'"' .~ ,.. n''DEPARrMENT't~)~ AOD1Ts~NoACdOUNtS :, ,.... ~:)i,r:::i ~1:; 1[:'.:)j,{t APPLING COUNTY BOAfill OF EDUCATION -TABLE OF CONTENTS- SECTION! FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACIUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDillONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 23 SCHEDULES I SCHEDULE'OF EXPENDITURES OF FEDERAL AWARDS 24 2 SCHEDULE OF STATE REVENUE 26 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 27 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 29 5 BYPROGRAM 30 APPLING COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL.STATEMENTS PERFORMED IN ACCORDANCE WI11-I GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WI11-I REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTIONm. AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RusSELL W. H1NTor-. STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 W;.1shington Stri:ct. S.W.. Suitt: 214 Atlanta. Georgia 311334-8400 April 5, 200 I Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Appling County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general purpose financial statements of the Appling County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Appling County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. -We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 2000ARL-13 As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board . which should be included to conform to generally accepted accounting principles. . * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Appling County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated April 5, 200 I, on our consideration of the Appling County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 2000ARL-13 Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Appling County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. Respectfully submitted, RWH:jb 2000ARL-13 APPLING COUNTY BOARD OF EDUCATION APPLING COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 3,355,634.67 $ 51,924.91 261,505.49 249,000.00 216,311.98 457,628.17 25,480.31 15 558.19 Total Assets $ 3,833,452.14 $ ==79=9,.,,5=9=1.=58= LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Deferred Revenue ~ -~-- $ Total Liabililies $ FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs $ For Inventories Food Donated Commodities Purchased Food Unreserved Designated for Self-Insurance Undesignated Total Fund Equity $ 102.91 $ 10,235.45 4,359.54 14,697.90 $ $ 72.50 66,596.27 3,752,085.47 3,818,754.24 $ 55,449.66 248,504.81 33,348.87 337 303.34 47,758.31 25,480.31 15,558.19 373 491.43 462,288.24 Total Liabilities and Fund Equity _ $ 3,833,452.14 $ ====7=9=9,..,59=1=.5=8= The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT "A" TYPES CAPITAL PROJECTS FUND TOTALS (Memorandum Only) JUNE 30, 2000 JUNE 30, 1999 $ 358,226.24 $ 3,765,785.82 $ 4,134,113.16 334,863.41 845,368.90 852,883.55 673,940.15 344,656.87 25,480.31 15 558.19 38,422.03 18 099.98 $ 693,089.65 $ 5,326,133.37 $ 5,388,175.59 $ 55,552.57 $ 86,571.33 258,740.26 249,792.03 37,708.41 29,903.70 $ 29,641.35 29,641.35 12,500.00 $ 29 641.35 $ 381,642.59 $ 378,767.06 $ 47,758.31 $ 57,546.88 72.50 72.50 25,480.31 15,558.19 38,422.03 18,099.98 $ 663 448.30 66,596.27 4,789,025.20 70,239.02 4,825,028.12 $ 663,448.30 $ 4 944 490.78 $ 5,009,408.53 $ 693,089.65 $ 5,326,133.37 $ 5,388,175.59 .3. APPLINGCOUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2000 REVENUES ~ State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES ' '. Current Instruction Support Services Pupil Services n. Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations .. c Capital Outlay \ Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES !USES} Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food ". ., ,.. . GENERAL FUND . ' SPECIAL REVENUE FUND C" .:$., '' ., t 11,637,190.47 $ 27,604.95. 9,021,938.71 488 917.25 878,116.79 2,609,921.60 328,110.33 $ 21,175,651.38 $ 3 816 148.72 ~ $ 13,460,066.77 $ 1,654,393.36 " .. 1,038,074.01 641,250.27 672,759.61 346,871.71 1,172,330.14 125,025.42 1,673,943.85 1,114,281.96 26,092.00 8,729.96 140,626.01 ' .--$- - 20,420,051.71 $- 184,067.30 225,156.63 4,888.16 63,764.69 20,379.38 . 380,275.76 1,347,624.10 18,338.56 3,898,887.94 .. $ 755,599.67 .$' -82,739.22 $ -385 277.71 ., ,$ -385 277.71 ,.-.$ 370,321.96 $ 3,448,432.28 -82,739.22 560,510.97 -12,941.72 -2541.79 FUND BALANCE JUNE 30 $ 3,818,754.24 $ The notes to the general purpose financial statements are an integral part of this statement. ".--4- 462,288.24 EXHIBIT "B" CAPITAL PROJECTS FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 12,515,307.26 $ 12,007,273.51 2,637,526.55 2,306,512.86 9,021,938.71 8,488,291.14 $ 43,282.73 860,310.31 579 534.61 $ 43 282.73 $ 25,035,082.83 $ 23,381,612.12 $ 15,114,460.13 $ 14,517,402.29 $ 765 577.42 1,222,141.31 866,406.90 677,647.77 410,636.40 1,172,330.14 125,025.42 1,673,943.85 1,134,661.34 406,367.76 1,347,624.10 8,729.96 924 541.99 997,687.90 886,235.84 605,505.56 391,556.63 1,159,314.53 127,255.68 1,692,177.00 1,112,919.00 59,267.01 1,227,155.60 19.22 401 367.76 $ 765 577.42 $ 25,084,517.07 $ 23,177,864.02 $ -722,294.69 $ -49 434.24 $ 203,748.10 $ 385,277.71 $ 385,277.71 $ 250,000.00 -385,277.71 -250,000.00 $ 385,277.71 $ 0.00 $ 0.00 $ -337,016.98 $ -49,434.24 $ 203,748.10 1,000,465.28 5,009,408.53 4,797,324.62 -12,941.72 -2541.79 5,061.21 3 274.60 $ 663 448.30 $ 4 944 490.78 $ 5,009,408.53 -5- APPUNG COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NONGAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2000 EXHIBIT "C" REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENQITLJRES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations Capital OuUay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING USES Other Uses Excess of Revenues over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 1999 Adjustments Food Inventory Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 3D 2000 GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) s 11,131,139.00 134,048.34 9,015,000.00 115 300.00 s 11,637,190.47 27,604.95 9,021,938.71 488 917.25 s 20,395,485.34 $ 21,175,651.38 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 692,696.54 $ 878.116.79 2,070,932.12 2,609.921.60 341,222.55 328 110.33 $ 3,104,851.21 $ 3,816 148.72 s $ 14,025,624.43 13,460,066.77 1,007,461.84 648,402.00 691,913.31 343,892.37 1,220,764.67 132,675.00 1, 785,846:oo 1,052,424.02 22,500.00 1,038,074.01 641,250.27 672,759.61 346,871.71 1,172,330.14 125,025.42 1,673,943.85 1,114,281.96 26,092.00 496 117.60 8,729.96 140 626.01 $ 21,427,621.24 $ 20,420,051.71 $ -1,032, 135.90 $ 755,599.67 s 1,378,143.45 $ 1,654,393.36 186,311.00 106,470.00 61,842.00 184,067.30 225,156.63 4,888.16 63,764.69 10,320.00 55,611.00 1,419,915.05 20,379.38 380,275.76 1,347,824.10 40 000.00 18,338.56 s 3,258,412.50 $ 3,898 867.94 $ -153,561.29 $ -112,739.22 -385 277.71 s s -1,032, 135.90 370,321.96 3,159,338.65 3,448,432.28 9,686.74 s -153,561.29 $ 572,865.91 -49,161.02 -112,739.22 560,510.97 12,941.72 -2 541.79 s 2113s1se9.49 s 31e1s,154.24 $ 370 143.60 S The notes to the general purpose financial statements are an integral part of this statement. -7- APPLINGCOUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 . Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ' R-EPORTI. NG ENT.ITY The Appling County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a, school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the pow_er to levy taxes and issue 1:,o_nds. Its b_udget is not subject to approval by anyother entity. . Accordingly, the Board is a primary gov~rnment and consists of all the organizations that compose its legal entity. FUND ACCOUNTING :rhe Board .uses .funds to report. on its financial position and the results of its operations.' Fund 1... . accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions relate!f:to certain goveminental functions or activitii:s. A fund is a separate accounting entity with a self-balancing set ofaccounts. General Fixed Assets are recorded as expenditures in the various funds at the time ofpurc_hase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of ~sets acq~red by governmental fund types. < "' ' .. ' - ' Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor,the revenues, expenditures and changes in fund balancesofthese accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements: The general purpose financial statements account for all State, Federal,.Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: .. . . . , , r , .: - ... GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. - 8- APPLING COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financiaJ.resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operatipg statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Governmental funds are accounted for using the modified accrual basis of accounting under which: , Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payrnents on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in early August 1999 and ending in late May 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. -9- r I I 1 APPLING COUNTY BOARD OF EDUCATION EXHIBIT "D" I NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS , JUNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1 BUDGET The Appling County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level, The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the,Bo_arq at.the aggregate level, The budget for governmental funds was prepared on .a basis other !hap generally-accepted accounting principles, , . '., . The budget process begins when the Board's. administration prepares a tentative budge!' for the Board's approval, After approval ofthis tentative budget by the Board, such budgefis advertised at least once in a newspaper of general circulation in the locality, At the next regular meeting of the Board after advertisement, _the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia. Department of Education.. The Board may increase or.decrease thebudget at any time during the year. All unexpended budget authority lapses at fiscal year-end. " . .,CASH AND CASH EQUIVALENTS COMPOS.ITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions: Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. INVESTMENTS '. C..., .O., M " P O S' I T I O N O.F. .INVESTMEN.TS- . ) Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deP,osit) and.repurchase agreements are reported at cost. Participating interest~earning contracts and money market _investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-~3-4 authorizes the Board to invest its funds, In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given ~quivalent conditions of safety and liquidity, Funds may be invested in the following: ., . , (I) , Op_ligations issued by the State of Georgia or by other states, . ,. . ' (2) Obligations issued by the United States government, -- , (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, APPLING COUNTY BOARD OF EDUCATION . EXHIBIT "D" NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Appling County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 23, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January I, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Appling County Tax Commissioner bills and collects the property taxes for the Board of Education. The tax millage rate levied for the 1999 tax year (calendar year) for the Appling County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations INVENTORIES UA.2mills FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net (?urrent assets. - 11 - '(i ' . APPLING COUNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES COMPENSATED ABSENCES Compensated absences represent obligations of the Board relating to employees rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumula~ing leave in which payment is probable and can be reasonably' estimated. No liability has been recorded in the individual funds for the current.portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resorces has not been recorded in the General Long-TermDebiAccount Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. INTERFUND TRANSACTIONS ,The Board _has the following types of interfund transactions: . t 1 ~eimbursements ofexpenditures initially made from a fund that are proper~y applicable to another fund are recorded as expenditures in_ the reimbursing fund and as reductions of expenditures:in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. .I MEMORANDUM,ONLY -TOTAL COLUMNS ' I Total columns on the general purposefinancial statements arecaptioned ."Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do hot present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not this been made in the !lggregation of giJ,ta. . , . Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofanoney which has not been secured by surety bond, by guaranteeof insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market _value of securities pledged shall be equal to not less than 1 i Opercent ofthe public fuI1ds being secured after the deduction ofthe amount ofdeposit insurance. L Ifa depository elects the poc,Jed method (OC<;,A 45-8-13:1) the aggregate ofthe market value ofthe securities pledged ,t_o secure_a pool 9fp~blic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provid~s an officer holding public funds may, in his discretion, waive the requirement for securi_ty in.the C!lS', ofoperating funds placed in demand deposit checking accotints. . ., :~..1 ., r.1..:'1'. ); -.:, APPLING COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS AND INVESTMENTS Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State ofGeorgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the F_arm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $5,536,598.95. The amounts ofthe total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 2000, as follows: - 13 - " APPLING COUNTY-BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS , JUNE 30, 2000 Note 2: DEPOSITS AND INVESTMENTS I I ' - ' . Risk Category _ , , Bank Balance . ;, ,1 .I Total . $ 295,643.34 , 787,972.70 4,452,982.91 $ 5,536,598 95 CATEGORIZATION OF INVESTMENTS . i: At June 30, 2000, the carrying value of the Board's total investments was $490,593.81 which is materially the same as.fair value. This investment consisted entirely offunds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal 'Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary -. Liquidity Portfolio .is as follows: The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government,investment pool, andFund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not as registered- with the SEC an investment company but does operat_e Georgia Fund 1 in a manner consistent with Rule2a-7 ofthe Investment Company Act of1940 and is considered to be a Rule 2a- 7 like pool. The pool's primary objectives are.safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash.and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of , Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \: . ' Investments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U. S. Treasury.obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for F.iind 6 on June 30, 2000, was .80 year. . --14 - APPLING COUNrY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The Board is exposed to various risks of!oss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. The Board is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the Board. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability 1999 $ 0.00 $ 0.00 $ 0.00 $ 0.00 2000 $ 0.00 $ 5,016.00 $ 2 904.00 $ 2,112.00 The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays anannual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. The Board has purchased surety bonds to provide additional insurance coverage as follows: - 15 - APPLING COUNTY BOARD OF EDUCATION NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS .. JUNE 30, 2000 \.. EXHIBIT "D" Note 4: RISK MANAGEMENT Position Covered, Superintendent Each Employee Note 5: ON-BEHALF PAYMENTS _, - Ainount . $ 100,000:oo. $ 10,000.00 The Bc,ard has recognized.revenues and expenditures in the ainount of $331,313.51 for.health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. Georgia Department of Education Paid to the Georgia Department of <:;ommunity Health ~ For Health Insurance of Non-Certified Personnel .2 .,J, In the amount of$257,699.15 '' ' Paid to the Teachers Retirement System of Georgia '.... For Teachers Retirement System (TRS) Employer's Cost In the amount of$33,053.36 . ' i ' .- Office of Treasury and Fiscal Services 1 :.-, 1 Paid to the Public School Employees Retirement System - For Public School Employees Retirement (PSERS) Employer's Cost In.the amount of$40,561.00 _ i 't Note 6: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000: : r, r Project .f . - ' , Altamaha Elementary School Renovations New Appling County High School . , . J , - . ,' r Unearned Executed Contracts .. 133,198.31 '/ ' .. --" 612,000.00 - ..., 1 $ 745.198,31 ; The amounts described in this note are not reflected in the general purpose financial statements. ,__ 16 - APPLING COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 7: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any. will be immaterial to its overall financial position. The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable. but is not believed to be material to the general purpose financial statements. Note 8: ACCUMULATED EMPLOYEES' LEAVE Noncertified employees earn annual leave ranging from five to fifteen days each year depending upon the employee"s length of continuous service with a maximum of fifteen days. Employees are paid, at the current rate of pay, for unused accumulated leave upon retirement or termination of employment. See Note 1 - Compensated Absences Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides servi_ce retirement, disability retirement and survivors benefits for its members in-accordance with State statute. The Teachers Retirement System of Georgia issues a separate standalone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2000 1999 1998 100% -100% 100% $ 1,598,920.30 $ 1,609,270.04 $1,496,025.41 - 17 - ,, APPLING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND. JUNE 30, 2000 ' ' ' ASSETS Cash and Cash Equivalents Investments Ace.cunts Receivable Inventories Food Donated Commodities Purchased Food .. Total Assets - "SCHOOL FOOD :sERVICES LOTTERY -1 ' FUND PROGRAMS $ 181,772.05 $ 249,000.00 76,666.,.17 ... ,9,823.54 /l';, : 12,222.85 25;480.31 15,558.19 $ 481,634.09 $ 88,889.02 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft. . ' Accounts Payable Salaries Payable : ' ExpiredGrant Balances Payable .. . Deferred Revenue .:, Total Liabilities FUND EQUITY Fund Balances ..,.:.... C Reserved For Continuation ~f Fe~eral Programs For lnventori~s . . . . 1 . Food Donated Commoditles Purchased Food Unreserved Undesignated , .. Total Fund Equity : , r Total Liabilities and Fund Equity See notes to the general purpose financial statements. . - 18 - '' $ . i 10,192.12 $ 56,912.04 17,239'.79 70,831.96 817.27 67104.16 . $ ~--~8'-"8"',8c=8"'9."'02=- " . 1 $ 25,480.31 15,558.19 373491.43 .$ - - - - - " ' ' "0"0'0- $ 414,529.93 $ _ _ _ _-"'0.e,.00,:.._ . ,' f $ 481,634.09 $ ==.,;8;;;;8;,8~8:;;;9;;:;02:.,, EXHIBIT "E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 258,438.22 $ 396,765.56 249,000.00 288,473.02 $ 424,822.59 $ 10,759.19 457,628.17 169,502.50 25,480.31 15558.19 38,422.03 18,099.98 $ 424,822.59 $ 10759.19 $ 1,006,104.89 $ ===9=11==26=3=.0=9= $ 195,754.12 $ 28,017.75 120,760.81 32,531.60 $ 377,064.28 $ 10,759.19 $ 10759.19 $ 206,513.31 $ 55,449.66 248,504.81 33,348.87 543,816.65 $ 100.49 59,055.90 249,192.03 29,903.70 12 500.00 350,752.12 $ 47,758.31 0.00 $ $ 47 758.31 $ $ 0.00 0.00 $ 47,758.31 $ 25,480.31 15,558.19 373 491.43 462,288.24 $ 57,546.88 38,422.03 18,099.98 446 442.08 560,510.97 $ 424,822.59 $ 10759.19 $ 1,006,104.89 $ ==,;;,91~1~,2~6~3-;,:;09~ - 19 - . , 0;- ; APPLING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2000 . !, REVENUES '. State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction ,, , - - Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Ope'rations Capital Outlay / :.,, . Total Expenditures .. Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food Residual Equity Transfer SCHOOL ,. FOOD SERVICES FUND LOTTERY PROGRAMS $ 106,671,28 $ 706;721.37 835,585.04 - 328, 110.33 $ 1,270,366.65 $ _ _7~0=6~7=2~1-=37~ '. : $ 559,835.29 100,741.98 34,101.57 1,301.94 ' . ~ I $ 1,343,317.30., l ;, $ 1,343,317.30 $. $ -72,950.65 $ 502,964.09 1,063.81 9 676.78 706,721.37 0.00 0.00 -12,941.72 -2,541.79 FUND BALANCE JUNE 30 , $ ,. - 414,529.93 $ =====o.=o==o .. 1 - See notes to the general purpose financial statements. -,20 - ''. - ,-- EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ $ 1,774,336.56 $ 1,774,336.56 $ 64,724.14 $ 64 724.14 $ 878,116.79 $ 2,609,921.60 328,110.33 3,816,148.72 $ 806,224.13 2,282,397.73 340 553.19 3,429,175.05 $ 1,081,480.59 $ 83,325.32 188,268.54 4,888.16 62,462.75 20,379.38 330,351.81 4,306.80 8,661.78 $ 1,784,125.13 $ $ -9,788.57 $ 57,546.88 13,077.48 $ 2,786.52 48,860.14 64 724.14 $ 0.00 $ 0.00 1,654,393.36 $ 184,067.30 225,156.63 4,888.16 63,764.69 20,379:38 380,275.76 1,347,624.10 18,338.56 3,898,887.94 $ -82,739.22 $ 560,510.97 1,669,543.33 130,444.13 280,822.98 7,402.26 62,108.08 22,672.93 41,842.66 36,708.51 1,227,155.60 19.22 3,478,719.70 -49,544.65 605,817.48 -12,941.72 -2,541.79 5,061.21 3,274.60 -4 097.67 $ 47 758.31 .$ 0.00 $ 462,288.24 $ ===56=0._,5;,,;,1=0,;;,97;,. - 21 - APPLING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 2000 EXHIBIT"G" ASSETS Cash and Cash Equivalents' Investments Total Assets SPECIAL ... - PURPOSE LOCAL OPTION TOTALS REGULAR SALES TAX JUNE 30, 2000 JUNE 30, 1999 '$ 358,226.24 $ 0.00 $ 358,226.24 $ 713,808.42 334,863.41 334 863.41 286,656.86 $ 693,089.65 $ 0.00 $ 693,089.65 $ 1,000,465.28 LIABILITIES AND FUND EQUITY LIABILITIES Retainages Payable c,, $ - 29,641.35 FUND EQUITY Fund Balances Unreserved Undesignated 663,448.30 $ ----'0"".0"'0'- 29,641.35 663,448.30 $ 1,000,465.28 Total Liabilities and Fund !=quity . $ 693,089.65 $ 0.00 $ 693,089.65 $ 1,000,465.28 See notes to the general purpose financial statements. '-22- APPLING COUNTY BOARD OF EDUCATION EXHIBIT "H" COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 2000 REGULAR SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 REVENUES State Funds Other Funds $ 43,282.73 $ 0.00 $ $ 43 282.73 25,000.00 37 659.98 Total Revenues $ 43,282.73 $ 0.00 $ 43 282.73 $ 62,659.98 EXPENDITURES Capital OuUay Salaries Employee Benefits Building and Building Improvements $ 708.00 10.49 693,640.93 $ $ 71 218.00 708.00 10.49 764,858.93 $ 258,424.75 Total Expenditures $ 694 359.42 $ 71 218.00 $ 765 577.42 $ 258 424.75 Excess of Revenues over (under) Expenditures $ -651,076.69 $ -71,218.00 $ -722,294.69 $ -195,764.77 OTHER FINANCING SOURCES Operating Transfers In 314 059.71 71 218.00 385 277.71 250,000.00 Excess of Revenues and Other Financing Sources over (under) Expenditures $ -337,016.98 $ 0.00 $ -337,016.98 $ 54,235.23 FUND BALANC JULY 1 1,000,465.28 0.00 1,000,465.28 946,230.05 FUND BALANCE JUNE 30 $ 663,448.30 $ 0.00 $ 663 448.30 $ 1,000,465.28 See notes to the general purpose financial statements. -23- APPLI~~ QQ~t'.:!IY QABQ QF ~ou~~IIQN QHEDl.!~E.QF EXPENQ!TURES QF FEQERA!,, AWA-RQS YEAR ENDED JUNE 30 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER 'Agriculture, U. S. Department of. . Child Nutrition Cluster .- -- - Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program _ __ National School Lunch Program. 10.553 .10.555 Total Child Nutrition Cluster Other Programs Pass-Through From Georgia Department ~f Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness C Food and Nutrition Program Chi~d and Adult.Care Food Program .. . Total U. S. Department of Agriculture Education, U. S. Department of Special Education Cluster. - ,, Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool C 10.550 10.558 84.027 84.173 Total Special Education Cluster Other Programs ~. - r, Direct ' Safe and Drug-Frie Lei:lming Envil'Onments Pass-Through From Georgia Department of Education 84.184L Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II 84.010 Eisenhower Professional Development Title Ill 84.281 Technology Literacy Challenge Fund Grants Title VI 84.318 Innovative Education Program Strategies 84.298 Class Size Reduction Goals2000 84.340 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States 84.276 High School Program Basic Grant Pass-Through From First District Regional Educational 84.048 Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 84.011 Total U. S. Oepanment of Education Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD NIA $ 184,144.27 (2) NIA 579.403.07 $ i,271,279.60 (3) $ 763,547.34' $ 1,271,279.60 NIA 62,529.28 ' \. 62,529.28 NIA .9 508.42 9,508.42 $ 835,585.04 $ 1,343,317.30 NIA $ 191,137.40 $ 191,137.40 NIA 38,962.77 . ! 38 962.77 $ 230,100.17 $.' '230,100.17 265,250.!'1- 265,250.01 NIA 722,216.10 722,216.10 NIA 19,793.00 18,086.52 NIA 125,000.00 12a,1g4_27 NIA 24,900.00 24,900.00 NIA 95,415.12 95,415.12 NIA 110,955.00 113,623.42 NIA 40,355.62 40,355.62 NIA 140 351.54 145,383.90 s $ 1,7741336.56 117841125.13 s 27,604.95 $ 74,263.45 (3) Total Federal Financial Assistance NIA= Not Available 0 - 24- s 2,637,526.55 $ 3,201,705.88 -' ..:1. fi ,--,t - APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2000 Notes to the Schedule ot Exnenditures ot Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. Major Programs are identified by an asterisk(*) in front of the CFDA number. The Board did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Appling County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. SCHEDULE "1" See notes to the general purpose financial statements. -25 APPLING COUNTY BOARD OF Eb'UCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2000 SCHEDULE "2" AGENCY/FUNDING GRANTS Community Affairs, Georgia Department of Local Assistance Grant Governor's Emergency Funds (1) Education, Georgia Department of Quality Basic Education General and Career EdUcation .Pr0Qr8ms Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program In-School Suspension Migrant Education Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Special Education Low Incidence Grant Teachers' Retirement Year 2000 Project Lottery Programs Assislive Technology Computers in the Classroom Georgia Soil and Water Conservation Commission Partners for Wildlife Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services . Public School Employees Retirement CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Human Resources, Georgia Department of Family Connection GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND ', {.) TOTAL $ 15,000.00 35,000.00 $ 15,000.00 35,000.00 ' 7,914,944.00 2,116,830.00 316,473.00 333,958.00 91,807.00 2,104,531.00 7,914,944.00 2,116,830.00 316.473.00 333,958.00 91,807.00 2,104,531.00 574,144.00 138,872.00 275,954.00 73,220.00 4,103.00 30,752.00 57,685.00 -3,011,634.00 $ 86,120.07 54,030.05 8,156.86 257,699.15 3,909.43 48,500.00 5,875.55 13,914.00 33,053.36 10,232.00 106,671.28 574,144.00 138,872.00 275,954.00 73,220.00 4,103.00 30,752.00 57,685.00 -3,011,634.00 106,671.28 86,120.07 54,030.05 8,156.86 257,699.15 3,909.43 48,500.00 5,875.55 13,914.00 33,053.36 10,232.00 17,727.58 76,009.11 17,727.58 76,009.11 3,500.00 3,500.00 612,984.68 612,984.68 40,561.00 40,561.00 15,864.00 48,860.14 15,864.00 48,860.14 $ 11,637190.47 $ 878,116.79 $ (1) The purpose of these funds is to purchase equipment ($15,000.00) for the Appling County High School Show Choir and to assist with Improvements ($20,000.00) for the Board of Education's Athletic Complex to include resurfacing the track. See notes to the general purpose financial statements. 12,515,307.26 - 0 26- APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2000 SCHEDULE "3" PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS Acquiring, constructing and equipping a new high school, including parking areas and grollnds; construction of additional classrooms, as well as remodeling, renovating and improving such spaces, all at existing s6hoo1 district facilities; purchase of any necessary real property; acquiring furnishings, equipment and fixtures, and paying expenses incident thereto $ 10.000.000.00 $ 10.000,000.00 $ 71,218.00 $ 0.00 (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion. (3) The voters of Appling County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. See notes to the general purpose financial statements. . -27- APPLING COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 SCHEDULE "4" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 10.682.205.00 $ 299.825.00 $ 12.065.262.08 1,088,091.96 $ _ _~92=9~,5~0~5~.9~6 $ 13.153.354.04 -314.992.99 $ _ _..:1c.::2i.,:,8.::,38~,3:,:6:..:.1'-=.0.::..5 $ o.oo $ =====o=.o=o See notes to the general purpose financial statements. - 29 - APPLING COUND'. BOARD OF EDUCATION ANALXSIS QF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 2000 0GENE~L ANQ CAREER ~DUCATION PROGRAMS Kirldergarten {*) .-.Grades 1-- 3 (*) ...') .,, Su.~Total - K-3 Grades 4 - 5 (*) .. ' Grades 6. 8 (") Grades 9 - 12 () . ' High School Laboratories () Vocational Education Laboratories (*) Total Genef'al and Career Education Programs SPECIAL EQLJCATION PROGRAMS Regular Programs Catego,y I (") Catego,y II (") Catego,y Ill (") Catego,y IV (") Catego,y V (") Sub-Total - Regular Catego,y VI (Gifted) (") Total Special Education Programs REMEDIAL f.iQUCATION PROGRAM C:l Total Fourteen Weighted Programs Ml;QIA CENI~R PROG~MS Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL ~ ORIGINAL MID-TERM s 789,603.00 s s 710,642.70 2,097,982.00 1,888,183.80 s s s 2,887,585.00 90 2,598,826.50 916,076.~0 ,,90 824,468.40 1,675,527.00 90 1,507,974.30 1,374,783.00 90 1,237,304.70 567,027.00 90 510,324.30 493,946.00 90 444,551.40 s 7,914,944.00 I '1 '.i s s 7,123,449.60 . . s 2,100,206.00 . s s 1,890,185.40 0.00 0.00 0.00 0.00 s s s 2,100,206.00 90 1,890, t 85.40 0.00 ,. 16,624.00 90 14,961.60 s 2, 116,830.00 s s 1,905,147.00 0.00 s s 316,473.00 90 s 264,825.70 0.00 s 10,346,247.00 s s 9,313,422.30 0.00 $ 269,593.00 90 $ s 242,633.70 0.00 64,365.00 100 64,365.00 $ 333,958.00 $ 306,998.70 $ 0.00 Total Fourteen Weighted and Media Center Programs $ 10,682,205.00 $ 9,620,421.00 $ 0.00 SI!EE CE.YELOPMENI PROGBeiMS Cost of Instruction Professional Development Total Staff Development Progmms () Identifies Fourteen Weighted Programs. . See notes to the general purpose financial statements. $ 29,n1.oo $ s 29,nt.oo 0.00 62,036.00 62,036.00 0.00 $ 91,807.00 100 $ 91,607.00 $ 0.00 ... l 30. ' ., SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 710,642.70 $ 818,182.59 $ 29,573.10 $ 847,755.69 1,888, 183.80 2,228,983.69 121,947.63 2,350,931.32 $ 2,598,826.50 $ 3,047,166.26 $ 151,520.73 $ 3,198,687.01 $ 0.00 824,468.40 1,405,955.04 79,329.64 1,485,264.88 0.00 1,507,974.30 2,206,801.31 142,271.11 2,349,072.42 0.00 1,237,304.70 1,518,026.98 179,340.40 1,697,367.38 0.00 510,324.30 564,369.64 16,708.38 581,078.02 0.00 444,551.40 635,321.43 158,319.41 793,640.84 0.00 s s $ 7,123,449.60 9,3TT,640.68 s 727,489.87 10,105,130.55 $ 1,890,185.40 $ s 20,667.61 496,537.17 1,094,704.87 225,079.47 17,239.14 912.65 s 5,046.73 166,886.05 16,912.22 792.69 21,580.26 501,583.90 1,261,590.92 241,991.69 18,031.83 s s $ 1,890,185.40 1,854,228.26 190,550.34 $ 2,044,TT8.60 0.00 14,961.60 61,704.92 7,762.74 69,467.66 0.00 $ 1,905,147.00 $ s 1,915,933.18 198,313.08 $ 2,114,246.26 s s 284,825.70 s 281,323.23 s 3,703.01 285,026.24 0.00 s s $ 9,313,422.30 11,574,897.09 s 929,505.96 12,504,403.05 $ s 242,633.70 490,364.99 s 490,364.99 0.00 64,365.00 s 158,586.00 158,586.00 0.00 s s 306,998.70 s 490,364.99 s 158,586.00 648,950.99 s s s s s 9,620,421.00 12,065,262.08 1,088,091.96 13, 153,354.04 0.00 s 29,TT1.00 62,036.00 $, _ __:9:,:1,::,8::;:,07;,;:.0::;aO s 57,957.32 $ 57,957.32 33,936.67 33,936.67 s 91,893.99 $ 91,893.99 s_-_______o..o..o. 31 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS RussEu. \\'. H1NTON STATE AUDITOR (4041 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 \V..ishington Stn:c1, S.\V., Suite :!14 Allanta. Georgia 3()334-8400 April5,2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Appling County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements of Appling County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated April 5, 2001. This report was qualified for a scope limitation and for various departures from generally accepted a~counting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Stanclards, issued by the Comptroller General of the United States. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance As part of obtaining reasonable assurance about whether Appling County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 2000YB-40 Internal Control Over Financial Reporting In planning and performing our audit, we considered Appling County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Appling County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Question~d Costs as items FS-6011-001 and FS-60 I 1-00-01. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned_ functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6011-0001 to be a material weakness. This report is intended solely for the information and use of management, members of the Appling County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, RWH:jb 2000YB-40 State Auditor RussELJ. W. H1NTON STATE AUDITOR {404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 \Vashingto11 Street, S.V{. Suite 214 Allanta. Gctirgia ;1()3:\4-X4()0 April 5, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Appling County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Appling County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Appling County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and ,grants applicable to each of its major Federal programs is the responsibility ofAppling County Board ofEducation's management. Our responsibility is to express an opinion on Appling County Board of Education's compliance based on our audit. We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Appling County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Appling County Board of Education's compliance with those requirements. 2000SA-30 In our opinion, the Appling County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000. Internal Control Over Compliance The management of Appling County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Appling County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. We noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect the Appling County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA06011-00-01. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. This report is intended solely for the information and use of management, members of the Appling County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. - - -Respectfully submitted, RWH:jb 2000SA-30 State Auditor SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS APPLING COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING.CONTROL NUMBER AND STATUS FS-6011-98-02 FS-6011-98-04 FS-6011-99-01 Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses CORRECTIVE ACTION/RESPONSES EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $72.50 Finding Control Number: FS-6011-98-02 The under expenditure of $72.50 will be repaid through an increase in the Board's Local Five Mill Share for QBE Programs in a subsequent fiscal period. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-6011-99-01 The Appling County Board of Education has noi established a General Fixed Assets Account Group. The Board plans to establish a General Fixed Assets Account Group in the near future. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FA-6011-99-01 Unresolved - See Corrective Action/Responses - 1- ' . APPLING COUNTY,BOARD.OF EDUCATION AUDITEE'S RESPONSE . SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES CASH MANAGEMENT .. Excessive Cash Balances , Reportable Condition U. S. Department of Education Through Georgia Department.of Education Finding Control Number: FA-6011-99-01 . , TheAppling County Board ofEducation is implementing a plan whereby excess funds will not be requisitioned resulting in an accumulation of excessive funds each month. ,. ,,_' -..' SECTIONN FINDINGS AND QUESTIONED COSTS APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS I. Type of Report Issued on the Financial Statements The auditor's opinion on the Appling County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles. 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Appling County Board ofEducation disclosed a financial statement reportable condition related to the following control category. General Fixed Assets The reportable condition described above is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit of the Appling County Board of Education disclosed no instances of noncompliance that were deemed to be material 10 the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Appling County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement. Cash Management The reportable condition described above is not considered to be a material weakness. 5.. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Appling County Board of Education's report on compliance with requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .5 JO(a) of 0MB Circular A-133 The Appling County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) of0MB Circular A-133. This audit finding is included in section IV of this report. 7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.01 O Elementary and Secondary Education Act - Title I- Grants to Local Educational Agencies - 1- APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS . ' 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. , 9. Low Risk Auditee The Appling County Board of Education did not qualify as a low risk auditee as defined by . Section.s30 ofOMB Circular A-133. ' . . II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS,~,, GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness " - J - Repeated From Prior Year Finding Control Number: FS-6011-00-01 .t L l i The Appling County Board of Education did not rilaintaina system-wide General'Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results:in the general purpose-financiaLstatements oftlie Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be -taken by the Board to establish accounting controls-and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, building and equipment owned by the Board and should include; but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all addiiions and deletionido the General Fixed Assets Account Group. . . ill ._FEDERAL AWARD FINDINGS AND QUESTIONED' COSTS ,.. 1 I I' -!' t - .-r . CASH MANAGEMENT Excessive Cash Balance~ . . lleportable Condition , , ' ,. U.S. Department of Education . , Through Georgia Department of Education Repeated From Prior Year Finding Control Number: FA-6011-00-01 l. :. ..,. " , ' ,, A -review of cash management procedures for the Special Education Cluster (CFDA 84.027 and , .. 84.173) disclosed that cash draws were made in.advance of immediate cash needs, resulting in the ., -,accumulation of excessive cash balances. ,During fiscal year 2000,.the program had. excessive ending balances in nine months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board. :-2-