In f1 AgOD " R1 . 26 ]32 1 q 1 ~ -CJ q AUDIT REPORT BANKS COUNTY BOARD OF EDUCATION HOMER, GEORGIA YEAR ENDED JUNE 30, 1999 STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 BANKS 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 EXHIBITS 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 AND INDNIDUAL FUND 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 I FIDUCIARY FUND TYPES STATEMENT OF CHANGES IN ASSETS AND LIABILmES AGENCY FUND 24 SCHEDULES 1 SCHEDULE OF EXPENDTIURES OF FEDERAL AWARDS 25 2 SCHEDULE OF STATE REVENUE 27 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 28 '4 SCHEDULE OF EXPENDTIURES LOTTERY PROGRAMS 29 BANKS CQUNfY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION SCHEDULES ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 5 OVERALL 31 6 BY PROGRAM 32 SECTION II COMPLIANCE AND INTERNAL CONlROL 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 INTERNAL CONlROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-l33 SECTION ill 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. HINTON STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 14,2000 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education and Superintendent and Members ofthe Banks County Board ofEducation 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 Banks County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Banks County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 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 of the United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 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. 99ARL-13 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department of Education for the State's share ofthese 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, 1998, were improperly recorded in the year ended June 30, 1999. To confonn to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been detennined, but are believed to be material. In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Banks County Board ofEducation as ofJune 30, 1999, 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 April 14, 2000, on our consideration ofthe Banks County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. Our audit was perfonned for the purpose of fonning an opinion on the general purpose financial statements ofthe Banks County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits E through 1) and the financial schedules (Schedules 1 through 6), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe 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 effects ofthe matters referred to in the third paragraph, such infonnation is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 99ARL-13 A copy of this report has been filed as a pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, k).~ R sell W. Hinton State Auditor RWH:jb 99ARL-13 BANKS COUNTY BOARD OF EDUCATION EXHIBIT "A" DEBT SERVICE FUND FIDUCIARY FUND TYPE AGENCY FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30,1999 JUNE 30, 1998 $ 544,130.75 $ 6,946.31 $ 1,610,809.31 $ 504,360.81 1,517,000.00 1,517,000.00 4,851,057.62 328,385.61 1,245,845.23 1,775,339.97 2,795.00 $ 2,389,516.36 18,338.59 2,221.36 2,389,516.36 16,756.22 1,735.00 1,100,627.46 4,665,483.64 162,771.19 4,665,483.64 162,771.19 6,189,372.54 75,870.88 $ 2,389,516.36 $ 6,946.31 $ 7,217,771.19 $ 11,614,780.68 $ 14,515,120.50 $ 214,215.53 $ 491,716.94 88,087.72 78,400.36 1,026.77 405,323.98 656,575.63 495,600.00 439,197.60 $ 6,946.31 6,946.31 6,500.38 $ 162,771.19 162,771.19 75,870.88 7,055,000.00 7,055,000.00 7,290,000.00 $ 6,946.31 $ 7,217,771.19 $ 8,428,971.50 $ 9,038,261.79 $ 2,389,516.36 0.00 $ $ 2,389,516.36 $ $ 2,389,516.36 $ $ 2,389,516.36 $ 1,100,627.46 18,338.59 2,221.36 16,756.22 1,735.00 3,078,232.98 10,230.62 4,661.95 0.00 765,502.25 1,274,845.10 0.00 $ 3,185,809.18 $ 5,476,858.71 6,946.31 $ 7,217,771.19 $ 11,614,780.68 $ 14,515,120.50 -3- BANKS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1999 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 Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Capital Leases 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 $ 7,266,535.64 $ 119.61 3,286,746.65 218,658.25 $ 10,772,060.15 $ 119,180.80 1,032,922.99 253,080.79 1.405,184.58 $ 7,013,896.40 $ 433,998.55 224,528.36 309,833.83 213,853.45 569,705.89 103,085.35 751,320.59 688,169.28 11,641.00 117,845.25 56,686.80 139,295.00 6,471.69 8,891.83 $ 10,649,223.27 $ $ 122,836.88 $ 512,110.32 14,885.87 33,732.46 6,382.17 10,240.02 37,048.00 1,027,223.80 1,641,622.64 -236.438.06 $ 93,372.00 $ -521,090.23 $ -427,718.23 $ 37,545.23 37,545.23 $ -304,881.35 $ -198,892.83 937,896.06 360,102.21 1,582.37 486.36 FUND BALANCE JUNE 30 $ The notes to the general purpose financial statements are an integral part of this statement. -4- 633,014.71 $ 1.6.3-.r;.,2.7.8.'.;,;,,1.1 . EXHIBIT"B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 1999 JUNE 30, 1998 $ 1,728,900.27 $ 9,114,616.71 $ 8,235,995.77 1,033,042.60 951,989.23 $ 1,835,567.12 5,122,313.77 4,842,548.86 179,623.78 68,641.78 720,004.60 741,542.18 $ 1,908,524.05 $ 1,904,208.90 $ 15,989,977.68 $ 14,772,076.04 $ 5,470,302.03 $ $ 5,470,302.03 $ $ -3,561 ,777.98 $ $ 7,526,006.72 $ 6,401,222.94 448,884.42 258,260.82 316,216.00 224,093.47 569,705.89 103,085.35 751,320.59 688,169.28 11,641.00 154,893.25 1,027,223.80 56,686.80 5,609,597.03 417,167.87 235,107.39 286,169.58 242,457.55 518,393.47 53,426.71 723,123.50 636,970.05 11,083.80 53,875.87 744,627.34 49,885.65 5,902,422.73 235,000.00 380,320.00 241,471.69 389,211.83 260,319.69 497,809.93 615,320.00 $ 18,376,467.94 $ 17,034,064.07 1,288,888.90 $ -2,386,490.26 $ -2,261,988.03 $ 483,545.00 $ 483,545.00 $ 93,372.00 $ 77,936.95 521,09023 349,444.74 -521,090.23 -349,444.74 $ 93,372.00 $ 77,936.95 $ -3,078,232.98 $ 3,078,232.98 1,288,888.90 $ 1,100,627.46 -2,293,118.26 $ 5,476,858.71 -2,184,051.08 7,655,99226 1,582.37 486.36 4,897.46 20.07 $ 0.00 $ 2,389,516.36 $ 3,185,809.18 $ 5,476,858.71 -5- BANKS 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 30,1999 EXHIBIT'C' GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes Other Funds $ 6,433,469.00 $ 7,266,535.64 119.61 3,140,791.00 3,286,746.65 63,946.00 218,658.25 Total Revenues $ 9,638,206.00 $ 10,772,060.15 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 $ 6,472,453.00 $ 7,013,896.40 430,880.00 230,042.00 323,616.00 209,818.00 584,115,00 116,832.00 794,637.00 669,623.00 11,641.00 21,506.00 433,998.55 224,528,36 309,833.83 213,853.45 569,705.89 103,085.35 751,320.59 688,169.28 11,641.00 117.845.25 509,757.00 56,686.80 139.295.00 15,363,52 Total Expenditures $ 10,374,920.00 $ 10,649,223.27 Excess of Revenues over (under) Expenditures $ -736,714.00 $ 122,836.88 OTHER FINANCING SOURCES (USES) Other Sources Other Uses $ 93.372.00 -521,090,23 Total Other Financing Sources (Uses) $ -427,718.23 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -736,714.00 $ -304,881.35 FUND BALANCE JULY 1.1998 747,730.81 937.896.06 Adjustments 5.52 Food Inventory - Net Change in Period Donated Commodities Purchased Food SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 43,590,00 $ 119,180.80 978,879.00 1,032,922.99 268,325.00 253,080.79 $ 1,290,794.00 $ 1,405,184.58 $ 445,048.00 $ 512,110.32 13,600,00 29,492.00 20,254.00 14,885.87 33,732.46 6,382.17 10,240,02 1,000,00 1,061,315.00 37,048.00 1,027,223.80 $ 1,570,709,00 $ 1,641,622.64 $ -279,915.00 $ -236,438.06 $ 37.545.23 $ 37.545.23 $ -279.915.00 $ -198.892.83 351,165.28 360,102.21 1,582.37 486.36 FUND BALANCE JUNE 30, 1999 $ 11,022.33 $ __6..3.3.,.,0.1..4...7..1... $ 71 .25028 $ _ _1-.63,..2.7.-8.1..1.. The notes to the general purpose financial statements are an Integral part of this statement -6- BANKS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 3D. 1999 Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Banks County Board of Education (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. 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 ofpurchase. 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 ofthe 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 ofeducation. SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 ofEducation and from the Federal government to accomplish specific educational objectives. -7- BANKS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1999 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. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, generallong-tenn 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 and capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds .present increases (i.e., revenues and other financing sources) and decreases (Le., 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 of operations. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (Le., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe 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. -8- BANKS COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. BUDGET The Banks 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 ofthe 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 ofgeneral 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 ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Departni.ent ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year:end. -9- BANKS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1999 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 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 COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) 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 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation ofthe UnitedStates 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 ofother political subdivisions ofthe State ofGeorgia. 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 -10 - BANKS COUNTy BOARD OF EDUCATION EXHillIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS . JUNE 30. 1999 Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES 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 Banks County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 22, 1998 (levy date). Taxes were due on January 20, 1999. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Banks County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. The tax millage rate levied for the 1998 tax year (calendar year) for the Banks County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 10.4 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,835,567.12 and was recorded in the Debt Service Fund. The State will tenninate collection ofthis tax once an additional $7,005,844.25 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 as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. PREPAID ITEMS Payments made to vendors for services that will benefit periods subsequent to June 30, 1999, are recorded as prepaid items. -11 - BANKS COUNTy BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by. surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of anyone ofor any combination ofthe 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, - 12- BANKS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 2: DEPOSITS (3) Bonds, bills, notes, certificates ofindebtedness 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 ofthe 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 ofthe 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, 1999, the bank balances were $4,209,451.05. The amounts of the total bank balances are classified into three categories of credit risk: . Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name, 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, 1999, as follows: Risk Categmy Bank Balance 1 $ 644,130.75 2 3,565,320.30 3 0.00 Total $ 4.209.451.05 -13 - BANKS COUNTy BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1999 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 loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to these risks in the past three years. The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compenSation during the past two fiscal years. 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 ofworkers' compensation self-insurance for its member organizations. The Board pays an annual 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 coveragefor 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: Position Covered Amount Superintendent Each Principal Financial Officer $ 25,000.00 $ 5,000.00 $ 5,000.00 -14 - BANKS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Banks County Board of Education has entered into various lease agreements as lessee for football stadium lights and office equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1996 4.30% - 7.00% $ 7,055,000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows: Capital Leases General Obligation Bonds Total Balance July 1, 1998 $ 75,870.88 $ 7,290,000.00 $ 7,365,870,88 Additions Capital Leases 93,372.00 93,372.00 Deductions Payments Debt Retired 6,471.69 235,000.00 6,471.69 235,000.00 Balance June 30, 1999 $==".162,771,1,2 $ 7,055.000.00 $ 7,217,771.12 At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows: -15 - BANKS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 5: GENERAL LONG-TERM DEBT Fiscal Year Ended June 30 Capital Leases General Obligation Bonds Total Debt 2000 2001 2002 2003 2004 2005 - 2009 2010 - 2014 2015 - 2017 $ 44,641.97 $ 608,870.00 $ 653,511.97 42,602.07 606,720.00 649,322.07 41,757.45 599,820.00 641,577.45 41,757.45 603,210.00 644,967.45 29,668.45 600,670.00 630,338.45 3,033,170.00 3,033,170.00 3,091,537.50 3,091,537.50 1,887.437.50 1,887.437.50 Total Principal and Interest $ 200,427.39 $11.031.435.00 $11.231,862.39 Deduct: hnputed Interest 37,656.20 Net Present Value ofFuture Minimum Lease Payments $ J62,771.12 Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of$166,347.20 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$117,020.26 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $11 ,395,94 Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $37,931.00 -16 - BANKS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS ruNE 30. 1999 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1999, together with funding available: Project Unearned Executed Contracts Funding Available From State 98/97S-606-055/New High School $ 854.790.56 $ 204.256.73 The amounts described in this note are not reflected in the general purpose financial statements. Note 8: 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 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 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% oftheir 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 actuaty. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year 1999 1998 1997 Percentage Contributed 100% 100% 100% Required' Contribution $ 726,947.29 $ 637,622.96 $ 577,741.29 - 17- ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets BANKS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1999 SCHOOL FOOD SERVICES FUND $ 199,019,57 LOTTERY PROGRAMS 4,018,13 $ 315,00 18,338,59 2,221,36 $ 223,597,65 $ 31_.5.,.0..0. Total Liabilities and Fund Equity ---- $ 223,597.65 $ 3.1..5.....0..0.... See notes to the general purpose financial statements. -18 - EXHIBIT"E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30,1999 JUNE 30,1998 $ 50,799.43 $ 0.00 $ 249,819.00 $ 46,503.50 291,195.32 7,006.06 11,339.19 185,120.70 18,338.59 2,221.36 16,756.22 1,735.00 $ 57,805.49 $ 0.00 $ 281,718.14 $ 541,310.74 $ 14,286.10 42,492.62 1,026.77 $ 57,805.49 $ 315.00 $ 14,612.91 29,010.54 90,140.26 88,087.72 76,455.36 1,026.77 $ 118,440.03 $ 181,208.53 $ 0.00 $ $ 0.00 $ $ 57,805.49 $ $ 0,;;..;.0..0. "0.00 $ 18,338.59 $ 2,221.36 142,718.16 163,278.11 $ 16,756.22 1,735.00 341,610.99 360,102.21 0.00 $ 281,718.14 $ 541,310.74 -19 - BANKS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1999 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 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 D~:mated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 50,662.00 $ 524,588.18 253,080.79 $ 828,330.97 $ 45,422.80 45,422.80 $ 45,177.77 315.00 $ 1,027,223.80 $ 1,027,223.80 $ $ -198,892.83 $ 45,492.77 -69,97 $ -198,892.83 $ 360,102.21 1,582.37 486.36 69.97 0.00 0.00 FUND BALANCE JUNE 30 $ 163,278.11 $ 0...0..0.. See notes to the general purpose financial statements. -20- EXHIBIT"F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30,1999 JUNE 30,1998 $ $ 508,334.81 $ 508,334.81 $ 23,096.00 $ 119,180.80 $ 1,032,922.99 253,080.79 101,811.00 951,760.95 247,738.78 '23,096.00 $ 1,405,184.58 $ 1,301,310.73 $ 443,836.55 $ 14,885.87 33,417.46 6,382.17 10,240.02 37,048.00 $ 545,810.07 $ $ -37,475.26 $ 23,096.00 $ 512,110.32 $ 476,994.32 14,885.87 33,732.46 6,382.17 10,240.02 37,048.00 1,027,223.80 13,277.99 26,844.00 16,991.63 28,846.40 744,627.34 23,096.00 $ 1,641,622.64 $ 1,307,581.68 0.00 $ -236,438.06 $ -6,270.95 37,475.26 $ 0.00 $ 0.00 37,545.23 49,444.74 0.00 $ 0.00 -198,892.83 $ 360,102.21 43,173.79 312,010.89 1,582.37 486.36 4,897.46 20.07 $ 0.00 $ 0.00 $ 163,278.11 $ 360,102.21 21 - BANKS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30.1999 EXHIBIT"G" ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION TOTALS JUNE 3D, 1999 JUNE 3D, 1998 $ 0.00 $ 113,190.11 $ 113,190.11 $ 214,226.21 2,884,380.80 787,733.87 787,733.87 1,075,399.20 $ 0.00 $ 900,923.98 $ 900,923.98 $ 4,174,006.21 LIABILITIES AND FUND EQUITY LIABILITIES Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated $ Total Fund Equity $ Total Liabilities and Fund Equity $ $ 405,323.98 $ 405,323.98 $ 656,575.63 495,600.00 495,600.00 439,197.60 $ 900,923.98 $ 900,923.98 $ 1,095,773.23 0.00 $ 0.00 $ 0.00 $ 0.00 $ $ 3,078,232.98 0.00 0.00 0.00 $ 3,078,232.98 0.00 $ 900,923.98 $ 900,923.98 $ 4,174,006.21 See notes to the general purpose financial statements. -22- BANKS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30.1999 EXHIBIT"H" FUND BALANCE JUNE 30 $ 0.00 $ 0.00 $ .........._ ...0=..0..0.... $ 3,078,232.98 See notes to the general purpose financial statements. -23- BANKS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30,1999 EXHIBIT "I" PUBLIC LIBRARY FUND ASSETS Cash and Cash Equivalents BALANCE JULY 1,1998 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 1999 $ 6,500.38 $ 40,082.77 $ 39,636.84 $ ======6=,9=4=6.:=31== LIABILITIES Funds Held for Others $ 6,500.38 $ 40,082.77 $ 39,636.84 $ ======6=,9=4=6.=:31== See notes to the general purpose financial statements. -24 - BANKS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30,1999 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 1999 Grant National School Lunch Program 1999 Grant * 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) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds 10.550 10.665 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 AowThrough 1999 Grant Preschool 1999 Grant Capacity Building Improvement Grant 1999 Grant 84.027 84.173 84.173 Total Special Education Cluster Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary EduCation Act Tille I Grants to Local Educational Agencies 1999 Grant Tille II Eisenhower Professional Development 1999 Grant Tille VI Innovative Education Program Strategies 1999 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant 84.010 84.281 84.298 84.048 84.243 Total U. S. Department of Education PASSTHROUGH ENTITY 10 NUMBER N/A $ N/A $ N/A N/A $ NlA $ NlA NlA $ NlA NlA NlA NlA NlA $ FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 135,143.25 331,047.78 $ 466,191,03 $ (2) 968,826,65 (3) 968,826.65 58,397.15 119.61 524,707.79 $ 58,397.15 (4) 1,027,223.80 116,348.02 $ 13,492.00 1,720.48 131,560.50 $ 116,348.02 13,492.00 1,720.48 131,560.50 263,950.83 13,491.48 11,052.00 263,950.83 13,491.48 11,052.00 51,280.00 37,000.00 508,334.81 $ 74,304.83 (3) 37,000.00 531,359.64 Total Federal Financial Assistance = NlA Not Available -25- $ 1,033,042.60 $ 1,558,583.44 BANKS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 3D. 1999 Notes to the Schedule of Expenditures of 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 1999 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Funds earned on this program do not require reporting of expenditures. 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 Banks County Board of Education and is presented on the modified accrual basis of accounting which is the the basis of accounting used in the presentation of the general purpose financial statements. See,notes to the general purpose financial statements. -26- BANKS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1999 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 Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Student Records Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Georgia State Financing and Investment Commission Reimbursement on Construction Projects Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Education, Georgia Department of Reading First Program Grades K-3 GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 4,460,706.00 710,520.00 98,333.00 189,125.00 52,519.00 1,225,194.00 350,549.00 81,272.00 153,292.00 54,819.00 85,616.00 304,604.00 19,660.00 28,842.00 -1,427,147.00 69,460.00 $ 531,057.18 5,730.66 117,020.26 5,000.00 4,575.42 66,000.00 25,801.00 3,137.68 1,522.50 11,395.94 50,662.00 5,062.80 40,360.00 $ 4,460,706.00 710,520.00 98,333.00 189,125.00 52,519.00 1,225,194.00 350,549.00 81,272.00 153,292.00 54,819.00 85,616.00 304,604.00 19,660.00 28,842.00 -1,427,147.00 69,460.00 50,662.00 531,057.18 5,730.66 117,020.26 5,000.00 4,575.42 66,000.00 25,801.00 3,137.68 1,522.50 11,395.94 5,062.80 40,360.00 37,931.00 $ 1,728,900.27 1,728,900.27 37,931.00 23,096.00 23,096.00 $ 7,266,535.64 $ 119,180.80 $ 1,728,900.27 $ 9,114,616.71 See notes to the general purpose financial statements. -27- BANKS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 3D, 1999 SCHEDULE "3" (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 Banks 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. -28- BANKS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE 30,1999 SCHEDULE "4" EXPENDITURES Current Instruction Support Services Improvement of Instructional Services ASSISTIVE TECHNOLOGY COMPUTERS IN THE CLASSROOM TOTAL $ 4,747.80 $ 40,429.97 $ 45,177.77 315.00 315.00 Total Expenditures $ 5,062.80 $ 40,429.97 $ ===45:::::,4=9=2=,7=7 See notes to the general purpose financial statements. -29- BANKS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30.1999 SCHEDULE "5" 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 $ 5,728,288.00 $ 1:...:::8..:.!1,~74.:.::5..:.::.0~0 $ 5,545,531.91 477,999.05 $ _ _...::4::.::::3.:...z7,~36:.:::3:.:.:::.3~9 $ 6,023,530.96 -110,844.97 $ _ _....:::5~,9~12::..!.,6:::.::8:::::5.:.:::.9~9 $ 0.00 $=====0='0=0 See notes to the general purpose financial statements. - 31 - BANKS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten C*) Grades 1 - 3 C*) Sub-Total K-3 Grades 4 - 5 C*) Grades 6 8 C*) Grades 9 - 12 C*) High School LaboratoriesC*) Vocational Education Laboratories C*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category I C*) Category II (*) Category 11/ C*) Category IV C*) Sub-Total - Regular Category VI CGifted) C*) Total Special Education Programs REMEDIAL EDUCATION PROGRAM C> Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS salaries Operations Total Media center Programs ORIGINAL ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED % ORIGINAL MID-TERM $ 550.592.00 1.275.467.00 $ 1.826,059.00 586.884.00 913.982.00 524,400.00 274,651,00 334,730.00 $ 4,460.706.00 $ 495,532.80 $ 1,147,920.30 90 $ 1,643,453.10 $ 90 528,195.60 90 822,583.80 90 471.960.00 90 247.185.90 90 301,257.00 $ 4,014,635.40 $ -14,000.00 26,000.00 12,000.00 16.000.00 38,000.00 23,604.00 89,604.00 $ 670,365.00 $ 603,328.50 $ 160,000.00 $ 670.365.00 40,155.00 $ 710,520.00 $ 98,333.00 $ 5,269,559.00 90 $ 603,328.50 $ 90 36.139.50 $ 639,468.00 $ 90 $ 88,499.70 $ $ 4.742,603.10 $ 160,000.00 20.000.00 180,000.00 0.00 269.604.00 $ 149,944,00 90 $ 134,949.60 $ 0.00 39,181,00 100 39.181.00 $ 189,125.00 $ 174.130.60 $ 0.00 Total Fourteen Weighted and Media center Programs $ 5.458.684.00 $ 4.916.733.70 $ 269.604.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. see notes to the general purpose financial statements. $ 16,575.00 35,944,00 $ 16,575.00 $ 35.944.00 $ _.....5.2..5.1.9.0..0. 100 $ 52.519.00 $ 0.00 0.00 ...0..,0.0.. - 32 - SCHEDULE "6" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 481,532.80 $ 483,183.20 $ 12,155.59 $ 495,338.79 1,173,920.30 1,143,022.06 44,175.97 1,187,198.03 $ 1,655,453.10 $ 1,626,205.26 $ 56,331.56 $ 1,682,536.82 $ 0.00 544,195.60 577,377.14 24,470.64 601,847.78 0.00 860,583.80 941,523.57 5,0,883.90 992,407.47 0.00 471,960.00 641,392.87 93,334.45 734,727.32 0.00 270,789.90 264,545.29 8,853.48 273,398.77 0.00 301,257.00 332,573.73 62,582.15 395,155.88 0.00 $ 4,104,239.40 $ 4,383,617.86 $ 296,456.18 $ 4,680,074.04 $ 763,328.50 $ 4,865.54 $ 354.54 $ 5,220.08 224.939.30 2.602.91 227.542.21 . 446,708.31 133,799.74 580.508.05 19,727.91 846.55 20,574.46 $ 763,328.50 $ 696,241.06 $ 137,603.74 $ 833,844.80 0.00 56,139.50 76,423.43 1,370.53 77,793.96 0.00 $ 819,468.00 $ 772,664.49 $ 138,974.27 $ 911,638.76 $ 88,499.70 $ 129,915.25 $ 1,932.94 $ 131,848.19 0.00 $ 5.012.207.10 $ 5,286,197.60 $ 437,363.39 $ 5.723,560.99 $ 134,949.60 $ 259,334.31 $ 259,334.31 0.00 39,181.00 $ 40,635.66 40,635.66 0.00 $ 174,130.60 $ 259,334.31 $ 40,635.66 $ 299.969.97 $ 5,186,337.70 $ 5,545.531.91 $ 477,999.05 $ 6,023,530.96$ 0.00 $ 16.575.00 35,944.00 $ _.....52iiOiiliij,.5i1ii9iiii0ii.0. $ 27,416.76 $ 27.416.76 26.473.73 26.473.73 $ 53,890.49 $ 53.890.49 $ ...;;:00.0. - 33 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS RUSSELL W. HINTON STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w', Suite 214 Atlanta, Georgia 30334-8400 April 14, 2000 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members ofthe Banks County Board ofEducation 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 Banks County Board ofEducation as of and for the year ended June 30, 1999, and have issued our report thereon dated April 14, 2000. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 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 of the United States. Compliance As part of obtaining reasonable assurance about whether Banks County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, 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 of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial R.