 57,843.02 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 AHJ BAI..AICE JJ.Y I 846,012.67 0.00 0.00 0.00 0.00 o.oo Focxl l"""11:ory - Net Ch,nge in Pericxl lmata:l Canrodities PurclesedFocxl 63,073.56 -74,826.97 AH) BAI..AICE .lJ 30 $ 892,102.28 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 See notes to the general JlU!ll0SE! financial sta1:slelts. - 22 - EXHIBIT ''f'' SEClHW!Y EllrAT!CW ICT OIIP1ER2 ---- IIUXXGWITFLCW TlR!l.Gi TlllE II EISEtfflER WITIEIIITICS NCJ SCIEICE EllrAT!CW !NJIV!llW.S WITH - DISABILITIES EixrAT!CW ,er TlllE VI, B FLCW TiR(J..8i PRESOm. .IE TRAJN!Na PARlltilSHIP ,er ATll.ETIC FlNl BAIQ.ET FlNl TOTALS YEM ENlED .l.lE 30, 1994 .l.lE 30, 1993 s 73,3n.oo 37,197.00$ 195,999.46 $ 64,707.51 $ 16,209.00 $ 461,091.82 $ 214,748.42 3,548,230.00 3,685,626.64 $ 232,561.69 $ 24,993.74 678,138.24 731,972.64 s 73,3n.oo 37,197.00$ 195,999.46 $ 64,707.51 $ 16,209.00 $ 232,561.69 $ 24,993.74$ 4,687,460.06$ 4,632,347.70 73,207.99 $ 169.01 73,377.00$ 0.00 $ 33,500.17 $ 136,001.71 $ I.3n.so 8,382.74 1,927.93 101.79 6,487.87 18,247.02 1,216.49 23,735.70 34,979.46 $ 195,999.46 $ 2,217.54 $ 0.00 $ 37,445.85 $ 11,544.61 17,761.17 15.00 4,310.81 B54.24 3,341.39 1,764.56 3,525.30 353.58 223,365.78 ---- $ - - - - 64,707.51 $ - -16,-209-.00$ 223,365.78 $ 0.00 $ 0.00 $ 9,195.91 $ $ 1,863,863.09 $ 2,121,095.61 21,197.06 36,582.45 21,169.20 40,479.43 126,416.06 21,588.41 64,345.28 39,189.69 49,721.22 223,365.78 2,127,704.29 20,716.61 36,274.09 124,708.42 17,005.81 2,282.45 20,959.63 61,836.27 316,384.70 1,824,465.56 21,197.06$ 4,614,424.90$ 4,545,729.15 3,796.68 $ 73,035.16$ 86,618.55 0.00 $ 0.00 2,217.54$ 547 .B4 0.00 $ 0.00 0.00 $ 0.00 17.99 5,000.00 0.00 $ 9,195.91 $ 3,796.68 $ 73,053.15 $ 91,618.55 0.00 -25,332.27 12,478.74 833,706.96 706,223.92 63,073.56 -50,997.35 -74,826.97 86,861.86 0.00 $ 2,765.38 $ 0.00 $ 0.00 $ 0.00 $ -16,136.36 $ 16,275.42 $ 895,006.72 $ 833,706.96 - 23 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1994 EXHIBIT "G" ASSETS Cash and Cash Equivalents Investments Accounts Receivable REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION PROJECT 94-792-081 TOTALS JUNE 30, 1994 JUNE 30, 1993 208,545.29 208,545.29 389,232.70 2,795,897.75$ 472,727.00 3,268,624.75 2,947,157.87 833,176.48 833,176.48 62,745.00 Total Assets $ 3,004,443.04 $1,305,903.48$ 4,310,346.52 $ 3,399,135.57 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Reta i nages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesi gnated Total Fund Equity 23,141.08 849,701.57 386,582.19 849,701.57 23,141.08 3B6,582.19 23,141.08$ 1,236,283.76$ 1,259,424.84 2,981,301.96 69,619.72$ 69,619.72$ 472,727.00 0.00 2,981,301.96 2,926,408.57 $ 2,981,301.96 $ 69,619.72 $3,050,921.68$ 3,399,135.57 Total Liabilities and Fund Equity $ 3,004,443.04 $1,305,903.48$ 4,310,346.52 $ 3,399,135.57 See notes to the general purpose financial statements. - 24 - CITY OF VALOOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1994 EXHIBIT "H" REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMM! SS I ON ------------- PROJECT 94-792-081 TOTALS ---------------------- ------ YEAR ENDED ---------------------- -----JUNE 30, 1994 JUNE 30, 1993 REVENUES State Funds Local and Other Funds $3,772,216.00$ 3,772,216.00$ 111,466.88 111,466.88 62,745.00 96,324.21 Tota 1 Revenues 111,466.88 $ 3,772,216.00 $ 3,883,682.B8 $ 159,069.21 EXPENDITURES Capital Outlay land and Land Improvements Building and Building Improvements Equipment 207,232.71 $ 89,930.59 148,966.64 4,085,392.69 70,349.B2 297,163.30$ 4,234,359.33 70,349.82 85,948.75 615,041.61 47,068.14 Total Expenditures 426,549.17 $4,175,323.28$ 4,601,872.45$ 748,058.50 Excess of Revenues over (under) Expenditures $ -315,082.29 $ -403,107 .28 $ -718,189.57 $ -588,989.29 OTHER FINANCING SOURCES Operating Transfers In 369,975.68 369,975.68 565,284.70 Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 54,893.39$ -403,107.28 $ -348,213.89 -23 ,704. 59 2,926,408.57 472,727.00 3,399,135.57 3,422,B40.16 FUND BALANCE JUNE 30 $ 2,981,301.96 $ 69,619.72 $ 3,050,921.68 $ 3,399,135.57 See notes to the general purpose financial statements. - 25 - CITY OF VALDOSTA BOARD OF EDUCATION - LDIINDES COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1994 SCHEDULE "l" Page 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. Departnent of Through Georgi a Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994 Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1) 10.553 $ 262,290.99 $ 247,692.44 $ 262,290.99 (2) *10.555 *10.555 J0.550 1,163,787.15 162,743.30 10,551.33 1,151,334.36 N/A 1,163,787.15 $ 1,943,763.93(3) 162,743.30 162,743.30 Total U. S. Department of Agriculture $ l,5B8,821.44 $1,409,578.13 $ l,58B,821.44 $ 2,106,507.23 Education, U. S. Department of Direct P. L. 81-874 1994 Grant Through Georgia Department of Education 84.041 $ 51,250.47 $ 51,250.00 $ 51,250.00 (5) Drug-Free Schoo1s and CCJm1Jni ti es Act 1994 Grant Elerrentary a~d Secondary Education Act 84.186 80,299.00 80,299.00 79,579.09 $ 79,579.09 Chapter 1 Education of Children in State Schools 1993 Carry-Over 84.009 7,008.00 7 ,D08.00 7,008.00 1994 Regular Education of Deprived Children 84.009 6,018.00 2,530.24 2,656.76 2,656.76 1993 Regular *84.01D 232,363.38 1993 Carry-Over *84.010 86,534.00 86,534.00 86,534.00 86,534.00 1994 Regular Chapter 2 *84.010 l ,4B9,19B.OO 1,208,870.00 1,396,140.74 1,396,140.74 Block Grant - Flow Through 1994 Regular 84.151 73,377 .OD 73,377.00 73,377 .OD 73,377.00 Title II Eisenhower Mathematics and Science Education 1993 Regular 84.164 547 .84 1994 Regular 84.164 37,197.00 37,197.00 37,197.00 34,431.62 Individuals with Disabilities Education Act Title VI, B Fl ow Through 1993 Regular 1993 Carry-Over 84.027 84.027 19,783.00 8,814.23 19,783.00 19,783.00 19,783.00 1994 Regular 84.027 208,314.00 158,265.00 176,216.46 176,216.46 Preschool Program 1993 Carry-Over 84.173 36,150.00 36,150.00 36,150.00 36,150.00 1994 Regular 84.173 Vocational Education - Basic Grants to States 44,826.00 29,600.00 28,557.51 28,557.51 High School Program Basic Grant 1993 Grant 1994 Grant 84.048 24,659.64 84.048 19,973.93 11,223.05 19,973.93 (4) Consumer and Homemaking Education 1994 Contract 84.049 17,562.44 17,562.44 17,562.44 (4) - 26 - CITY OF VALOOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 I 994 SCHEDULE "I" Page 2 FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER AWARDS IN PERIOD FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS) FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Education, U. S. Department of Through Georgia Department of Education Vocational Education - Basic Grants to States High School Program Supplementary State Grants for Facilities 1994 Contract 84.253 $ 3,849.00 $ 3,849.00 $ 3,849.00 (4) Total U. S. Department of Education $ 2,174,331.84 $ 2,089,334.98 $ 2,035,634.93 $ 1,940,962.02 Labor, U. S. Department of Through Georgia Department of Education Job Training Partnership Act 1993 Grant Through Georgia Department of Technical and Adult Education Job Training Partnership Act 1994 Grant 17 .250 3,028.84 17 .250 $ 16,209.00 12,051.15 $ 16,209.00 $ 16,209.00 Total U. S. Department of Labor 16,209.00 $ 15,079.99 $ 16,209.00 $ 16,209.00 OTHER FEDERAL ASSISTANCE Defense, U. S. Department of Direct Department of the Navy R.D.T .C. Program 1993 Grant 1994 Grant 8,522.67 $ 8,522.67 $ 8,522.67 (4) 22,859.36 16,014.76 22,859.36 (4) Total U. S. Department of Defense 31,382.03 $ 24,537.43 $ 31,382.03 Total Federal Financial Assistance $ 3,810,744.31 $ 3,538,530.53 $ 3,672,247.40 $ 4,063,698.25 Major Programs are identified by an asterisk (*) in front of the CFDA msnber. (1) The amount shown for the Food Distribution Program represents the Federally assigned value of nonoonetary assistance for donated coomodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program. (3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures. See notes to the general purpose financial statements. - 27 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNOES COUNTY ANALYSIS OF CASH AND CASH EOIIIVALENTS JUNE 30 I 994 SCHEDULE "2" NONINTEREST BEARING ACCOUNTS First State Bank and Trust Company, Va 1dos ta, Georgi a NationsBank, Valdosta, Georgi a INTEREST BEARING ACCOUNTS First State Bank and Trust Company, Valdosta, Georgia Honey Market Accounts (3.00%) N.O.W. Account (3.00%) OTHER Petty Cash -500, 503. 67 16,275.42 $ -484, 228. 25 9,971.56 -339,394.98 -329 ,423. 42 100.00 -813, 551. 67 See notes to the general purpose financial statements. - 28 - CITY OF VALDOSTA BOARD DF EDUCATION - LOWNDES COUNTY INVESTMENTS JUNE 30 1994 INVESTMENT POOL Office of Treasury and Fiscal Services Local Government Investment Pool ( 4. 237%) SCHEDULE "3" $ 6,4D2,578.51 See notes to the general purpose financial statements. - 29 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY ACCOUNTS RECEIVABLE JUNE 30 1994 SCHEDUL_E "4" GOVERNMENTAL FUND TYPES GENERAL FUND SPECIAL REVENUE FUND CAPITAL PROJECTS FUND TOTAL Defense, U. S. Department of Department of the Navy R.O. T.C. Program Education, Georgi a Department of Food Services School Breakfast Program National School Lunch Program Vocat i ona1 Education Federal Funds Lottery Program Distant Learning Federal Programs ESEA - Chapter 1 Education of Chi 1dren in State Schoo 1s Education of Deprived Chi 1dren Individuals with Disabilities Education Act Title VI, B - Flow Through Georgia State Financing and Investment Commission Reimbursement on Construction Projects Internat i ona 1 Business Machines Reimbursement for Expenses Parkwood Development Center Sale of School Lunches Powell, W. J., Company Reimbursement for Overpayment Technical and Adult Education, Georgi a Department of Job Training Partnership Act Val dos ta, City of Revenue in Lieu of Taxes Various Sources Reimbursement for Expenses 6,844.60 8,750.8B 16,059.68 1,171.66 14,598.55 12,452.79 8,800.00 126.52 187,270.74 17,951.46 1,621.00 212 .40 2,708.00 4,157.85 833,176.48 6,B44.60 14,598.55 12,452.79 B,750.B8 8,800.00 126.52 1B7,270. 74 17,951.46 833,176.48 1,621.00 212 .40 2,708.00 4,157.B5 16,059.6B 1,171.66 32,826.B2 $ 249,B99.31 $ 833,176.48 $ 1,115,902.61 See notes to the general purpose financial statements. - 30 - CITY OF VALDOSTA BOARO OF EDUCATION - LOWNDES COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994 SCHEDULE "5" AGENCY /FUNDING GOVERNMENTAL FUND TYPES GENERAL FUND SPECIAL REVENUE FUND CAPITAL PROJECTS FUND TOTAL GRANTS Education, Georgi a Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Medi a Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Speci a1 Instructi ona 1 Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educat i anal Equalization Funding Grant Food Services Other State Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Special Education Support Cost Supervision and Assessment of Student and Beginning Teachers and Performance-Based Certification Teachers' Retirement lottery Programs A1gebra Cl ass rooms Computers in Cl ass rooms Distant learning Media Center and Library Equipment Safe Schools Grant $12,604,262.00 1,447,262.00 81,907 .DO 542,810.00 172,223.00 3,671,101.00 326,614.00 97,534.00 278,514.00 211,838.00 64,306.00 168,102.00 -2,B93,657.00 1,308,986.00 $ 4,980.00 2,400.00 10,132.00 6,650.00 25,023.31 154,946.00 71,061.00 2,316.00 111,233.12 16,800.00 40,479.43 64,256.27 $12,604,262.00 1,447,262.00 81,907.00 542,810.00 172,223.00 3,671,101.00 326,614.00 97,534.00 278,514.00 211,838.00 64,306. OD 168,102.00 -2,893,657.00 1,308,986.00 154,946.00 4,980.00 2,400.00 71,061.00 10,132.00 6,650.00 25,023.31 2,316.00 111,233.12 16,800.00 40,479.43 64,256.27 Financing and Investment Commission, Georgi a State Reimbursement on Construction Projects $3,772,216.00 3,772,216.00 OTHER Education, Georgi a Department of Reimbursement for Computer Supplies 1,000.00 1,000.00 $18,131,987.31 $ 461,091.82 $3,772,216.00 $22,365,295.13 See notes to the general purpose financial statements. - 31 - CITY OF VALOOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF LOCAL ANO OTHER REVENUE YEAR ENDED JUNE 30 1994 SCHEDULE "6" Taxes City Wide School Tax Real Estate Transfer Tax Other Banquets Broadcasting Proceeds Contributions to Self-Insured Employee Benefit Fund from Other Funds for Unemployment Canpensat ion Donations Band Booster Cl ub Other Indirect Cost Special Revenue Fund Interest Earned Legal Settlement State of Georgia v. Dairymen, Incorporated et al. Lost and Damaged Books Revenue in Lieu of Taxes City of Valdosta Rents Sales Breakfast and Lunch Faculty Ticket Sales Gate Receipts Schoo 1 Assets Stadi IJl1 Renta1 Tuition Other GOVERNMENTAL FUND TYPES GENERAL FUND SPECIAL REVENUE FUND CAPITAL PROJECTS FUND FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND TOTAL $ 5,156,295.84 28,922.22 18,SD7.16 2,000.00 $ 5,156,295.84 28,922.22 18,507.16 2,000.00 2 ,8D9 .52 1,185.33 36,105.58 77,267.95 22,678.06 $ Ill ,466.88 8,334.49 16,059.68 3,700.00 4,521.65 40,677.00 8,104.88 2,917.37 385,541.69 6,599.50 214,131.33 16,837.58 8,925.55 4,360.46 3,594.54 4,360.46 2,809.52 1,185.33 36,105.58 215,007.43 2,917.37 B,33~.49 16,059.68 3,700.00 385,541.69 6,599.50 214,131.33 21,359.23 8,925.55 40,677.00 8,104.88 __ _____ $ 5,383,984.14 $ 678,138.24 $ 111,466.88 $ =========== ============- ========= .._ 7,955.00 $ 6,181,544.26 ======= See notes to the general purpose financial statements. - 32 - CITY OF VALOOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994 SCHEDULE "7" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professi ona 1 and Techni ca 1 Services Trave 1 of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commodity Hauling Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Peri odi cal s Dues and Fees Federal lndi rect Costs Other Expenditures N~noperat i ng Costs Equipment Total Expenditures GENERAL FUND SPECIAL REVENUE FUND TOTAL $15,877,686.75 $ 2,006,292.91 $17,883,979.66 4,115,156.75 508,238.89 4,623,395.64 37,940.05 14,710.73 52,650.78 102,379.63 62,303.78 164,683.41 1,000.13 1,000.13 105,194.61 105,194.61 290,685.66 117,506.08 408,191.74 2,331.75 10,829.44 13,161.19 62,067.21 12,795.00 74,862.21 38,745.19 6,948.89 45,694.08 11,401.28 11,401.28 34,913.14 53,873.07 88,786.21 725,333.72 514,479.51 1,239,813.23 848,815.38 25,780.63 874,596.01 948,352.25 948,352.25 173,465.66 22,773.68 196,239.34 23,961.57 8,734.51 32,696.08 36,105.58 36,105.58 59,533.54 30,527.41 90,060.95 378,604.42 ------------- 222,771.26 ------------- ----6-0-1-,-3-7-5-.-6-8 $22,877,815.16$ 4,614,424.90 $27,492,240.06 See notes to the general purpose financial statements. - 33 - CITY OF VALDOSTA BOARD DF EDUCATION - LOWNDES COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994 SCHEDULE "8" ALGEBRA CLASSROOMS COMPUTERS IN CLASSROOMS DISTANT LEARNING MEDIA CENTER AND LIBRARY EQUIPMENT SAFE SCHOOLS GRANT TOTAL EXPENDITURES Operating Costs Supplies Books, Textbooks and Periodicals Dues and Fees Nonoperat i ng Costs Equipment 2,323.05 $ 34,531.12 $ 86.DO 16,800.00 $ 16,696.39 $ 64,047.21 $ 134,397.77 86.00 220.00 220.00 76,616.00 23,783.04 100,399.04 Total Expenditures 2,323.05 $ 111,233.12 $ 16,800.00 $ 40,479.43 $ 64,267.21 $ 235,102.81 See notes to the general purpose financial statements. - 34 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994 EXPENDITURES Operating Costs Unemployment Compensation Claims SCHEDULE "9" 7,955.00 See notes to the general purpose financial statements. - 35 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY ANALYSIS OF MINIMUM EXPENDITURE RfOUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1994 SCHEDULE "10" Minimum Expenditure Requirements (Total Allotment) Expenditures on Cambi ned Program Basis Salaries Operations less: Expenditures for Medi a Center Programs in Excess of Total Media Allotment Expenditures for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction Expenditures per Audit Amount of Underexpendi ture for Tota 1 A11 otment THIRTEEN WEIGHTED AND MEDIA CENTER PROGRAMS STAFF DEVELOPMENT PROGRAM $14,843,855.00$ 172,711.00 $14,63B,033.05 763,911.67 $ 172,711.00 $15,401,944.72 172,711.00 -131,021.20 -34,109.56 $15,270,923.52 138,601.44 0.00 $ 34,109.56 See notes to the general purpose financial statements. - 37 - CITY OF V OOSTA AHAL YSIS OF M NIMUM GENERAL FUND - YE GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS R~~t~o~;oyr~! g:i:~~~ lli1,li Category IV (*) Itinerant Supp1ementa1 Speech Sub-Tota1 - Regu1ar Category V (Gifted) (*) Total Special Education P.rograrns REMEDIAL EDUCATION PROGRAM (*) MEDIA CENTER PROGRAMS ORIGINAL ALLOTMENTS FROM DEPARTMENT OF EDUCATION IUIAL REQUIRED $1,381,167.00 3 616 876.00 $ 4,998,043.00 90 1,870,264.00 90 2,807,100.00 90 1,714,532.00 90 651,416.00 90 52 907 .00 90 S!Z 604 262. oo $ 1,243,050.30 $ 3 255 188.40 $ 4,498,238.70 $ 1,683,237.60 2,526,390.00 1,543,078.80 586,274.40 506 616.30 $11 343 835.80 $ 0.00 $ 1,243,050.30 3 255 188.40 0.00 $ 4,498,238.70 1,683,237.60 2,526,390.00 1,543,078.80 167,614.00 753,888.40 506 616.30 167 614.00 $11 511 449.80 $ 1,312,247.00 $ 1,181,022.30 $ 0.00 $ 1,181,022.30 $1,312,247.00 90 1~5 015.00 90 S l 447 262.00 $ J 907 .00 90 $ 242 810.00 90 $ 1,181,022.30 $ 121 513.50 $ 1 302 535.80 $ 73 716.30 $ 488 529.00 $ 0.00 $ 1,181,022.30 121 513.50 0.00 $ 1 302 535.80 0.00 $ 73 716,30 0.00 $ 488 529.00 $14 Total Thirteen Weighted and Media Center 676 241.00 $13 208 616.90 $ 167 614.00 $13 376 230.90 STAFF DEVELOPMENT PROGRAMS (1) Cost of Instruction Professional DeveloJ]Tient Total Staff Development 58,791.35 100 J 13 431.65 100 172 223.00 58,791.35 $ 113 431. 65 488.00 $ 59,279.35 113 431.65 s_ _ s 112 223.oo ....;::48""8.;;.oo:::: 112 111.00 (*) Identifies Thirteen Weighted Programs. Sj4 848 464.00 Note (1) $20,017.35 of the allotn-ent for Professional Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182. $13 380 839.90 $ 168 102.00 $13 548 941.90 See notes to the genera1 purpose fi nanci a1 statements. - 38 - SCHEDULE "11" REQUIRED ALLOTMENT ACTUAL DISTRIBUTION BY RESPECTIVE PORTIONS AKOUNI OF UNOEREXPENDJTURE F~L~m~~ED REQUIRED ALLOTMENT ACTUAL AMOUNI OF UNOEREXPENDJTURE F2EL~~~~~~ED $ 1,210,958.10 $ 1,302,912.78 32,092.20 $ 39,395.45 3 153 177 .90 3 461 328.90 102 010. 50 129 492.94 $ 4,364,136.00 $ 4,764,241.68 $ 0.00 134,102.70 $ 168,888.39 $ 0.00 1,631,786.40 1,906,261.39 0.00 51,451.20 52,804.84 0.00 2,451,618.00 2,484,135.11 0.00 74,772.00 126,575.54 0.00 1,475,271.00 2,042,678.05 0.00 67,807.80 96,824.58 0.00 728,226.70 739,848.40 0.00 25,661.70 91,360.15 0.00 440 968. 50 600 964.60 0.00 65 647.80 79 521.92 0.00 $11 092 006. 60 $ 12 538 129.23 $ 0.00 419 443. 20 $ 615 975.42 $ 0.00 14,469.30 $ 249,311.70 758,172.60 125,398.80 909.00 1 862.10 48,241.86 ~:U~Jl 131,448.79 738.90 $ 5,317.20 20,566.80 4,275.90 649. 55 3,351.52 21,680.86 7,981.66 $ 1,150,123.50 $ 1,201,970.34 $ 0.00 $ 30,898.80 $ 33,663.59 $ 0.00 118 162.80 206 881.49 $ 0.00 3 350. 70 3 385.63 $ 0.00 $ 1 268 286.30 $ 1 408 851.83 34 249.50 $ 37 049.22 $ 72 433.80 $ 126 675.24 $ 0.00 1 282.50 $ 1 432.58 $ 0.00 379 958.40 $ 564 376.75 $ 0.00 108 570.60 $ 109 454.45 $ 0.00 $12 812 685.10 $ 14 638 033.05 $ 0.00 563 545.80 $ 763 911.67 $ 0.00 $12 812 685. 10 $ 14 638 033.05 $ 59,279.35 $ 113 431.65 93,388.91 $ 79 322.09 0.00 34 109.56 172 711.00 $ 172 711.00 $ 34 109.56 0.00 736 256.80 $ 936 622.67 $ 34 109.56 - 39 - CITY OF VALDOSTA BOARD OF EDUCATION - LOWNOES COUNTY SCHEDULE OF TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30 1994 BOARD MEMBER ADDRESS Mr. David S. Waller, Chairman (*) 2502 Sherwood Ori ve Val dost a, Georgi a 31602 Mrs. Mary Allen (*) 2507 Sherwood Ori ve Valdosta, Georgia 31602 Dr. Joe B. Crane, Sr. (*) P. 0. Box 2155 Valdosta, Georgia 31604 Mr. Maceo Horne ( *) 800 Bunche Street Valdosta, Georgia 31601 Mr. Willie R. Jones (*) .2301 N. Forrest Street Valdosta, Georgia 31602 Mr. Warren Lee (*) 1103 W. Magnolia Street Valdosta, Georgia 31601 Mr. David Pipkin (*) 703 Azarea Circle Va1dos ta, Georgi a 31602 Mrs. Mary Stevens (*) 215 Martin Luther King, Jr. Drive Valdosta, Georgia 31601 Mr. Jimmy Whatley (*) P. 0. Box 1B47 Valdosta Georgia 31604 (*) Denotes Board Members Serving as of June 30, 1994 SCHEDULE "12" 237 .38 237. 35 369. 42 155. 98 1,000.13 See notes to the genera 1 purpose fi nanci a1 statements. - 40 - SECTION II COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 19, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe City of Valdosta Board ofEducation COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the City of Valdosta Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 19, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance with laws, regulations, contracts, and grants applicable to City of Valdosta Board ofEducation is the respoDS1bility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 94CRL-10 The results ofour tests indicate that, with respect to the items tested, the City of Valdosta Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions. This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:jy 94CRL-10 CIAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 19, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the City of Valdosta Board ofEducation 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 Valdosta Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated April 19, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have applied procedures to test the City of Valdosta Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994: (1) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Drug-Free Workplace Act (3) Cash Management (7) Audit Follow-Up/Resolution (4) Federal Financial Reports (8) Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 94CRL-70 Material instances of noncompliance consist offailures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule ofFindings and Improper or Questioned Costs. We considered this material instances of noncompliance in forming our opinion on whether the City of Valdosta Board ofEducation general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated April 19, 1995, on those financial statements. Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the City of Valdosta Board of Education, complied, in all material respects, with the requirements listed in the second paragraph of this report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects with those requirements. Additionally, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements which is also described in the Schedule of Findings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, dJ-~W Claude L. Vickers State Auditor CLV:jy 94CRL-70 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 19, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the City of Valdosta Board of Education SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the City of Valdosta Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 19, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the City ofValdosta Board ofEducation's compliance with the requirements governing: (I) Types of Services Allowed or Unallowed (2) Eligibility (4) Reporting (5) Applicable Special Tests and Provisions (3) Matching, Level ofEffort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994. The management of the City of Valdosta Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 94CRL-80 Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (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 material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the City of Valdosta Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report. In our opinion, the City of Valdosta Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994. 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 94CRL-80 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 19, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the City of Valdosta 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 Valdosta Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 19, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit of the fiscal year 1994 general purpose financial statements of the City of Valdosta Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing: (l) 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 ofan opinion on the City of Valdosta Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 94CRL-120 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Valdosata Board of Education had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~~ Claude L. Vickers State Auditor CLV:jy 94CRL-120 SECTION ill INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR {404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 19, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe City of Valdosta Board ofEducation 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 ofValdosta Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated April 19, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit ofthe general purpose financial statements of the City of Valdosta Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Valdosta Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. 94ICL-3 The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories: (1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement (6) Expenditures/Liabilities/ Disbursements (7) Employee Compensation (8) General Ledger (9) General Fixed Assets For all ofthe internal control categories listed above, we obtained an understanding ofthe design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk0 We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category: General Fixed Assets A material weakness is a reportable condition in which the design or operation ofone or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 94ICL-3 Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness. Tiiis condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the City of Valdosta Board ofEducation's financial statements and this report does not affect our report thereon dated April 19, 1995. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. Thinestriction 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 94ICL-3 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 19, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of tl_le City of Valdosta Board ofEducation SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe City of Valdosta Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 19, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the City of Valdosta Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated April 19, 1995. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe 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 and about whether the City ofValdosta Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major 94ICL-7 Federal financial assistance programs 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 19, 1995. The management of the City of Valdosta Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's. authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation 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: {iENERAL REQUIREMENTS (1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports SPECIFIC REQUIREMENTS (1) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level ofEffort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements (5) Applicable Special Tests and Provisions (6) Other Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1994, the City ofValdosta Board ofEducation expended 72% of its total Federal financial assistance under major Federal financial assistance programs. 94ICL-7 We perfonned 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 each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters corning to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations. As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category: Administrative Requirements A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure policies and procedures used in administering Federal financial_assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness. This condition was considered in determining the nature, timing, and extent of the procedures to be perfonned in our audit ofthe City ofValdosta Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated April 19, 1995. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. ~ x a Respectfully submitted, Claude L. Vickers State Auditor CLV:jy 94ICL-7 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $33,685.40 Audit Control Number 7921-93-02 The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure of Quality Basic Education (QBE) funds of $33,685.40 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$33,685.40 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Inadequate Documentation Federal Financial Assistance Audit Control Number 7921-93-03 Finding Resolved The audit report for the year ended June 30, 1993, stated that the Board included two schools as participating in "Schoolwide" projects in the Elementary and Secondary Education Act - Chapter 1, Education ofDeprived Children Program (CFDA 84.010), but could not provide documentation that fiscal year 1993 average per pupil expenditures in each school either equaled or exceeded average per pupil expenditures in those schools in fiscal year 1992 as required by 34 CFR Part 200.36 (c) 2 (I). The Georgia Department of Education (GDOE) reviewed this matter and in a letter dated April 18, 1995, GDOE closed this finding without a reclaim of funds. For the year under review, the Board established policies to ensure that documentation was maintained to ensure compliance with expenditure requirements. PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7921-93-01 The audit report for the year ended June 30, 1993, noted that the management of the City of Valdosta Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish 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 and not in CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7921-93-01 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. CURRENT YEAR EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $34,109.56 Audit Control Number 7921-94-01 For the year under review, the Board reported to the Georgia Department of Education on DE form 420 "General Fund QBE Program Expenditure Summary" expenditures totaling $93,388.91 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost ofinstruction program purposes resulting in an underexpenditure of$34,109.56 for the minimum required allotment of$113,431.65 for the StaffDevelopment - Professional Development Stipends Program. This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. The underexpenditure of$34,109.56 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 VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Norunaterial Noncompliance Amount: $1,168.45 Audit Control Number 7921-94-02 A review of salaries charged to the Elementary and Secondary Education Act - Chapter 1, Education of Deprived Children Program (CFDA 84.010) revealed that expenditures were not supported by time and attendance records as required by the Chapter I Policy Manual issued by the U.S. Department ofEducation. This deficiency was a result of management charging salary expenditures based on budgeted amounts. Salary charges to Federal programs should be based on actual time worked by employees. Established controls should be utilized by the Board to ensure that all salary charges of employees involved in Federal and/or State projects be based on actual hours worked. The Georgia Department ofEducation should review this matter to determine if a reclaim offunds is appropriate. ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7921-94-03 Property management records maintained by the Board for the National School Lunch Program (CFDA 10.555) were incomplete and failed to meet the property management standards as set forth in Chapter 8 of the Georgia Financial Accounting Handbook For Local School Systems (GFAH) or as outlined in 7 CPR 3015.169. The records presented for examination did not contain a description of the property, a lllllllUfilctur serial number or other identifying number, acquisition cost and date, location and disposition. This condition occurred because management disregarded the provisions of GFAH. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in GFAH and 7 CPR 3015.169. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year, when applicable. Periodic physical inventory counts should be made and reconciled to the property records to ensure the accuracy ofthe Board's inventory records. SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS CITY OF VALDOSTA BOARD OF EDUCATION -LOWNDES COUNTY SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30 1994 GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7921-93-01 We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additiona1 administrative staff the Board has decided not to pursue the recording of general fixed assets on the financial statements. EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $34,109.56 Audit Control Number 7921-94-01 We concur with this finding. The Valdosta City School System, in good faith, followed Georgia Department ofEducation correspondence which indicated that "The General Assembly also approved the transfer ofPDS funds to the Cost of Instruction budget above the 15 percent cap". Further correspondence stated "The Appropriations Bill addresses staff development as a single line item, thereby allowing commingling of cost ofinstruction and professional development stipend funds". Our understanding is that there will be an increase in the Board's local fair share for QBE Programs in a subsequent fiscal period. We also understand that we will receive an increase in our system's midterm adjustment to offset the local fair share increase resulting in a net questioned cost ofzero. ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $1,168.45 Audit Control Number 7921-94-02 This finding was a result of management not requesting from Chapter I reimbursement for all the time documented on time and attendance records. Time sheets are available indicating time spent on Chapter I (C-1) and school system (0) activities. This employee's time was budgeted on a 50-50 basis. Management requested only the 50"/o budgeted from Chapter I even though more than 50% of employee's time was spent on Chapter I activities. Management understands that it is improper to request reimbursement from Federal and/or State Projects for more employee time than can be documented as being spent on such projects. Management also understands that it may request reimbursement from Federal and/or State Projects for all documented employee time on such projects even if the requested reimbursement is more than the amount budgeted in the project, but management did not understand that it was required to do so. Management CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30 1994 ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $1,168.45 Audit Control Number 7921-94-02 believed that it was permissible to expend local funds for time spent on Federal and/or State Projects. Management will establish procedures to insure that the charging of salaries to Federal and/or State Projects are based on actual hours worked on these projects. ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7921-94-03 Property Management records maintained by the School Nutrition Program were in error for not recording that five cash registers were worn out in service and were either discarded or used as repair parts for other cash registers. Periodic physical inventory counts will be made and reconciled to the property records to insure the accuracy of the Board's School Nutrition Program inventory records.