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Report No. 08836, District School Board 8836 STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL �f�yjd r • •#7-ifie . ,4OOD Mflts *** MONROE COUNTY *** DISTRICT SCHOOL BOARD For the Fiscal Year Ended June 30, 1975 8836 STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL Report on Audit of the Accounts of MONROE COUNTY DISTRICT SCHOOL BOARD For the Fiscal Year Ended June 30, 1975 Dated: September 27, 1976 .we.„ A, STATE OF FLORIDA mtlu Os OFFICE OF THE AUDITOR GENERAL y Tallahassee, Florida ERNEST ELLISON,C.P. A. AUDITOR GENERAL September 27, 1976 The Legislative Auditing Committee of the Legislature and the Governor of Florida Sirs: Pursuant to the provisions of Section 11.45, Florida Statutes, I have directed that an audit be made of the accounts and records of the MONROE COUNTY DISTRICT SCHOOL BOARD Par. For the fiscal year ended June 30, 1975, No. and present this report thereon. PERSONNEL (1) The personnel of the Board was as follows: Member District Number Robert A. Dion to 11-18-74 1 Joseph T. Thompson, Jr. , from 11-19-74 1 Enoch H. Walker, Vice-Chairman 2 Sydney E. Mathews to 11-18-74 3 Carole D. Bolter from 11-19-74 3 Wilhelmina G. Harvey, Chairman from 11-26-74 4 Ruth Alice Campbell, Chairman to 11-25-74 5 Armando J. Henriquez, Superintendent 1 Par. No. SCOPE AND OPINION (2) I have examined the financial statements of the various funds and account groups of the Monroe County District School Board for the fiscal year ended June 30, 1975. My examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. (3) In my opinion, the accompanying financial statements present fairly the financial position of the various funds and account groups of the Monroe County District School Board at June 30, 1975, and the results of operations of such funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. FINANCIAL POSITION (4) The financial position of the various funds at June 30, 1975, is shown on exhibit A. Changes in fund balances are shown on exhibits C-3, D-3, E-3, and F-3. (5) Current resources were sufficient to meet current obligations. (6) The unappropriated fund balances of the General (Operating) Fund at the end of the last two fiscal years, adjusted for the change in reporting School Food Service Fund balances, were as follows: Fiscal Year Operating School Food Total Fund Service Fund June 30, 1974 $ 509,651.82 $126,801.99 $ 636,453.81 June 30, 1975 1,297,012.46 1,297,012.46 (7) The amounts that are included as material stores inventory, as shown on the Board's records at June 30, 1973, are listed in note 1 on exhibit J. Material stores inventory is discussed under the heading INTERNAL CONTROL AND RECORDS. (8) In the General Fixed Assets Group of Accounts, buildings are over- stated by $60,000 and land is understated by $60,000 due to an error in coding for postings. (9) General fixed assets on exhibits A and G are understated by an undetermined amount for the following: 1. A parcel of land and a building now known as Vocational Technical Building No. 18 were given to the Board by the United States Government. According to the quitclaim deed dated June 20, 1973, which was accepted by the Board on July 31, 1973, the value of the property was $95,000, On 2r Par. No. the fixed asset records of the Board, the building was shown at a zero balance and the land was valued at $554.76 which was the Board's cost of installing a fence in 1970 on the property while it was leased from the Federal Government. The building was insured on September 9, 1974, for a $192,265.34 replacement cost. On January 1, 1974, the County Property Appraiser valued the land at $24,250 and the building at $97,200. The Board should determine the fair market value of the land and the building at the date of the donation, and these amounts should be shown in the fixed asset accounts. 2. A parcel of land was conveyed to the Board by the Florida Keys Community College without monetary consideration on February 25, 1974. An appraisal of the fair market value was not obtained and the parcel was not recorded in the land account. The assessed value by the County Property Appraiser at January 1, 1975, was $74,250. Gerald Adams Elementary School was being constructed on this site. FINANCIAL OPERATIONS (10) Statements of revenue, expenditures, and transfers for the fiscal year ended June 30, 1975, are shown on exhibits B, C-2, D-2, E-2, and F-2. Revenues (11) Revenues as reported by the Board are summarized in the following tabulation: Source 1974-75 Amount Percent Federal: Received Direct $ 1,352,471.83 8.60 Received Through State 936,524.95 5.96 Total Federal $ 2,288,996.78 14.56 State 6,962,372.65 44.28 Local 6,461,964.27 41.10 Nonrevenue 9,981.00 .06 Total $15,723,314.70 100.00 (12) The major sources of revenue from the Federal Government , including Federal money received through the State, were as follows: 1. Public Law 81-874, Federal Impact Funds totaling $1,000,257 - to provide assistance to local school districts due to loss of tax funds because of Federal installations located in their areas. 3 Par. No. 2. Key Deer National Wildlife Refuge contribution totaling $21,926.83 - for refuge being located within the county. 3. Public Law 79-396, National School Lunch and Child Nutrition Act Funds totaling $424,534.10 - to supplement the school lunchroom program. 4. Contracted Program Funds totaling $505,759.85 - as allocations for programs pursuant to various acts and laws as discussed further under the heading Special Revenue (Contracted Program) Funds. (13) The primary source of revenue from the State consisted of funds earned under the Florida Education Finance Program for current operations. Other State revenue sources included debt service funds, capital outlay, and compre- hensive school construction funds. (14) Funds for comprehensive school construction and debt service are to be allocated by the Commissioner of Education to each school district in proportion to its percentage of the State total of unfunded school plant and debt service needs, according to Section 236.084, Florida Statutes. (15) As provided in Section 9, Article XII, Constitution of Florida, and Section 236.602, Florida Statutes, capital outlay and debt service funds were allocated to the Board on the basis of instructional units. (16) The revenue reported from local sources was primarily received from taxes, interest earned on investments, and food service sales. Expenditures (17) Expenditures for the fiscal year as reported by the Board for the General (Operating) and Special Revenue (Contracted Program) Funds are summarized in the following tabulation: 4 Par. No. Purpose 1974-75 Amount Percent Instruction Services: Basic $ 5,144,772.67 37.04 Exceptional 538,361.23 3.87 Vocational-Technical 642,539.14 4.63 Adult General 59,333.89 .43 Other 68,425.93 .49 Total Instruction Services $ 6,453,432.86 46.46 Support Services: Pupil Personnel Services $ 464,353.11 3.34 Instructional Media 237,421.36 1.71 Instruction and Curriculum Development 67,028.46 .48 Instructional Staff Training 68,220.86 .49 Board of Education 321,954.35 2.32 General Administration 394,794.38 2.84 School Administration 838,794.76 6.04 Facilities Acquisition and Construction 3,734.85 .03 Fiscal Services 141,219.24 1.02 Food Services 1,109,670.97 7.99 Central Services 294,736.70 2.12 Transportation Services 460,815.46 3.32 Operation Services 1,083,379.35 7.80 Maintenance Services 548,271.00 3.95 Community Services 427,912.65 3.08 Total Support Services $ 6,462,307.50 46.53 Total Instruction and Support Services $12,915,740.36 92.99 Capital Outlay $ 764,181.81 5.50 Outgoing Transfers $ 209,564.92 1.51 Total Expenditures $13,889,487.09 100.00 (18) Warrants were prepared by the finance department. As authorized by Section 116.34(3), Florida Statutes, facsimile signatures of the Chairman and the Superintendent were placed on the warrants by authorized personnel of the finance department. (19) Salary schedules were adopted pursuant to law and Rules of the State Board of Education. Salaries were paid according to the schedules and personnel records contained evidence of the factors used in the computations of the employees' annual compensation. Contracts were issued to employees where required and overtime payments were properly supported. J~ Par. No. (20) Leave was taken in compliance with policy and law and leave records were adequate. (21) As previously noted in audit report No. 8612, paragraph 35, some personnel records were still not filed in lockable cabinets bearing a certified fire protection label as required by Section 6A-1.69(3) , Rules of the State Board of Education. (22) Audit report No. 8612, paragraph 34, noted the lack of compliance with Section 231.29(2), Florida Statutes, which requires that the performance of duties and responsibilities of all administrative and supervisory personnel be assessed at least once a year. In the current period, evaluations by objectives of the school principals were completed; however, evaluations of some supervisory and administrative personnel were still not on file. (23) Deductions for retirement and social security were accurately made and promptly remitted with matching funds. Current authorizations for voluntary deductions, as required by Section 6A-1.52(3) , Rules of the State Board of Education, were generally available. (24) Comments concerning the payroll system are also made under the heading INTERNAL CONTROL AND RECORDS. Travel Expenditures (25) Some exceptions to the requirements of Section 112.061, Florida Statutes; Section 6A-1.56, Rules of the State Board of Education; and proper internal control were found in my examination of the support on file for travel expense reimbursements. (26) As previously noted in audit report No. 8006, paragraph 40, and audit report No. 8612, paragraph 39, the Superintendent and certain employees were paid monthly travel allowances supported by signed statements showing a typical month's travel; however, none of the statements contained the amount that would have been allowed under the approved rate per mile for the travel shown in the statement, if payment had been made pursuant to paragraph (d) of Section 112.061(7) , Florida Statutes. The traveler's certificates and state- ments were not filed before the allowances were granted or changed. (27) Proper controls were not exercised over obtaining travel services through a travel agency. There were no cross-references between invoices or vouchers for payments to the agency and the travel vouchers which supported the charges claimed by the agency. Each traveler ordered, picked-up, and receipted for his common carrier tickets from the agency instead of these functions being handled and controlled by the administrative office. 6 Par. No. (28) The Board members from district Nos. 3 and 5 were paid reimbursement for mileage and in some cases per diem for travel to and from their homes and the Board's administrative headquarters in Key West. The Attorney General in his opinion No. 075-237, dated August 28, 1975, stated: "It is generally held by the courts that, unless the legislature has expressly and explicity included in the expenses to be allowed public officers the cost of travel from their homes to the places where their regular duties are to be performed, such expenses are not a legitimate public charge. See 67 C.S.S. s. 91, p. 330; Accord: AGO's 064-21 (circuit judges) , 072-248 (state attorneys) , and 074-132 (district courts of appeal judges) . . . He also said: "I am cognizant of the fact that a contrary conclusion was reached by my predecessor in office in AGO 065-13; however, where the public purse in concerned, there should be no hesitancy in taking another look at the relevant statutes under applicable rules of statutory construction and receding from a previous opinion where it appears to be clearly erroneous. In fact, in AGO 074-132, supra, I overruled a prior letter opinion of my predecessor as to the travel expenses of the judges of district courts of appeal; and, . . . a similar conclusion must be reached as to the travel expenses of school board members." Purchasing. (29) Purchasing was centralized in a purchasing department. Bids were obtained when required. Insurance (30) Insurance coverage during the period was as follows: 1. Comprehensive Automobile Liability 2. Workmen's Compensation 3. Employees' Blanket Position Bond 4. Bonds for Superintendent, Chairman, Vice-Chairman, and other Board Members 5. Fire and Extended Coverage, Including Builder's Risk 6. Floater on Musical Instruments 7. Public Entity Liability 8. Excess Liability Umbrella 9. Group Health and Life Insurance An insurance consulting firm was retained for a fee of $3,450 to advise the Board's administration regarding the insurance program for 1974-75. Committees were appointed from time to time to report to the Board on specific insurance questions. Bids were obtained for major purchases of insurance coverage with the exception of group health and life insurance which was a renewal. This group insurance contract was not on file. An insurance register was established after the audit period. (31) Florida Keys Community College, as previously discussed in audit report No. 8612, paragraph 44, had still not been billed for its pro rata share of insurance premiums for the period from March 15, 1971, to July 1, 1973. In his reply to the list of findings for that audit, the Superintendent said, "A statement requesting payment from the Florida Keys Community College for its pro rata share of premiums has been prepared for submission to the College." The billing had not been submitted at January 21, 1976. 7 Par. No. Investments (32) A tabulation showing interest income for 1973-74 and 1974-75 is as follows: Major Fund Group 1973-74 1974-75 Interest Income from Investments Made Locally: General (Operating) Funds $20,494.49 $ 24,887.39 Debt Service Funds 13,707.80 29,296.67 Capital Projects Funds 3,342.40 304,012.53 Interest Income from Investments of Board Funds Held by the State: Debt Service Funds 16,026.99 45,115.75 Capital Projects Funds 5,847.81 7,116.12 Total $59,419.49 $410,428.46 (33) Interest was recorded when received. One depository credited the Board's account with interest quarterly as required by Section 136.04, Florida Statutes. Four other depositories credited interest at maturity of the time deposit. The Superintendent's written response to a similar comment in paragraph 46 of audit report No. 8612 indicated that all other banks will be contacted relative to crediting interest quarterly on time deposits; however, interest still was not credited quarterly. Budgets (34) Under the provisions of Section 6A-1.071(3), Rules of the State Board of Education, the annual budget due date for the fiscal year 1974-75 was August 15, 1974. The Board did not approve the budget until October 29, 1974. It was received by the Department of Education on November 4, 1974. Budget amendments No. 19 through No. 24 were approved by the Board on August 19, 1975, and August 26, 1975, and were received by the Department of Education on September 10, 1975. Both the Board approval and the submission dates were after August 15, 1975, the due date of the annual financial report for the fiscal year 1974-75. Section 6A-1.06(3) , Rules of the State Board of Education, provides that no budget amendment shall be approved by the district school board after the due date for the annual financial report for that year. (35) The budgets were generally adhered to in both revenue and expenditures. (36) Comparisons of actual to budgeted amounts are shown on exhibits C-2, D-2, E-2, and F-2. Taxes (37) Millages and taxes levied for school purposes on the 1973 and 1974 tax rolls are shown below: 8 Par. No. 1973 1974 Mills Amount Mills Amount Operating Funds: Nonvoted School Tax 9. 75 $4,825,864.00 7.80 $5,325,383.68 Debt Service Funds: District No. 1 Bond Interest and Sinking Fund .42 211,018.00 .37 252,614.35 Total 10.17 $5,036,882.00 8.17 $5,577,998.03 Millages were within the amounts authorized by law. Transportation (38) The Florida Education Finance Program transportation survey reports were properly submitted. (39) The number of students transported, as reported for the two member- ship survey periods during the fiscal year, was as follows: 10-21-74 2-24-75 through through 10-25-74 2-28-75 Transported Membership 4,518 4,579 (40) The cost of transportation to and from various school extracurricular activities was billed as follows: 1. The athletic department of each school was to pay the school bus driver's salary and the cost of gasoline and oil used. 2. Other extracurricular trips were to be paid for at 25 cents per mile and the salary of the school bus driver. 3. The Summer Teen Program reimbursed the payroll fund for the salary of the bus driver and after the audit period was billed for transportation costs at 25 cents per mile. (41) Records were generally adequate to support the cost accumulation for operating and maintenance costs of school buses; however, vehicular activity logs were not maintained for trucks or automobiles. (42) The director of maintenance and transportation stated that the Board's policy for replacement of buses was that the buses be replaced after 10 years of service. (43) Section 234.02(1) , Florida Statutes, provides that each school board shall designate and adopt a specific plan for adequate examination, maintenance, and repair of transportation equipment, and that the examination shall be made at least once each month that the bus is in operation. The Board's plan included the following: 9 Par. No. 1. Mechanical inspections every twenty days. 2. Monthly reports of miles traveled and fuel consumed. 3. Monthly reports of maintenance. Reports on the maintenance, miles traveled, and fuel consumed were not on file for four buses used for transportation to and from athletic events. (44) The total cost of transporting students, as shown on the Board's annual financial reports, was as follows: 1973-74 1974-75 Cost of Transporting Pupils Between Home and School $364,828.79 $417,603.31 Cost of Transporting Pupils to Other School Activities 37,866.56 39,504.64 Total Cost of Transporting Students $402,695.35 $457,107.95 Total transportation cost includes salaries, insurance, maintenance, and other operating expenses. The cost does not include the purchase price of buses. Compensation of Superintendent and Board Members (45) For the 1974-75 fiscal year, the Board continued to pay the Super- intendent an annual salary of $25,320. As explained in audit report No. 8612, paragraphs 57 through 64, there are possible differences in the interpretations of the applicable laws governing the Superintendent's compensation and I recom- mended that the Board obtain a legal determination as to the correct amount of compensation payable. Since a determination was not obtained by the Board, an Attorney General's opinion is being requested by this office. Under the same method used by the Board for the calculation of the Superintendent's compensation for the fiscal years 1970-71 and 1971-72 under the provisions of Section 145.08(5) , Florida Statutes, 1971, and according to the applicable provisions of Chapter 145, Florida Statutes, during these periods, the Superin- tendent was overpaid $2,468.70, $636, and $636 for the fiscal years 1972-73, 1973-74, and 1974-75, respectively. (46) Board members were paid in accordance with Sections 145.041 and 145.18, Florida Statutes. The compensation underpaid during the fiscal year 1973-74, as noted in audit report No. 8612, paragraph 65, was adjusted subsequent to the close of this audit period. Guidance Clinics (47) As previously discussed in audit report No. 8006, paragraph 78, and audit report No. 8612, paragraph 67, contracts were again executed with three guidance clinics to render counsel to school children in matters of mental health and guidance. The contract amounts were as follows: Clinic Amount Guidance Clinic of the Lower Keys $17,200 Guidance Clinic of the Middle Keys 4,200 Guidance Clinic of the Upper Keys 5,800 10 Par. No. The Monroe County Board of County Commissioners made payments totaling $31,008.75 under the provisions of Section 394.80, Florida Statutes, to these three organizations for similar services. (48) Reports, while not filed quarterly as per the contracts, were sub- mitted to the Board and consisted of listings of the numbers of students or total hours spent in evaluations, conferences, interviews, workshops, staffings, observations, and consultations. The reports were not detailed as to actual dates. (49) Effective January 1, 1975, the School Health Services Act of 1974 (Chapter 74-356, Acts of 1974), which repealed certain sections of the Florida Statutes, still places the primary responsibility for health services, which includes health appraisal and screening programs, with the State Department of Health and Rehabilitative Services through the County Health Unit. Monroe County Health Unit (50) The Board contracted with the Monroe County Health Unit to provide medical services for an annual fee of $17,000 which has been the annual remuneration since 1971-72. The Board met all the conditions for legal payment according to an Attorney General Opinion No. 052-305, dated November 5, 1952. Special Revenue (Contracted Program) Funds (51) The descriptions of the major programs within the Special Revenue (Contracted Program) Funds during the audit period are as follows: 1. Elementary and Secondary Education Act, Title I, totaling $312,952 - to provide services to educationally disadvan- taged students in low income areas. 2. Comprehensive Employment Training Act, Title I, totaling $148,783 - to provide job training and employment opportunities for economically disadvantaged, unemployed, and underemployed persons. 3. Department of Labor, Self Help Program, totaling $130,000 - to provide a work experience program which enables students to receive basic education classes and the opportunity to perform responsible tasks providing skills for job entry in the vocational areas. 4. Education Profession Development Act, totaling $85,141 - for the training of school personnel in school based management techniques and procedures. Debt Service Requirements (52) Maturities and interest were paid on a current and timely basis. 11 Par. No. Capital Projects Funds (53) Individual funds were maintained within the Capital Projects Funds to allow for proper accounting according to the revenue restrictions. (54) Section 235.31(1), Florida Statutes, as amended by Chapter 73-556, Acts of 1973 (the amendment expired on May 30, 1975), authorized the Board to construct projects costing $950,000 or less on a day labor basis. (55) The following tabulation shows the accounting for funds for capital outlay purposes derived from bond issues for which there were proceeds on hand during the audit period: State Board of State Board of Education Bonds Education Bonds Dated 6-1-62 Dated 1-1-74 Receipts Proceeds $750,000.00 $2,729,456.69 Interest, Prior Periods 27,444.21 10,255.16 Interest, Audit Period 31.31 292,366.74 Loans fromOther Funds 252,200.00 Total Receipts $777,475.52 $3,284,278.59 Expenditures Prior Periods 775,876.24 Audit Period 615,217.20 Balances, June 30, 1975 $ 1,599.28 $2,669,061.39 (56) NO major capital improvement project was completed during the audit period. INTERNAL CONTROL AND RECORDS (57) Internal control over receipts and disbursements was generally adequate. As noted in audit report No. 8006, paragraph 89, and audit report No. 8612, paragraph 76, a list Of receipts was not prepared for collections received in the mail. Mail was opened and then delivered to the finance department where receipts were manually written. (58) An accounting procedures manual still had not been prepared outlining the duties and responsibilities of each fiscal position, as reported in audit report No. 8006, paragraph 93, and audit report No. 8612, paragraph 79. (59) Actual cash balances frequently exceeded estimates of highest expected balances reported to the Clerk of the Circuit Court under the pro- visions of Section 136.02, Florida Statutes. For proper security of bank balances efforts should be made to make better estimates of the subsequent months' higher balances. 1.2 Par. No. (60) Custody of unclaimed wages was vested in the payroll department which was also responsible for distribution of payroll warrants to the various schools. Within the various schools or departments, payroll distribution duties were not rotated. In some schools, the same person responsible for keeping time records also distributed the payroll. Good internal control dictates that these procedures be changed. (61) In the General (Operating) Fund, school food service inventory was understated by $26,077.98 because the value of inventories at certain schools' cafeterias was omitted. Also, deficiencies in inventory procedures and records were again noted as in audit report No. 8006, paragraph 7, and audit report No. 8612, paragraph 11. No written instructions were issued for taking the inventory in the transportation department. Transportation and maintenance inventories were not counted in the order in which they were stored. Counted items were not marked, tagged, or separated to minimize the possibility of not counting items or counting the same item twice. Perpetual inventory cards were used as inventory count sheets in the transportation and mainte- nance departments instead of prenumbered and controlled sheets. Paint supplies and new tires were not controlled by perpetual cards in the transportation department. Some obsolete and unusable items were not inventoried in the transportation department. Reports of obsolescence were not prepared in the transportation or maintenance department. In the transportation department, 18% of my test-count items differed from the Board personnel's inventory count and in the maintenance department, 42% of my test-count items differed from the inventory count. The amounts of differences were not material in relation to the total value of the inventories. A reduction of $7,081.51 was made to the maintenance control account at year end. (62) Section 255.05, Florida Statutes, mandates the posting of bonds by contractors. Although requested from the finance director on October 10, 1975, no evidence was located or presented of bonds by two contractors as follows: Company Description Lewis Electric Air Condition "C" Wing, Glynn R. Archer Jr. High Parker Refrigeration, Inc. Air Condition "E" Wing, Marathon High (63) The finance department performed the accounting operations under the Department of Education's accounting system entitled COST ANALYSIS MANAGEMENT INFORMATION SYSTEM as modified by the Department's A MANUAL, FINANCJAJ AND PROGRAM COST ACCOUNTING AND REPORTING FOR FLORIDA SCHOOLS. Information was available but was not used for reconciliations or comparisons of records kept by departments such as transportation, maintenance, payroll, property control or school food service with the records kept by the finance department. (64) The Board budgeted over $350,000 in the General (Operating) Fund for the function of board of education expenditures. The actual expenditures of about $321,564 included employee benefits of approximately $39,692, rentals of about $37,510, and insurance and bond premiums of nearly $150,000. The majority of these expenditures should have been charged to other functions. (65) In Debt Service Funds, expenditures were charged to the board of education function when the debt service function should have been used. 13 Par. No. (66) Some expenditure functions with obviously incorrect balances were not analyzed and adjusted. It should have been a regular procedure of the finance department to make the proper analysis and adjustments of the errors in the accounts. (67) Information for the computerized accounting system was prepared and processed by the batch system. Source documents to support original transactions were generally properly filed and and referenced. (68) The minutes of the Board meetings were not indexed for the current year. The inclusive numbers of warrants issued were shown in the minutes as approved by the Board; however, the dollar amounts were not given and no infor- mation was in the minute book to identify any other records where there would be supplemental information. The minutes were currently typed and appeared to show all official actions of the Board. (69) Comments concerning the records and procedures for fixed assets are made under the headings FINANCIAL POSITION and GENERAL FIXED ASSETS. GENERAL FIXED ASSETS (70) Some improvements were needed in accounting controls and procedures to ensure that acquisitions and dispositions of property are promptly and accurately recorded in a general fixed assets group of accounts and to facilitate a reconciliation between fixed asset acquisitions and capital outlay expenditures. Certain understatements and overstatements in the accounts for land and buildings are discussed under the heading FINANCIAL POSITION. GENERAL LONG-TERM DEBT (71) General long-term debt is recorded in a self-balancing group of accounts to show outstanding obligations at the balance sheet date with maturity dates beyond one year. (72) There were no new bond issues during the audit period. INTERNAL FUNDS (73) The Board is responsible for the administration and control of all local school funds derived from school activities under the provisions of Section 237.02(4), Florida Statutes. The Board's policies were adequate and consistent with Section 6A-I.85 through 6A-1.91, Rules of the State Board of Education. The Board as its policy adopted the provisions of bulletin No. 38 published by the Department of Education in lieu of any other policies for internal funds. (74) Section 6A-1.87(2), Rules of the State Board of Education, requires . the Board to provide for an annual audit of internal funds. A local certified public accountant prepared a report for 1974-75 which was accepted by the Board. No deficiencies were noted. An audit of these internal funds was not included in the scope of my examination. 14 Par. No. CREDIT UNION (75) A lease agreement between the Board and the teachers' credit union, which expired January 1, 1975, was not renewed although the space was still being provided to the credit union. (76) A report of space allocated to the credit union was not filed with the Auditor General as required by Section 657.24, Florida Statutes. STATEMENT FROM AUDITED OFFICIAL (77) In accordance with the provisions of Section 11.45(6)(d) , Florida Statutes, a list of audit findings was submitted to the Board. The Superintendent's written response to the findings included in this report is shown on exhibit K. EXHIBITS The following exhibits are attached to and form a part of this report: Combined Section EXHIBIT - A Combined Balance Sheet - All Funds. EXHIBIT - B Combined Statement of Revenues, Expenditures, and Transfers - General (Operating) and Special Revenue (Contracted Program) Funds. General (Operating) Fund EXHIBIT C-1 Balance Sheet. EXHIBIT C-2 Statement of Revenues, Expenditures, and Transfers. EXHIBIT C-3 Statement of Changes in Fund Balance. Special Revenue (Contracted Program) Funds EXHIBIT D-1 Balance Sheet. EXHIBIT D-2 Statement of Revenues, Expenditures, and Transfers. EXHIBIT D-3 Statement of Changes in Fund Balances. 15 Debt Service Funds EXHIBIT E-1 Balance Sheet. EXHIBIT E-2 Statement of Revenues, Expenditures, and Transfers. EXHIBIT E-3 Statement of Changes in Fund Balances. Capital Projects Funds EXHIBIT F-1 Balance Sheet. EXHIBIT F-2 Statement of Revenues, Expenditures, and Transfers. EXHIBIT F-3 Statement of Changes in Fund Balances. General Fixed Assets EXHIBIT - G Statement of General Fixed Assets. General Long-term Debt EXHIBIT - H Statement of General Long-term Debt. Other EXHIBIT - I Summary of Significant Accounting Policies. EXHIBIT - J Notes to Financial Statements. EXHIBIT - K Statement from Audited Official. Respectfully submitted, (Signed) Ernest Ellison, C.P.A. Auditor General Audit supervised by: (Signed) Willard G. Hale Audit made by: (Signed) Mary K. Parlato 16 EXHIBIT - A MONROE COUNTY DISTRICT SCHOOL BOARD COMBINED BALANCE SHEET - ALL FUNDS June 30, 1975 General Special (Operating) Revenue Fund (Contracted Program) Funds ASSETS AND OTHER DEBITS Assets - Other Than Fixed: Cash $ 767, 498. 80 $ 288. 32 Time Certificates of Deposit 5, 212. 86 Accounts Receivable 6, 250. 00 630, 298. 14 Taxes Receivable 117, 878. 33 Due from Other Funds 435, 460. 00 Advancements to Internal Accounts 1, 826. 39 Material Stores Inventory (1) 282, 081. 27 Investments: State Board of Education Bond Reserve Fixed Assets: Land (2) Buildings (2) Motor Vehicles (2) Furniture and Other Equipment (2) Other Debits: Amount Available for Debt Service Amount to be Provided for Debt Service TOTAL $1, 616, 207. 65 $630, 586. 46 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ 50, 059. 22 $ Due to Other Funds 50, 000. 00 212, 500. 00 Judgment Payable Bonds Payable: ( 10) State Board of Education Bonds District Bonds Certificates of Indebtedness Interest Payable in Future Years: (3) (10) State Board of Education Bonds District Bonds Certificates of Indebtedness - Total Liabilities (4) (5) $ 100, 059. 22 $212, 500. 00 Fund Balances: Reserve for Encumbrances (6) $ 219, 135. 97 $ 32, 877. 55 Investment in Fixed Assets Unappropriated Fund Balance 1, 297, 012. 46 385, 208. 91 Total Fund Balances $1, 516, 148. 43 $418, 086. 46 TOTAL $1, 616, 207. 65 $630, 586. 46 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT - A 17 EXHIBIT - A Debt Capital General General Service Projects Fixed Long-term Funds Funds Assets Debt $ 112, 039. 67 $ 90, 552. 81 $ $ 348,380. 98 3, 590, 627. 00 8, 067. 18 5, 558. 60 59, 927. 00 195, 813. 00 495, 470. 45 1, 578, 059. 56 14, 457, 167. 45 763, 779. 86 1, 597, 153.67 849, 876. 70 6, 494, 183. 30 $1 , 021 , 376. 70 $3, 885, 059. 99 $18, 396, 160. 54 $7, 344, 060. 00 $ $ $ $ 176, 500. 00 252, 200. 00 35, 000. 00 3, 360, 000. 00 210, 000. 00 1, 160, 000. 00 2, 044, 927. 50 3, 570. 00 530, 562. 50 $ 176, 500. 00 $ 252, 200. 00 $ - - $7, 344, 060. 00 $ $ 192, 943. 20 $ $ 18, 396, 160. 54 844, 876. 70 3,439, 916.79 $ 844, 876. 70 63, 632, 859. 99 $18, 396, 160. 54 $1, 021, 376. 70 $3, 885, 059. 99 $18, 396, 160. 54 $7, 344, 060. 00 EXHIBIT - A 18 EXHIBIT - B MONROE COUNTY DISTRICT SCHOOL BOARD COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS GENERAL (OPERATING) AND SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS For the Year Ended June 30, 1975 Total General Special (Operating) Revenue Fund (Contracted Program) Funds Revenues: Federal Sources $ 2,282,765.78 $ 1,446,717.93 $ 836,047.85 State Sources 6,198,059.25 6,198,059.25 Local Sources 5,886,126.38 5,886,126.38 Total Revenues $14,366,951.41 $13,530,903.56 $ 836,047.85 Incoming Transfers 143,140.37 142,729.20 411.17 Total Revenues and Transfers $14,510,091.78 $13,673,632.76 $ 836,459.02 Expenditures: Instruction Services: Basic $ 5,144,772.67 $ 4,895,057.04 $ 249,715.63 Exceptional 538,361. 23 533,149.34 5,211.89 Vocational-Technical 642,539. 14 620,833.70 21,705.44 Adult General 59,333.89 42,488.20 16,845.69 Other 68,425.93 68,425.93 Total Instruction Services $ 6,453,432.86 $ 6,159,954.21 $ 293,478.65 Support Services: Pupil Personnel Services $ 464,353. 11 $ 431,467.90 $ 32,885.21 Instructional Media 237,421.36 235,871.72 1,549.64 Instruction and Curriculum Development 67,028.46 58,227.32 8,801. 14 Instructional Staff Training 68,220.86 61,642.86 6,578.00 Board of Education 321,954.35 321,564.76 389.59 General Administration 394,794.38 309,325.90 85,468.48 School Administration 838,794.76 838,529.13 265.63 Facilities Acquisition and Construction 3,734.85 3,734.85 Fiscal Services 141,219.24 134,180.49 7,038. 75 Food Services 1,109,670.97 1,109,570.60 100.37 Central Services 294,736.70 294,734.95 1. 75 Transportation Services 460,815.46 455,727.95 5,087.51 EXHIBIT - B (Continued) 19 MONROE COUNTY EXHIBIT - B (Continued) DISTRICT SCHOOL BOARD COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND TRANSERS GENERAL (OPERATING) AND SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS For the Year Ended June 30, 1975 Total General Special (Operating) Revenue Fund (Contracted Program) Funds Expenditures (Continued) : Support Services (Continued): Operation Services $ 1,083,379.35 $ 1,082,266.69 $ 1,112.66 Maintenance Services 548,271.00 542,404.03 5,866.97 Community Services 427,912.65 174,863.62 253,049.03 Total Support Services $ 6,462,307.50 $ 6,054,112.77 $ 408,194.73 Total Instruction and Support Services $12,915,740.36 $12,214,066.98 $ 701,673.38 Capital Outlay 764,181.81 426 ,323.06 337,858.75 Outgoing Transfers 209,564.92 209,564.92 Total Expenditures and Transfers $13,889,487.09 $12,849,954.96 $1,039,532. 13 Excess (Deficiency) of Revenues and Transfers Over Expenditures and Transfers $ 620,604.69 $ 823,677.80 $ (203,073. 11) See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT - B EXHIBIT C-1 MONROE COUNTY DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND BALANCE SHEET June 30, 1975 ASSETS Cash $ 767,498.80 Time Certificates of Deposit 5,212.86 Accounts Receivable 6,250.00 Taxes Receivable 117,878.33 Due from Other Funds 435,460.00 Advancements to Internal Accounts 1,826.39 Material Stores Inventory (1) 282,081.27 TOTAL $1,616,207.65 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 50,059.22 Due to Other Funds 50,000.00 Total Liabilities $ 100,059.22 Fund Balance: Reserve for Encumbrances (6) $ 219,135.97 Unappropriated Fund Balance 1,297,012.46 Total Fund Balance $1,516,148.43 TOTAL $1,616,207.65 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT C-1 21 MONROE COUNTY EXHIBIT C-2 DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Revenues: Federal Sources: Direct: Department of Health, Education, and Welfare: Public Law 81-874, Federal Impact - Current Operation $ 1,000,257.00 $ 1,000,257.00 $ Key Deer Refuge 20,000.00 21,926.83 1,926.83 Total Federal Direct $ 1,020,257.00 $ 1,022,183.83 $ 1,926.83 Federal Money Received Through the State: Department of Agriculture: School Food Reimbursement $ 230,000.00 $ 301,256.03 $ 71,256.03 Commodities 90,300.00 121,567.72 31,267.72 Nonfood Assistance 1,710.35 1,710.35 Total Federal Money Received Through the State $ 320,300.00 $ 424,534. 10 $ 104,234.10 Total Federal Sources $ 1,340,557.00 $ 1,446,717.93 $ 106, 160.93 State Sources: Florida Education Finance Program (7) $ 5,747,303.00 $ 5,732,489.00 $ (14,814.00) Capital Outlay and Debt Service: Withheld for Administrative Expenses 4,830.27 5,389.47 559.20 Racing Commission 94,000.00 88,500.00 (5,500.00) Instructional Materials Funds (Textbooks) 75,738.00 74,909.65 (828.35) Driver Education Program 18,000.00 12,000.00 (6,000.00) State License Tax 55,150.00 90,012.72 34,862.72 Other State Sources: State School Food Service 40,000.00 33,400.41 (6,599.59) Career Education 48,150.00 46,561.00 (1,589.00) Safe School Act 9,295.00 9,295.00 Community School Grant 78,000.00 60,000.00 (18,000.00) Comprehensive Health Education 13,250.00 13,250.00 Florida Education Leadership Training Act 25,000.00 25,000.00 Exemplary Environmental Education 7,252.00 7,252.00 Total State Sources $ 6, 183,716.27 $ 6,198,059.25 $ 14,342.98 22 EXHIBIT C-2 (Continued) EXHIBIT C-2 MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Revenues (Continued) : Local Sources: Taxes: District Current $ 5,065,899.00 $ 5,120,258.60 $ 54,359.60 Tax Redemptions 39,227.21 39,227.21 Excess Fees 2,958.53 2,958.53 Tuition 3,000.00 3,700.00 700.00 Interest, Including Profit on Investments 3,000.00 24,887.39 21,887.39 Rent 3,000.00 870.00 (2,130.00) Food Service Sales (8) 737,000.00 545,503.09 (191,496.91) Other Local Sources: Grants, Gifts, and Bequests 5,212.86 5,212.86 Miscellaneous Revenue 116,700.00 143,418.35 26,718.35 Bus Fees 90.35 90.35 Total Local Sources $ 5,928,599.00 $ 5,886, 126.38 $ (42,472.62) Total Revenues $13,452,872.27 $13,530,903.56 $ 78,031.29 Tncoming Transfers: From Capital Improvement Funds 142, 729.20 142,729.20 Total Revenues and Transfers $13,595,601.47 $13,673,632.76 $ 78,031.29 Expenditures: Instruction Services: Basic: Salaries $ 4,161,968.32 $ 4,171,042.46 $ 9,074. 14 Employee Benefits 527,688.95v 527,179.67V (509.28) Purchased Services 5,728.83 4,251.66 (1,477.17) Materials and Supplies 180,856. 23 154,559.05 (26,297. 18) Other Expenses 35,555.65 38,024.20 2,468.55 Total Basic $ 4,911,797.98 $ 4,895,057.04 $ (16,740.94) Exceptional: Salaries $ 464,202.81 $ 450,437.09 $ (13,765.72) Employee Benefits 61,134.90/ 58,434.O1V (2,700.89) Purchased Services 2,736. 75 1,840.08 (896.67) Materials and Supplies 21,696. 17 22,438. 16 741.99 Other Expenses 320.00 (320.00) Total Exceptional $ 550,090.63 $ 533,149.34 $ (16,941.29) EXHIBIT C-2 (Continued) 23 MONROE COUNTY EXHIBIT C-2 (Continued) DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued) : Instruction Services (Continued): Vocational-Technical: Salaries $ 500,632.71 $ 482,995.85 $ (17,636.86) Employee Benefits 61,935.27 59,785.67r (2,149.60) Purchased Services 16,493.46 18,770.49 2,277.03 Materials and Supplies 59,314.41 54,687.49 (4,626.92) Other Expenses 3,498.66 4,594.20 1,095.54 Total Vocational-Technical $ 641,874.51 $ 620,833.70 $ (21,040.81) Adult General: Salaries $ 43,349.20 $ 20,958.37 $ (22,390.83) Employee Benefits 7,044.90 3,482.80v (3,562.10) Purchased Services 944.42 710.72 (233.70) Materials and Supplies 15,184. 10 11,902. 17 (3,281.93) Other Expenses 8,151.62 5,434. 14 (2,717.48) Total Adult General $ 74,674.24 $ 42,488.20 $ (32,186.04) Other: Salaries $ 65,545.85 $ 63,227.75 $ (2,318. 10) Employee Benefits 2,853.50 5,191.34v 2,337.84 Materials and Supplies 26.58 6.84 (19.74) Total Other $ 68,425.93 $ 68,425.93 $ - - Total Instruction Services $ 6,246,863.29 $ 6,159,954.21 $ (86,909.08) Support Services: Pupil Personnel Services: Salaries $ 343,152.35 $ 332,746.22 $ (10,406.13) Employee Benefits 40,573.83 37,562.54v (3,011.29) Purchased Services 49,095.67 46,417.69 (2,677.98) Materials and Supplies 17,239.74 14,650.34 (2,589.40) Other Expenses 91.11 91. 11 Total Pupil Personnel Services $ 450,061.59 $ 431,467.90 $ (18,593.69) EXHIBIT C-2 (Continued) 24 EXHIBIT C-2 MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued): Support Services (Continued) : Instructional Media: Salaries $ 206,534.82 $ 199,816.25 $ (6,718.57) Employee Benefits 23,073.25 22,858.00, (215.25) Purchased Services 3,162.05 1,709.33 (1,452. 72) Materials and Supplies 20,023.50 11,488.14 (8,535.36) Other Expenses 180.00 (180.00) Total Instructional Media $ 252,973.62 $ 235,871. 72 $ (17,101.90) Instruction and Curriculum Development: Salaries $ 52,126.33 $ 50,596.47 $ (1,529.86) Employee Benefits 6,702.85 5,031.39` (1,671.46) Purchased Services 9,085.00 1,652.27 (7,432.73) Materials and Supplies 1,222.00 897. 19 (324.81) Other Expenses 50.00 50.00 Total Instruction and Curriculum Development $ 69,136.18 $ 58,227.32 $ (10,908.86) Instructional Staff Training: Salaries $ 47,285.00 $ 42,003. 70 $ (5,281. 30) Employee Benefits 5,067. 74 3,934.761 (1,132.98) Purchased Services 15,913.47 12,502.73 (3,410.74) Materials and Supplies 1,712.93 2,160.67 447. 74 Other Expenses 1,350.00 1,041.00 (309.00) Transfers 20,383.85 (20,383.85) Total Instructional Staff Training $ 91,712.99 $ 61,642.86 $ (30,070. 13) Board of Education: Salaries $ 64,212. 15 $ 34,212.15 $ (30,000.00) Employee Benefits 8,580.50 39,692.98' 31,112.48 Purchased Services 215,516.27 219,703.58 4,187.31 Materials and Supplies 2,846.55 3,156.99 310.44 Other Expenses 59,800.00 24,799.06 (35,000.94) Total Board of Education $ 350,955.47 $ 321,564.76 $ (29,390.71) EXHIBIT C-2 (Continued) 25 MONROE COUNTY EXHIBIT C-2 (Continued) DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued): Support Services (Continued) : General Administration: Salaries $ 257,809.86 $ 247,700. 16 $ (10,109.70) Employee Benefits 27,719.55 27,638.85✓ (80.70) Purchased Services 36,746.35 25,454.03 (11,292.32) Materials and Supplies 9,283.00 6,190.89 (3,092.11) Other Expenses 15,621.55 2,341.97 (13,279.58) Total General Administration $ 347,180.31 $ 309,325.90 $ (37,854.41) School Administration: Salaries $ 746,938.22 $ 708,933.43 $ (38,004.79) Employee Benefits 76,578.34 85,518.91✓ 8,940.57 Purchased Services 24,239.45 21,576.15 (2,663.30) Materials and Supplies 26,930.12 20,967.13 (5,962.99) Other Expenses 1,476.00 1,533.51 57.51 Total School Administration $ 876,162. 13 $ 838,529.13 $ (37,633.00) Facilities Acquisition and Construction: Purchased Services $ $ 2,930.00 $ 2,930.00 Materials and Supplies 804.85 804.85 Total Facilities Acquisition and Construction $ - - $ 3,734.85 $ 3,734.85 Fiscal Services: Salaries $ 111,900.02 $ 110,364.88 $ (1,535.14) Employee Benefits 15,778.22 13,018.97V (2,759.25) Purchased Services 3,771.00 2,751.23 (1,019.77) Materials and Supplies 6,347.00 7,019.43 672.43 Other Expenses 4,175.00 1,025.98 (3,149.02) Total Fiscal Services $ 141,971.24 $ 134,180.49 $ (7,790.75) EXHIBIT C-2 (Continued) 26 EXHIBIT C-2 MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued) : Support Services (Continued): Food Services: Salaries $ 514,897.25 $ 365, 125.25 $ (149,772.00) Employee Benefits 45,348.60 48,579.41✓ 3,230.81 Purchased Services 4,175.00 22,107.42 17,932.42 Materials and Supplies 681,366.00 671,872. 11 (9,493.89) Other Expenses 733. 36 1,886.41 1,153.05 Total Food Services (8) $ 1,246,520.21 $ 1, 109,570.60 $ (136,949.61) Central Services: Salaries $ 197,896.00 $ 205,392.38 $ 7,496.38 Employee Benefits 24,572.91 22,257.07✓ (2,315.84) Purchased Services 42,226.94 34,344. 15 (7,882.79) Materials and Supplies 25,316.04 27,704.79 2,388.75 Other Expenses 8,150.00 5,036.56 (3, 113.44) Total Central Services $ 298,161.89 $ 294,734.95 $ (3,426.94) Transportation Services: Salaries $ 301,526.21 $ 279,401.93 $ (22,124.28) Employee Benefits 43,496.26 43,452.23 'v (44.03) Purchased Services 28,162.00 25,097.92 (3,064.08) Materials and Supplies 89,948.00 101,248.06 11,300.06 Other Expenses 7,592. 11 6,527.81 (1,064.30) Total Transportation Services $ 470,724.58 $ 455,727.95 $ (14,996.63) Operation Services: Salaries $ 511,155. 18 $ 395,490. 71 $ (115,664.47) Employee Benefits 43,675.24 61,440.92V 17,765.68 Purchased Services 493,904.66 577,597.82 83,693.16 Materials and Supplies 39,523.73 40,864.41 1,340.68 Other Expenses 5,414.09 6,872.83 1,458.74 Total Operation Services $ 1,093,672.90 $ 1,082,266.69 $ (11,406.21) EXHIBIT C-2 (Continued) 27 MONROE COUNTY EXHIBIT C-2 (Continued) DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued): Support Services (Continued) : Maintenance Services: Salaries $ 333,016.02 $ 308,962.94 $ (24,053.08) Employee Benefits 51,910.19 50,687.37V (1,222.82) Purchased Services 9,200.00 26,015.86 16,815.86 Materials and Supplies 181,625.00 130,400.84 (51,224.16) Other Expenses 22,766.79 26,337.02 3,570.23 Total Maintenance Services $ 598,518.00 $ 542,404.03 $ (56,113.97) Community Services: Salaries $ 164,210.03 $ 153,342.39 $ (10,867.64) Employee Benefits 19,810.50 16,313.09'✓ (3,497.41) Purchased Services 3,455.50 2,053.25 (1,402.25) Materials and Supplies 55.00 257.01 202.01 Other Expenses 4,613.21 2,897.88 (1,715.33) Reserves 110,039.66 (110,039.66) Total Community Services $ 302,183.90 $ 174,863.62 $ (127,320.28) Total Support Services $ 6,589,935.01 $ 6,054,112.77 $ (535,822.24) Capital Outlay: Sites $ 100.00 $ 55,503.70 $ 55,403.70 Buildings and Additions 105,134.73 10,483.72 (94,651.01) Remodeling 351,925.00 128,089.89 (223,835.11) Original or Additional Equipment 133,922.79 117,946.84 (15,975.95) Replacement of Equipment 12,450.59 13,892.70 1,442.11 Library Books - Existing Libraries 20,151. 76 13,915.17 (6,236.59) Audio-Visual Materials 30,250.74 22,931.93 (7,318.81) Motor Vehicles 65,569.12 63,557.70 (2,011.42) Other 1.41 1.41 Total Capital Outlay $ 719,504.73 $ 426,323.06 $ (293,181.67) EXHIBIT C-2 p (Continued) 20 EXHIBIT C-2 MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued) : Transfers: To Debt Service Funds $ 209,153.75 $ 209,153.75 $ To Special Revenue (Contracted Program) Funds 7,000.00 411.17 (6,588.83) Total Transfers $ 216,153.75 $ 209,564.92 $ (6,588.83) Total Expenditures and Transfers $13,772,456.78 $12,849 954.96 $ (922,501.82) Excess (Deficiency) of Revenues and /' Transfers Over Expenditures and Transfers $ (176,855.31)$ 823),677.80 $1,000,533. 11 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT C-2 29 MONROE COUNTY EXHIBIT C-3 DISTRICT SCHOOL BOARD GENERAL (OPERATING) FUND STATEMENT OF CHANGES IN FUND BALANCE For the Year Ended June 30, 1975 Fund Balance, July 1, 1974 $ 617,149.84 Add: Adjustment to Fund Balance for Inventory of Food Service Items on Hand, July 1, 1974 (9) 65,339.79 Excess of Revenues and Transfers Over Expenditures 823,677.80 Nonrevenue Receipts 9,981.00 Total Balance and Additions $1,516,148.43 Deduct - - Fund Balance, June 30, 1975 $1,516,148.43 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT C-3 30 EXHIBIT D-1 MONROE COUNTY DISTRICT SCHOOL BOARD SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS BALANCE SHRAT June 30, 1975 ASSETS Cash $ 288.32 Accounts Receivable 630,298.14 TOTAL $630,586.46 LIABILITIES AND FUND BALANCES Liabilities: Due to Other Funds $212,500.00 Fund Balances: Reserve for Encumbrances (6) $ 32,877.55 Unappropriated Fund Balances 385,208.91 Total Fund Balances $418,086.46 TOTAL $630,586.46 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT D-1 31 MONROE COUNTY EXHIBIT D-2 DISTRICT SCHOOL BOARD SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Revenues: Federal Sources: Direct: Drug Abuse $ 8,095.00 $ 8,095.00 $ Manpower Development 322,193.00 322,193.00 Total Federal Direct $ 330,288.00 $ 330,288.00 $ - - Money Received Through the State: Department of Health, Education, and Welfare: Vocational Funds $ 69,784.72 $ 69,784.72 $ Public Law 89-10, Elementary and Secondary Education Act 331,655.00 331,655.00 Public Law 89-750, Adult Basic Education 19,179.13 19,179.13 Public Law 90-35, Higher Education Act (EPDA) 85,141.00 85,141.00 Total Money Received Through the State $ 505,759.85 $ 505,759.85 $ - - Total Revenues $ 836,047.85 $ 836,047.85 S - - Incoming Transfers: From General (Operating) Fund 7,000.00 411.17 _ (6,588.83) Total Revenues and Transfers $ 843,047.85 $ 836,459.02 $ (6,588.83) Expenditures: Instruction Services: Basic: Salaries $ 293,484. 17 $ 225,002.76 $ (68,481.41) Employee Benefits 29,700.59 21,712.65V (7,987.94) Purchased Services 1,378.40 255.00 (1,123.40) Materials and Supplies 1,847.29 2,420.22 572.93 Other Expenses 325.00 325.00 Total Basic $ 326,410.45 $ 249,715.63 $ (76,694.82) EXHIBIT D-2 (Continued) 32 EXHIBIT D-2 MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued): Instruction Services (Continued): Exceptional: Salaries $ $ 4,229.60 $ 4,229.60 Employee Benefits 556.30✓ 556.30 Purchased Services 2,154.06 149.47 (2,004.59) Materials and Supplies 1,014.35 276.52 (737.83) Total Exceptional $ 3,168.41 $ 5,211.89 $ 2,043.48 Vocational-Technical: Salaries $ $ 250.00 $ 250.00 Employee Benefits 24.63 24.63 Purchased Services 4,657.86 929.04 (3,728.82) Materials and Supplies 11,415.17 5,172. 77 (6,242.40) Other Expenses 26,435.44 15,329.00 (11,106.44) Total Vocational-Technical $ 42,508.47 $ 21,705.44 $ (20,803.03) Adult General: Salaries $ 11,703.00 $ 10,431.47 $ (1,271.53) Employee Benefits 1,097.00 779.05/ (317.95) Purchased Services 1,529.64 16.50 (1,513.14) Materials and Supplies 4,658.09 2,846.59 (1,811.50) Other Expenses 1,200.00 2,772.08 1,572.08 Total Adult General $ 20,187.73 $ 16,845.69 $ (3,342.04) Total Instruction Services $ 392,275.06 $ 293,478.65 $ (98,796.41) Support Services: Pupil Personnel Services: Salaries $ 40,925.60 $ 29,029.50 $ (11,896.10) Employee Benefits 3,995.05 2,906.64✓ (1,088.41) Purchased Services 1,000.00 247.50 (752.50) Materials and Supplies 2,102.35 701.57 (1,400. 78) Total Pupil Personnel Services $ 48,023.00 $ 32,885.21 $ (15,137.79) EXHIBIT D-2 (Continued) 33 MONROE COUNTY EXHIBIT D-2 (Continued) DISTRICT SCHOOL BOARD SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued) : Support Services (Continued) : Instructional Media: Salaries $ $ 250.00 $ 250.00 Employees Benefits 24.63 ✓ 24.63 Materials and Supplies 3,841.43 1,275.01 (2,566.42) Total Instructional Media $ 3,841.43 $ 1,549.64 $ (2,291.79) Instruction and Curriculum Development: Salaries $ $ 8,284.10 $ 8,284.10 Employee Benefits 517.74'7 517.74 Purchased Services (.70) (.70) Total Instruction and Curriculum Development $ - - $ 8,801.14 $ 8,801. 14 Instructional Staff Training: Salaries $ 10,520.00 $ 4,730.00 $ (5,790.00) Employee Benefits 1,000.00 460.76,7 (539.24) Purchased Services 1,387.24 1,387.24 Materials and Supplies 2,095.00 (2,095.00) Total Instructional Staff Training $ 13,615.00 $ 6,578.00 $ (7,037.00) Board of Education: Employee Benefits $ 500.00 $ 389.59 $ (110.41) General Administration: Salaries $ 63,244.00 $ 51,953.45 $ (11,290.55) Employee Benefits 7,235.00 6,335.31k" (899.69) Purchased Services 25,013.00 23,008.12 (2,004.88) Materials and Supplies 5,250.00 4,171.60 (1,078.40) Other Expenses 28,011.00 (28,011.00) Total General Administration $ 128,753.00 $ 85,468.48 $ (43,284.52) EXHIBIT D-2 (Continued) al EXHIBIT D-2 MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued): Support Services (Continued) : School Administration: Salaries $ 5,004.00 $ 250.00 $ (4,754.00) Employee Benefits 743.04 15.63v (727.41) Materials and Supplies 1,563.99 (1,563.99) Total School Administration $ 7,311.03 $ 265.63 $ (7,045.40) Fiscal Services: Salaries $ 10,900.00 $ 6,306.54 $ (4,593.46) Employee Benefits 1,911. 12 732.21✓ (1,178.91) Total Fiscal Services $ 12,811. 12 $ 7,038.75 $ (5,772.37) Food Services: Employee Benefits $ - - $ 100.37 v$ 100.37 Central Services: Purchased Services $ - - $ 1. 75 $ 1. 75 Transportation Services: Salaries $ 12,348.00 $ 3,914.89 $ (8,433. 11) Employee Benefits 2,037.64 493.37✓ (1,544.27) Materials and Supplies 1,390.00 679.25 (710.75) Other Expenses 137.88 (137.88) • Total Transportation Services $ 15,913.52 $ 5,087.51 $ (10,826.01) Operation Services: Salaries $ $ 747.30 $ 747.30 Employee Benefits 110.99✓ 110.99 Purchased Services 997.22 254.37 (742.85) Total Operation Services $ 997.22 $ 1,112.66 $ 115.44 Maintenance Services: Salaries $ 14,160.00 $ 5,108.30 $ (9,051.70) Employee Benefits 2,491.20 758.67V (1,732.53) Total Maintenance Services $ 16,651.20 $ 5,866.97 $ (10,784.23) EXHIBIT D-2 (Continued) 35 MONROE COUNTY EXHIBIT D-2 (Continued) DISTRICT SCHOOL BOARD SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Actual Over Budget (Under) Budget Expenditures (Continued): Support Services (Continued): Community Services: Salaries $ 38,587.43 $ 18,569.26 $ (20,018.17) Employee Benefits 17,157.44 5,126. 18,7 (12,031.26) Purchased Services 2,054.00 579.43 (1,474.57) Materials and Supplies 450.00 82.40 (367.60) Other Expenses 381,445.31 228,691.76 (152,753.55) Total Community Services $ 439,694.18 $ 253,049.03 $(186,645. 15) Total Support Services $ 688,110.70 $ 408,194.73 $(279,915.97) Capital Outlay: Buildings and Additions $ 250,000.00 $ 250,000.00 $ Original or Additional Equipment 97,815.86 66,755.34 (31,060.52) Library Books - Existing Libraries 13,214.90 12,343.86 (871.04) Audio-Visual Materials 15,851.06 8,759.55 (7,091.51) Total Capital Outlay $ 376,881.82 $ 337,858.75 $ (39,023.07) Total Expenditures $1,457,267.58 $1,039,532.13 $(417,735.45) Excess (Deficiency) of Revenues and Transfers Over Expenditures $ (614,219. 73) $ (203,073.11) $ 411,146.62 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT D-2 36 EXHIBIT D-3 MONROE COUNTY DISTRICT SCHOOL BOARD SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF CHANGES IN FUND RAT ANCES For the Year Ended June 30, 1975 Fund Balances, July 1, 1974 $621,159.57 Deduct: Excess of Expenditures Over Revenues and Transfers 203,073. 11 Fund Balances, June 30, 1975 $418,086.46 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT D-3 37 MONROE COUNTY EXHIBIT E-1 DISTRICT SCHOOL BOARD DEBT SERVICE FUNDS BALANCE SHEET June 30, 1975 Total State Board District Certificates of Education Bonds of Bonds Indebtedness ASSETS Cash $ 112,039.67 $ $110,697.21 $ 1,342.46 Time Certificates of Deposit 348,380.98 100,000.00 248,380.98 Taxes Receivable 5,558.60 5,558.60 Due from Other Funds 59,927.00 59,927.00 Investments: • State Board of Education Bond Reserve 495,470.45 495,470.45 TOTAL $1,021,376.70 $495,470.45 $216,255.81 $309,650.44 LIABILITIES AND FUND BALANCES Liabilities: Due to Other Funds $ 176,500.00 $ $176,500.00 $ Fund Balanc?: Unappropriated Fund Balances 844,876.70 495,470.45 39,755.81 309,650.44 TOTAL $1,021,376.70 $495,470.45 $216,255.81 $309,650.44 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT E-1 38 EXHIBIT E-2 MONROE COUNTY DISTRICT SCHOOL BOARD DEBT SERVICE FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Budget State Board of Education Bonds Revenues: State Sources: Capital Outlay and Debt Service: Withheld for State Board of Education Bonds $256, 454. 41 $241, 465. 77 Cost of Issuing State Board of Education Bonds (7, 346. 53) Racing Commission Funds 130, 000. 00 Interest on Investments: State Board of Education Bond Reserve Fund 45, 115. 75 Total State Sources $386, 454.41 $279, 234. 99 Local Sources: Taxes: District Interest and Sinking $240, 305. 00 $ Interest, Including Profit on Investments Total Local Sources $240, 305. 00 $ - - Total Revenues $626, 759. 41 $279, 234. 99 Incoming Transfers: From General (Operating) Fund $209, 153. 75 $ - - Total Revenues and Transfers $835, 913. 16 $279, 234. 99 Expenditures: Fixed Charges, Commissions $ 20, 000. 00 $ - - Debt Service: Payment of 237. 161 Loans $198, 250. 00 $ Payment of Bonds 349, 000. 00 100, 000. 00 Interest on Loans and Bonds 250, 113. 00 170, 845. 00 Other Debt Service 3, 677. 18 3, 227. 18 Total Debt Service $801, 040. 18 $274, 072. 18 Total Expenditures $821, 040. 18 $274, 072. 18 Excess of Revenues and Transfers Over Expenditures $ 14, 872. 98 $ 5, 162. 81 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT E-2 39 EXHIBIT E-2 Actual Over (Under) District Certificates Race Track 237. 161 Total Budget Bonds of Reserve Loans Indebtedness $ $ $ $ $241 , 465. 77 $( 14, 988. 64) (7, 346. 53) (7, 346. 53) 134, 750. 00 134, 750. 00 4, 750. 00 45, 115. 75 45, 115. 75 $ - - $134,750. 00 $ - - $ - - $413, 984. 99 $ 27, 530. 58 $242, 528. 69 $ $ $ $242, 528.69 $ 2, 223. 69 6,651. 77 5, 270. 92 17, 373. 98 29, 296. 67 29, 296. 67 $249, 180. 46 $ 5, 270. 92 $17, 373. 98 $ - - $271, 825. 36 $ 31,520. 36 $249, 180. 46 $140, 020. 92 $17, 373. 98 $ - - $685, 810.35 $ 59, 050. 94 $ - - $ - - $ - - $209, 153. 75 $209, 153. 75 $ - $249, 180. 46 $140, 020. 92 $17, 373. 98 $209, 153 .75 $894, 964. 10 $ 59, 050. 94 $ 18, 113. 37 $ - - $ - - $ - - $ 18, 113. 37 $ (1, 886. 63) $ $ $ $198, 250. 00 $198, 250. 00 $ 204, 000. 00 45, 000. 00 349, 000. 00 10, 608. 00 57, 756. 25 10, 903. 75 250, 113. 00 725. 84 3, 953. 02 275. 84 $214,608. 00 $103, 482. 09 $ - - $209, 153.75 $801, 316. 02 $ 275. 84 $232, 721. 37 $103, 482. 09 $ - - $209, 153. 75 $819. 429. 39 $ ( 1, 610. 79) $ 16, 459. 09 $ 36, 538. 83 $17, 373. 98 $ - - $ 75, 534. 71 $ 60, 661. 73 EXHIBIT E-2 40 EXHIBIT E-3 MONROE COUNTY DISTRICT SCHOOL BOARD DEBT SERVICE FUNDS STATEMENT OF CHANGES IN FUND BALANCES For the Year Ended June 30, 1975 Total State Board District Certificates Race Track of Bonds of Reserve Education Indebtedness Bonds Fund Balances, July 1, 1974 8769.341.99 $490,307.64 $23,296.72 $24,730.63 $231,007.00 Add: Excess of Revenues and Transfers Over Expenditures 75,534.71 5.162.81 16.459.09 36.538.83 17.373.98 Taal Balances and Additions 5844,876.70 $495,470.45 $39,755.81 $61,269.45 $248.380.98 Fund Balances, June 30, 1975 $844.876.70 $495.470.45 S39,755.81 $61.269.46 $248,380.98 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT E-3 41 MONROE COUNTY EXHIBIT F- 1 DISTRICT SCHOOL BOARD CAPITAL PROJECTS FUNDS BALANCE SHEET June 30, 1975 Total Capitol Comprehensive State Board State Board Local Outlay School of of Capital and Debt Construction Education Education Improvement Service and Debt Bonds Bonds Service 1-1-74 6-1-62 ASSETS Cash $ 90,552.81 $ .97 $ $ (17,130.61) $1.599.28 $106,083.17 Time Certificates of Deposit 3.590.627.00 165,000.00 739.435.00 2,6136.192.00 Accounts Receivable 8,067.18 8,067.18 Due from Other Funds 195,813.00 110.613.00 85,200.00 TOTAL $3,885,059.99 $275,613.97 $739,435.00 $2.669.061.39 $1,599.28 $199,350.35 LIABILITIES AND FUND BALANLES Liabilities: Due to Other Funds $ 252,200.00 S - - $ - - $ 252.200.00 $ - - $ - - Fund Balances: Reserve for Encumbrances (6) $ 192,943.20 $ 40,576.24 $ S 102,759.74 $ $ 49,607.22 Unappropriated Fund Balances 3.439.916.79 235.037.73 739,435.00 2,314,101.65 1,599.28 149.743. 13 Total Fund Balances $3.632,959.99 4275,613.97 $739,435.00 $2,416.861.39 $1,599.28 $199.350.35 1IITN- $3,885.059.99 $275,613.97 $739,435.00 $2.669,061.39 $1.599.28 $199,350.35 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT F-1 42 EXHIBIT F-2 MONROE COUNTY DISTRICT SCHOOL BOARD CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1975 Final Budget Capital Outlay and Debt Service Revenues: Federal Money Received Through the State: Department of Health. Education. and Welfare: Public Law 85-864 $ 6,231.00 State Sources: Capital Outlay and Debt Service: Distributed to District $ 119,789.29 $119,789.29 Interest on Investments: Undistributed Capital Outlay and Debt Service Funds 7.116.12 Other State Sources: Comprehensive School Construction and Debt Service 223.423.00 Total State Sources $ 343,212.29 $126,905.41 Local Sources: Interest, Including Profit on Investments. $ 117,000.00 $ 8,444.62 Total Revenues $ 466,443.29 $135,350.03 Expendi tures: Capital Outlay: New Buildings and Additions $ 4,249,251.16 S Original Equipment 22.736.48 Remodeling Motor Vehicles 83,117.01 Replacement of Equipment 35,342.04 Audio-Visual Materials 2.024.83 Sites 60,000.00 Total Expenditures $ 4.452.471.52 $ - - Outgoing Transfers: To General (Operating) Fund $ 142.729.20 $ - - Total Expenditures and Transfers S 4,595,200.72 Excess (Deficiency) of Revenues Over Expenditures and Transfers $(4.129.757.43) $135,350.03 Note A: Expenditures were not segregated in the accounting records for these two funds. See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT F-2 43 EXHIBIT F-2 Actual Over (Under/ Comprehensive State Board State Board Total Budget School of of Construction Education Education and Debt Bonds Bonds Service and 1-1-74 6-1-62 Local Capital Improvement (Note Al $ 6.231.00 $ - - $ - - $ 6.231.00 $ $ $ $ 119.789.29 $ 7, 116.12 7, 116.12 223,423.00 223.423.00 $ 223.423.00 $ - - $ - - $ 350.328.41 $ 7.116.12 $ 3,189.86 $ 292.366.74 $31.31 $ 364,012.53 $ 187.012.53 $ 232,823.86 $ 292,366.74 $31.31 $ 660,571.94 8 194. 128.65 $ 273,414.99 $ 615,217.20 $ $ 888.632.19 $(3,360.618.97) 22,837.31 22.837.31 100.83 1,976.10 1,976.10 1,976.10 65.636.68 65,638.68 (17,480.331 34,655.76 34,655.76 (688.28) 2,248.76 2.248.76 223.93 (60.000.00) $ 400,769.60 $ 615.217.20 $ - - $1,015,986.80 $(3.436.484.721 $ 142,729.20 $ - - $ - - $ 142.729.20 $ - - $ 543.498.80 $ 615.217.20 $ - - $1, 158,716.00 $(3,436.484.72) 3(310,674.94) $(322.850.46) $31.31 $ (498,144.061 $ 3,630,613.37 EXHIBIT F-2 44 EXHIBIT F-3 MONROE COUNTY DISTRICT SCHOOL BOARD CAPITAL PROJECTS FUNDS STATEMENT OF CHANGES IN FUND BALANCES For the Year Ended June 30, 1975 Total Capital Comprehensive State Board State Outlay School of Board and Debt Construction Education of Service and Debt Bonds Education Service and 1-1-74 Bonds Local Capital 6-1-62 Improvement (Note A) Fund Balances. July 1. 1974 $4,131.004.05 $140.263.94 $1.249.460.29 $2.739,711.85 $1,567.97 Add: Excess of Revenues Over Expenditures and Transfers 135,381.34 135,350.03 31.31 Total Balances and Additions $4,266.385.39 $275.613.97 $1.249.460.29 $2,739.711.85 $1,599.28 Deduct: Excess of Expenditures and Transfers Over Revenues 633,525.40 310,674.94 322.850.46 Fund Balances. June 30. 1975 $3.632.659.99 $275.613.97 $ 938,785.35 $2,416,661.39 $1,599.28 Note A: Expenditures were not segregated in the accounting records for these two funds. See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT F-3 45 MONROE COUNTY EXHIBIT - G DISTRICT SCHOOL BOARD STATEMENT OF GENERAL FIXED ASSETS June 30, 1975 GENERAL FIXED ASSETS Land $ 1,578,059.56 Buildings 14,457,167.45 Motor Vehicles 763,779.86 Furniture and Other Equipment 1,597,153.67 TOTAL $18,396,160.54 INVESTMENT IN GENERAL FIXED ASSETS (A) $18,396,160.54 Note: (A) Sources of investment in general fixed assets cannot be determined since records of such sources were not maintained. See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT - G 46 MONROE COUNTY EXHIBIT - H DISTRICT SCHOOL BOARD STATEMENT OF GENERAL LONG-TERM DEBT June 30. 1975 Total State Board District Certificates Judgments of Bonds of Education Indebtedness Bonds MOUNT AVAIL ABIF AND 30 BE PW)VILID FOR THE PAYMENT OF GENERAL ILMG-TEAM DEBT Amount Available for Debt Service $ 849,676.70 $ 495.470.45 $ 39,755.81 $ 309.650.44 $ 5.000.00 Mount to be Provided for Debt Service 6.494.183.30 4,909,457.05 173,814.19 1.380.912.06 30.000.00 TOTAL $7.344.060.00 65,404,927.50 $213.570.00 $1.690,562.50 435.000.00 GENERAL LONG-TERM DEBT PAYABLE Judgment Payable (10) $ 35.000.00 $ $ $ $35,000.00 Bonds Payable (10) 4,730,000.00 3.360.000.00 210,000.00 1.160.000.00 Interest Payable in Future Years (3)(10) 2,579,060.00 2,044,927.50 3.570.00 530,562.50 TOTAL $7.344.060.00 65.404.927.50 $213,570.00 $1,690,562.50 $35.000.00 See accompanying summary of significant accounting policies and notes to financial statements. EXHIBIT • H 47 EXHIBIT - I MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1975 The significant accounting policies followed by the District School Board, Monroe County, are described below to enhance the usefulness of the financial statements to the reader. Reporting Entity The governing body of the School District is the District School Board composed of an elected board with the Superintendent of Schools as executive officer. Although the District School Board is considered a separate entity for financial reporting purposes, it is part of the State system of public education under the general direction and control of the State Board of Education as prescribed by Article IX of the State Constitution. The District School Board is also governed by State statutes and State Board of Education Regulations. Pursuant to State Board of Education Regulations the Superintendent of Schools is responsible for keeping records and accounts of all financial transactions in the manner prescribed by the Commissioner of Education. Basis of Accounting The accounts are maintained and financial statements are prepared on the modified accrual basis of accounting, except depreciation is not recorded and revenues of restricted funds are reported when the grant is approved. Under the modified accrual basis, revenues are generally recorded when they are received in cash and expenditures are generally recorded when obligations are incurred or when benefits are received. Fund Accounting The financial records and accounts of the District School Board are maintained in accordance with the principles of "fund accounting." This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Financial transactions have been recorded by fund group where appropriate. The funds used are defined as follows: EXHIBIT - I (Continued) 4 MONROE COUNTY EXHIBIT - I (Continued) DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1975 General (Operating) Fund. This fund is used to account for resources that are available for the general financial require- ments of the District School Board, the only restrictions being those imposed by law and the budget. Generally, they are the resources received to finance the educational programs of the District School Board as a whole. The organizational units financed through this fund are those which are directly concerned with the operation and support of the educational program. Special Revenue (Contracted Program) Funds. This fund group is used to account for resources that are available for the operation and support of the educational program but are restricted by the donors or other outside agency as to the specific purpose for which they may be expended. The organizational units financed through this fund group are usually the same as those financed through the General (Operating) Fund. Debt Service Funds. These funds are used to account for the resources which will be used to retire the long-term debt of the District School Board. Capital Projects Funds. These funds are used to account for the resources that are available for the acquisition or construc- tion of physical property to be used for District School Board purposes and resources designated for the major repair or replace- ment of District School Board property. These funds are restricted by bond resolution limitations and generally can be expended only for projects approved by a State Department of Education survey and include the purchase of land, site development, building construc- tion costs, initial furnishings and equipment for new buildings, and major repairs. General Fixed Assets. This self-balancing group of accounts is used to provide a record of fixed assets owned by the District School Board. Fixed assets purchased under lease-purchase agreements are entered in this group after the last payment is made. General Long-term Debt. This self-balancing group of accounts is used to account for the general long-term debt of the District School Board. EXHIBIT - I (Continued) 49 EXHIBIT - I MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1975 Reporting. Reclassification of funds was made for the purpose of preparing the financial statements for the fiscal year ended June 30, 1975, in conformity with the National Committee on Governmental Accounting's publication GOVERNMENTAL ACCOUNTING, AUDITING, AND FINANCIAL REPORTING, and the American Institute of Certified Public Accountants' industry audit guide, AUDITS OF STATE AND LOCAL GOVERNMENTAL UNITS. The classification of the Operating Funds has been changed to the General Fund, the classification of the Contracted Program Funds has been changed to the Special Revenue Funds, the classification of the Capital Improvement Funds has been changed to the Capital Projects Funds and the classification of the Bonded and Deferred Debt and Interest Group of Accounts has been changed to the General Long-term Debt Group of Accounts. The accounting principles applicable to each of these funds have remained essentially the same. The District School Board implemented during the 1972-73 fiscal year the accounting system and for the 1973-74 fiscal year the reporting system as prescribed by the Department of Education's publication A MANUAL, FINANCIAL AND PROGRAM COST ACCOUNTING AND REPORTING FOR FLORIDA SCHOOLS. Prior to July 1, 1974, the operations of food services in Monroe County schools were accounted for in the internal accounts of the various schools. Beginning with fiscal year 1974-75, the food services were accounted for in the General Fund. To the extent that current operating funds are used for capital outlay, the amounts so provided are accounted for as expenditures in the case of acquisition and normal replacement of movable equipment and library books. EXHIBIT - I 50 MONROE COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1975 1. Inventories valued at $282,081.27 were on hand at June 30, 1975 as follows: Gasoline and Oil $ 3,988.91 Transportation and Automotive Parts 18,349.30 Maintenance 76,403.47 Stores and Distribution 104,632.23 School Food Service 78,707.36 Total $282,081.27 All inventories were recorded as an asset when purchased and charged as an expense when issued. Inventories were measured or counted at the end of the fiscal year and adjusted. The inventory accounts were increased or decreased to agree with the physical inventories and the appropriate expenses were increased or decreased. 2. Values for land, buildings, motor vehicles, and furniture and other equipment were established prior to June 30, 1964, from existing cost and/or other available records and/or from appraised values. Since that time changes in fixed assets were recorded at cost or appraised value at the time of acquisition. Some items of equipment acquired from the Division of Surplus Property have title restrictions. Depreciation on physical plant and equipment is not recorded. 3. Although the accruing of "interest payable" in future years on long-term liabilities is not required by the National Committee on Governmental Accounting, this amount is computed and shown to comply with the format of the "District Superintendent's Annual Financial Report" as prescribed by the Commissioner of Education. 4. Contingent liabilities exist for accrued annual leave. The accrued annual leave will be taken by employees or will become payable upon termination of employment as provided in the Board's leave policy and contingent upon available funds. Amounts are not reported on the balance sheet for these contingent liabilities. 5. Eligible employees of the Board are members of one or more retirement plans administered by the State of Florida, Department of Administration. These plans call for contribution by the employees and/or the Board at a stated percentage of compensation dependent upon the individual plan. 6. The "reserve for encumbrances" is an amount that represents obligations in the form of purchase orders or contracts which are not liabilities but which are commitments chargeable to future periods when materials or services are received. EXHIBIT - J 51 (Continued) EXHIBIT - J MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1975 7. State funds for current operations were received primarily from the Florida Education Finance Program (FEFP) administered by the State Department of Education. Allocations were made by the State Department of Education based mainly on reports of full-time equivalent students submitted during the current year by the District School Board. The current year's allocation is subject to adjustment in subsequent years by the State Department of Education for reporting errors and other factors. Any adjustments for allocations received during the current year may be made in subsequent year's allocations. 8. In accordance with the chart of accounts of district school boards as prescribed by the Commissioner of Education, the food service activity was accounted for in the General (Operating) Fund for the 1974-75 fiscal year. In previous years the food service activity was accounted for as part of the internal accounts and was not included on the District School Board's annual financial report. 9. The General Fund beginning balance was adjusted to include the value of food services inventory on hand at July 1, 1974. 10. The responsibility for the principal and interest payments and reserve requirements for the State Board of Education bonds was administered by the State Board of Education and the State Board of Administration. Funds for the payment of principal and interest on the district bonds are provided by a tax levy on nonexempt county property. Principal and interest payments on the certificates of indebtedness are payable solely from the Board's portion of Race Track Funds allocated annually under the provisions of Chapters 65-1934 and 65-1941, Special Acts of 1965, and the Board's Resolution No. 216, dated April 29, 1966. The following is a tabulation of the State Board of Education bonds payable at June 30, 1975: Description Principal Interest Balance In Future 6-30-75 Years $ 600,000 Bonds dated June 1, 1955 $ 40,000.00 $ 1,120.00 750,000 Bonds dated June 1, 1962 350,000.00 49,097.50 2,990,000 Bonds dated January 1, 1974 2,970,000.00 1,994,710.00 Total $3,360,000.00 $2,044,927.50 The maturity dates of the above bonds range from January 1, 1976, through January 1, 1995, and the interest rates vary from 2.75% to 5.5%. EXHIBIT - J (Continued) 52 MONROE COUNTY EXHIBIT - J (Continued) DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1975 The district bonds payable are as follows: Description Principal Interest Balance In Future 6-30-75 Years $1,976,000 Bonds dated August 1, 1955 $210,000.00 $3,570.00 The maturity date of the district bonds was August 1, 1975. The certificates of indebtedness payable are as follows: Description Principal Interest Balance In Future 6-30-75 Years $1,500,000 Bonds dated June 1, 1966 $1,160,000.00 $530,562.50 The maturity dates of the certificates of indebtedness range from June 1, 1976, through June 1, 1991, with interest rates from 4 5/8% to 5 1/2%. The judgment payable originated in a money award by the State Legislature for damages to an injured student, pursuant to Chapter 70-814, Special Acts of 1970. Description Principal Balance 6-30-75 $70,000 Judgment dated 1970 $35,000.00 The judgment is being paid by the Board in annual increments of $5,000 each, following an initial payment of $10,000. EXHIBIT - J 53 EXHIBIT - K MONROE COUNTY DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Year Ended June 30, 1975 !Member. .( lb. fleas The School Board of Monroe County, Florida e..., V. r. . ,.. 310 FLEMING STREET P. O. DRAWER 1430 DIRECT KEY WEST, FLORIDA 39040 um LE VICE-CHAIRMAN e. BO DISTRICT LTER DISTRICT NO. 4 AFFILIATE ARMANDO J. HENRIOUEZ TELEPHONE WICHAIRMAN INA C. vo. SUPERIHTODEHT (305) 296-6523 SCHOOL BOARDATTORNEY September 23, 1976 Mr. Ernest Ellison Auditor General State of Florida Tallahassee, Florida 32304 Subject: Preliminary Audit July 1, 1974 to June 30, 1975 Dear Mr. Ellison: Thank you for the opportunity to comment on the list of preliminary and tentative adverse audit findings which apply to the period of July 1, 1974 to June 30, 1975. Attached is a statement of explanation concerning all of the findings and what we propose to do to correct same. Sincerely, A. J. Henriques AJH:jws Encl. EXHIBIT - K (Continued) 54 MONROE COUNTY EXHIBIT - K (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Year Ended June 30, 1975 Audit PROPOSED CORRECTIVE ACTION COVERING AUDIT REPORT Report JULY 1, 1974 TO JUNE 30, 1975 Paragraph Number (8-9) The error made in posting $60,000 in the General Fixed Assets Group of Accounts, has been corrected and is now posted to the proper account, land instead of buildings. As of September 21, 1976, we have determined the market value of the land and building known as Vocational-Technical Building No. 18 and is shown in the Fixed Assets Account. (21) In the last audit we stated that even though there existed a weight problem because the Personnel Department is on the second floor, we would purchase the twelve (12) additional cabinets needed. However, we were unable as of 1974-75 to resolve this problem. But as of October, 1976 the purchase order will be issued for the additional cabinets. (22) Memorandums have been sent to team leaders and principals explaining the requirement of evaluation forms to be on file in the Personnel Department. These requirements will be adhered to. (25-26) Some personnel receiving a monthly travel allowance were derelict in filing a complete monthly mileage itinerary. To avoid holding their checks, they were paid prior to getting corrected mileage forms. In the future, no travel checks will be paid prior to receipt of the mileage itinerary and it is checked as to accuracy. Also, before any future allowances are granted, or changed, the traveler's certificates and statements will be required. (27) Our procedure in obtaining travel services is as follows: Before any employee can obtain travel services thru a travel agency, he or she must first have an approved leave of absence, and must have a purchase order issued to the agency. Upon receipt of the invoice and payment to the agency, a cross reference is made between the invoices paid and the travel voucher submitted by the employee. (28) The period covered by the audit is July 1, 1974 through June 30, 1975. During that fiscal year, the Board Members from District Nos. 3 and 5 were paid reimbursement for mileages in accordance with previously approved auditing principles from the Office of the Auditor General, and in accordance with Opinion of the Attorney General for the State of Florida approving such payment. EXHIBIT - K 55 (Continued) EXHIBIT - K MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Year Ended June 30, 1975 Audit Report Paragraph Number (28) The more recent Attorney General's Opinion overruling his pre- decessor was not issued until August 28, 1975, beyond the scope of the period audited and, in fact, that Attorney General's Opinion was not received in the Office of the Superintendent of Schools for Monroe County, Florida, until October 10, 1975. Although this response is directed to the audit, it should be pointed out that from and after the receipt of the Attorney General's Opinion countermanding his predecessor's ruling, no travel reimbursement was in fact made by the District to Board Members for travel from their homes to the Board Headquarters. (The Board Member from Residence Area No. 3 has responded personally to the auditor General by letter of September 12, 1976). (30) Group insurance contract not on file. The local agent for our group insurance carrier was contacted on several occasions to supply us with a contract for our files. He refused to comply until some point in time after this audit was conducted. We have changed to another group insurance carrier and we have on file a contract for the group insurance plan. (31) A statement requesting payment from the Florida Keys Conmmnity College for its pro-rata share of the insurance premiums was finalized and delivered to the college on June 21, 1976. (33) Up to the present time, only one bank has been crediting the School Board with interest quarterly. In requesting bids on Time Deposits as per Statutes we require that the banks agree to credit the Board's account with interest earned quarterly, if not they will not be considered. (34) Due to a four (4) week computer breakdown at the close of the 1974-75 school year, we did not have access to the necessary printouts to determine what budget amendments needed to be approved; also to complete our Annual Financial Report. We have on file copies of letters that were written to the Commissioner requesting an extension of time in submitting both, Annual Report and all documents pertaining to same. Budget amendments for the school year 1974-75 were approved by D. 0. E. and are on file in the Finance Department in the Administration Building. EXHIBIT - K (Continued) 56 MONROE COUNTY EXHIBIT - K (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Year Ended June 30, 1975 Audit Report Paragraph Number (41) As of October 1, 1976, vehicular activity logs will be kept on all trucks and cars. (43) Maintenance, miles traveled, and fuel consumed were not on file in Transportation Department for athletic busses. As of October 1, 1976 all mileage and fuel consumed will be recorded. The responsibility for filing these reports will be the school prin- cipal of each school having a bus. (45) The critique contained in this paragraph relative to the Board approved annual salary paid to the Superintendent of Schools during the school fiscal years 1972-73, 1973-74, and 1974-75, respectively was heretofore answered in Exhibit-C: STATEMENT FROM AUDITED OFFICIAL, For the Fiscal Year Ended June 30, 1974, and that same response is restated: "It was the intent of the Florida Statutes to give the Board the flexibility of establishing the Superinten- dent's salary no higher than 10% of the highest paid employee for the sole purpose of retaining the accredi- tation of the schools. For additional clarification and before a decision was made as to how to compute the Superintendent's salary, we contacted the Depart- ment of Education and, in addition, on July 13, 1972, we wrote Dr. Herman Frick, Chairman of the Florida Committee, requesting an opinion (copy attached). On the basis of his reply and the Department of Education that superintendents shall in every case be at a higher monthly and annual rate than that paid to the principal or other members of the administrative staff, the salary was so computed." Further, after a lengthy discussion at a recent Board Meeting, the School. Board of Monroe County, Florida, unanimously authorized and instructed its Attorney to seek a Declaratory Court Judgment as to procedures employed in computation of the Superintendent's salary for the fiscal years questioned by the Auditor. It should be noted here, in this Response to Audit, that full dis- cussion and disclosure of the Superintendent's salary for the fiscal year 1972-73, the method of its computation and opinions from the Office of the General Counsel, Florida Board of Education, was held in open meeting on several occasions during the summer months of 1973, and the Minutes of those meetings so reflect and have been available for consideration by the Auditors. EXHIBIT - K 57 (Continued) EXHIBIT - K MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Year Ended June 30, 1975 Audit Report Paragraph Number (47-49) Quarterly reports for year 1974-75 from the Guidance Clinics are on file in the respective folders and on file in the Finance Department. As of July 1, 1975, the contracts to the Guidance Clinics contained a provision which stipulated that quarterly reports were due in the Office of the Superintendent no later than the 10th of the month following the close of said quarter, or the following month's pay- ment will be withheld. (57) As of October 1, 1976, one of the employees in the Finance Department will be designated to prepare and log all receipts received in the mail, before being turned over for deposit. (58) Accounting Procedures Manual: Job descriptions outlining duties and responsibilities of each position in Finance have been prepared and are on file in the Personnel Department. (60) Unclaimed payroll checks will he turned in to the Finance Department where they will be togged and kept in the vault until disposition is made. The procedure that has been followed as to the same person keeping the time records and distributing the paychecks will be corrected. All schools will be notified that they must have different people to keep time records and to distribute paychecks. (61) Through error, the School Food Service inventories at the schools' cafeterias were omitted. This will be corrected and whatever inventories are housed in the schools will be included in the total inventory. Effective October 1, 1976, an inventory procedure will be imple- mented in the Maintenance Department, Transportation Department, and School Food Service. The procedure will include: (1) Written instructions will be issued for taking the inventory in Transportation, Maintenance and School Food Service. (2) Items counted in the order in which they are stored. (3) Items counted will be marked to avoid error. (4) Pre-numbered control sheets will be used for inventory count. EXHIBIT - K (Continued) 58 MONROE COUNTY EXHIBIT - K (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Year Ended June 30, 1975 Audit Report Paragraph Number (61) (5) Perpetual inventory cards will be used to control items such as tires, paint supplies, plywood, etc. (6) Obsolete and unusable items will be removed from Property Control periodically using approved forms. (62) The two contracts for air-conditioning at Marathon High and Glynn Archer Junior High were handled through the Maintenance Depart- ment rather than thru the Superintendent's Office. Through error, the purchase orders were issued before all documents were received. At present all contracts are handled thru finance and a Notice to Proceed or purchase order is not issued until all documents are on file. (64-65) Certain expenditures, in both General Operating and Debt Service Funds, which were charged to the Board of Education Function for year 1974-75 are now being charged to their respective function, hence strictly charging Board of Education Function for actual expenditures. (68) The minutes of the Board Meetings for year 1974-75 have been indexed and are currently indexed. In approving payments of invoices and payrolls, copies of these documents are filed in the Supplementary Book showing dollar amounts. (75) Lease Agreement Credit Union: At a regular Board Meeting, December 9, 1975, the School Board approved the allocation of space at Harris School for use by the Monroe County Teachers Credit Union to be retro- active to January, 1975. Under the new provisions under 657.24 FS., the Superintendent recommended that no rental fee be charged to the Credit Union, due to the services renedered employees of the school system. 59 EXHIBIT - K