Audit report, City of Valdosta Board of Education, Lowndes County, year ended June 30, 1996

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AUDIT REPORT CITY OF VALDOSTA BOARD OF EDUCAnON
LOWNDES COUNTY YEAR ENDED JUNE 30, 1996

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

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY - TABLE OF CONTENTS -
,.

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 CASH AND CASH EQUIVALENTS

28

3 INVESTMENTS

29

4 ACCOUNTS RECEIVABLE

30

SCHEDULE OF REVENUE

5

STATE

31

6

TAXES AND OTHER

32

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

33

8

LOTTERY PROGRAMS

34

CITYOF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY - TABLE OF CONTENTS -
,.

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

35

10

BY PROGRAM

36

11 SCHEDULE OF TRAVEL OF BOARD MEMBERS

38

SECTIONll
COMPLIANCE
COMPLIANCE REPORT BASED ONANAUDIT OF THEFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THEGENERAL 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

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

CITYOF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY - TABLE OF CONTENTS -
SECTION IV FINDINGS ANDIMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS ANDIMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 27, 1997

Honorable ZeIl MiIler, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the City of Valdosta Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE 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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generaIly accepted auditing standards, Government Auditing Standards, issued by the ComptroIler General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluatingthe overaIl 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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policieswhich, in our opinion, vary in some respects from generaIly accepted accounting principles. These variances are described as foIlows:
96ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintainedat 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, 1996, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, 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, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 of Education as of June 30, 1996, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 27, 1997, on our consideration of the Board's internal control structure and a report dated March 27, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe City of Valdosta Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe City of Valdosta Board of Education. 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 ofthe 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.
96ARL-13

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:cm 96ARL-13

Claude L. Vickers State Auditor

CITY OF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY - 1-

CITY OF VALDOSTA BOARD OF EPUCATION lOWNPES COUNTY COMBINED BALANCE SHEET All FUND TYPES JUNE 30 1996

EXHIBIT "A"

.".
ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Consumable Supplies Food Donated Commodities Purchased Food

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30,1995

$

200,874.45

$

200,874.45 $

64,785.21

$ 5.927,133.37

565.988.32 $ 1,081.394.48

7,574,516.17

8,043.823.56

59,703.74

256.703.31

316,407.05

662,890.64

92.298.86

96,027.23 65,607.58

92.298.86
96,027.23 65,607.58

96,606.10
93,914.46 88,359.25

Total Assets

$ 6,079,135.97 $ 1,185,200.89 $ 1,081,394.48 $ 8,345,731.34 $ 9,050,379.22

LIABILITIES AND FUND EqUITY

LIABILITIES

Cash Overdraft
Ac:c:ounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Deferred Revenue

$ 329,419.47 121,428.83 $
2,700.000.00

Total liabilities

$ 3,150,848.30 $

FUND EqUITY

Fund Balances

Reserved

For Bus Replacement Funds

$

For Continuation of Federal Programs

For Expired Grant Balances/Questioned Costs

For Inventories

Consumable Supplies

Food

Donated Commodities

Purchased Food

378,015.75 $
34,109.56
92.298.86

Unreserved Designated for Self-Insurance Undesignated

$ 504,424.17 $
100,000.00 2,323,863.50

Total Fund Equity

$ 2,928,287.67 $

$ 62,664.38 297,188.03
4.974.45
37,980.00
402,806.86 $

5,436.45 $ 5,436.45 $

334,855.92 $ 184,093.21 297,188.03 2.700,000.00
4.974.45
37,980.00
3,559,091.61 $

291,988.71 187,684.85 280,882.38 3,125,000.00
584.545.47 54,264.00
4,524,365.41

1,021.69
96,027.23 65,607.58 162,656.50 619,737.53 $ 782,394.03 $

$
$ 1,075,958.03 1,075,958.03 $

378,015.75 $ 1,021.69
34,109.56
92.298.86
96,027.23 65,607.58
667,080.67 $
100,000.00 4,019,559.06
4,786,639.73 $

354,934.75 6,962.64
67,794.96
96,606.10
93,914.46 88,359.25
708,572.16
100,000.00 3,717,441.65
4,526,013.81

Total liabilities and Fund Equity

$ 6,079,135.97 $ 1,185,200.89 $ 1,081,394.48 $ 8,345,731.34 $ 9,050,379.22

The notes to the general purpose financial statements are an integral part of this statement.
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CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINED STATEMENT OF REYENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

EXHIBIT"e-

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

REYENUES

State Funds Federal Funds Taxes and Other Funds

$ 20,550,440.10 $ 614,600,00

174,450,54 4,016,510.99

7,921,297,37

794,828,33 $

$ 21,165,040,10 $ 19,357,230.66

4,190,961.53

3,724,761,23

81,928,95

8,798,054,65

7,688,736,25

Total Revenues

$ 28,646,188,01 $ 5,425,939,32 $

81,928.95 $ 34,154,056,28 $ 30,770,728,14

EXPENDITURES

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

$ 19,155,043,93 $ 2,255,551.23

886,590,20 665,968,33 833,723,00 478,939,59 1,964,718.80 279,257.12 2,754,918.08 723,061.14 40,521.05
24,301,64
311,934,15 3,189,82

20,550,11 61,968,95 17,606,00 131,824,71 26,493,16
42,422.68 37,034,49 91,131.71 278,757.79 2,369,475,77
2,525,00
13,165,47 $

$ 21,410,595,16 $ 19,100,544.24

202,117,54

907,140.31 927,937.28 851,329.00 610,764,30 1,991,211,96 279,257.12 2,797,340,76 760,095.63 131,652.76 303,059,43 2,369,475.77
2,525.00 311,934,15 218,472,83

805,922.54 683,675,61 807,923.72 540,515,98 1,823,585.04 269,288.47 2,507,187.64 671,516.09 86,680.18 277,075.32 2,526,900.00
282,634.30 1,889,602,64

Total Expenditures

$ 28,322,166,85 $ 5,348,507,07 $ 202,117.54 $ 33,872,791.46 $ 32,273,051,77

Excess of Revenues over (under) Expenditures

$

324,021,16 $

77,432,25 $ 120,188,59 $

281.264,82 $ -1,502,323,63

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

$

370,187,47

$

370,187,47

$ $ -370,187.47
$ -370,187,47 $

370,187.47 $ -370,187.47
0,00 $

306,338.98 -306,338,98
0,00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

694,208,63 $

77,432.25 $ -490,376,06 $

281,264,82 $ -1,502,323,63

FUND BALANCE JULY 1 Restated (See Note 1)

2,234,079,04

725,600,68 1,566,334,09

4,526,013,81

5,996,961,35

Food Inventory - Net Change in Period Donated Commodities Purchased Food

2,112,77 22,751,67

2,112.77 -22?51,67

-4,508,28 35,884,37

FUND BALANCE JUNE 30

$ 2,928,287,67 $ 782,394,03 $ 1.075,958,03 $ 4,786.639,73 $ 4,526,013,81

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

THIS PAGE LE" BLANK

CITY OF VALDOSTA BOARD OF EDUCATION LOWNDES COUNTY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1996

EXHIBITC

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services . Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1995
Adjustments

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 19,914,349,64 $ 20,550,440.10

120,197.15

174,450.54

7,480,508.54

7,921,297.37

$ 27,515,055.33 $ 28,646,188.01

$ 19,225,230.41 $ 19,155,043.93

878,801.50 801,607.87 828,731.31 501,203.28 1,931,501.29 226,561.11 2,789,266.47 761,073.19
45,421.42 24,732.72

886,590.20 865,968.33 833,723.00 478,939.59 1,964,718.80 279,257.12 2,754,918.08 723,061.14
40,521.05 24,301.64

264,127.35

311,934.15 3,189.82

$ 28,278,257.92 $ 28,322,166.85

$ -763,202.59 $ 324,021.16

$ 518,830.93 $ -177,624.95
$ 341,205,98 $

370,187.47 370,187.47

$ -421,996,61 $ 694,208.63

2,181,987.17

2,234,079.04

-1,997.13

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 600,723.48 $ 614,600.00

4,265,879.02 4,016,510.99

452,616.85

794,828.33

$ 5,319,219.35 $ 5,425,939.32

$ 2,528,212.65 $ 2,255,551.23

38,897.00 63,612.39 17,500.00 131,560.08 27,697.00

20,550.11 61,968.95 17,606.00 131,824.71 26,493.16

44,569.96 40,000.00 66,972.00
2,376,676.91 2,525.00

42,422.68 37,034.49 91,131.71 278,757.79 2,369,475.77
2,525.00

11,945.51

13,165,47

s 5,350,168.50 $ 5,348,507.07

$ -30,949.15 $ 77,432.25

$

,4,000.00

$

4,000.00

s -26,949.15 $

77,432.25

685,014.29

543,326.97

-15,629.25

FUND BALANCE JUNE 30,1996

$ 1,757,993.43 $ 2,928,287.67

$ 642,435,89 $ 620,759.22

The notes to the general purpose financial statements 'are an integral part of this statement.
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CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1996

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City ofValdosta Board ofEducation (Board) was established under the laws ofthe 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 these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluatinghow to define the governmentalunit 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 complianceand 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.

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CITYOF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"D"

Notel:" SlThillARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neitherthe assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTALFUNDTYPES - are usedto account for allor most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of majorcapital facilities.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:

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CITYOF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996

EXHIBIT"D"

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be usedto payliabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Propertytaxes are considered available ifthey are collected and remitted by the coliecting 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 of these contracts. During fiscal year 1996, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contractsfor this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June30, 1996. Also, the State's portion ofthe compensation paid in July and August 1996 was received and recorded as revenue inthe fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, ratherthanwhenfunds are received or disbursed.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prioryears, the unemployment compensation activities for the Board's Self-Insured Employee BenefitFund were reported as an Expendable Trust fund. This fund had a fund balance of$lOO,OOO.OO at June 30, 1995. For fiscal year 1996, this fund has been reported as a part of the General Fund. The fund balance at July 1, 1995 has been restated as appropriate.
BUDGET
The City of Valdosta Board ofEducation's budget is a completefinancial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared byfund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

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CITY OF VALDOSTA BOARD OF EDUCAnON LOWNDES COUNTY NOTES TO THEGENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 3D. 1996

EXHIBIT"D"

Note 1~ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulationin the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school
budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the
budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and SpecialRevenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

FUND BALANCE JULY 1,1995

Special Revenue
Fund
s 725,600.68

Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods
Fund Balance July 1, 1995 (Budget Basis)

-93,914.46 -88,359.25
s 543,326.97

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JUNE 30,1996 (Budget Basis)

77,432.25
s 620,759.22

CASH AND CASH EQUIVALENTS

COl\1POSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including 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. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

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CITYOF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 3D. 1996

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selectingamong avenues of investment or among institutional bids for deposits, the highest rate ofreturn shallbe the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by 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 of the United States government,
(5) Prime banker's acceptances, .
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosedfrom 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 Lowndes County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on October 27, 1995 (levy date). Taxes were due on December 27, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end..are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.1 03. The Lowndes County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the balance of taxes collected to the Board.
- 10 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30, 1996

EXHIBIT"D"

Note1:V SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millagerate levied for the 1995 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

10.90 mills

INVENTORIES

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

CONSUMABLE SUPPLIES Inventories of consumable supplies are recorded at cost (first-in, first-out) on the Combined Balance Sheet. Consumable supplies are recorded as inventories at 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 of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

- 11 -

CITYOF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996

EXHIBIT"D"

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 surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shallbe equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $2,201,033.11. 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.
- 12 -

CITYOF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1996

EXHIBIT"D"

Note 2:" DEPOSITS AND INVESTMENTS

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 233,191.92 1,967,841.19 0.00
$ 2,201.033.11

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $7,574,516.17 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, 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. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Servicesfor the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.

The Board has obtained commercial insurancefor risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

- 13 -

CITY OF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1996

EXHIBIT"D"

Note 4: RISK MANAGEMENT

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

Endof Year Liability

1995 1996

$

0.00 $

3,821.00 $

3,821.00 $

0.00

$

0.00 $

2.528.00 $

2,528.00 $

0.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of$250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policyterm, the policy with Safety National Casualty Corporation will pay the next $1,OOO,OOO.OOofloss.

NoteS: ON-BEHALFPAYMENTS

The Board has recognized revenues and expenditures in the amount of $448, 126.49 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$328,743.51

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$31,491.98

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$87,891.00

- 14 -

CITYOF VALDOSTA BOARD OF EDUCAnON LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 3D. 1996

EXHffiIT"D"

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 grantterms. TheBoardbelieves that such disallowances, ifany, will be immaterial to its overall financial position.
TheBoardis a defendant in a legal proceeding pertaining to matters incidental to the performance of routine Boardoperations. The ultimate disposition of this proceeding is not presently determinable, but is not believed to be material to the general purposefinancial 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).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance withState statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for earlyretirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number' of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $19,112,431.39; total payroll was $21,715,585.55.

- 15 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996

EXHIBIT ItO"

Note 7: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $3,212,800.71, of which $2,257,175.28 was made by the Board and $955,625.43 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe GovernmentalAccounting 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 obligationwas 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 accumulatingsufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost Unfunded pension benefit obligation

15,857,066,000.00
s 1 585 541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $2,257,175.28 was actuarially determined and represented .3717% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 16 -

CITYOF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

Note 7:'" RETIREMENT PLANS
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 223 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $7,172.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30,1996, was $9,817,769.80.
Note 8: SURETY BONDS
The School Superintendent, Dr. W. Gary Walker, effective January 1, 1996, is bonded in the amount of $20,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 68462541, on which premium is paid through December 31, 1997.

- 17 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30.1996

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 194,805.92 $

0.00 $

0.00

473,373.02

10,250.75

96,027.23 65,607.58

Total Assets

$ 840,064.50 $

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

9,271.37

102,400.28

$ 111,671.65

$ 96,027.23 65,607.58
$ 161,634.81 566,758.04 $
$ 728,392.85 $

Total Liabilities and Fund Equity See notes to the general purpose financial statements.

$ 840,064.50 $ -18-

- - - - - - 0.00 $

0.00

0.00 $

=0..;0:;0,~

0.00 $

=0..;0:;0,~

,\

------- 0.00 $

0.00

EXHIBIT"E" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

STATE

TITLE II

INNOVATIVE

LOCAL

SCHOOL

EISENHOWER

EDUCATION

EDUCATIONAL IMPROVEMENT PROFESSIONAL PROGRAM

AGENCIES

GRANTS

DEVELOPMENT STRATEGIES

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMATIC IMPROVEMENT
GRANTS

$

10,696.84 $

0.00 $

271.35 $

0.00 $

750.34

219,781.81

$

230,478.65 $

0..0....0. $

2;;;7.0.1,,;,..3..5... $

0.00 $ - - - - - - 750.34

$

47,796.25

177,707.95

4,974.45

$

230,478.65

$

271.35

$

750.34

$

0.00 $

$

0.00 $

$

230,478.65 $

$ "0"'-.-0".0.;... "0"'-.-0".0.;... $
0.00 $

271.35 0.00 $
271.35 $
271.35 $

$ ~:.0.=..0;:0.. ~O:..:;'O~O $
..0...0....0. $

750.34 0.00
...7..:5...0.;;.=3..4.:..
.705...00...3;-4..;.

- 19-

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 3D, 1996

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE
AND
DRUG-FREE SCHOOLS

$

0.00 $

0.00

$ 24,947.65

$ 24,947.65 $

0.00$

0..0..0...

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Uabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

2,271.09

5,596.76

17,079,80

$ 24,947.65

$

0.00 $

$

0.00 $

Total Uabilities and Fund Equity See notes to the general purpose financial statements.

$ 24,947.65 $ -20 -

0.00 $

0.00

0.00 $

0.00

}\

0.00 $

0.00

EXHIBIT"E" Page 2

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

ATHLETIC FUND

BANQUET FUND

TOTALS
JUNE 30,1996 JUNE 30, 1995

$ 15,303.55 $ 221,828.00 $

73,325.87

$ 92,615.30

565,988.32

639,188.82

$

44.33 $

1,678.77

256,703.31

232,049.00

96,027.23 65,607.58

93,914.46 88,359.25

$

44.33 $

1,678.77 $ 92,615.30 $ 15,303.55 $ 1,206,154.44 $ 1,126,837.40

$

44.33 $

1,678.77 $ 16,959.36

37,980.00

$

44.33 $

1,678.77 $ 54,939.36

$

20,953.55 $

8,858.52

62,664.38

57,231.82

297,188.03

280,882.38

4,974.45

37,980.00

54,264.00

$ 423,760.41 $ 401,236.72

$

0.00 $

$

0.00 $

$

1,021.69 $

6,962.64

0.00 $ 0.00 $

37,675.94 $ 37,675.94 $

$ 15,303.55 15,303.55 $

96,027.23 65,607.58
162,656.50 $
619,737.53 782,394.03 $

93,914.46 88,359.25
189,236.35
536,364.33 725,600.68

$

44.33 $

1,678.77 $ 92,615.30 $ 15,303.55 $ 1,206,154.44 $ 1,126,837.40

- 21 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 171,066.00 $ 355,606,00 $ 1,762,488.32 495,522.87
$ 2,429,On.19 $ 355,606.00 $

87,928.00 87,928.00

$ 284,834.53 $

87,928.00

17,606.00 40,000,00

$ 2,344,421 ;84

13,165.47

$ 2,344,421.84 $ 355,606.00 $

$ 84,655,35 $

0,00 $

87,928.00 0.00

$ 84,655.35 $ 664,376.40
2,112,n -22,751.67
$ 728,392.85 $

0.00 $ 0.00
O.OO$

0.00 0.00
....G.~ l.OO

See notes to the general purpose financial statements.

-22 -

EXHIBIT"P' Page 1

...

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

STATE

TITLE II

INNOVATIVE

LOCAL

SCHOOL

EISENHOWER

EDUCATION

EDUCATIONAL IMPROVEMENT PROFESSIONAL

PROGRAM

AGENCIES

GRANTS

DEVELOPMENT STRATEGIES

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMATIC IMPROVEMENT
GRANTS

$ 1,778,806.36 $ $ 1,778,806.36 $

5,000.00 $ 5,000.00 $

34,584.00 $ 34,584.00 $

58,177.00 $

16,000.00

58,177.00 $ _ _..1..6:.,.0=0..0!..=0=0-

$ 1,551,473.36 2,697.74
13,012.34 $ 120,491.21
91,131.71

5,000.00 $

$
40,740.48 534.81

54,029.64 $ 923.25

15,249.66

3,224.11

$ 1,778,806.36 $ _ _~=~

$

0.00 $

0.00 $

41,275.29 $ -6,691.29 $

58,177.00 $ _ _..1..:5..=,2..!4.::9..:..6::.6=-

0.00 $

750.34

$

0.00 $

0.00

0.00 $ 0.00

-6,691.29 $ 6,962.64

0.00 $ 0.00

750.34 0.00

$

0.00 $

0.00 $

271.35 $

0.00 $

"7;5,,,;0.;;.,3;,,4;.,;.

-23 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JUL Y 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

$ 205,947.65 $ $ 205,947.65 $

51,151.84 $ 35,315.83 51,151.84 $ 35,315.83

$ 132,413.67 $
9,125.64 2,353.93
6,831.07 19,895.86 2,422.68 32,904.80

31,698.12 $ 8,726.73
6,597.30 4,129.69

31,825,56
862.20 103.07

$ 205,947.65 $

$

0.00 $

2,525.00

51,151.84 $ 0.00 $

35,315.83 0.00

$

0.00 $

0.00

0.00 $

0.00

0.00

0,00

$

0.00 $

0,00 $ _ _....o..e..o..

See notes to the general purpose financial statements.

- 24-

EXHIBIT"F" Page 2

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

ATHLETIC FUND

BANQUET FUND

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

614,600.00 $

282,333.00

$

58,325.84 $

10,714.15

4,016,510.99

3,566,691.00

- - - - - $ 275,964.86 $

23,340.60

794,828.33

789,029.88

$

58,325.84 $

10,714.15 $ 275,964.86 $

23,340.60 $ 5,425,939.32 $ 4,638,053.88

$

55,384.54 $

2,941.30

$

58,325.84 $

$

0.00 $

10,714.15

$ 275,533.68 $

10,714.15 $ 0.00 $

275,533.68 $ 431.18 $

$ 2,255,551.23 $ 1,774,391.17

25,053.93

20,550.11 61,968.95 17,606.00 131,824.71 26,493.16 42,422.68 37,034.49 91,131.71 278,757.79 2,369,475.77
2,525.00 13,165.47

36,336.63 12,660.41
117,107.75 25,471.20 3,570.65 32,076.95 51,549.99
258,771.37 2,526,900.00

25,053.93 $ 5,348,507.07 $ 4,838,836.12

-1,713.33 $

77,432.25 $ -200,782.24

$

0.00 $

0.00

0.11

0.00 $ 0.00

431.18 $ 37,244.76

-1,713.33 $ 17,016.88

77,432.25 $ 725,600.68

-200,782.13 895,006.72

2,112.77 -22,751.67

-4,508.28 35,884.37

$

0.00 $

0.00 $

37,675.94 $

15,303.55 $

782,394.03 $

725,600.68

- 25-

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture. U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Corporation for National and Community Service Through Clemson University Learn and Serve America-School and Community Based Programs 1996 Grant
Education, U. S. Department of Direct Impact Aid 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996 Grant State School Improvement Grants 1996 Grant Title II Eisenhower Professional Development 1995 Regular 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Goals 2000 State and Local Education Systematic Improvement Grants 1996 Grant
Individuals with Disabilities Education Act
Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant
Safe and Drug-Free Schools 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 10.553 $ 368,354.51

* 10.555 10.550

1,184,345.01 $ 209.788.80

$ 1.762,488.32 $

(2)
2,134,633.04 (3) 209,788.80
2.344.421.84

94.004 $

4.417.00$

4,417.00

84.041 $ 113,404.83

(5)

* 84.010 84.218
84.281 84.281
84.298

1,778.806.36 $
5,000.00

1,778,806.36 5.000.00

34,584.00

6,962.64 34.312.65

58.177.00

58,177.00

84.276

16,000.00

15,249.66

84.027 84.173 84.186

205,947.65 51,151.84 32,790.83

205,947.65 51,151.84", 32,790.83

- 26 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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 Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Through Georgia Department of Human Resources Safe and Drug-Free Schools 1996 Grant

84.048 $ 84.243

48,707.49 $
9,618.35

84.186

2,525.00

48,707.49 9,618.35
2,525.00

Total U. S. Department of Education

$ 2,356,713.35 $ 2,249,249.47

Labor, U. S. Department of Through South Georgia Regional Development Center Job Training Partnership Act PY95-11C-16

17.250 $

10,714.15 $

10,714.15

OTHER FEDERAL ASSISTANCE

Defense, U. S. Department of Direct Teacher and Teachers Aide Placement Assistance Program 1996 Grant Department of the Navy R.O.T.C/Program 1995 Grant 1996 Grant

$

24,633.63

(5)

4,921.71

(4)

27,073.37

(4)

Total U. S. Department of Defense

$

56,628.71

Total Federal Financial Assistance

$ 4,190,961.53 $

Major Programs are identified by an asterisk (*) in front of the CFDA number.

4,608,802.46

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State, and/or 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 - LOWNDES COUNTY CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS Nations Bank of Georgia, N.A., Valdosta, Georgia Park Avenue Bank, Valdosta, Georgia
INTEREST BEARING ACCOUNTS First State Bank and Trust Company, Valdosta, Georgia N.O.W. Account (2.75%) Park Avenue Bank, Valdosta, Georgia Money Market Account (3.25%) N.O.W. Accounts (2.75%)
OTHER Petty Cash

$ 15,303.55
-9,002.76 $ 6,300.79

$ -16,959.36

26,500.13 -149,923.03

-140,382.26

100.00 $ -133,981.47

.'\
See notes to the general purpose financial statements. - 28 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY INVESTMENTS JUNE 30,1996

SCHEDULE "3"

INVES.TMENT POOL
State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5.361%)

$ 7,574,516,17

See notes to the general purpose financial statements.
- 29 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY ACCOUNTS RECEIVABLE JUNE 30. 1996

SCHEDULE "4" '

Clemson University Learn and Serve America - School and Community Based Programs
Defense, U. S. Department of Department of the Navy R.O.T.C. Program
Education, Georgia Department of Food Services National School Lunch Program Vocational Education Federal Other State Programs Apprenticeship Program Special Education Support Cost Federal Programs Elementary and Secondary Education Act Trtlel Grants to Local Educational Agencies Individuals with Disabilities Education Act Part B - Special Education Flow Through
Georgia School Board Association Insurance Recovery
Lowndes County Tax Commissioner City Wide School Tax
Office of Planning and Budget For Children and Youth Coordinating Council Project Student Tutors and Organized Projects
South Georgia Regional Development Center Job Training Partnership Act
Various Sources Lost and Damaged Books Reimbursement for Expenses

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

4,417.00

$ 4,417.00

324.25

324.25

$
21,672.15 3,000.00

9,867.85 44.33

9,867.85
44.33
21,672.15 3,000.00

13,131.00 8,832.52

219,781.81 219,781.81

24,947.65

24,947.65

13,131.00

8,832.52

4,100.94
1,609.75 2,616.13

4,100.94

1,678.77

1,678.77

382.90

1,609.75 2,999.03

$

59,703.74 $ 256,703.31 $ 316,407.05

.'\

See notes to the general purpose financial statements.

- 30 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Mid-term Adjustment Migrant Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Alternative Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Program Special Education Support Cost Teachers'Retirement Lottery Programs Alternative School Program Distant Learning Instructional Technology Safe Schools Grant Technology Installation
Office of Planning and Budget For Children and Youth Coordinating Council Project Student Tutors and Organized Projects
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 13,729.365.00 1.710,651.00 261,041.00 585.877.00 186.851.00 3,722.043.00

$ 13,729.365.00 1,710.651.00 261,041.00 585.877.00 186.851.00 3,722,043.00

345,518.00 102,913.00 516,794.00 230,803.00
71,892.00 43.292.00 77.295.00 266,636.00
625.00 -3.202,230.00 1,230.375.00
s

171,066.00

345,518.00 102,913.00 516,794.00 230,803.00 71,892.00 43,292.00 77,295.00 266.636.00
625.00 -3,202,230.00 1.230.375.00
171,066.00

65,300.00 60,000.00 43.350.80
1,000.00 328,743.51
5.000.00
10,575.81 32,346.00 31,491.98

87,928.00

65,300.00 60,000.00 43,350.80
1,000.00 328,743.51
5,000.00 87,928.00 10,575.81 32,346.00 31,491.98

45,000.00 36,000.00 144,606.00 40,000.00 90,000.00

45,000.00 36,000.00 144,606.00 40,000.00 90,000.00

5,000.00 87,891.00

5,000.00

See notes to the general purpose financial statements.

$ 20,550,440.10 $ 614,600.00 $ 21,165,040.10 - 31 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF TAXES AND OTHER REVENUE YEAR ENDED JUNE 30.1996

SCHEDULE "6"

Taxes City Wide School Tax Real Estate Transfer Tax
Other Sources Banquets Broadcasting Proceeds Compensation for Loss of Assets Donations Band Booster Club Other Indirect Cost Special Revenue Fund Insurance Recovery Interest Earned Lost and Damaged Books Milk Court Settlement Rents Revenue in Ueu of Taxes City of Valdosta Sales Breakfast and Lunches Gates Receipts School Assets Stadium Rental Supervision and Assessment of Student and Beginning Teachers and Performance-Based Certification Valdosta State University Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 7,425,580.78 29,140.42

$ 7,425,580.78 29,140.42

$ 3,981.68

23,340.60 4,350.00

3,076.89 3,742.00

25,458.00 13,131.00 280,760.67
9,691.16
5,600.00

30,544.73 $ 81,928.95 175.90

20,762.36

460,367.89 258,894.86
650.00 7,925.00

23,340.60 4,350.00 3,981.68
3,076.89 3,742.00
25,458.00 13,131.00 393,234.35
9,691.16 175.90
5,600.00
20,762.36
460,367.89 258,894.86
650.00 7,925.00

6,213.24 68,400.00 25,759.17

8,579.35

6,213.24 68,400.00 34,338.52

$ 7,921,297.37 $ 794,828.33 $ 81,928.95 $ 8,798,054.65

.,

See notes to the general purpose financial statements. - 32 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

$ 19,405,181,59 $ 2,310,403,96

5,405,992.08

570,137.13

53,853.02

30,028,75

131,302.56

45,766,79

1,131.70

134,598,61

277,160.71

69,776,03

79,420.36

6,058,62

39,794.40

14,151,00

42,522.83

7,479.88

13,344,15

24,032,72

38,711.81

81,272,38

677,925.13

563,662,65

976,404.04

31,238,10

1,041,270,74

541,43U8

16,561.25

41,186,02

13,169.00

114,790,23

25,458.00

102,870.05

8,489,84

$ 21,715,585.55 5,976,129.21 83,881.77 177,069.35 1,131.70 134,598,61 346,936.74 85,478.98 53,945.40 50,002,71 13,344,15 24,032.72 119,984,19 1,241,587.78 1,007,642,14 1,041,270.74 557,992.43 54,355.02 114,790.23 25,458,00 111,359,89

233,857,81

$ 11,210.00 489,028,80

1,200,00 200,917,54

1,200.00 212,127,54 722,886.61

Total Expenditures

$ 28,322,166,85 $ 5,348,507,07 $ 202,117.54 $ 33,872,791.46

See notes to the general purpose financial statements,

- 33 -

CITY OF VALDOSTA BOARD OF EDUCATION LOWNDES COUNTY SCHEDULE OF EXpENDITURES BY OBJECT LQUERY PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE-a-

EXPENDITURES
Operating Costs Supplies Dues and Fees
Nonoperating Costs Building and Building Improvements Equipment

ALTERNATIVE SCHOOL PROGRAM

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

24,833.00 $

11,810.00 $

37,834.00 $

39,670.00 330.00

$

114,147.00

330.00

11,210.00 8,957.00

24,190.00

l06,m.oo

$

90,000.00

11,210.00 229,919.00

Total Expenditures $

45,000.00 $

36,000.00 $

144,606,00 $

40,000,00 $

90,000,00 $

355,606.00

.,

See notes to the general purpose financial statements.

- 34 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 16,521,701.00 $ _ _~..5;.0:..4;.,.0;.7...8;.,.0.;.0.;;~

$ 17,218,884.83
1,112,478.22 $ _ _--"9-6~.3.,.6;6..7;..5.0.;~
$ 18,331,363.05

-246,935.82 $ 18,084,427.23

$

0.00 $=======0=.0=0

See notes to the general purpose financial statements. - 35 -

CITY OF ValDOSTA BOARD OF EDUCATION LOWNDES coUNTY
ANALYSIS Of MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL fUND QUALITX BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 1996

GENERAL AND CAREER EDUCATION PROGRAS Kindergarten (") Grades 1 3 (") Sub-Total- K3 Grades 4 5 (") Grades 6 8 (") Grades 9 12 (") _High School Laboratories (") Vocational Education Laboratories (") Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (") Category II (")
o Category III (")
Category IV Sub-Total Regular
Category V (Gifted) (") Total Special Education Programs
C, REMEDIAL EDUCATION PROGRAM
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS fROM DEPARTMENT Of EDUCATION

REQUIRED

ORIGINAl.

%

ORIGINAl.

MID-TERM

$ 1,631,754.00

$ 1.468.578.60 $

3,813,769.00

3,432.392.10

$ 5,445,523.00 90 $ 4,900,970.70 $

1.849.964.00 90

1.664.967.60

3.055.731.00 90

2,750,157.90

1,911,487.00 90

1,720.338.30

879,620.00 90

791,658.00

587.040,00 90

528,336.00

$ 13,729,365.00

$ 12,356,428,50 $

0,00 0.00 234,767.00 234,767.00

$ 1,572.434,00

$ 1.415.190.60 $

0.00

$ 1.572,434.00

138,217.00

$ 1,710,651.00

$

261,041.00

$ 15.701,057,00

90 $ 1.415.190.60 $

90

124,395,30

$ 1,539,585,90 $

90 $

234,936.90 $

$ 14,130,951.30 $

0.00
0.00 0,00 234,767,00

$

465.861.00 90 $

419,274.90 $

0.00

120,016,00 90

108,014.40

$

585,877.00

$

527,289.30 $

0,00

$ 16,286,934.00

$ 14,658,240.60 $

234,767.00

STAFFDEVELOPMENTPRQGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (") Identifies Thirteen Weighted Programs.

$

46.154.00

140,697.00

$

46,154.00 $

140,697.00

$

186,851.00 100 $

186,851.00 $

834.00 839.00

See notes to the general purpose financial statements.

36

SCHEDULE "10"

TQTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,468,578.60 $

1,527,662.93 $

39,000.69 $ 1,566,663.62

3,432,392.10

3,876,529.83

198,075.09

4,074,604.92

$ 4,900,970.70 $

5,404,192.76 $

237,075.78 $ 5,641,268.54 $

0.00

1,664,967.60

1,961,537.45

93,063.52

2,054,600.97

0.00

2,750,157.90

3,124,022.61

221,669.15

3,345,691.76

0.00

1,955,105.30

2,281,660.18

238,255.91

2,519,916.09

0.00

791,658.00

922,289.17

67,082.90

989,372.07

0.00

528,336.00

628,553.85

66,658.22

695,212.07

0.00

$ 12,591,195.50 $ 14,322,256.02 $

923,805.48 $ 15,246,061.50

$ 1,415,190.60 $

8,438.98 338,353.05 $ 938,839.28 345,606.73

$ 2,988.33 20,593.87 7,354.05

8,438.98 341,341.38 959,433.15 352,960.78

$ 1,415,190.60 $ 1,631,238.04 $

30,936.25 $ 1,662,174.29

0.00

124,395.30

277,927.36

4,907.23

282,834.59

0.00

$ 1,539,585.90 $

1,909,165.40 $

35,843.48 $ 1,945,008.88

$

234,936.90 $

303,461.31 $

4,018.54 $

307,479.85

0.00

$ 14,365,718.30 $ 16,534,882.73 $

963,667.50 $ 17,498,550.23

$

419,274.90 $

684,002.10

$

684,002.10

0.00

108,014.40

$

148,810.72

148,810.72

0.00

$

s 527,289.30

684,002.10 s

s 148,810.72

832,812.82

$ 14,893,007.60 $ 17,218,884.83 s 1,112,478.22 s 18,331,363.05 s

0.00

$

46,988.00

140,697.00

187,685.00

s

108,635.03 s

108,635.03

79,049.97

79,049.97

$

s 187,685.00

187,685.00 $-==.......===......:=0=.000.

- 37 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 3D. 1996

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. David Waller, Chairman (*) 2502 Sherwood Drive Valdosta, Georgia 31602
Ms. Mary Allen 780 Lake Laurie Drive Valdosta, Georgia 31601
Dr. Joe B. Crane, Sr. (*) P. O. Box2155 Valdosta. Georgia 31604
Mr. Robert Hastings (*) 2310 Pinecliff Drive Valdosta. Georgia 31602
Mr. Maceo Home (*) 800 Bunche Street Valdosta, Georgia 31601
Mr. Willie R. Jones (*) 2301 North Forrest Street Valdosta, Georgia 31601
Mr. Warren Lee (*) 1103 West Magnolia Street Valdosta, Georgia 31601
Mr. David Pipkin (*) P. O. Box 5906 Valdosta, Georgia 31603
Ms. Betty Rogers (*) 619 North Troupe Street Valdosta, Georgia 31601
Ms. Mary Stevens 215 Martin Luther King Jr., Drive Valdosta, Georgia 31601
Mr. Jimmy Whatley (*) P. O. Box 1847 Valdosta, Georgia 31603

(*) Denotes Board Members Serving as of June 30, 1996

See notes to the general purpose financial statements.

- 38 -

$

270.40

243.59 357.50

260.21

$

1,131.70

.'\

SECTIONll COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 27, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the 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, 1996, and have issued our report thereon dated March 27, 1997. 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, 1996, 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 of Education is the responsibility 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.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
96CRL-10

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

CLV:cm 96CRL-IO

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 27, 1997

Honorable Zell Miller, Governor Members ofthe 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 REOUIREMENTS 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, 1996, and have issued our report thereon dated March 27, 1997. 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 of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicableprocedures 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 City ofValdosta Board ofEducation's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

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With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that City of Valdosta Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 96CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 27, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the 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 ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 27, 1997. This report was qualifiedfor 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:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility
(3) Matching, Level of Effort, and/or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1996. The management of the City of 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.

96CRL-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 ofManagement and Budget (OMB) Circular A-128, "Audits of State and LocalGovernments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether materialnoncompliance 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 opiruon.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventoriesthrough 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, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:cm 96CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 27, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe City of Valdosta Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 27, 1997. 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 1996 general purpose financial statements of the City of Valdosta Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (OMB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements
goverrung:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of

noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing

came to our attention that caused us to believe that the City ofValdosta Board of Education had not complied,

in all material respects, with those requirements.

.

96CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 96CRL-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
March 27, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the 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 of Valdosta Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 27, 1997. 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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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, and 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. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not

96ICL-3

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changesin conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our auditof the general purpose financial statements ofthe City of Valdosta Board ofEducation for the year endedJune 30, 1996, we obtained an understanding of the internal control structure. Withrespect to the internal control structure, we obtained an understanding ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinionon the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described inthe Schedule of Findings and Improper or Questioned Costs, a reportable conditionwas noted in the following control category:
General Fixed Assets
A material weakness is a reportable conditionin whichthe design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relationto the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed 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 performed in our audit of the City of Valdosta Board of Education's financial statements and this report does not affect our report thereon dated March 27, 1997.
96ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 96ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 27, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Valdosta Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City of Valdosta Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 27, 1997. 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 March 27, 1997.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City of Valdosta 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, 1996, 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, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures
96ICL-5

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 March 27, 1997.

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 ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliancewith applicable laws and regulations. Because ofinherent limitationsin any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-UplResolution (8) Administrative Requirements

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

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

During the year ended June 30, 1996, the City of Valdosta Board of Education expended 79% of its total Federal financial assistance under major Federal financial assistance programs.

96ICL-5

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which 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.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
. : Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 96ICL-5

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 30.1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7921-93-02
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$33,685.40 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $34,109.56 Audit Control Number 7921-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$34,109.56 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$34,109.56 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
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, 1995, noted that the management of the City of Valdosta Board ofEducation had chosen not to maintain a system-wideGeneral 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 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
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CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996 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 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.
Note: The City ofValdosta Board ofEducation was provided an opportunity to include.pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
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