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HomeMy WebLinkAboutAUGUSTA RICHMOMD COUNTY AUDIT BOARD OF EDUCATION Augusta Richmond GA DOCUMENT NAME: '& '\'<j \e. lAud \ \- DOCUMENT TYPE: M YEAR: ~l BOX NUMBER: O~ FILE NUMBER: \O\'lu NUMBER OF PAGES: qt ADNA L. STEIN President , ....1" -; RICHMOND COUNTY 2083 Heckle Street Augusta, Georgia 309044295 (706) 737-7200 CHARLES G. LARKE, Ed.D. Superintendent July 2, 1997 Richmond County Board of Commissioners 530 Greene Street Augusta, GA 30911 Dear Sir; t:fl~ ~ /~ / 7~ BOARD OF EDUCATION C. GENE SPIRES, CPA Controller Enclosed is a copy of our audited June 30, 1996, financial statements. The audited statements are sent to you in satisfy a requirement of the Single Audit Act passed by Congress. Sincerely, e.~~ C. GENE SPIRES, CPA Controller CGS/smb Enclosure ;.) , '.,', t -.' : .\1 1: .~ ~'~j-:"-. " - ;~] : .: ~.-:. -{'- ,,~',,"'" j r --.....;:.- STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 -~ -;:=<~.~~ - - .~-- -' -";::-. - - -~--2:~..:.-.~-r- l' " ~ ~ , ~~.:1. T. 1;. 1; i: ;, , AUDIT REPORT RICHMOND COUNTY BOARD OF EDUCATION AUGUSTA, GEORGIA YEAR ENDED ,JUNE 30, 1996 RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE EXHmlTS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OvERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 2 4 7 8 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 26 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 30 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 34 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 36 FIDUCIARY FUND TYPES I COMBINING BALANCE SHEET 38 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES EXPENDABLE TRUST FUNDS 39 K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS 40 RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I , FINANCIAL ADDITIONAL FINANCIAL INFORMATION '1 SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 41 2 CASH AND CASH EQUIVALENTS 44 3 INVESTMENTS 45 4 ACCOUNTS RECEIVABLE 46 5 DEBT SERVICE REQUIREMENTS TO MATURITY 48 SCHEDULE OF REVENUE 6 STATE 50 7 TAXES AND OTHER 52 SCHEDULE OF EXPENDITURES BY OBJECT 8 GENERAL AND SPECIAL REVENUE FUNDS ' 53 9 LOTTERY PROGRAMS 54 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 10 OVERALL 57 II BY PROGRAM 58 12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 60 SECTION II . COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT OPINION ON COMPLIANCEWITH 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 RICHMOND COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS ~ '''-\, , '~ " "" SECTION I. FINANCIAL ) 6' DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 , Atlanta. Georgia 30334-8400 CLAUDE L. V leKERS STATE AUDITOR (404) 656-2174 February 28, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County Board' of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through D) of the Richmond County Board of Education, as of and for the year ended June 30~ 1996, as listed in the table of contents. These financiai statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on Ol~r audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of. the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMS Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies 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 statemerits" the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These varianGes are described as follows: 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 confonn to generally accepted accounting principles. · School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn 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 of Education 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 confonn 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 of such adjustments, if any, on the General Fund and the Special Revenue Fund, as might have been detennined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies and 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 Richmond County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in confonnity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 28, 1997, on our consideration of the Board's internal control structure and a report dated February 28, 1997, .on its compliance with . laws and regulations. Our audit was conducted for the purpose of fonning an opinion on the general purpose financial statements of the Richmond County Board of Education taken as a whole. The combining statements (Exhibits E through K) and the financial schedules (Schedules J through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Richmond, County Board of Education. Such infonnation has been subjected to - , ' the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the General Fund and the Special Revenue Fund, as might have been detennined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies and food service inventories as discussed in th~ 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 of this 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, ~ Claude L. Vickers State Auditor CL V:gp 96ARL-13 RICHMOND COUNTY BOARD OF EDUCATION - 1 - ,~ Cash and Cash Equivalents InvestmeDts Acclounts Receivable Due from Other Funds Inventories Consumable Supplies Food Donated Comnodities Purchased Food Amount Available In Debt Servk:e Fund ' Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease ~reements Con1>ensated Absences Total Assets LIABILITIES AND FUND' EQUITY LIABILITIES Cash Overdraft Acclounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue Due to Other Funds Funds Held for Others Capital Lease ~reements ColT1>8nsated Absences General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service ' For Encumbrances For Expired Grant Balances/Questioned Costs For Inventories Consumable Supplies Food Donated Corrmodities Purchased Food For State Capital OuUay Projects RICHMOND COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET A1..L FUND TYPES AND ACCOUNT GROUP ,JUNE30 1996 GENERAl. FUND GOVERNMENTA1.. FUND TYPES SPEC~ CAPITA1.. REVENUE PROJECTS FUND FUND $ 15,698,808.10 7,300,504.60 885,571.46 $ 6,418,757.65 125,000.00 2,112,547.85 .--- 24.974.11 428.532.26 160,708.01 $ 2,608,548.40 498,046.00 $ 26,122,432.01 $ 7,032.972.03 $ 3,106,594.40 $ $ 866,698.56 3.634,955.27 431,250.48 $ 1,707,589.45 752.13 892,167.05 955,831.08 25,000.00 125,000.00 $ 3,634,955.27 $ 3,005,538.49 $ 1,998,750.26 $ 225,304..07 $ 1,049,002.16 1oo,n3.44 2,112,547.85 $ 3,487,627.52 $ Unreserved Undesignated 18,999,849.22 Total Fund Equity Total Uabilities and Fund Equity $ 22,487,476.74 $ 19.84 142,373.49 24,974.11 428,532.26 160,708.01 $ 893,360.72 756,607.71 $ 893,360.72 3,270,825.83 214,483.42 4,027,433.54 $ 1 ,107,844.14 $ 26,122,432.01 $ 7,032,972.03 $ 3,106,594.40 The notes to the general purpose financial statements are an integral part of this statement. - 2 - EXHIBIT "A" FIDUCIARY ACCOUNT GROUP DEBT FUND TYPES GENERAL ' TOT AI.S SERVICE TRUST AND LONG-TERM (Memorandum Only) FUND AGENCY FUNDS DEBT JUNE 30,1996 JUNE 30. 1995 $ 2,853,188.05 $ 88,135.06 $ 21,246,679.61 $ 20,907,731.90 7,300,504.60 13,384.781.71 22.618.00 7,824,993.11 3.696,819.32 125.000.00 2.137.521.96 2,163.09927 428.53226 554,743.70 160.708.01 144,26629 $ 2,875,806.05 2,875,806.05 2,878,434.30 21,859.193.95 21,859.193.95 23.541,565.70 ' 13.669.163.50 13,669.163.50 15.045,270.99 755,257.53 755.257.53 689,740.33 $ 2,875,806.05 $ 86,135.06 $ 39.159,421.03 $ 78.383,360.58 $ 83.006,453.51 $ 866,698.56 4.066,957.88 $ 3,998,376.95 1.707.589.45 1,365,148.59 892.167.05 133.695.09 955,831.08 198.147.55 25,000.00 125,000.00 $ 34,592.48 34,592.48 37.490.49 $ '13.669,163.50 13.669.163.50 15.045,270.99 755,257.53 755,257.53 689.740.33 24,735.000.00 ' 24,735,000.00 26,420.000.00 $ 34,592.48 $ 39,159,421.03 $ 47.833.257.53 $ 47,887,869.99 $ 225,304.07 19.84 $ 1.178.94 $ 2,875,806.05 2,875,806.05 2.878,434.30 1,191,375.65 598,935.04 100.n3.44 110.003.98 2.137.521.96 2,163,099.27 428,532.26 554.749.06 160.708.01 144,266.29 893,360.72 3,167,719.45 $ 2,875,806.05 $ 8.013.402.00 $ 9,618.386.33 0.00 $ 51.542.58 22,536,701.05 25.500,197.19 $ 2.875.806.05 $ 51,542.58 $ 30,550,103.05 $ 35,118,583.52 $ 2,875,806.05 $ 86,135.06 $ 39,159,421.03 $ 78,383,360.58 $ 83.006,453.51 . 3,. RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30.1996 GENERAL FUND GOVERNMENTAL FUND SPECIAL CAPITAL REVENUE PROJECTS FUND FUND REVENUES State Funds $ 98,464,749.27 $ 8,793,907.15 $ 3,537,365.58 Federal Funds 1,507,666.90 16,969,899.39 Taxes and Other Funds 56,093,004.07 ' 3,108,514.96 40,637.07 Total Revenues $ 156,065,420.24 $ 28,872,321.50 $ 3,578,002.65 EXPENDITURES Current ,Instruction $ 99,528,573.47 $ 11,370,297.59 Support Services Pupil Services 5,126,220.58 2,025,464.37 Improvement of Instructional SelVices 2,979,198.59 864,958.20 Educational Media Services 4,394,342.41 14,639.36 General Administration 1,803,127.85 752,542.35 School Administration 10,814,468.69 , Business Administration 896,408.41 2,438.27 $ 234.45 Maintenance and Operation of Plant 15,711,355.67 865,548.21 Student Transportation Services 5,897,881.66 85,158,40 Central Support Services 1,853,982.27 Other Support Services 268,812.66 289,285.58 Food Services Operation 8,595.10 12,690,879.66 Other Operations of Non-Instructional Services 24,690.64 468,287.10 Capital Outlay 1,525,954.94 10,559,697.39 Debt Service Principal 1,333,686.1,3 49,096.36 Interest 807,152.79 2,400.81 Paying Agent Fees Total Expenditures $ 152,974,451.86 $ 29,480,996.26 $ 10,559,931.84 Excess of Revenues over (under) Expenditures $ 3,090,968.38 $ -608,674.76 $ -6,981,929.19 OTHER FINANCING SOURCES (USES) Capital Leases $ 6,675.00 Operating Transfers In 652,463.00 $ 418,091.54 $ 4,840,804.05 Operating Transfers Out -5,258,895.59 -652,463.00 Total Other Financing Sources (Uses) $ -4,599,757.59 $ 418,091.54 $ 4,188,341.05 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -1,508,789.21 $ -190,583.22 $ -2,793,588.14 FUND BALANCE JULY 1 23,310,470.73 4,327,786.48 4,553,129.54 Consumable Supplies Inventory - Net Change in Period 34,097.96 Food Inventory - Net Change in Period Donated Commodities -126,211.44 Purchased Food 16,441.72 R~idual Equity Transfer 651,697.26 -651,697.26 FUND BALANCE JUNE 30 $ 22,487,476.74 $ 4,027,433.54 $ 1,107,844.14 The notes to the general purpose financial stateme-nts are an integral part of this statement. -4- EXHIBIT -B- "TYPES FIDUCIARY TOTALS DEBT FUND TYPE (Memorandum Only) SERVICE EXPENDABLE YEAR ENDED FUND TOTAL TRUST FUNDS JUNE 30,1996 JUNE 30,1995 $ 110,796,022.00 $ 110,796,022.00 $ 97,m,706.51' 18,477,566.29 18,477,566.29 17,368,193.89 $ 2,909,722.96 62,151,879.06 $ 2,780.11 62,154,659.17 59,869,207.51 $ 2,909,722.96 $ 191 ,425,467.35 $ 2,780.11 $ 191,428,247.46 $ 175,015,107.91 $ 110,898,871.06 $ 0.00 $ 110,898,871.06 $ 99,430,160.84 7,151,684.95 7,151,684.95 5,643,023.30 3,844,156.79 3,844,156.79 3,281,066.95 4,408,981.77 4,408,981.77 5,127,742.42 2,555,670.20 2,555,670.20 2,405,969.04 10,814,468.69 10,814,468.69 9,946,038.20 899,081.13 899,081.13 820,464.1,3 16,576,903.88 16,576,903.88 16,629,271.37 5,983,040.06 5,983,040.06 6,385,606.07 1,853,982.27 1 ,853,982.27 1,808,520.32 558,098.24 558,098.24 206,692.13 12,699,474.76 12,699,474.76 11,448,212.77 492,977.74 492,977.74 1,659,684.47 12,085,652.33 12,085,652.33 5,793,007.73 $ 1,685,000.00 3,067,782.49 3,067,782.49 2,647,018.40 1,216,847.50 2,Q26,401.10 2,026,401.10 1,793,809.72 10,503.71 10,503.71 10,503.71 10,361.33 $ 2,912,351.21$ 195,927,731.17 $ 0.00 $ 195,927,731.17 $ 175,036,649.19 $ -2,628.25 $ -4,502,263.82 $ 2,780.11 $ -4,499,483.71 $ -21,541.28 $ 6,675.00 $ 6,675.00 $ 986,117.36 5,911,358.59 '5,911,358.59 3,686,168.00 -5,911 ,358.59 -5,911,358.59 -3,686,168.00 $ 6,675.00 $ 6,675.00 $ 986,117.36 $ -2,628.25 $ -4,495,588.82 $ 2,780.11 $ -4,492,808.71 $ 964,576.08 2,878,434.30 35,069,821.05 48,762.47 35,118,583.52 33,919,857.14 34,097.96 34,097.96 116,156.65 -126,211.44 -126,211.44 74,082.14 16,441.72 16,441.72 43,911.51 0,00 0,00 $ 2,875,806.05 $ 30,498,560.47 $ 51,542.58 $ 30,550,103.05 $ 35,118,583.52 -5- The notes to the general purpose financial statements are an integral part of this statement. -7. RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Richmond County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school-board elected by the voters and a Superintendent appointed by the Board. With the exception of the 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 of the Board's accounting policies are described below. REPORTING ENTITY In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financiai Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Richmond County Board of Education. Based upon the application of the above criteria, the Richmond County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Richmond County, 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 and an account groupto repqrt on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity wi~h a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. - 8 - RICHMOND COUNTY BOARD OF EDUCATION EXIDBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Fixed .Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accOunting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of , assets acquired by governmental fund types~ Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial statements account for all State, Federal, 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 and the account group presented in this report are as follows: GOVERNMENTAL FUND lYPES - are used to account for all or most ofa 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 goveriunent to accomplish specific objectives and are required to be accounted for separately. CAPIT AL PROJECTS FUND - the fund' used to account for financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees. FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, 'private organizations, other government units and/or other funds. These funds include: EXPENDABLE TRUST FUNDS Davidson Trust Fund - the fund used to account for the principal and earnings which may be expended to provide financial assistance to needy students of Davidson Fine Arts Magnet School. Nora CoxweU Scholarsll1ip Fund - the fund used to account for the principal and earnings which may be expended 'to provide scholarships for selected students. - 9 - RICHMOND COUNTY BOARD OF EDUCATION' EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Robetta McKenzie Scholarship Fund - the fund used to account for the principal and earnings which may. be expended to provide scholarsl:1ips for selected students. " AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals. ACCOUNT GROUP GENERAL LONG-TERM DEBT. ACCOUNT GROUP - used to account for general obligation bonds outstanding, material accrued comp~nsated absences and material capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust ,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., e~penditures and other financing uses) in riet current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Agency funds are purely custodial'in nature and do not involve measurement of results of operations. Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined arid "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. Expenditures are generally recognized when the related fund liability is i~cu~red. 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 Ge'orgia 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 o-ne hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid - 10 - RICHMOND COUNTY BOARD OF EDUCATION EXHillIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1996 Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES 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 of Education to the Board in the same twelve months: As of June 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 June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and, recorded as revenue in the 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 June 30, ,1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. BUDGET The Richmond County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable' funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the fund type level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education . The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, ,expenditures and fund balance as reflected on Exhibit "B" of this report: - 11 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FUND BALANCE JULY 1, 1995 Adjustments ' , Inventories - July 1, 1995 Consumable Supplies ' Food Donated Commodities Purchased Foods Encumbrances - July 1, 1995 Fund Balance July 1, 1995 (Budget Basis) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses Encumbrances July 1, 1995 , June 30, 1996 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses (Budget Basis) Residual Equity Transfers FUND BALANCE JUNE 30, 1996 (Budget Basis) CASH AND CASH EQUIVALENTS General Fund Special Revenue Fund $23,310,470.73 $ 4,327,786.48 -795,141.50 -554,743.70 -144,266.29 -341.605.72 -113.126.84 $22.173.723.51 $ 3.515.649.65 $ -1,508,789.21 $ -190,583.22 341,605.72 113,126.84 -782.611.49 -139.468.73 $-1.949.794.98 $ -216.925.11 $ 651.697.26 $20.87562579 $ 3 298.724.54 COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including ,certificates of deposit 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. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. Donated investments are stated at fair market value as of the date donated. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate of return sha1l be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: - 12 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (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 of grant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other reCeivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Augusta - Richmond County Commission- Council fixed the property tax levy for the 1995 tax year (calendar year) on September 5, 1995 (levy date). Taxes were dueon November 30, 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 Augusta - Richmond County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. In addition, the Clerk of the Superior Court of Richmond County collects recording taxes for the Board of Education, withholds 6% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board. Tax millage rates levied for the 1995 tax year (calendar year) for the Richmond County Board of Education were as follows (a mill equals $1 p~rthousand dollars of assessed value): - 13 - RICHMOND COUNTY BOARD OF EDUCATION EXIllBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES School Operations School Bonds 18.61 mills ~ mills 19 57 mills INVENTORIES CONSUMABLE SUPPLIES Inventories of athletic, custodial and instructional supplies are recorded as expenditures under the consumption method and are valued at cost (weighted average). These inventories are recorded as assets at the time of purchase. Inventories of maintenance 'and transportation supplies are reCorded as expenditures at the time of purchase and are valued on the Combined,Balance Sheet at cost (weighted average). Inventories reported on the balance sheet are equally offset by a reservation of fund balance which indicates that these amounts do, not constitute "available spendable resources" even though they are a component of net current assets. FOOD INVENTORIES Inventories of donated food coinmodities 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 ate 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. COMPENSA TED ABSENCES Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. GENERAL OBLIGA TIONBONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs" are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the - 14 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. RESERVED FUND BALANCE ReserVe for Encumbrances - This reseIVe constitutes the unperformed portion of purchase orders, contracts and other commitments for goods and services at year end. Encumbrances outstanding are reported as a reservation of fund balance and do not constitute expenditures or liabilities in the current year because the commitments will be honored during the subsequent year. 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. Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity. Operating transfers are recorded for all interfund transactions other than residual equity transfers and 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. DEFICIT FUND BALANCE Funds reporting a deficit fund balance position at June 30, 1996, which are not readily apparent on the general purpose financial statements are as follows: - Fund TypelFund Name Deficit Balance Governmental Fund Type - Capital Projects Fund 1997 Bond Issue Fund $ -12,960.70 - 15 - RICHMOND COUNTY BOARD OF EDUCATION EXIllBIT ".0" NOTES TO THE,GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of 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 $26,831,254.79. 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. - 16 - .RICHMOND COUNTY BOARD OF EDUCATION .EXHIBIT liD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 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 Bank Balance 1 '2 3 $ 400,321.20 14,899,753.30 11.531.180.29 Total $26.831.254.79 CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. Category 2 - Uninsured orunregistered, with securities' held by the counterparty's trust department or agent in the Board's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. Funds invested in an investment pool managed by another government are not required 'to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. At June 30, 1996, the carrying amount of the Board's total investments was $7,300,504.60 and the market value of these investments, excluding investments in the amount of $6,984,853.10 in the State of Georgia, Local Government Investment Pool, was $398,276.96. The investments are classified as to risk categories as follows: . Tvoe of In vestment Risk Catel!ories 2 3 Carrying Amount Market Value Common Stock $ 31565150 $ 000 $ o 00 $ 315,651.50 $ 398276 96 Local Government Investment Pools 6.984.853.10 . Total Investments $7 300 504 60 · Undeterminable - 17 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 2: DEPOSITS AND INVESTMENTS The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy of the State of Georgia,. Office of Treasury and Fiscal Services for 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: INTERFUND ASSETS AND LIABILITIES Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the Board at June 30, 1996: Due From Other Funds Due To Other Funds General Fund Capital Projects Fund 1997 Bond Issue Fund $ 125,000.00 $ 125.000.00 $ 125.00000 $ 12500000 Note 5: 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 insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. - 18 - RICHMOND COUNTY BOARD OF EDUCATION EXIllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS .JUNE 30. 1996 Note 5: RISK MANAGEMENT The Board has established a limited risk management program for workers' compensation claims. The Board accounts for all claims except School Food Services Fund 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. These losses may include an estimate of claims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit. Changes in the workers' compensation claims liability during the last two fiscal years are as follows: Beginning Claims and of Year Changes in Claims End of Year Liability Estimates Paid Liability 1995 $ 0.00 $ 40 1.531.02 $ 401.531.02 $ .0.00 1996 $ 0.00 $ 489.935.02 $ 489.935.02 $ 0.00 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 Claims and of Year Changes in Claims End of Year Liabilitv Estimates Paid Liabilitv 1995' $ 0.00 $ 39.664.59 $ 39.664.59 $ 0.00 1996 $ 0.00 $ 28.831.02 $ 20.946.84 $ 7.884.18 Note 6: GENERAL LONG-TERM DEBT CAPITAL LEASES The Richmond County.Board of Education has entered into various lease agreements as lessee for school buses, operating vehicles and office equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. - the Richmond County Board of Education entered into a lease agreement on April 1, 1994, with Richmond County Public Facilities, Incorporated (RCPF), forthe acquisition and construction of school facilities. Under the terms of the lease agreement, the Board will make semi-annual payments through November 1, 2009. - 19 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 6: GENERAL LONG-TERM DEBT GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates. Amount General Government - Refunding - Series 1993 General Government - Refunding - Series 1991 3.4% -4.7% 5.4% - 6.3% $17,720,000.00 7.015.000.00 $24 735 000 00 The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows: Geneml Caoital Leases Compensated Obligation RCPF Other Absences Bonds Total BalanCe July 1, 1995 $13,470,000.00 $ 1,569,723.89 $ 689,740.33 $26,420,000.00 $42,149,464.22 Retroactive Restatement of Prior Y car Balances 5.547.10 . 5.547.10 Balance July 1, 1995 Restated $13,470,000.00 $ 1,575,270.99 $ 689,740.33 $26,420,000.00 $42,155,011.32 Additions 6,675.00 6,675.00 Annual Leave Earned and Utilized (Net) 65,517.20 65,51720 Deductions Payments 625.000.00 757.782.49 1.685.000.00 3.067.782.49 Balance June 30, 1996 $1284500000 $ 824 16350 $ 755257 53 $24 735 000 00 $3915942103 At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows: RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT liD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1996 Note 6: GENERAL LONG-TERM DEBT Voters have authorized $115,000,000.00 in general obligation debt which was not issued as of June 30, 1996, for the purpose of acquiring, constructing, and equipping school buildings and other buildings, structures, and facilities useful or desirable in connection therewith, adding to, repairing, renovating, improving, and equipping existing buildings, structures, and facilities of the district, acquiring the necessary property therefor, both real and personal, and to pay expenses incident to accomplishing the foregoing. Note 7: PRIOR YEAR DEFEASEMENT OF DEBT In fiscal year 1991, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. During fiscal year 1996, the balance of bonds defeased in fiscal year 1991 were retired. Note 8: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of$3,230,239.60 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies as follows: Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$2,638,645.01 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$186,220.59 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$40S,374.00 Note"9: SIGNIFICANT COMMITMENTS ( The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996, together with funding- available: - 21 - RICHMOND COUNTY BOARD OF EDUCATION EXIllBIT liD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1996 Note 9: SIGNIFICANT COMMITMENTS Unearned Funding Executed Available Proiect Contracts From State 95/94S-72 1-049 $ 1,591,347.87 $ 0.00 96/95S-721-063/96-721-059 5.367.960.00 1. 774. 737.00 $ 6.959.307.87 $ 1 774.737.00 The amounts described in this note are not reflected in the general purpose financial statements. Note 10: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. A liability has not been reported by the Board for the unpaid portion of workers' compensation losses incurred as of June 30, 1996. An estimate oft~e amount ofloss cannot be determined but it is probable that claims will be asserted and the Board will incur a loss. Note 11 : ACCUMULATED EMPLOYEES' LEA VB Administrative and other clerical personnel earn two days of vacation leave each month with a maximum accumulation of twenty-four days less required vacation days to be taken during the year. Maintenance and other twelve-month employees earn vacation leave ranging from ten days to twenty-two days per year depending upon the employee's length of service with a maximum accumulation of 22 days. Vacation leave vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid at the current rate of pay, to employees upon retirement or termination of employment. See Note 1 - Compensated Absences The Board also has an attendance incentive program that provides for payments not to exceed 20% of the employee's daily rate of pay based on days absent from work. No liability has been recorded for the June 30, 1996, attendance incentive liability as this amount is deemed immaterial to the general purpose financial statements. - 22 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 12: 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 with State 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 early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $96,727,244.30; total payroll was $114,805,605.07. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 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 $16,259,869.22, of which $11,423,487.55 was made by the Board and $4,836,381.67 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll. - 23 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1996 Note 12: RETIREMENT PLANS TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 of the Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assetsto pay benefits when due, and make comparisons among other PERS and among other employers. Total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, was as follows: Total pension benefit obligation $17,442,607,000.00 Net assets available for benefits, at cost 15.857.066.000.00 Unfunded pension benefit obligation $ 1.585.541 000 00 The measurement of the 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 $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$II,423,487.55 was actuarially determined and represented 1.88% 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. 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 - 24 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1996 Note 12: RETIREMENTPLANS the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per-month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number of years of service. If there are less than ten years of service, a Jump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. There were 1,005 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 of the Board made during fiscal year 1996 amounted to $33,648.00. 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 13: SURETY BONDS The School Superintendent, Dr. Charles G. Larke, is bonded in the amount of$50,000.00 with the Fidelity and Deposit Company of Maryland, Baltimore, Maryland, their Bond No. 30091978, on which premium is paid to July 1, 1997. I - 25 - ~ Cash and Cash Equivalents Accounts Receivable Inventories Consumable Supplies Food Donated Commodities Purchased Food Total Assets See notes to the general purpose financial statements. RICHMOND COUNTY BOARD OF EDUCATION . COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1996 SCHOOL STATE FOOD PRESCHOOL SERVICES LOTTERY HANDICAPPED FUND PROGRAMS PROGRAM $ 2,718,365.64 $ 0.00 1,266.834.32 $ 1,355,146.81 428,532.26 160,708.01 $ 4,574,440.23 $ 1,355,146.81 $ 0.00 .26. ELEMENTARY AND SECONDARY EDUCATION ACT TITLE I EDUCATION OF GRANTS TO CHilDREN' lOCAL IN STATE EDUCATIONAL SCHOOLS AGENCIES $ 0.00 $ 1,800,832.94 $ $ 0.00 $ 1,800.832.94 $ TITLE II EISENHOWER PROFESSIONAL DEVELOPMENT. 83,931.41 $ 83,931.41 $ FOREIGN LANGUAGES ASSISTANCE 9,894.03 $ 9,894.03 $ TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES INDIVIDUALS WITH DISABILITIES EDUCATION ACT PART B SPECIAL EDUCATION FLOW THROUGH PRESCHOoL EXHIBIT "E" Page 1 ALTERNATIVE SCHOOL PROGRAM 156,578.25 $ 221,972.56 $ 39,949.80 $ 163.317.99 156,578.25 $ 221.972.56 $ 39,949.80 $ 163,317.99 0.00 $ 0.00 $ $ 1,232,908.68 $ 83.911.57 $ 9.894.03 $ 138,737.28 $ 145,482.45 $ 16,683.76 $ 163,317.99 125,726.56 3,627.23 16,212.88 5,On. 70 442,197.70 14,213.74 60.2n.23 18.188.34 $ 1 ,800,832.94 $ 83,911.57 $ 9,894.03 $ 156.578.25 $' 221,972.56 $ 39,949.80 $ 163.317.99 $ 0.00 $ $ 0.00 $ $ 0.00 $ 1,800,832.94 $ $ 19.84 $ 19.84 0.00 0.00 $ 19.84 $ 83.931.41 $ 0.00 $ 0.00 $ 0.00 $ 9,894.03 $ .27 - 0.00 $ 0.00 $ 156.578.25 $ 221,972.56 $ 39.949.80 $ 163,317.99 0.00 $ 0.00 $ 0.00 0.00 See notes to the general purpose financial statements. RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1996 - 28- EXHIBIT "E" Page 2 SAFE EDUCATION FOR SAND HILLS AND HOMELESS VOCATIONAL JOB TRAINING PSYCHOED DRUG-FREE CHILDREN EDUCATION PARTNERSHIP TOTALS . CENTER SCHOOLS AND YOUTH FEDERAL ACT JUNE 30,1996 JUNE 30, 1995 $ 2,936,548.16 $ 4,266,110.78 $ 403.227.17 $ 445,920.33 $ 7,073.19 $ 287,041.90 $ 56,411.68 6,418,757.65 1,995,528.91 24,974.11 29,483.12 428,532.26 554,743.70 160,708.01 144,266.29 $ 403,227.17 $ 445.920.33 $ 7,073.19 $ 287,041.90 $ 56,411.68 $ 9,969.520.19 $ 6.990,132.80 $ 154,969.81 $ 55,293.28 192,964.08 $ 403,227.17 $ 427,201.33 $ 3,871.87 14,847.13 445,920.33 $ 7,073.19 $ 287,041.90 $ 56,411.68 $ 3,803,246.72 $ 940.031.95 431,250.48 357,165.78 1,707,589.45 1 ,365,148.59 7,073.19 $ 287,041.90 $ 56,411.68 $ 5,942,086.65 $ 2,662,346.32 $ 19.84 $ 903.24 142,373.49 116,679.48 24,974.11 29,483.12 428,532.26 554,749.06 160,708.01 144.266.29 $ 756,607.71 $ 846.081.19 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 3,270,825.83 3,481,705.29 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 4,027,433.54 $ 4,327,786.48 56,411.68 $ 9.969.520.19 $ 6.990,132.80 $ 403,227.17 $ 445,920.33 $ 7,073.19 $ 287,041.90 $ - 29. RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1996 See notes to the general purpose financial statements. - 30. EXHIBIT oF" Page 1 ELEMENTARY AND SECONDARY EDUCATION ACT TITLE I EDUCATION OF GRANTS TO CHILDREN LOCAL IN STATE EDUCATIONAL SCHOOLS AGENCIES TITLE II EISENHOWER PROFESSIONAL DEVELOPMENT FOREIGN LANGUAGES ASSISTANCE TITLE VI 'INNOVATIVE EDUCATION PROGRAM STRATEGIES INDIVIDUALS WITH DISABILITIES EDUCATION ACT PART B SPECIAL EDUCATION FLOW THROUGH PRESCHOOL ALTERNATIVE SCHOOL PROGRAM $ 14,850.00 $ 5,179,821.33 $ 167,153.26 $ 10,468.51 $ 268,013.00 $ 781.381.70 $ $ . 163,317.99 147,023.98 $ 14,850.00 $ 5,179,821.33 $ 167,153.26 $ 10,468.51 $ 268,013.00 $ 781,381.70 $ 147,023.98 $ 163,317.99 $ 14,839.00 $ 4,025,647.24 $ 1,939.54 $ 21,613.43 $ 50,961.18 $ 330,995.99 $ 142,603.98 $ 104,913.91 264,676.09 85,595.67 313,184.30 1,381.90 312,951.39 161,444.04 119,503.96 11.00 242,053.69 3,749.84 130,134.34 17,697.45 3,038.10 58,404.08 49,514.17 581.81 15,315.50 740.00 218,166.08 49.096.36 2,400.81 $ 14,850.00 $ 5,179.821.33 $ 167,133.42 $ 21,613.43 $ 268,013.00 $ 781,381.70 $ 147,023.98 $ 163,317.99 $ 0.00 $ 0.00 $ 19.84 $ .11.144.92 $ 0.00 $ 0.00 $ 0.00 $ 0.00 10,241.68 $ 0.00 $ 0.00 $ 19.84 $ -903.24 $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 0.00 0.00 903.24 0.00 0.00 0.00 0.00 $ 0.00$ 0.00 $ 19.84 $ 0.00 $ 0.00 $ 0;00 $ 0.00 $ 0.00 .31 - RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1996 GEORGIA DELINQUENCY LEARNING ATHLETIC PREVENTION RESOURCES FUND PROGRAM SYSTEM REVENUES State Funds $ 46,958.46 $ 81.930.00 Federal Funds 47,822.56 186,607.55 Taxes and Other Funds $ 380,478.21 Total Revenues $ 380,478.21 $ 94,781.02 $ 268,537.55 EXPENDITURES Current Instruction $ 24,938.29 Support Services Pupil Services $ 86,228.34 Improvement of Instructional Services 47,612.83 Educational Media Services 14,639.36 General Administration 119,470.07 Business Administration Maintenance and Operation of Plant $ 40,439.73 1,950.00 586.95 Student Transportation Services Other Support Services 150.12 67,892.73 Food Services Operation Other Operations of Non-Instructional Services 468,287.10 Capital Outlay DebtServica Principal Interest Total Expenditures $ 506.676.95 $ 94,761.02 $ 266,537.55 Excess of Revenues over (under) Expenditures $ .126,396.74 $ 0.00 $ 0.00 OTHER FINANCING SOURCES O~rating Transfers In 198,469.86 Excess of Revenues and Other Financing Sources over (under) Expenditures $ 70.091.12 $ 0.00 $ 0.00 FUND BALANCE JULY 1 172,196.11 . 0.00 0.00 Food Inventory - Net Change in Period Donated Commodities Purchased Food Residual Equity Transfer FUND BALANCE JUNE 30 $ 242,267.23 $ 0.00 $ 0.00 See notes to the general purpose financial statements. - 32- EXHIBIT oF" Page 2 SAFE EDUCATION FOR SAND HILLS AND HOMELESS VOCATIONAL JOB TRAINING TOTALS PSYCHOED DRUG-FREE CHILDREN EDUCATION PARTNERSHIP YEAR ENDED CENTER SCHOOLS AND YOUTH FEDERAL ACT JUNE 30, 1996 JUNE 30, 1995 $ 1,811.035.00 $ 8,793,907.15 $ 6,442,323.51 237,402.69 $ 4n,637.4O $ 12,076.53 $ 354,715.95 $ 166,964.55 16,969,899.39 15,525,473.57 3,108,514.96 2,940,847.23 $ 2,048,437.69 $ 4n,637.4O $ 12,076.53 $ 354,715.95 $ 166,964.55 $ 28,8n,321.5O $ 24,908,644.31 $ 1,012,353.97 $ n,037.34 $ 5.712.56 $ 558,498.95 $ 139,302.30 $ 11,370.297.59 $ 7,803,189.61 635,154.29 362,616.62 3,260.52 2,025,464.37 1,458,850.12 169,093.34 18,436.91 864,958.20 764,604.60 14,639.36 992,135.72 138,485.18 9,n4.13 289.95 12,269.47 752,542.35 659,286.87 2,438.27 93,350.91 15,392.78 865,548.21 1,145,352.70 9,822.40 2,813.50 85,158.40 20,914.45 289.285.58 206,692.13 12,690,879.66 11 ,425,438.31 468,287.10 516,353.85 64,885.30 49.096.36 46,807.47 2.400.81 4,689.70 $ 2,048,437.69 $ 477,637.40 $ 12,076.53 $ 558,498.95 $ 166,964.55 $ 29,480,996.26 $ 25,109,200.83 $ 0.00 $ 0.00 $ 0.00 $ -203,783.00 $ 0.00 $ -608,674.76 $ -200,556.52 203,783.00 418,091.54 170,385.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ .190,583.22 $ .30,171.52 0.00 0.00 0.00 0.00 0.00 4,327,786.48 4,239,964.61 -126,211.44 74,082.14 16,441.72 43,911.51 -0,26 $ 0.00 $ 0.00 $ ,0.00 $ 0.00 $ 0.00 $ 4,027,433.54 $ 4,327.786.48 - 33- RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30.1996 REGULAR 1997 BOND ISSUE FUND GEORGIA STATE FINANCING PROJECT 95/94S-721-050 96-721-058 ASSETS PROJECT 95/94S-721-049 Cash and Cash Equivalents $ 252,444.12 $ 112,039.30 $ 1,465,883.26 Investments Accounts Receivable 382,867.00 $ 115,179.00 Total Assets $ 252,444.12 $ 112,039.30 $ 1,848,750.26 $ 115,179.00 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft $ 115,179.00 Accounts Payable $ 752.13 Contracts Payable 892,167.05 Retainages Payable 955,831.08 Deferred Revenue $ 25,000.00 Due to Other Funds $ 125,000.00 Total Liabilities $ 25,000.00 $ 125,000.00 $ 1 ,848,750.26 $ 115,179.00 FUND EQUITY Fund Balances Reserved For State Capital Outlay Projects Unreserved Deficit $ -12,960.70 Undesignated $ 227,444.12 $ 0.00 $ 0.00 Total Fund Equity $ 227,444.12 $ -12,960.70 $ 0.00 $ 0.00 Total Liabilities and Fund Equity $ 252,444.12 $ 112,039.30 $ 1,848,750.26 $ 115,179.00 See notes to the general purpose financial statements. - 34- AND INVESTMENT COMMISSION PROJECT 95/945-721-051 PROJECT 96-721-059 $ 289,689.98 $ 482,084.74 $ $ 289,689.98 $ 482,084.74 $ $ 289,689.98 $482,084.74 $ $ 289,689.98 $ 482,084.74 $ $ 289,689.98 $ 482,084.74 $ LOTTERY PROJECT 96/955-721-063 121,586.00 $ 121,586.00 $ 121,586.00 121,586;00 $ 121,586.00 $ LOCAL ASSISTANCE GRANT PROJECT 95-C-L-73 0.00 $ 0.00 $ $ 0.00 $ 0.00 $ 0.00 $ - 35- EMERGENCY FUND GRANT PROJECT 96-E05-66 EXHIBIT "G" TOTALS JUNE 30,1996 JUNE 30,1995 0.00 $ 2,723,727.40 $ 3,611,790.32 664,000.00 498,046.00 612,981.86 0.00 $ 3,221,773.40 $ 4,888,772.18 $ 115,179.00 $ 3,800.00 752.13 892,167.05 133,695.09 955,831.08 198,147.55 25,000.00 125,000.00 $ 2,113,929.26 $ 335,642.64 $ 893,360.72 $ 3,167,719.45 -12,960.70 0.00 227 ,444.12 1,385,410.09 0.00 $ 1,107,844.14 $ "4,553,129.54 0.00 $ 3,221,773.40 $ 4,888,772.18 RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 1996 GEORGIA STATE FINANCING 1997 PROJECT BOND ISSUE PROJECT 95/94S-721-050 REGULAR FUND 95/94S-721-049 96-721-058 REVENUES State Funds $ 0.00 $ 3,325,455.77 $ 191,709.81 Taxes and Other Funds $ 500.00 Total Revenues $ 500.00 $ 0.00 $ 3,325,455.77 $ 191 ,709.81 EXPENDITURES Current Support Services Business Adrninistration Travel $ 234.45 Capital Outlay Land and Land Improvements $ 17,664.00 Building and Building Improvements 12,726.25 $ 9,286,501.12 $ 993,392.96 Total Expenditures $ 17,664.00 $ 12,960.70 $ 9,286,501.12 $ 993,392.96 Excess of Revenues over (under) Expenditures $ -17,164.00 $ -12,960.70 $ -5,961 ,045.35 $ -801,683.15 OTHER FINANCING SOURCES (USES) Operating Transfers In $ 4,783,082.49 Ope'rating Transfers Out $ -652,463.00 Total Other Financing Sources (Uses) $ -652,463.00 $ 4,783,082.49 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -669,627.00. $ -12,960.70 $ -1,177,962.86 $ -801,683.15 FUND BALANCE JULY 1 1,385,410.09 0.00 1,177,962.86 965,041.44 Residual Equity Transfer -488,338.97 -163,358.29 FUND BALANCE JUNE 30 $ 227,444.12 $ -12,960.70 $ 0.00 $ 0.00 See notes to the general purpose financial statements. - 36- EXHIBIT "H" PROJECT PROJECT 951948-721-051 96-721-059 LOTTERY PROJECT 96195S-721-063 LOCAL ASSISTANCE GRANT PROJECT 95-C-L-73 EMERGENCY FUND GRANT PROJECT 96-E05-66 TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30,1995' AND INVESTMENT COMMISSION $ 5,427.48 $ $ 34,709.59 0.00 $ 200.00 $ 20,000.00 $ 3,537,365.58 $ 40,637.07 1,761,805.23 39,940.54 $ 5,427.48 $ 34,709.59 $ 0.00 $ 200.00 $ 20,000.00 $ 3,578,002.65 $ 1,801,745.77 $ 0.00 $ 234.45 $ 11,441.50 $ 9,650.00 $ 77,721.56 116,477.06 $ 346,816.03 150,400.00 $ 200.00 10,443,220.33 3,278,958.93 $ 11,441.50 $ 160,050.00 $ 0.00 $ 200.00 $ 77,721.56 $ 10,559,931.84 $ 3,625,774.96 $ -6,014.02 $ -125,340.41 $ 0.00 $ 0.00 $ -57,721.56 $ -6,981,929.19 $ -1 ,824,029.19 $ 57,721.56 $ 4,840,804.05 $ -652,463.00 4,699,719.15 -1,183,936.15 $ 57,721.56 $ 4,188,341.05 $ 3,515,783.00 $ -6,014.02 $ -125,340.41 $ 0.00 $ 0.00 $ 0.00 $ -2,793,588.14 $ 1,691,753.81 295,704.00 607,425.15 121,586.00 0.00 0.00 4,553,129.54 2,861,375.73 -651,697.26 $ 289,689.98 $ 482,084.74 $ 121,586.00 $ 0.00 $ 0.00 $ 1,107,844.14 $ 4,553,129.54 - 37- ~ Cash and Cash Equivalents Accounts Receivable ToI8l Assets LlABlLmES AND FUND EQUITY LlABlLmES Funds Held for Others FUND EQUITY Fund Balances Unreserved Unde6ignated T 0181 Liabilities and Fund Equity See notes to the general purpose financial statements. RICHMOND COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET FIDUCIARY FUND TYPES JUNE 30 1996 DAVIDSON TRUST FUND EXPENDABLE TRUST FUNDS NORA ROBETTA COXWELL MCKENZIE SCHOlARSHIP SCHOLARSHIP FUND FUND $ 29.426.79 $ $ 29.426.79 $ $ 29,426.79 $ $ 29,426.79 $ 21,448.58 $ 21,448.58 $ 21,448.58 $ 21,448.58 $ .38- 667.21 $ 667.21 $ 667.21 667.21 $ EXHIBIT T TOTALS AGENCY FUNDS JUNE 30, 1996 JUNE 30. 1995 34,592.48 $ 34.592.48 $ $ 34,592.48 $ 0.00 34,592.48 $ 86.135.06 $ 86,135.06 $ 34,592.48 $ 51,542.58 86,135.06 $ 86.178.66 74.30 86.252.96 37.490.49 48,762.47 86,252.96 RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1996 See notes to the general purpose financial statements. - 39- EXHIBIT. J' RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1996 EXHIBIT "K" BALANCE BALANCE JUL Y 1, 1995 ADDITIONS DEDUCTIONS JUNE 30, 1996 . COHEN. COLONEL CLARENCE H.. R.OTC. AWARD FUND ASSETS Cash and Cash Equivalents $ 608.05 $ 34.66 $ 0.00 $ 642.71 LIABILITIES Funds Held for Others $ 608.05 $ 34.66 $ 0.00 $ 642.71 PERFORMANCE BONDS ASSETS Cash and Cash Equivalents $ 36,882.44 $ 46,216.87 $ 49,149.54 $ 33,949.77 LIABILITIES Funds Held for Others $ 36,882.44 $ 46,216.87 $ 49,149.54 $ 33,949.77 TOTALS - AGENCY FUNDS ASSETS Cash and Cash Equivalents $ 37,490.49 $ 46,251.53 $ 49,149.54 $ 34,592.48 LIABILITIES Funds Held for Others $ 37,490.49 $ 46,251.53 $ 49,149.54 $ 34,592.48 See notes to the general purpose financial statements. - 40- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30.1996 SCHEDULE "1" FEDERAL FUNDING AGENCY CFDA REVENUE EXPENDITURES PROGRAM/GRANT NUMBER IN PERIOD IN PERIOD Agriculture, U. S. Department of Direct Summer Food Service Program for Children 1995 Grant 10.559 $ 272,825.00 $ 272,825.00 1996 Grant 10.559 176,212.00 176,212.00 Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Grant 10.558 59,968.72 (2) Food Services School Breakfast Program 1996 Grant · 10.553 1,522,677.71 (2) National School Lunch Program 1996 Grant · 10.555 6,078,939.61 11,437,463.73 (3) Food Distribution Program (1) · 10.550 807,337.34 807,337.34 Total U. S. Department of Agriculture $ 8,917,960.38 $ 12,693,838.07 Education, U. S. Department of Direct Impact Aid 1996 Grant · 84.041 $ 1,183,010.28 (5) Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children in State Schools 1995 Carry-Over 84.009 14,850.00 $ 14,850.00 Grants to Local Educational Agencies 1995 Regular · 84.010 -150.00 -150.00 1995 Summer · 84.010 ' 99,953.91 99,953.91 1996 Grant * 84.010 5,080,017.42 5,080,017.42 Title II Eisenhower Professional Development 1995 Regular 84.281 83,221.85 83,221.85 1996 Grant 84.281 83,931.41 83,911.57 Foreign Languages Assistance 1995 Grant 84.249 574.48 1,148.97 (3) 1996 Grant 84.249 9,894.03 20,464.46 (3) Title VI Innovative Education Program Strategies 1996 Grant 84.298 268,013.00 268,013.00 Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant · 84.027 781,381.70 781,381.70 Preschool 1996 Grant 84.173 147,023.98 147,023.98 Georgia Learning Resources System 1996 Grant · 84.027 173,533.26 173,533.26 - 41 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1996 SCHEDULE "1" FEDERAL FUNDING AGENCY CFDA REVENUE EXPENDITURES PROGRAM/GRANT NUMBER IN PERIOD IN PERIOD Education, U. S. Department of Through Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Severely Emotionally Disturbed 1996 Grant * 84.027 $ 237,402.69 $ 237,402.69 Safe and Drug-Free Schools 1996 Grant 84.186 477,637.40 477,637.40 Special Education Personnel Development and Parent Training Georgia Learning Resources System Title VI, D 1995 Regular 84.029 873.35 873.35 1996 Grant 84.029 12,200.94 12,200.94 Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant 84.048 354,715.95 558,498.95 (3) Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 1996 Grant 84.196 12,076.53 12,076.53 Through Georgia Department of Human Resources Rehabilitation Services Basic Support 1996 Grant 84.126 15,740.00 (4) Total U. S. Department of Education $ 9,035,902.18 $ 8,052,059.98 Justice, U. S. Department of Through Richmond County Board of Commissioners Juvenile Delinquency Prevention and Intervention 1995 Grant 16.548 $ 25,874.73 $ 25,874.73 1996 Grant 16.548 21,947.83 21,947.83 Total U. S. Department of Justice $ 47,822.56 $ 47,822.56 Labor, U. S. Department of Through Richmond/Burke Training Authority Job Training Partnership Act 08-94-20-33-244 17.250 $ 42,537.10 $ 42,537.10 08-94-20-rcboe-245 17.250 17,253.10 17,253.10 08-95-11-13-316 17.250 36,306.33 36,306.33 08-95-16-13-316 17.250 25,229.82 25,229.82 08-95-20-13-245 17.250 8,733.81 8,733.81 08-95-20-31-245 17.250 36,904.39 36,904.39 Total U. S. Department of Labor $ 166,964.55 $ 166,964.55 - 42 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30.1996 SCHEDULE "1" FEDERAL FUNDING AGENCY CFDA REVENUE EXPENDITURES PROGRAM/GRANT UMBER IN PERIOD ' IN PERIOD OTHER FEDERAL ASSISTANCE Defense, U. S. Department of Direct Defense Activity for Non-Traditional Support 1996 Grant $ 7,970.40 (4) Department of the Air Force R.O.T.C. Program 1996 Grant 31,742.98 (4) Department of the Army R.O.T.C. Program 1996 Grant 133,454.14 (4) Department of the Navy R.O.T.C. Program 1995 Grant 3,521.94 (4) 1996 Grant 99,827.16 (4) National Science Center 1996 Contract 32,400.00 $ 32,400.00 Total U. S. Department of Defense $ 308,916.62 $ 32,400.00 Total Federal Financial Assistance $ 18,477,566.29 $ 20,993,085.16 Major Programs are identified by an asterisk (*) in front of the CFDA number. (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 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. - 43 - RICHMOND COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30.1996 NONINTEREST BEARING ACCOUNT Sun Trust Bank of Augusta, N.A., Augusta, Georgia INTEREST BEARING ACCOUNTS First Union National Bank, Augusta, Georgia Certificates of Deposit No. 21-053-352-0054464 (5.31%) No. 21-053-352-0054465 (5.31%) No. 21-053-353-0047148 (5.36%) $ 1,000,000.00 6,000,000.00 6,000,000.00 $ 13,000,000.00 Sun Trust Bank of Augusta, N.A., Augusta, Georgia Overnight Sweep Account (4.756%) Wachovia Bank of Georgia, Augusta, Georgia N.O.W. Accounts (1.00%) OTHER Petty Cash See notes to the general purpose financial statements. - 44 - 1,857,000.00 5,503,260.45 SCHEDULE "2" $ 19,520.60 20,360,260.45 200.00 $ 20,379,981.05 RICHMOND COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30.1996 SCHEDULE "3" COMMON STOCK First Union Corporation 6,542 Shares $ 315,651.50 INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5.361 %) 6,984,853.10 $ 7,300,504.60 See notes to the general purpose financial statements. - 45 - RICHMOND COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30.1996 Agriculture, U. S. Department of Sunvner Food Service Program Augusta-Richmond County Commission-Council Delinquency Prevention Program Augusta-Richmond County Tax Commissioner County Wide Bond Tax County Wide School Tax Children and Youth Services, Georgia Department of Delinquency Prevention Program Clerk of the Superior Court of Richmond County County Wide Bond Tax County Wide School Tax Defense, U. S. Department of Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Navy R.O.T.C. Program National Science Center Education, Georgia Department of Food Services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Vocational Education Federal Funds Other State Programs Alternative Programs At-Risk Summer School Program Georgia Leaming Resources System Part B - Special Projects Part D - Special Education Personnel Development and Parent Training State Funds Middle School Mentoring Program Remedial Summer School Program Severely Emotionally Disturbed Part B - Special Projects State Funds Special Education Support Cost Lottery Programs Alternative School Program Applied Technology Labs Distant Leaming Instructional Technology Model Technology Schools Safe Schools Grant SCHEDULE -4- GOVERNMENTAl FUND TYPES SPECIAl CAPITAl DEBT GENERAl REVENUE PROJECTS SERVICE FUND FUND FUND FUND TOTAl $ 176,212.00 $ 176,212.00 40.30 40.30 $ 20,746.09 20,746.09 $ 424,719.57 424,719.57 1,365.00 1,365.00 1,871.91 1,871.91 34,398.75 34,398.75 2,659.65 2,659.65 34,086.84 34,086.84 33,092.32 32,400.00 33,092.32 32,400.00 6,692.10 6,692.10 270,751.44 270,751.44 809,950.90 809,950.90 287,041.90 287,041.90 163,317.99 163,317.99 126,520.96 126,520.96 86,807.01 86,807.01 4,372.09 4,372.09 28,040.87 28,040.87 2,388.46 2,388.46 38,702.00 38,702.00 41,750.46 41,750.46 360,889.31 360,889.31 6,487.00 6,487.00 45,000.00 45,000.00 204,166.67 204,166.67 11,448.89 11,448.89 6,207.83 6,207.83 8,613.38 8,613.38 11 ,373.00 11,373.00 - 46 - RICHMOND COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1996 Education, Georgia Department of Federal Programs Elementary and Secondary Education IV::l Title I Grants to Local Educational Agencies Title \I EmenhowerP~~naIDeve~pmem Foreign Languages Assistance Title VI Innovative Education Program Strategies Individuals with Disabilities Education IV::l Part B - Special Education Flow Through Preschool Safe and Drug-Free Schools Stewart B. McKinney Homeless Assistance IV::l Education for Homeless Children and Youth GENERAL FUND Georgia Peace Officers Standards and Training Council Law Enforcement Program $ 37,830.38 Georgia State Financing and Investment Commission Reimbursement on Construction Projects Office of School Readiness Pre-Kindergarten Program Reimbursement for Overpayment of Salaries Dunbar, Stephanie Hill, Jesse RichmoncllBurke Job Training Authority Job Training Partnership Act Various Sources Interest Eamed Lost and Damaged Books Other , Refunds 260.40 950.00 77,429.92 22,825.83 2,450.00 8,369.38 GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND DEBT SERVICE FUND SCHEDULE -4- TOTAL $ 1,800,730.12 83,931.41 9,894.03 156,578.25 221,972.56 39,949.80 444,549.33 7,073.19 , 37,830.38 498,046.00 1,068,337.04 260.40 950.00 56,411.68 79,759.78 22,825.83 5,409.24 8,369.38 $ 885,571.46 $ 6,418,757.65 $ 498,046.00 $ 22,618.00 $ 7,824,993.11 See notes to the general purpose financial statements. $ 1,800,730.12 83,931.41 9,894.03 156,578.25 221,972.56 39,949.80 444.549.33 7,073.19 $ 498,046.00 1,068,337.04 56,411.68 2,329.86 2,959.24 - 47 - RICHMOND COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30. 1996 PAYMENTS DUE TOTAL IN FISCAL YEAR DEBT TOTAL TOTAL ENDING JUNE 30 SERVICE INTEREST PRINCIPAL 1997 $ 2,922,080.00 $ 1,137,080.00 $ 1,785,000.00 1998 2,931,515.00 1,061,515.00 1,870,000.00 '1999 2,938,425.00 978,425.00 1,960,000.00 2000 2,948,348.75 888,348.75 2,060,000.00 2001 2,961,077 .50 791,077 .50 2,170,000.00 2002 2,976,082.50 686,082.50 2,290,000.00 2003 2,987,097.50 572,097.50 2,415,000.00 2004 2,998,460.00 448,460.00 2,550,000.00 2005 3,015,25625 315,256.25 2,700,000.00 2006 3,026,972.50 171,972.50 2,855,000.00 2007 2,128,880.00 48,880.00 2,080,000.00 $ 31,834,195.00 $ 7,099,195.00 $ 24,735,000.00 CHANGES IN GENERAL LONG-TERM DEBT TOTAL 1993 ISSUE Bonds Payable at July 1, 1995 $ 26,420,000.00 $ 17,970,000.00 Bonds Retired During Period 1,685,000.00 250,000.00 Bonds Payable at June 30, 1996 $ 24,735,000.00 $ 17,720,000.00 MATURITY DATES Semi-Annual Interest Payment Dates MAY1-NOV1 Annual Debt Retirement Date NOV1 See notes to the general purpose financial statements. - 48 - 1993 ISSUE INTEREST PRINCIPAL $ 734,575.00 $ 689,537.50 639,060.00 584,040.00 524,790.00 460,860.00 391,050.00 314,932.50 232,780.00 143,937.50 48,880.00 1,240,000.00 $ 1,295,000.00 1,360,000.00 1,425,000.00 1,500,000.00 1,580,000.00 1,665,000.00 1,755,000.00 1,855,000.00 1,965,000.00 2,080,000.00 SCHEDULE -5- 1991 ISSUE INTEREST PRINCIPAL 402,505.00 $ 371 ,977 .50 339,365.00 304,308.75 266,287.50 225,222.50 181,047.50 133,527.50 82,476.25 28,035.00 545,000.00 575,000.00 600,000.00 635,000.00 670,000.00 710,000.00 750,000.00 795,000.00 845,000.00 890,000.00 $ 4,764,442.50 $ 17,720,000.00 $ 2,334,752.50 $ 7,015,000.00 1991 ISSUE 1986 ISSUE $ 7,530,000.00 $ 920,000.00 515,000.00 920,000.00 $ 7,015,000.00 $ 0.00 MAY'1 - NOV 1 MAY 1 - NOV 1 NOV1 NOV1 - 49 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1996 AGENCYIFUNDING . GRANTS Education, Georgia Department of Quarrty 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 Umited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Technology Training Counselors Grades 4 and 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Program Environmental Science Program Georgia Learning Resources System Health Insurance Innovative Programs Mentor Teacher Program Middle School Mentoring Program Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Special Education Support Cost Teachers'Retirement Lottery Programs Alternative School Program Applied Technology Labs Distant Learning Instructional Technology Model Technology Schools Pre-Kindergarten Program Safe Schools Grant Technology Installation Children and Youth Services, Georgia Department of Delinquency Prevention Program Community Affairs, Georgia Department of Emergency Fund Grant Local Assistance Grants Georgia Peace Officers Standards and Training Council Law Enforcement Program GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAl REVENUE PROJECTS FUND FUND FUND $ 64,748,446.00 6,494,450.00 1,559,962.00 2,712,089.00 882,169.00 17,060,571.00 2,334,264.00 536,093.00 137,965.00 2,090,661.00 2,479,740.00 636,585.00 819,071.00 489,535.00 205,364.00 -14,531,838.00 6,040,155.00 $ 788,050.00 17,113.00 163,317.99 204,508.10 1,964.19 81,930.00 2,638,645.01 4,800.00 39,390.00 2,388.46 475,836.00 64,380.18 1,811,035.00 6,487.00 186,220.59 45,000.00 300,000.00 15,140.07 895,907.63 205,803.00 1,406,890.29 11,373.00 579,444.00 46,958.46 159,996.74 - 50 . $ 20,000.00 200.00 SCHEDULE -6" TOTAL $ 64,748,446.00 6,494,450.00 1,559,962.00 2,712,089.00 882,169.00 17,060,571.00 2,334,264.00 536,093.00 137,965.00 2,090,661.00 2,479,740.00 636,585.00 819,071.00 489,535.00 205,364.00 .14,531,838.00 6,040,155.00 788,050.00 17,113.00 163,317.99 204,508.10 1,964.19 81 ,930.00 2,638,645.01 4,800.00 39,390.00 2,388.46 475,836.00 64,380.18 1,811,035.00 6,487.00 186,220.59 45,000.00 300,000.00 15,140.07 895,907.63 205,803.00 1,406,890.29 11,373.00 579,444.00 46,958.46 20,000.00 200.00 159,996.74 RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1996 SCHEDULE -8" AGENCYIFUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAl REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects $ 3,517,165.58 $ 3,517,165.58 Human Resources, Georgia Department of Rehabilitation Services .Basic Support $ 4,260.00 4,260.00 OffICe of School Readiness Pre-Kindergarten Program $ 1,967,221.71 1,967 ,221.71 OffICe of Treasury and Fiscal Services Public School Employees. Retirement 405,374.00 405,374.00 CONTRACTS Education, Georgia Department of Govemor's School Leadership Institute 4,000.00 4,000.00 OTHER Education, Georgia Department of Special Education Administrators' Conference Transition Services Conference 2,040.00 90Cl,00 2,040.00 900.00 Medical College of Georgia Injury Prevention 27,000.00 27,000.00 $ 98,464,749.27 $ 8,793,907.15 $ 3,537,365.58 $ 110,796,022.00 See notes to the general purpose financial statements. - 51 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE YEAR ENDED JUNE 30 1996 SCHEDULE or GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND DEBT SERVICE FUND FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS TOTAL Taxes CountyWide Bond Tax $ 2,754,034.55 $ 2,754,034.55 County Wide School Tax $ 53,332,447.07 53,332,447.07 Railroad Car Tax 35,32624 1.822.31 37,148.55 Real Estate Transfer Tax 138,758.56 7,312.62 146,071.18 Other Sources Donations 21,768.58 21,768.58 Gate Receipts $ 380,47821 380,47821 Indirect Cost Special Revenue Fund 149.086.00 149,086.00 Interest Earned 1,795,601.49 160,195.98 $ 40,137.07 146.553.48 $ 2,780.11 2,145,268.13 Job Training Partnership Act RichmondlBurke Job Training Authority 4,050.00 4,050.00 Lost and Damaged Books 46,235.55 46,235.55 R.EAP Westinghouse Savannah River Company 55,80624 55,80624 Reimbursement for Health Screenings 4,070.92 4,070.92 Rents 33,702.34 33,702.34 Revenue in Lieu of Taxes Augusta-Richmond County Commission-Council 43.612.68 43,612.68 Sales Breakfast 545,945.40 545,945.40 Lunches 1,997,242.85 1.997,242.85 School Assets 7,355.41 7,355.41 Tuition 334,799.89 334,799.89 Other 90,383.10 24.652.52 500.00 115,535.62 $ 56,093,004.07 $ 3,108,514.96 $ 40,637.07 $ 2,909,722.96 $ 2,780.11 $ 62,154,659.17 See notes to the general purpose financial statements. - 52 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 1996 SCHEDULE "8" SPECIAL GENERAL REVENUE FUND FUND TOTAL EXPENDITURES Operating Costs Salaries $ 102,119,284.89 $ 12,686,320.18 $ 114,805,605.07 . Employee Benefits 30,090,99320 3,124,802.60 33,215,795.80 Travel of Employees 304,705.38 196,397.11 501,102.49 Professional and Technical Services 1,235,729.82 1,182,179.20 2,417,909.02 Compensation and Travel of Board Members 49,422.68 49,422.68 Water, Sewer and Cleaning Services 345,494.55 128,547.13 474,041.68 Repair and Maintenance Services 920,945.60 73,346.03 994,291.63 Rents 169,508.78 33,163.55 202,672.33 Insurance 321,23322 4,005.00 325,238.22 Communications 507,164.36 22,300.92 529,465.28 Other Purchased Services 17,717.45 65,831.31 83,548.76 Supplies 4,849,489.85 2,513,633.4 7 7,363,123.32 Energy 4,238,783.18 90,401.60 4,329,184.78 Food Usage 5,606,626.64 5,606,626.64 Books, Textbooks and Periodicals 3,133,837.97 44,413.75 3,178,251.72 Dues and Fees 116,947.78 47,921.71 164,869.49 Federal Indirect Costs 149,086.00 149,086.00 Other Expenditures 178,441.52 163,139.95 341,581.47 Nonoperating Costs Principal and Interest 2,140,838.92 51,497.17 2,192,336.09 Building and Building Improvements 1,127,527.16 1,127,527.16 Equipment 1,106,385.55 3,297,382.94 4,403,768.49 Total Expenditures $ 152,974,451.86 $ 29,480,996.26 $ 182,455,448.12 See notes to the general purpose financial statements. - 53 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30.1996 ALTERNATIVE APPLIED SCHOOL TECHNOLOGY DISTANT PROGRAM LABS LEARNING EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services $ 15,140.07 Water, Sewer and Cleaning Services Repair and Maintenance Services Communications Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures Nonoperating Costs Equipment $ 45,000.00$ 300,000.00 Total Expenditures $ 45,000.00 $ 300,000.00 $ 15,140.07 See notes to the general purpose financial statements. - 54 - SCHEDULE "9" MODEL INSTRUCTIONAL TECHNOLOGY PRE-KINDERGARTEN TECHNOLOGY SCHOOLS PROGRAM SAFE SCHOOLS GRANT TECHNOLOGY INSTALLATION TOTAL $ 1,966,709.46 $ 1,966,709.46 529,341.17 529,341.17 18,372.61 18,372.61 $ 12,805.55 $ 7,375.00 55,385.71 $ 579,444.00 670,150.33 8,599.98 8,599.98 10,640.43 10,640.43 1,152.97 1,152.97 3,663.65 3,663.65 237,992.95 61,796.95 408,815.64 $ 11,373.00 719,978.54 53,233.53 53,233.53 6,046.77 6,046.77 11,916.29 11,916.29 1,569.00 1,569.00 35,865.79 35,865.79 650,686.13 136,631.05 262,799.00 1,395,116.18 $ 901,484.63 $ 205,803.00 $ 3,374,112.00 $ 11,373.00 $ 579,444.00 $ 5,432,356.70 - 55 - RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996 THIRTEEN WEIGHTED AND MEDIA CENTER PROGRAMS Minimum Expenditure Requirements (Total Allotment) $ 76,334,018.00 $ ~~nditures on Combined Program Basis Salaries Operations $ 87,193,884.47 5,520,640.01 $ $ 92,714,524.48 Less: Expenditures for Media Center Programs in Excess of Total Media Allotment -1,566,634.86 Expenditures per Audit $ 91,147,889.62 Amount of Underexpenditure for Total Allotment $ 0.00 $ See notes to the general purpose financial statements. - 57 - SCHEDULE "10" 100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS 2,487,935.00 4,816,305.73 0.00 RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS. BY PROGRAM GENERAl.. FUND. QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1996 ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL 'l(, ORIGINAL MID-TERM GENERAl.. AND CAREER EDUCATION PROGRAMS Kindefgarten M $ 6,764,002.00 $ 6.087.601.80 Grades 1.3 M 17.344.153.00 15.609.737.70 $ 819.071.00 Sub-Total. K-3 $ 24.108.155.00 90 $ 21.697.339.50 $ 819.071.00 Grades 4.5 M 8.639.613.00 90 7.n5.651.70 Grades6.8 M 13.805.039.00 90 12.424.535.10 Grades 9 - 12 M 7,529.096.00 90 6.n6.186.40 High School Laboratories M 7.258.529.00 90 6.532.676.10 Vocational Education Laboratories n 3.408.014.00 90 3.067.212.60 Total General and Career Education Programs $ 64,748.446.00 $ 58.273.601.40 $ 819.071.00 SPEC~EDUCATlONPROGRAMS Regular Programs $ 5.932.150.00 $ 5,338,935.00 $ 0.00 Category I n Category u n Category UI M CategoryNM Sub-Total - Regular $ 5.932.150.00 90 $ 5.338.935.00 $ 0.00 Category V (Gifted) ("> 562.300.00 90 506,070.00 Total Special Education Programs $ 6,494.450.00 $ 5.845,005.00 $ 0.00 REMEDIAL EDUCATION PROGRAM (") $ 1.559.962.00 90 $ 1.403.965.80 $ 0.00 Total Thirteen Weighted Programs $ n,802.858.oo $ 65.522.5n.20 $ 819,071.00 MEDIA CENTER PROGRAMS Salaries $ 2,142.585.00 90 $ 1,928.326.50 $ 0.00 Operations 569.504.00 90 512,553.60 Total Media Center Programs $ 2,712,089.00 $ 2,440,880.10 $ 0.00 Total Thirteen Weighted and Media Center Programs $ 75.514.947.00 $ 67,963,452.30 $ 819.071.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction $ 217.924.00 $ 217.924.00 $ 0.00 Professional Development 664.245.00 664.245.00 0.00 Total Staff Development $ 882.169.00 100 $ 882.169.00 $ 0.00 (*) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements. .58- SCHEDULE "11" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 6,087,601.80 $ 7,455,368.24 $ 228,645.94 $ 7,684,014.18 16,428,808.70 21,143,662.51 836,578.96 21,980,241.47 $ 22,516,410.50 $ 28:599,030.75 $ 1,065,224.90 $ 29,664,255.65 $ 0.00 7,775,651.70 9,810,573.59 446,148.17 10,256,721.76 0.00 12,424,535.10 14,451,046.14 870,639.40 15,321,685.54 0.00 6,776,186.40 10,445,479.21 1.187,208.28 11.632.687.49 O.op 6,532,676.10 7,218,390.01 74,954.52 7,293.344.53 0.00 3,067,212.60 3,847,171.19 827,046.56 4.674,217.75 0.00 $ 59.092.672.40 $ 74.371.690.89 $ 4.471.221.63 $ 78.842,912.72 $ 5,338,935.00 $ 416.489.53 $ 28.803.16 $ 445,292.69 1.749.980.31 30.457.23 1,780,437.54 4.593,691.30 63.967.54 4,657,658.84 598,307.89 16.181.14 614.489.03 $ 5.338,935.00 $ 7,358,469.03 $ 139,409.07 $ 7.497,878.10 0.00 506.070.00 354,627.21 161,848.19 516.475.40 0.00 $ 5.845,005.00 $ 7.713.096.24 $ 301.257.26 $ 8.014.353.50 $ 1,403.965.80 $ 1,534,707.76 $ 43,826.64 $ 1.578.534.40 0.00 $ 66,341,643.20 $ 83.619,494.89 S 4.816,305.73 S 68.435.800.62 $ 1.928.326.50 $ 3,574.389.58 $ 3.574,389.58 0.00 512,553.60 $ 704,334.28 704,334.28 0.00 S 2,440.880.10 $ 3,574,389.58 $ 704,334.28 $ 4.278.723.86 $ 68,782.523.30 $ 87.193.884.47 $ 5.520.640.01 $ 92.714.524.48 $ 0.00 $ 217.924.00 $ 421,042.73 $ 421,042.73 664.245.00 484,939.33 484,939:33 905.982.06 $ 905.982.06 $ 0.00 $ 682.169.00 $ . 59 . RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30. 1996 SCHEDULE "12" BOARD MEMBER ADDRESS COMPENSATION TRAVEL Mr. Kenneth J. Echols, Sr., President (*) 2924 Foxhall Circle Augusta, Georgia 30907 $ 5,002.35 $ 842.99 Mr. Andrew A. Jefferson, Vice President (*) 2653 Portsmouth Place Hephzibah, Georgia 30815 4,508.00 464.76 Mr. Jeff Annis (*) 1323 Glenn Avenue Augusta, Georgia 30904 4,001.65 397.92 Mrs. Cherie H. Foster (*) 924 Avacado Street Augusta, Georgia 30909 4,009.65 106.49 Mr. Johnnie Jackson (*) 1370 Dewitt Street Augusta, Georgia 30901 4,001.65 522.61 Mr. Y. N. Myers (*) 3164 Truxton Road Augusta, Georgia 30906 4,011.99 2,168.86 Mrs. Mary L. Oglesby (*) 2509 Church Street Hephzibah, Georgia 30815 4,009.65 1,878.84 Mrs. Barbara Padgett (*) 3533 Richmond Hill Road Augusta, Georgia 30906 4,005.65 523.65 Mrs. Kingsley S. Riley (*) 2030 Steiner Avenue Augusta, Georgia 30901 4,013.65 435.78 Mr. Adna L. Stein (*) P. O. Box 543 Augusta, Georgia 30903 4,009.65 506.89 $ 41,573.89 $ 7,848.79 (*) Denotes Board Members Serving as of June 30, 1996 See notes to the general purpose financial statements. - 60 - SECTION II COMPLIANCE DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 February 28, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County Board of Education COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 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 the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies 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 Richmond County Board of Education is the responsibility of the Board's management: As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 96CRL-IO The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, t:Y~~ Claude L. Vickers State Auditor CL V:gp 96CRL-10 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. VICKERS STATE AUDITOR (404) 65&-2174 February 28, 1997 Honorable ZeD Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County Board of Education 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 Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 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 Richmond County 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-UpfResolution (4) Federal Financial Reports (8) Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Richmond County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 96CRL-50 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Richmond County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CL V:gp 96CRL-50 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 February 28, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County 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 Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 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 Richmond County Board of Education's compliance with the requirements governmg: (1) Types of SeIVices (5) Applicable Special Tests and Allowed or Unallowed Provisions (2) Eligibility (6) Other Requirement Claims for Advances and (3) Matching, Level of Effort, Reimbursements and/or Earmarking (4) Reporting These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Richmond County 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 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 material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Richmond County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Richmond County Board of Education's compliance with the requirements listed in the second paragraph of this report. In our opinion, the RichInond County 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. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:gp 96CRL-80 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. V,CKERS STATE AUDITOR (404) 656-2174 February 28, 1997 Honorable Z~ll Miller, Governor Members of the General Assembly . Members of the State Board of Education and Superintendent and Members of the Richmond County 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 of the Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 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 Richmond County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A- 128, "Audits of State and Local Govemments",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 governmg: (1) Types of Services Allowed' or Unallowed (2) Eligibility Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Richmond County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 96CRL-120 With respect to the items tested, the results of those procedures disclosed no material instances, of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Richmond County Board of Education had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ '\. Claude L. Vickers State Auditor CLV:gp 96CRL-120 /l SECTION III INTERNAL CONTROL DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 February 28, 1997 Honorable ZelI Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County Board of Education REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 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 the Federal donated commo~ities inventory, the purchased foods inventory or the consumable supplies 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 Richmond County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives 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 of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not 96ICL-4 be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the Richmond County Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule of Findings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (1) Cash and Cash Equivalents (2) General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the 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, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness: General Fixed Assets These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Richmond County Board of Education's financial statements and this report does not affect our report thereon dated February 28, 1997. 96ICL-4 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:gp 96ICL-4 DEPARTMENT OF AUDITS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. VICKERS STATE AUDITOR . (404) 656-2174 February 28, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County 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 ofihe Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 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 Richmond County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated February 28, 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-l28 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 Richmond' County Board of Education 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 the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies 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 96ICL-7 procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose .financial statements in a separate report dated February 28, 1997. The management of the Richmond County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are - executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection 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. F or the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS SPECIFIC REOUIREMENTS (1) Political Activity (1) Types of Services Allowed or Unallowed (2) Civil Rights (2) Eligibility (3) Cash Management (3) Matching, Level of Effort, (4) Federal Financial Reports and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Drug-Free Workplace Act (5) Applicable Special Tests and Provisions (7) Audit Follow-UplResolution (6) Other Requirement (8) Administrative Requirements Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and 'we assessed control risk. During the year ended June 30, 1996, the Richmond County Board of Education expended 86% of its total Federal financial assistance under major Federal financial assistance programs. 96ICL-7 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 of Federal 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 suchan opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability, to administer Federal financial assistance programs in accordance with applicable laws and regulations. As described in the Schedule of Findings and Improper or Questioned Costs, reportable conditions were noted in the following control category: Administrative Requirements A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consi~eration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Richmond County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated February 28, 1997. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Claude L. Vickers' State Auditor CL V :gp 96ICL-7 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30. 1996 PRIOR YEAR AUDIT FOLLOW-UPIRESOLUTION Improper Expenditure Financial Statements Amount: $655.85 Audit Control Number 7211-93-02 The audit report for the year ended June 30, 1993, disclosed improper expenditures of$6S5.85 made from the Board's General Fund for breakfast meetings with local representatives of the Georgia General Assembly. These type expenditures are considered beyond the customary scope of expenditures of school funds for educational purposes. This questioned cost had not been resolved at June 30, 1996. Reimbursement of the $655.85 should be secured for deposit to the Board's General Fund. AUDIT FOLLOW-UPIRESOLUTION Improper Expenditure Financial Statements Amount: $244.00 Audit Control Number 7211-93-05 The audit report for the year ended June 30, 1993, disclosed improper expenditures of $244.00 made from the Board's General Fund for engraved brass trays for Board Members. Expenditures of this nature are considered beyond the customary scope of expenditures of school funds for educational purposes. This questioned cost had not b~en resolved at June 30,' 1996. Reimbursement of the $244.00 should be secured for deposit to the Board's General Fund. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7211-93-06 The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $9,230.54 for the StatTDevelopment - Professional Development Stipends Program. For the year under review, an adjustment was made to the Boards's local fair share by the Georgia Department of Education to refund this underexpenditure as required. - 1 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30. 1996 PRIOR YEAR EXPENDITURESILIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Amount: $100,773.44 Audit Control Number 7211-94-01 The audit report for the year ended June 30, 1994, noted that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$100,773.44 for the Staff Development - Professional Development Stipends Progranl. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$100,773.44 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UPIRESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 7211-95-03 The audit report for the year ended June 30, 1995, reported the Board failed to submit a copy of the 1994 audit report to all agencies that provided Federal financial assistance to the Board. During the year under review, the Board submitted copies of the 1994 and 1995 fiscal year audit reports to all agencies as required. AUDIT FOLLOW -UP/RESOLUTION Selection of Eligible Attendance Areas Federal Financial Assistance Finding Resolved Audit Control Number 7211-95-05 The audit report for the year ended June 30, 1995, reported that the Board was unable to document identification of eligible attendance areas for the Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies Program (CFDA 84.010). The Georgia Department of Education has reviewed this matter and in a letter dated September 30, 1996 determined that this finding is closed. For the year under review, the Board provided adequate documentation of the identification of eligible attendance areas as required. - 2 - RICHMOND COUNTY BOARD OF EDUCATION 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 7211-93-04 The audit report for the year ended June 30, 1995, noted that the management of the Richmond County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete 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 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. ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal FinanCial Assistance , Major Program Reportable Condition.- Material Weakness Nonmaterial Noncompliance , Audit Control Number 7211-93-07 The audit report for the year ended June 30, 1995, stated that the Board's property management records for the National School Lunch Program (CFDA 10.555) were incomplete and failed to meet applicable property management standards. For the year under review, the property management records for the National School Lunch Program were again incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). The inventory records for six schools selected for examination were deficient as follows: 1) The inventory records did not include acquisition costs, acquisition dates and serial numbers or other identifying numbers for many of the items. 2) One equipment item with an acquisition co~t in excess of$500.00 was not added to the inventory' listing. 3) The inventory listing included two items which were replaced, however, the original items were not deleted from the inventory listing during the period under review. - 3 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30. 1996 PRIOR YEAR/CURRENT YEAR ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-93-07 An inventory system should be implemented that provides for the identification of all equipment purchased, as outlined in Chapter 41 of the FMGLUA Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be perfo~ed and reconciled to the property records to ensure the accuracy of inventory records. CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7211-95-01 The audit report for the year ended June 30, 1995, reported that the Richmond County Board of Education failed to adequately provide for the collateralization of its bank balances. In the year under review, the Board again failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows: "The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth 'in this code section. . . The aggregate of the face value of such surety bond, and the market value of securities pledged, shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance" . This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments. - 4 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30. 1996 PRIOR YEAR/CURRENT YEAR FEDERAL FINANCIAL REPORTS DE 0106 not Supported by Accounting Records Federal Financial Assistance Major Programs Nonmaterial Noncompliance Audit Control Number 7211-95-02 The audit report for the year ended June 30, 1995, reported errors in the amounts reported on the Board's School Nutrition Claim Data Form (DE 0106). For the year under review, a comparison of the Board's DE 0106's and the accounting records for the Food Distribution Program (CFDA 10.550) and the National School Lunch Program (CFDA 10.555) revealed an error in the amount reported for the USDA Commodities received. This error occurred due to management's failure to adequately monitor the accuracy of reports submitted to the Georgia Department of Education in accordance with the State Agency's School Nutrition Program record keeping guide. U. S.Department of Agriculture regulations 7 CFR 210.9, 3015 and 250.16 mandates that financial management systems provide for accurate, complete and current disclosure of the financial results of these U. S. Department of Agriculture programs. Procedures should be implemented to ensure that DE 0106's are accurate and verifiable to the accounting records as required. ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-95-04 J The audit report for the year ended June 30, 1995, stated that the Board's property management records for the Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies Program (CFDA 84.010) were incomplete and failed to meet applicable property management standards. For the year under review, the property management records for the Title I Program were again incomplete and failed to meet property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). A review of the inventory records presented for examination revealed that eighty-five equipment items with an acquisition cost in excess of$I,OOO.OO each were not added to the inventory listing. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter41 of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records. - 5 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30.1996 CURRENT YEAR ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditure Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $2,998.00 Audit Control Number 7211-96-01 An expenditure in the amount of $2,998.00 was made for equipment for the Individuals with Disabilities Education Act, Part B - Special Education - Severely Emotionally Disturbed Program (CFDA 84.027). This expenditure does not appear to be allowable in accordance with cost allowability criteria defined in Office of Management and Budget (OMB) Circular A-87 which states, in part, that equipment purchases are "allowable when such procurement is specifically approved by the Federal grantor agency". The Board did not receive specific approval for this expenditure as required. This questioned cost occurred because management failed to monitor the Board's compliance with OMB Circular A-87. The Georgia Department of Education should review this matter and determine what action is necessary to resolve this questioned cost. Note: The Richmond County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report. - 6 -