Baldwin County Board of Education, Milledgeville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

GA

AgOG

"R\



26

13 18

19QQ-.2000

000000 00
1776 9'


I
BALDWIN COUNTY BOARD OF EDUCATION
MILLEDGEVILLE, GEORGIA

REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

BALDWIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIDITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

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 ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL 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

24

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

K

FIDUCIARY FUND TYPES

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

28

BALDWIN COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BY PROGRAM

Page
29
31 33 35 36

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 WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

SECTION ill

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

S

Y 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. HINTON
STATE AUDITOR 1404) 656-2174

....- '? r G .fr-;
. , "v.-~,~~ .,~ "..OP,,"

~.;

",,C

. lP "''' . ' f~ -: . ' :",;,,'

:- :

.,' -, . . . f. "F', ..,....,~~.,'i~-~",-,,:..-,.-lJ-.~:.-r,..~'.,,.:,=-..-.-~.'~-.;..:

,

. '

':"

"'~.v'

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingtoll Street. S.W.. Suite 214
- Atlanta. Geor!!ia 30334-X400
March 16,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Baldwin County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Baldwin 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 Baldwin 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 ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to confonn to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been detennined, 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 detennined 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 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 Baldwin County Board of Education as of June 30, 2000, and the results of its
operations for the year then ended, in confonnity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated March 16,
2001, on our consideration of the Baldwin 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 perfonned in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
Our audit was perfonned for the purpose of fonning an opinion on the general purpose financial statements of the Baldwin County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) 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 infonnation has been subjected to the auditing
procedures applied in the audit ofthe general purpose financial statements and in our opinion, except
for the effect ofadjustments, ifany, on the Special Revenue Fund, as might have been detennined 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 ofthe matters referred to in the fourth
paragraph; such infonnation is fairly stated, in all material respects, in relation to the general purpose
financial statements taken as a whole.
2000ARL-13

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made

available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-

6-24.

.

Respectfully submitted,

-- w. Ru sell W. Hinton
State Auditor

RWH:jb 2000ARL-13




BALDWIN COUNTY BOARD OF EDUCAnON

BALDWIN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,915,290.34 $

240,664.47 $ 7,453,015.53

3,545,640.76

445,760.57

1,040,027.69

51,593.43 41,880.66

Total Assets

$ 6,460,931.10 $

779,899.13 $ 8,493,043.22

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Retainages Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable

Total Liabilities
FUND EqUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of State Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

989,417.74 $

3,220,709.91

14,773.71

93,639.22 $
347,133.26

421,457.64 767,923.87

$ 4,224,901.36 $

440,772.48 $ 1,189,381.51

$

2,660.88

$

5,205.84

3,408.09

3,118.75

2,230,250.11
$ 2,236,029.74 $

51,593.43 41,880.66
$
237,038.63
339,126.65 $

5,283,098.53 2,020,563.18 7,303,661.71

Total Liabilities and Fund Equity

$ 6,460,931.10 $ ........-77.9.,899.13 $

The notes to the general purpose financial statements are an integral part of this statement.
-2-

8,493,043.22

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

$

22,244.76 $

10,198.96

98.33

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

_ _..-(Memorandum Onl:a<-

-

JUNE 30, 2000

JUNE 30, 1999

$ 10,641,414.06 $ 11,500,907.87

5,031,527.35

5,474,,329.41 5,138,141.34



$

22,343.09

13,712,656.91

51,593.43 41,880.66 22,343.09
13,712,656.91

66,754.66 36,075.79 21,513.41
13,983.486.59

$

22,343.09 $

10,198.96 $ 13,735,000.00 $ 29,501,415.50 $ 36,221,209.07

$

10,198.96

______ $

$
13,735,000.00

1,504,514.60 $
3,567,843.17 767,923.87 14,773.71 10,198.96
13.735,000.00

946,280.24 3,490,008.03
441,313.53
3,442.98 14,005,000.00

$

10,198.96 $ 13,735,000.00 $ 19,600,254.31 $ 18,886,044.78

$

22,343.09

0.00
$ _ _..:.2::2..::,3,-,-43,,;,,;.;09::...

$

2,660.88 $

74,498.88

5,205.84

9,278.30

3,408.09

29,390.02

22,343.09

21,513.41

3,118.75

33,513.15

51,593.43 41,880.66
5,283,098.53

66,754.66 36,075.79 4,217,514.47 7,380,095.73

4.487,851.92

5,466,529.88

$ 9,901,161.19 $ 17,335,164.29

$

22,343.09 $

10,198.96 $ 13,735,000.00 $ 29,501,415.50 $ 36,221,209.07

-3-

BALDWIN COUNTY 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 Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
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

$ 26,744,403.26 $
7,671,153.93 492,848.30
$ 34,908,405.49 $

786,570.69 4,775,123.50
581,101.17
6,142,795.36

$ 24,115,582.65 $
1,466,870.54 734,653.88 797,169.97 652,113.47
2,631,523.17 418,375.73
3,086,882.21 1,838,387.46
155,006.29 36,808.67 19,121.40 20,000.00

2,567,088.37
347,625.10 265,762.80
229,297.01 14,091.67
85,557.73 196,940.60
61,854.73 2,421,452.15

$ 35,972,495.44 $ 6,189,670.16 $ -1,064,089.95 $ _ _.::-4~6:...::,8:..:...74~.~80~

$ -1,064,089.95 $
3,300,119.69

-46,874.80 395,357.81
5,804.87 -15,161.23

FUND BALANCE JUNE 30

$ _.-2,236,029.74 $

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

-4-

3;,;3;,;;9,126.65

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Onlil~_ _

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 4,093,455.12 $
535,954.21
$ 4,629,409.33 $

$
926,462.45 -'4"-77,:...:.:;23::;....
926,939.68 $

27,530,973.95 $
4,775,123.50 12,691,071.50
1,610,380.91
46,607,549.86 $

26,715,274.16 4,651,286.63 12,546,740.09 3,280,875.98
47,194,176.86

$ 10,943,921.00 $
$ 10,943,921.00 $ $ -6,314,511.67 $

$ 26,682,671.02 $

1,814,495.64 1,000,416.68
797,169.97 881,410.48 2,645,614.84 418,375.73 3,172,439.94 2,035,328.06 155,006.29
98,663.40 2,440,573.55
20,000.00 10,943,921.00

270,000.00 655,050.00
1,060.00

270,000.00 655,050.00
1,060.00

926,110.00 $ 54,032,196.60 $

...:8::.=2~9.:.:::;68=- $ -7,424,646.74 $

25,464,230.82
1,679,799.53 1,153,343.63
705,277.73 741,980.06 2,130,318.16 358,546.66 3,116,503.83 1,829,184.81 160,881.01
95,615.70 2,315,848.05
8,154,650.18
255,000.00 670,147.50
3,394.07
48,834,721.74
-1,640,544.88

$ -6,314,511.67 $
13,618,173.38

$

10,017.01

-10,017.01

$

0.00

829.68 $
21,513.41

-7,424,646.74 $
17,335,164.29

-1,640,544.88 18,959,259.37

5,804.87 -15,161.23

15,331.82 1,117.98

$ _..;.7.303,661.71 $

22,343.09 $ _..;;;9,901!161.19 $ 17,335,164.29

-5-

BALDWIN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT C

REVENUES

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS),---

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 25,765,751.26 $ 26,744,403.26

7,602,983.83 235,750.00

7,671,153.93 492,848.30

$ 33,604,485.09 $ 34,908,405.49

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
QTHER FINANCING SOURCES (USES)

$ 23.611.610.12 $ 24,115,582.65

1,609,014.00 838,668.57 742,933.17 693.089.12
2.568,883.94 455,541.66
3,136.875.93 1.828,185.13
175,710.22 36.395.00 19.718.85

1,466,870.54 734,653.88 797,169.97 652,113.47
2.631 .523.17 418,375.73
3,086,882.21 1,838,387.46
155,006.29 36,808.67 19,121.40 20,000.00

$ 35,716,625.71 $ 35,972.495.44

$ -2,112,140.62 $ -1,064,089.95

Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JVlY 1
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

$

20,000.00

-20,000.00

$

....;O::,,;.O~O,-

$ -2,112,140.62 $ -1,064,089.95

3,744,025.41

3,300,119.69

-15,758.19

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 898,218.71 $ 786,570.69

4,866,537.00

4,775,123.50

623,921.00

581,101.17

$ 6,388,676.71 $ 6,142,795.36

$ 2,847,921.73 $ 2.567.088.37

527.526.00 301,036.26

347,625.10 265,762.80

288,888.27 12,100.00

229,297.01 14,091.67

42,090.00 189,397.00

85,557.73 196,940.60

66,681.45 2,227,468.00

61,854.73 2,421,452.15

$ 6,503,108.71 $ 6.189,670.16

$ -114,432.00 $

-46.874.80

$ -114,432.00 $ 286,680.18 57,426.26


-46.874.80 395.357.81
5,804.87 -15,161.23

FUND BALANCE JUNE 30

$ 1,616,126.60 $ 2,236,029.74

$

229,674.44 $ _..;3::.:3:.;:9~1,,:;2:;:;6.~65~

The notes to the general purpose financial statements are an integral part of this statement.
-6-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Baldwin 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 power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. .
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational
activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources 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.

-7-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.

FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:

AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other

funds, governments, or individuals.





ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.

Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

-8-

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable" means the amount ofthe transaction can be detennined 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, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically 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 ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Baldwin County Board ofEducation'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 Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe 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 the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

- 9-

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIDIT tiD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

COMPOSITION 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.

RECEIVABLES

Receivables consist of grant 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 Baldwin County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 15, 1999 (levy date). Taxes were due on November 15, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Baldwin County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the Baldwin County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.65 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $5,019,565.12 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $16,194,665.78 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded

- 10-

BALDWIN COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 current assets.

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 accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value of accumulated compensated absences at June 30, which will be
payable from future resources has not been recorded in the General Long-Term Debt Account Group
as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS



The Board has the following type of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

MEMORANDUM ONLY - TOTAL COLUMNS

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

- 11 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS
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 ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face
value of such surety bond and the market value of securities pledged shall be equal to not less than
11 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest 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 Farm 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 $12,529,426.88. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 12-

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000 .

Note 2: DEPOSITS

Category I - 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:

Risk Category

Bank Balance

I

$ 226,164.76

2

10,339,436.61

3

1,963,825.51

Total

$12,529,42QB8

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 ofloss 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, errors or omissions, job related illness or injuries to employees and natural disaster. 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 is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

- 13-

BALDWIN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

Beginning of Year Liability_

Claims and Changes in Estimates

Claims Paid

End of Year Liability_

1999
2000

$

0.00 $ 11,336.00 $ 11 ,336.00 $_ _~O=.O=O

$

0.00 $ 11,086.82 $ 11,086.82 $_ _~O=.O=O

The Board has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

All Employees

$ 250,000.00

Note 5: OPERATING LEASES

Baldwin County Board of Education has entered into various leases as lessee for rental of copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $53,127.76. Future minimum lease payments for these leases are as follows:

Year Ending

2001 2002 2003 2004 2005

Total

Note 6: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

_ _ _--=P-=urp~os~e::...__

_

Interest Rates

Amount $ 44,680.04
30,703.44 7,415.92 4,044.00 245.00

$=~7.Q.4Q
Amount

General Government - Series 1997

4.50% - 4.75%

General Government - Refunding - Series 1992 4.50% - 6.20%

$12,500,000.00 1,235,000.00

$l,3.735.QQQ,OO
The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows:

- 14-

BALDWIN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1, 1999

$14,005,000.00

Deductions Debt Retired

270,000.00

Balance June 30, 2000

$13,735,000.00

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003 2004 2005

$ 4,748,610.00 5,063,755.00 4,550,905.00 316,405.00 58,410.00

Total Principal and Interest

$14,738.08~.QO

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $498,174.87 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $382,644. 19

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$II,386.68

- 15 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 7: ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$104,144.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 2000: .

Project
605-003 Oak Hill Middle School

Unearned Executed Contracts
$ 23,435.50 3,165,480.94
$,3,188,916.44

The amounts described in this note are not reflected in the general purpose financial statements.

Note 9: 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.

Note 10: SUBSEQUENT EVENTS

On September 19, 2000, the voters of Baldwin County voted in favor of a Special Purpose Local Option Sales Tax Referendum for education purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot for Baldwin County, is as follows:

"Shall a special one percent sales and use tax be imposed in Baldwin County for a period not to exceed 17 calendar quarters and for the raising of not more than $29,000,000 for the purpose ofthe acquisition, construction and equipping ofa child development center; additions and renovations to Baldwin Vocational School and Baldwin High School; system-wide technology improvements; renovations and additions to Davis and Southside Elementary Schools; acquisition, construction and equipping ofwarehouse, maintenance, transportation and operating facilities; acquisition, construction and equipping ofathletic facilities; purchasing future school sites; purchasing school furnishings, equipment and fixtures; and renovating, expanding and enlarging existing school facilities in the amount of $29,000,000?"

- 16-

BALDWIN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

.ruNE 30, 2000

Note 10: SUBSEQUENT EVENTS

"If imposition of the tax is approved by the voters, such shall constitute approval of the issuance ofgeneral obligation debt ofthe Baldwin County School District in the principal amount of up to $17,735,000 for the purpose of funding such portions of the above projects as may be acquired, constructed and equipped with the proceeds of general obligation debt and to pay capitalized interest on such debt through August 1, 2002, inclusive."

Note 11: ACCUMULATED EMPLOYEES' LEAVE

All twelve-month employees ofthe Baldwin County Board ofEducation earn annual leave based on their number ofyears of continuous and creditable service. Annual Leave may be accumulated up to thirty days. Unused leave, up to the maximum accumulation, is paid to employees at their current rate ofpay, upon retirement or termination ofemployment. See Note 1 - Compensated Absences

Note 12: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe 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%

$ 2,687,217.48 $ 2,662,176.89 $ 2,417,041.24

- 17 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 2000

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

338.330.53 $

65,729.34

17,279.28

51.593.43 41,880.66

Total Assets

$

449,083.90 $ ===6=5:l:::,7.:;2=9.=34==

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

$

20,216.80 $

15,170.00

98,354.38

47,151.25

$

118.571.18 $ _ _.....:6::.:2:z.::.3~2...:.:1.=25::;..



$

3,408.09



$

51,593.43

41,880.66

237.038.63

0.00

$

330.512.72 $ _ _--=3;.!.,;,4:.::::0.::.,:8.=09::;..

Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
- 18 -

$

449,083.90 $ ===6=5~,7=2=9.=34==


EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

404,059.87 $

451,701.69

$

428,481.29

445,760.57

563,210.20

51,593.43 41,880.66

66,754.66 36,075.79

$

428,481.29 $

943,294.53 $ 1,117,742.34

$

163,395.40 $

163,395.40 $

261,507.19

58,252.42

93,639.22

94,205.09

201,627.63

347,133.26

366,672.25

$

423,275.45 $

604,167.88 $ _ _7,;.;:2=2~,3;,.:.84..:..:.;53::...

$

5,205.84 $

5,205.84 $

9,278.30

3,408.09

29,390.02

51,593.43 41,880.66

66,754.66 36,075.79

0.00

237,038.63

253,859.04

$

5,205.84 $

339,126.65 $ _ _3,;;;.,;9;,.;:;5=,3=57';"';'.;;..81,-

$

428,481.29 $

943,294.53 $ 1,117,742.34

- 19 -

BALDWIN 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 General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures

Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

176.214.00 $

1.646.233.60

581,101.17

610.356.69

$ 2,403.548.77 $ _ _=-61.:.:0;,z,;3:,;.:::5.::.;6.:.:;.69::-

$

587.078.43

1.176.55

6,716.33

41.367.31

$ _.....:2:J..4..:.:2:..:0~,3:.:::69.~..:..:18~

$ 2,420,369. 18 $ _ _6;:;,;:3=6.z.;:,3;.:::,38;:;,;:.,;;.:62=-

$

-16,820.41 $

-25.981.93

$

-16.820.41 $

-25.981.93

356.689.49

29.390.02

5.804.87 -15.161.23

FUND BALANCE JUNE 30
See notes to the general purpose financial statements.
- 20-

$

330.512.72 $ ======3:!:::i,4..0.;.;;,;8..:=09==

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

786,570.69 $

851,035.70

$ 3,128,889.90

4,775,123.50

4,651,286.63

581,101.17

625,138.50

$ 3,128,889.90 $ 6,142,795.36 $ 6,127,460.83

$ 1,980,009.94 $ 2,567,088.37 $ 2,636,524.87

346,448.55 265,762.80 222,580.68
14,091.67 44,190.42 196,940.60 61,854.73
1,082.97

347,625.10 265,762.80 229,297.01
14,091.67 85,557.73 196,940.60 61,854.73 2,421,452.15

291,633.74 342,485.65 154,539.38
12,760.23 81,973.78 192,375.63 59,096.85 2,303,496.59

$ 3,132,962.36 $ 6,189,670.16 $ 6,074,886.72

$

-4,072.46 $

-46,874.80 $

52,574.11



10,017.01

$

-4,072.46 $

-46,874.80 $

62,591.12

9,278.30

395,357.81

316,316.89

5,804.87 -15,161.23

15,331.82 1,117.98

$

5,205.84 $

339,126.65 $ ==3=:9=5::!::,3=57;.,;.=81=

- 21 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Retainages Payable
Total Liabilities FUND EQUITY

Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$ 2,020,563.18 $ 1,160,581.51

$ 2,020,563.18 $ ==1.:.!:,=16=0=,=,5=8=1.=51=

$

421,457.64

739,123.87

$ _ _1.:.z.,.:.;:16:.:0.L5:,'.=.8.:.;:1..=..51.:.....

$ 2,020,563.18 $ $ 2,020,563.18 $

0;:..:.::.;00:.... 0;:..:.::.;00:....

$ 2,020,563. 18 $ ==1==r.',;,;16;;,;;0::l:5;;'=8=1.=51;...

See notes to the general purpose financial statements. - 22-

EXHIBIT "G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 4,389,798.84 $ 7,570,943.53 $ 8,585,890.58

$ _ _..:..14.;.:6:.!.7:,.=2.=.;8.~OO=-

893,299.69

1,040,027.69

5,474,329.41 961,496.33

$

146,728.00 $ 5,283,098.53 $ 8,610,971.22 $ 15,021,716.32

$

117,928.00

28,800.00

$ _ _..:..14.;.:6:.!.7:,.=2.=.;8.~OO=-


$

117,928.00 $

962,229.41

421,457.64

767,923.87

441,313.53

$ 1,307,309.51 $ 1,403,542.94

$ 4,217,514.47

$ 5,283,098.53 $ 5,283,098.53

7,380,095.73

$

.=.;o.~OO=_

0.00

2,020,563.18

2,020,563.18

$

0.00 $ 5,283,098.53 $ 7,303,661.71 $ 13,618,173.38

$

146,728.00 $ 5,283,098.53 $ 8,610,971.22 $ 15,021,716.32

- 23-

BALDWIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Taxes Other Funds

Total Revenues
EXPENDITURES
Current Land and Land Improvements Building and Building Improvements Equipment
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
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00 $ _ _.:.:10::..::8~,6:.=2.:;.:0.~06=-

$

0.00 $ _ _.:.:10::..::8~6,:.=2.:;.:0.~06=-

$

0.00

$ 9,708,759.99

1,013,901.65

$

0.;..;...;;..00"- $ 10,722,661 .64

$

0=..;;.;00"- $ -10,614,041.58

$ 6,396,527.11

$ _-:6~,3::.;:9:.::6J5.::'::,27.:.,.:..:,.11.:.....



$

0.00 $ -4,217,514.47

2,020,563.18

4,217,514.47

$

2,020,563.18 $ ====~O':;;;'OO;;;,..

See notes to the general purpose financial statements.
- 24-

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

0.00

$

615,395.42

$

4,093,455.12 $

4,093,455.12

3,741,083.08

427,334.15

535,954.21

2,109,041.57

$

0.00 $ 4,520,789.27 $ 4,629,409.33 $ 6,465,520.07

$

14,000.00 $

14,000.00 $

16,556.00

$

22,175.12

1,055.00

9,731,990.11

7,623,746.06

868.50

183,160.74

1,197,930.89

514,348.12

$

23,043.62 $

198,215.74 $ 10,943,921.00 $

8,154,650.18

$

-23,043.62 $

4,322,573.53 $ -6,314,511.67 $ -1,689,130.11

$

23,043.62

______ $

$
-6,419,570.73

6,419,570.73 $
-6,419,570.73

605,097.87 -605,097.87

$

23,043.62 $ -6,419,570.73 $

0.00 $

O~.:;,;OO;;,..



$

0.00 $ -2,096,997.20 $ -6,314,511.67 $ -1,689,130.11

0.00

7,380,095.73

13,618,173.38

15,307,303.49

$

0.00 $

5,283,098.53 $

7,303,661.71 $ 13,618,173.38

- 25-

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND
JUNE 3D, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30,2000

JUNE 3D, 1999

$

22.244.76 $

0.00 $

22.244.76 $

18.936.47

98.33

98.33

2.576.94

Total Assets
FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ .....~2:;:;;2,343.09 $


$

22.343.09

0.00 $

0.00 $

2;;,;;;2,343.09 $ _ _..:2-.:,1,513.41

$
....;0::.:,.0::..:0:,..

22.343.09 $ 0.00

21.513.41 0.00

Total Fund Equity $ _.....;2:;:;,2.343.09 $

0.00 $

2.2..343.09 $ _ _..:2:;.:,1.513.41

See notes to the general purpose financial statements.
- 26-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT"J"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30, 2000

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

$

352.45 $

926,110.00 $ 926,462.45 $ 933,331.68

477.23

477.23

522.76

Total Revenues

$

829.68 $

926,110.00 $ 926,939.68 $ 933,854.44

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees

$

0.00 $

270,000.00 $ 270,000.00 $ 255,000.00

655,050.00

655,050.00

670,147.50

1,060.00

1,060.00

3,394.07

Total Expenditures

$

0.00 $

926,110.00 $ 926,110.00 $ 928,541.57

Excess of Revenues over (under) Expenditures $

829.68 $

0,00 $

829.68 $

5,312.87

FUND BALANCE JULY 1

21,513.41

0.00

21 ,513.41

16,200.54

FUND BALANCE JUNE 30

$

0.00 $

22,343.09 $ ====0:2:=;1-.;;,5;,;,1;;;,;3.=41=



See notes to the general purpose financial statements.

. - 27-

BALDWIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPES - AGENCY FUNDS YEAR ENDED JUNE 30, 2000

EXHIBIT "K"

BALANCE JUNE 30, 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

HORACE MANN MEDICAL SPENDING ACCOUNT

ASSETS Cash and Cash Equivalents

$

0.00 $

35.350.97 $ _-=2;;;;;9.576.29 $ ==~5.,:,.;77..4.~.6~8

LIABILITIES Funds Held for Others

$

0.00 $

35.350.97 $

29.576.29 $ _ _..;5~.7;.;7,;,;,4=::.6,;;;.8

SPECIAL ACTIVITIES ACCOUNT
ASSETS Cash and Cash Equivalents

$

3,442.98 $

3.877.00 $ _ _,;;;,2.895.70 $ _ _...;,4,424.28

LIABILITIES Funds Held for Others

$

3.442.98 $

3.877.00 $

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

3.442.98 $ _......:3;:,::9.227.97 $

32,471.99 $ _ _1;.:;:0.198.96

LIABILITIES Funds Held for Others

$

3.442.98 $ _......:3;:,::9.227.97 $ _......:3;;:;;2.471.99 $ _ _.:.1~O.,,:,19:::;8:;.9:.6:,:;:,

See notes to the general purpose financial statements.

- 28-

BALDWIN COUNTY BOARD OF EDUCATIQN SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
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 of Education Food and Nutrition Program Food Distribution Program (1)

10.550

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 Capacity Building Improvement

84.027 84.173 84.173

Total Special Education Cluster

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grant Title VI Innovative E;,ducation Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools Vocational Education - Basic Grants to States High School Program Basic Grant

84.010
84.281 84.318 84.298 84.340 84.276 84.186
84.048

Total U. S. Department of Education

Health and Human Services. U. S. Department of Direct Head Start

93.600

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A

$

363.599.63

(2)

NlA

1.173.197.56 $

2.310,932.77 (3)

$ 1.536.797.19 $

2.310.932.77



N/A

109,436.41

109,436.41

$ 1,646.233.60 $ _---=:.2.::,4:::20::,,;.3::::6::::,9:..:,.1;::.8

NlA $ 624.888.00 $

NlA

41.426.34

N/A

29,044.00

$ 695.358.34 $

624,888.00 41.426.34 29.044.00
695,358.34

N/A

1.001.390.84

1.001,390.84

NlA

27,900.00

23.685.93

NlA

568.91

NlA

51,458.00

50,466.23

NlA

147,889.70

147.889.70

NlA

-1.625.09

NlA

108.046.47

108,046.47

NlA

67.516.00

67,516.00

$ 2,097,934.26 $ _---=:.2.~0:::94:.;.9~2=2:.:!.4~2

$ 1,030,955.64 $ _---:.1,..:::0~38::,,;.0::::3::::,9:.::..9~4

Total Federal Financial Assistance
NlA = Not Available

$ 4,775,123.50 $ _..,;;,5.,;;;5,.53;;,:;.3;;;3;",;,1,;;;.54;.

- 29-

BALDWIN COUNTY BOARD QF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000
Notes to the Schedule of Ex~ndituresof Federal Awards
(1) The amounts shown for the Food Distribution Program represent 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 Baldwin 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.

- 30-

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost

Pupil Transportation Regular Bus Replacement
Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Preschool Handicapped Program Remedial Summer School Program Special Education Support Cost Teachers'Retirement Lottery Programs Assistive Technology Computers in the Classroom
Children's Trust Fund Commission Second Step Violence Prevention
Georgia Department of Community Affairs Governors Emergency Funds (1) Local Assistance Grants
Georgia Department of Revenue Homeowner Tax Relief
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 13,026,771.00
5,479,807.00 440,206.00 593,949.00 182,255.00
3,758,400.00
746,486.00 226,439.00 397,745.00 429,856.85 101,032.00
49,631.00 86,527.00 -2,639,218.00 -3,220,688.00 3,351,073.00 2,228,432.00
$
18,500.00
89,825.00 35,000.00 15,902.60
750.00 382,644.19
80,395.44 15,283.08 53,000.00 11,386.68

$ 13,026,771.00
5,479,807.00 440,206.00 593,949.00 182,255.00
3,758,400.00

176,214.00

746,486.00 226,439.00 397,745.00 429,856.85 101,032.00
49,631.00 86,527.00 -2,639,218.00 -3,220,688.00 3,351,073.00 2,228,432.00 176,214.00 18,500.00

89,825.00 35,000.00 15,902.60
750.00 382,644.19
80,395.44 15,283.08 53,000.00 11,386.68

28,070.24 142,365.00

28,070.24 142,365.00

39,870.37

39,870.37

7,000.00 70,000.00

7,000.00 70,000.00

178,857.87

178,857.87

439,921.45

439,921.45

104,144.00 - 31 -

104,144.00

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

CONTRACTS

Education, Georgia Department of

Georgia's Reading Challenge

$

358,140.18

$

OTHER Child and Youth Coordinating Council Student Transition and Recovery Prevention/ Intervention Program

45,000.00

TOTAL 358,140.18
45,000.00

$ 26,744,403.26 $

786,570.69 $ 27,530,973.95

(1) The purpose of the funds are for the Boys and Girls Club in Milledgeville.



See notes to the general purpose financial statements. - 32

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

Payment of Principal and Interest on 1992 General Obligation Refunding Bonds Coming Due January 1. 1998 & Thereafter $

2.390.663.00 $

Capital Outlay Projects

28.730.000.00

CURRENT
ESTIMATED
COSTS 0,--_

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

2.390.663.00 $
28.838,781.73

352.200.00 $ 709,722.50
10,943,921.00 12,319.980.55

$

31,120.663.00 $

31,229,444.73 $

11.296,121.00 $ 13,029.703.05

(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 projects. Includes all cost from project inception to completion.

(3) The voters of Baldwin County approved the imposition of a 1% sales tax to fund the above projects and retire
associated debt. Amounts expended for these projects may include sales tax proceeds. state. local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above. the Board has incurred interest to provide advance funding
for the above projects as follows:

Prior Years

$

1,193.437.50

Current Year

572.850.00

Total

$ _ _.;01'0;,,76;;;,;6;,;;.2;,;;8;,;,,7.;,;;5;,,0

see notes to the general purpose financial statements.

- 33

BALDWIN 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 (1) (2) Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

19.540.733.00 $ _ _--=-57:...::6:..!.:9.:;.:.7..:..1.:;::0.::..0

$

21,001,687.34

924,413. 13 $

$

21,926,100.47

8=.:0:. : 3.z.7:.'.:::2.::.:0,'::' 01~

-163,195.72
$ _--=2:.:.1!.7:...:':.:62::.!,;,9::.,:0:..:,4.:7.:..::...5

Amount of Underexpenditure for Total Allotment

$

0.00 $ ====..;;;0,;,;;.0;;;;.0

Note: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

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

BALDWIN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCAl:ION PROGRAMS YEAR ENDED JUNE 30. 2000

GENERAL AND CAREER EDUCATION PROGRAMS
n Kindergarten
Grades 1 - 3 (0)
Sub-Total - K-3 Grades 4 - 5 (0)
Grades 6 - 8 (0) Grades 9 - 12 (0) High School Laboratories (0) Vocational Education Laboratories (0)
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs
n Category I
Category II (0) Category III (0) Category IV (0) Category V (0)
Sub-Total - Regular Category VI (Gifted) (0)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM Ll
Total Fourteen Weighted Programs M.l;DIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,623,252.00

$ 1,460,926.80 $

3,850,674.00

3,465,606.60

$ 5,473,926.00 90 $ 4,926,533.40 $

1,481,517.00 90

1,333,365.30

2,421,556.00 90

2,179,400.40

2,113,983.00 90

1,902,584.70

620,939.00 90

558,845.10

914,850.00 90

823,365.00

$ 13,026,771.00

$ 11,724,093.90 $

0.00 0.00
:::;o.~OO~

$ 4,595,065.00

$ 4,135,558.50 $

0.00

$ 4,595,065.00 90 $ 4,135,558.50 $

884,742.00 90

796,267.80

$ 5,479,807.00

$ 4,931,826.30 $

$

440,206.00 90 $

396,185.40 $

$ 18,946,784.00

$ 17,052,105.60 $

$

473,524.00 90 $

426,171.60 $

120,425.00 100

120,425.00

$

593,949.00

$

546,596.60 $

0.00
:::;O.~OO~ :::;O.~OO~ :::;O.~OO~
0.00 --=O:;,:.O:.=,.O

Total Fourteen Weighted and Media Center Programs

$ 19,540,733.00

$ 17,598,702.20 $ ....= =....;;;0.,;;,00;;.

STAFF QEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

59,025.00

123,230.00

$

59,025.00 $

123,230.00

0.00 0.00

Total Staff Development Programs
(0) Identifies Fourteen Weighted Programs.
(1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
See notes to the general purpose financial statements.

$

182,255.00 100 $

182,255.00 $ ====;;;0.,;;,00;;.

(2) Salary accruals (JUly and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

- 36

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,460,926.80 $ 1,751,586.62 $

17,924.32 $ 1,769,510.94

3,465,606.60

4,660,421.74

113,525.47

4,773,947.21

$ 4,926,533.40 $ 6,412,008.36 $

131,449.79 $ 6,543,458.15 $

0.00

1,333,365.30

1,885,098.26

42,651.38

1,927,749.64

0.00

2,179,400.40

2,498,619.25

50,200.51

2,548,819.76

0.00

1,902,584.70

2,146,320.34

149,484.25

2,295,804.59

0.00

558,845.10

858,347.36

18,226.30

876,573.66

0.00

823,365.00

934,573.25

92,932.01

1,027,505.26

0.00

$ 11,724,093.90 $ 14,734,966.82 $

484,944.24 $ 15,219,911.06

$ 4,135,558.50 $

412,420.17 $
1,153,329.20 2,450,701.24
242,341.84 2,422.28

$ 4,135,558.50 $ 4,261,214.73 $

796,267.80

922,337.54

$ 4,931,826.30 $ 5,183,552.27 $

$

396,185.40 $

446,716.65 $

$ 17,052,105.60 $ 20,365,235.74 $

2,802.04 $
2,823.12 155,171.12
67,425.73

415,222.21 1,156,152.32 2,605,872.36
309,767.57 2,422.28

228,222.01 $ 4,489,436.74

89,841.85

1,012,179.39

318,063.86 $ 5,501,616.13

711.91 $ _--.,;4;:;;4:.:.7,:;:,4.:,28:.;.;::56:..

803,720.01 $ 21,168,955.75



$

426,171.60 $

120,425.00

$

546,596.60 $

636,451.60

$

$ _ _1;,::2;,;.0.:.,;,6,;;.93;;;..,;.;,;12;;.,;

636,451.60 120,693.12

636,451.60 $

120,693. 12 $ _--:.7.::,57:..:".:.,;144:.;:.;.:7,..:,.2

$ 17,598,702.20 $ 21,001,687.34 $

924,413.13 $ 21,926,100.47 $

0.00 0.00 0.00
0.00 0.00
0;;,;.;;,;00;;"

$

59,025.00

123,230.00

$ ==1;,;;8;;;2.,2.;;;5.5..",0=0

$

181,019.93 $

181,019.93

1,235.07

1,235.07

$

182,255.00 $

182,255.00 $

.0. .0. .0. .

- 37 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR (404} 6562174

DEPARTl\IENT OF AUDITS AND ACCOUNTS
254 Washington Strcc!. S.w., Suitc 214 Atlanta, Gcorgia 30334-X400
March 16,2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

~d

.

Superintendent and Members of the

Baldwin 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 ofBaldwin County Board ofEducation as of and for the
year ended June 30, 2000, ~d have issued our report thereon dated March 16,200I. This report was qualified for a scope limitation ~d for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose fin~cial statements. Except as discussed in the following paragraph, we conducted our audit in accord~cewith generally accepted auditing st~dards ~d the standards applicable to fin~cial audits contained in Government Auditing St~dards, issued by the Comptroller General of the United States.

We did not observe the taking ofeither the Federal donated commodities inventory orthe purchased foods inventory at June 30,2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.

Compli~ce

As part of obtaining reasonable assurance about whether Baldwin County Board of Education's fin~cial 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 offinancial statement amounts. However, providing an opinion on compli~cewith those provisions was not an objective ofour audit, ~d accordingly, we do not express such ~ 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 Baldwin County Board ofEducation'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 Baldwin 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 Questioned Costs as items FS-6051-00-0 I and FS-6051-00-02.
A material weakness is a condition in which the design or operation of one or more ofthe 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 nonnal course of perfonning 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, all of the reportable conditions described above are also considered to be material weaknesses.
This report is intended solely for the infonnation and use ofmanagement, members ofthe Baldwin 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.
.---_ espectfully submitted,

RWH:jb 2000YB-40

R ssell W. Hinton State Auditor

RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washin\.!lon Stn:el. S.W.. Suite 214 ~ At lanta. Georgia 3ln34-X400 March 16,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Baldwin County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Baldwin County Board of Education with the types of
compliance requirements described in the u.s. Office ofManagement and Budget (OME) Circular
A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Baldwin 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 ofBaldwin County Board ofEducation's management. Our responsibility is to express an opinion on Baldwin 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB 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 Baldwin 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 Baldwin County Board of Education's compliance with those requirements.

2000SA-30

In our opinion, the Baldwin 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 Baldwin 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 Baldwin 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 OMB 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 ofthe internal control over compliance that, in our judgment, could adversely affect the Baldwin County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. A reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FA-6051-00-01.
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 that the reportable condition described above is not a material weakness.
This report is intended solely for the information and use ofmanagement, members ofthe Baldwin 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

R sell W. Hinton State Auditor

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS


BALDWIN 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-6051-97-01 FS-6051-98-01 FS-6051-98-02 FS-6051-98-03 FS-6051-99-01 FS-6051-99-02

Previously Reported Corrective Action Implemented Further Action Not Warranted Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $3,118.75 Finding Control Number: FS-6051-98-02

The QBE underexpenditure of$3,118.75 will be resolved by the Georgia Department of Education through an increase in Baldwin County Board ofEducation's Local Five Mill Share portion ofQBE allotments for FY 2001.

CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Control Procedures Finding Control Number: FS-6051-99-01

The School Nutrition Department hired a second person to the clerical office staffin FY 2000 to assist with duties in the department in order to strengthen the internal control over the School Food Services accounting functions starting in FY 2001.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6051-99-02

We concur with this fmding. Due to current staffing limitations and 'budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements nor maintain a General Fixed Assets Account Group.

- 1-

BALDWIN 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

FINDING CONTROL NUMBER AND STATUS

FA-6051-99-01

Partially Resolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

ELIGIBILITY



PROGRAM INCOME

SPECIAL TESTS AND PROVISIONS

Inadequate Segregation of Duties

Finding Control Number: FA-6051-99-01

During FY 2000, the School Food Service Director began reviewing all student applications and school lunchroom managers now initial deposits and daily cash receipts. Starting in FY 2001, the School Nutrition Office will begin handling the verification process.



- 2-

SECTIONN FINDINGS AND QUESTIONED COSTS




BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Baldwin 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 Baldwin County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents General Ledger

Inventories General Fixed Assets

All of the reportable conditions described above are considered to be material weaknesses.

3. Noncompliance Material to the Financial Statements The audit of the Baldwin County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Baldwin County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirements.

Special Tests and Provisions

The reportable condition described above is not considered to be a material weakness.

5. me ofReport Issued on Compliance for Major Programs The auditor's opinion on the Baldwin 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 .51O~) ofOMB Circular A-B3 The Baldwin County Board of Education's audit disclosed audit findings required to be
reported by section .51 O(a) ofOMB Circular A-B3. 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 84.010 Elementary and Secondary Education Act - Title 1 - Grants to Local Educational Agencies 93.600 Head Start

- 1-

BALDWIN 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 Baldwin County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS INVENTORIES GENERAL LEDGER Inadequate Control Procedures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6051-00-01
A review ofthe Board's internal control policies and procedures noted deficiencies in providing for adequate internal control over the following functions and related procedures for the School Food Services program:
1) The bank reconciliation function was not separated from the general ledger posting and check preparation functions. In addition, the bank reconciliations were not reviewed by an individual independent of cash operations.
2) Blank checks are accessible, without supervision, by the person responsible for the check signing and the general ledger posting functions.
3) At each school, the School Food Managerreceives goods, signs the receiving reports, and performs the physical inventory counts with no assistance from any other employee.
4) Journal entries are not consistently supported by adequate documentation and/or descriptions. In addition,journal entries are not reviewed and approved by someone independent ofjournal entry preparation and posting.
These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions over the School Food Services program. The Board should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control categories and implement those procedures to strengthen the internal control over the School Food Services accounting functions.
- 2-

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-605l-00-02
The Baldwin County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
SPECIAL TESTS AND PROVISIONS Inadequate Segregation of Duties Reportable Condition Repeated From Prior Year U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-605l-00-0l

A review ofthe Baldwin County Board ofEducation's internal control policies and procedures over the Child Nutrition Cluster Program (CFDA Nos. 10.553 and 10.555) noted deficiencies in providing for adequate segregation of duties over the following function and related procedures:
The Cashier perfonns the verification procedures confirming eligibility in the program, without any other supervisory review and/or approval. In addition, a file of pertinent documentation gathered in the verification process was not maintained as required.
This weakness identified in the Child Nutrition Cluster Program was a result ofmanagement's failure to establish appropriate controls over the verification process. The Board should review the procedures in place, design policies and procedures which would enhance segregation of duties relative to the above control category, and implement these policies and procedures to ensure adequate internal control over the Child Nutrition Cluster Program. Also, the Board should develop and implement a monitoring process to ensure that the controls are being followed.
-3-