Ben Hill County Board of Education, Fitzgerald, Georgia, report on the audit of financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

GA

AgoG



. RI
:Lio

:B 4- .

199Q-l000

00

0

00000

1776

,



BEN HILL COUNTY BOARD OF EDUCATION

FITZGERALD, GEORGIA
-

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

Russell W. Hinton State Auditor

BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS



GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINEDSTATEMENTS-OVERVffiW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

. GENERAL AND SPECIAL REVENUE FUNDS

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

-

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE ~ NONEXPENDABLE TRUST FUND
F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS



SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

I

FIDUCIARY FUND TYPES

COMBINING BALANCE SHEET



Page
2
4
7
8-
9
11
22
24
26

BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

ADDITIONAL FINANCIAL INFORMATION


1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

3

OVERALL

4

BY PROGRAM

Page
27 29 31 32

SECTIONll
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAI:, 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 III
.

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS


S

Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIO~DCOSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I FINANCIAL
-


RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Strcct, S.W.. Suitc 214 Atl:.mta, Gcorgia 30334-X400
May 10,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Ben Hill County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Ben Hill 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 Ben Hill County Board of Education'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 auditing standards generally accepted in the United States ofAmerica 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.

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:

2000ARL-13A

* 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 conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 of the Ben Hill County Board of Education as of June 30, 2000, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformiJYwith accounting principles generally accepted in the United States ofAmerica.
In accordance with Government Auditing Standards, we have also issued our report dated May 10, 2001, on our consideration of the Ben Hill County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Ben Hill County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through I) and the financial schedules (Schedules 1 through 4), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such information has been subjected to the auditing
2000ARL-13A


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 information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.
Respectfully submitted,

RWH:jb 2000ARL-l3A



Rus ell W. Hinton

State Auditor

,

-



BEN HILL COUNTY BOARD OF EDUCAnON


BEN HILL 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 Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

506,923.93 $

437,844.20 $

100,000.00

2,484,738.64

191,639.82

418,532.93

25,522.91 3,978.85

$ 3,183,302.39 $

885,878.89 $ ==1~0~0~,O~00:;:,;.0~0~

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Capital Lease Agreements 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 Endowment Corpus For Inventories Food Donated Commodities Purchased Food Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

122,557.87 $

120,940.16

1,129.59

250,494.93

936.38



$

123,687.46 $ _~37~2;.J..:,3~7..:.1.~47!.-

$

4,787.85



$

21,475.45

3,038,139.48

$ 3,059,614.93 $

25,522.91 3,978.85
479,217.81 $ 513,507.42 $

100,000.00 100,000.00

Total Liabilities and Fund Equity

$ 3,183,302.39 $

885,878.89 $ ==1;,;;0=O!:,O;;;;00~.0~0;;..

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Onl'i):-::--:-::-:~

--::JU:'7N.:'7.E=-:::":30, 2000

J UNE 3D! 1999

$

57,853.99 $

5,144.76

$. 1,107,766.88 $

677,264.94

700,000.00

3,588.21

3,188,326.85

3,153,450.15

15,966.37

626,139.12

245,387.69

25,522.91 3,978.85

20,657.48 2,716.98

$

773,820.36

773,820.36

709,553.73

$

773,820.36 $

1,716,179.64

1,716,179.64

2,025,446.27 17,187.89

8,732.97 $

2,490,000.00 $ 7,441,734.61 $ 6,851,665.13

$

1,855.66

$

243,498.03

104,783.04

251,624.52

210,906.68

936.38

18,280.27



17,187.89

$

2,490,000.00

2,490,000.00

2,735,000.00



$

2,490,000.00 $ 2,986,058.93 $ 3,088,013.54

$

773,820.36

$

2,000.00

0.00

6,732.97

$

773,820.36 $ _ _--..:::8J..:7.,.:32::..=.;97,-



$

7,952.00

$

4,787.85

14,666.00 4,787.85

773,820.36 2,000,00

709,553.73 2,000.00



25,522.91 3,978.85

20,657.48 2,716.98

21,475.45 3,624,090.26

11,253.64 2,990,063.91

$ 4,455,675.68 $ 3,763,651.59

$

773,820.36 $

8,732.97 $

2,490,000.00 $ 7,441,734.61 $ 6,851,665.13 - 3-

BEN HILL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30, 2000

GENERAL FUND

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 14,554,194.71 $
4,181,466.01 435,446.06
$ 19,171,106.78 $

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
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)

$ 12,508,752.04 $

742,660.79

445,572.36

367,566.56

495,257.96

1,473,526.17

259,658.26



1,312,392,99

697,401.86

6,608.42

274,152.28

313.76

17,187.89 1,160.18

$ 18,602,211.52 $

$

568,895.26 $

$ $ _-.:-~56~,8~9~7.~42=-

$

-56,897.42 $

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $'

511,997.84 $

FUND BALANCE JULY 1

,
2,547,617.09

Food Inventory - Net Change in Period Donated Commodities Purchased Food

GOVERNMENTAL FUND

SPECIAL REVENUE

CAPITAL PROJECTS

FUND

FUND

766,255.33 $ 2,691,838.24

100,000.00

345,150.73

3,803,244.30 $ _ _1.:.:0:.::,0.0:.:,:.;00::.:;.O~o~

2,092,652.26 $

0.00

76,152.19 150,455.43

9,354.30 43,940.65

40,427.41 55,478.50

59,824.13 1,324,140.57

3,852,425.44 $

.::.;0.c=.00, --

-49,181 .14 $ _ _.:.:10::;:0:.,:0,:,::0:.::.0':':::O~O

56,897.42
5~6~,8::..:::9~7.~42=-
7,716.28 $ 499,663.84
4,865.43 1,261.87

100,000.00 0.00

FUND BALANCE JUNE 30

$ 3,059,614.93 $ ......_,.;;;5,;,;13;,:,;.5;;,;0~7.~42;;.. $ =....",;1=00.,O_0;,;,0.;,;;,00=.

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

-4-

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only.L..)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 15,420,450.04

$ 15,420,450.04 $ 14,931,679.26

2,691,838.24

2,691,838.24

2,444,281.04

$

407,809.87

4,589,275.88

4,589,275.88

4,447,641.41

36,538.37

817,1 35. 16 $ _ _--::;3=9,..:;.95=..;..:;,88,,-

821,131.04

679,975.51

$

444,348.24 $ 23,518,699.32 $

3,995.88 $ 23,522,695.20 $ 22,503,577.22

$ 14,601,404.30 $

2,217.90 $ 14,603,622.20 $ 13,779,185.12

818,812.98 596,027.79 367,566.56 504,612.26 1,517,466.82 259,658.26 1,352,820.40 752,880.36
6,608.42 333,976.41 1,324,454.33

818,812.98

808,125.85

596,027.79

555,633.95

367,566.56

349,491.24

504,612.26

433,474.04

1,517,466.82

1,463,937.38

259,658.26

208,589.56

1,352,820.40

1,163,830.87



752,880.36

785,412.13



6,608.42

3,858.81

333,976.41

278,459.44

1,324,454.33

1,303,319.25

39,608.49

$

245,000.00

134,120.00

961.61

262,187.89 135,280.18
961.61

262,187.89 135,280.18
961.61

251,101.07 145,884.50
880.87

$

380,081.61 $ 22,834,718.57 $

2,217.90 $ 22,836,936.47 $ 21,570,792.57

$

64,266.63 $

683,980.75 $

1,777.98 $

685,758.73 $

932,784.65

$

56,897.42

-56,897.42



$

--"'0.""'00"-

$

64,266.63 $

683,980.75 $

709,553.73

3,756,834.66

4,865.43 1,261.87

$

56,897.42 $

105,612.88

-56,897.42

-105,612.88

$

-=0..:.,:0.0... $

--"'0.:.:::,00::...

1,777.98 $
3,366.78

685,758.73 $
3,760,201.44

932,784.65 2,823,643.71

4,865.43 1,261.87

4,836.86 -1 ,063.78

$

773,820.36 $ _ _4,446,942.71 $

. 5;144.76 $ _ _4,452,087.47 $ 3,760,201.44

-5-

BEN HILL 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

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 14,076,409.00 $ 14,554.194.71

3,735,000.00 199,000.00

4,181,466.01 435,446.06

Total Revenues

$ 18,010,409.00 $ 19,171,106.78

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
Debt Service



$ 12,359,426.00 $ 12.508,752.04

707,124.00 549,424.00 358,778.00 308,523.00 1,465,855.00 238.645.00 1,243,614.00 781,300.00
14.540.00 220,487.00
5.000.00

742,660.79 445,572.36 367,566.56 495,257.96 1,473,526.17 259,658.26 1,312,392.99 697,401.86
6,608.42 274,152.28
313.76 18,348.07

Total Expenditures

$ 18.252,716.00 $ 18,602,211.52

Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)

$ -242,307.00 $ _--=5""68"",""89""5"'.2::.:6:....

Other Sources Other Uses

$

-80,000.00 $ _-.,;-;:::.56:::..,:::;89::.:7~.4;:.:2:....

Total Other Financing Sources (Uses)

$

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $

-80,000. 00 $ _ _-""56"",""89"'7..:;.4""2:....

-322,307.00 $

511,997.84

FUND BALANCE JULY 1, 1999

2,464,900.32

2.547.617.09

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

-12,015.67

FUND BALANCE JUNE 30. 2000

$ 2,130,577.65 $ 3,059,614.93


SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

96,356.00 $

766.255.33

2,556,624.00

2,691,838.24

370,387.00

345,150.73

$ 3,023,367.00 $ 3,803,244.30

$ 1,896,516.88 $ 2.092,652.26

121,792.00 176,575.00

76,152.19 150,455.43

36,462.00 44,553.00

9,354.30 43,940.65

24,606.00 53,299.00

40,427.41 55,478.50

56,453.00 1,328,269.00

59,824.13 1.324,140.57

$ 3,738,525.88 $ 3.852,425.44 $ -715,158.88 $ _ _-4-,-9"",..:;18:;.1;..:.'1,,-4:....

$

56,897.42

$ -'-_""56"",""89"'7"".4""2:....

$

-715,158.88 $


7,716.28

501,603.01

499,663.84

-14,412.84

4,865.43 1,261.87

$ _ _-.:022:;,,;,71968.71 $ _ _5~1~3,507.42

The notes to the general purpose financial statements are an integral part of this statement.
-7-

BEN HILL COUNTY BOARD OF EDUCATION

EXHIBIT "0"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 2000

OPERATING REVENUES
None Recorded
OPERATING EXPENSES
None Recorded Operating Income
NONOPERATING REVENUES
Interest Earned Net Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

CUMBEE-MCCALL FUND

TOTALS

(Memorandum OnlyL.)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

0.00 $

. .::0:.:.::.0:.::,.0



$

0.00 $

0.00 $

. =.O:. : . O=.,O

$

0.00 $

0.00 $

0.00

138.06

138.06

187.47

$

138.06 $

138.06 $

187.47

3,450.15

3,450.15

3,262.68

$

3,588.21 $

3,588.21 $ ==~3;;;,;,4;;;,;5~0;;.;.1~5

-






The notes to the general purpose financial statements are an integral part of this statement. -8-

BEN HILL COUNTY BOARD OF EDUCATION

EXHIBIT "E"



STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30. 2000

Cash Flows from Operating Activities:

Net Cash Provided (Used) by Operating

Activities

$



Cash Flows from Investing Activities:

Purchase/Sale of Investments (Net)

$

Interest Received on Investments

Net Increase (Decrease) in Cash

$

Cash and Cash Equivalents - July 1

$

CUMBEEMCCALL
FUND

TOTALS

(Memorandum Only.L)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

0.00 $
3,450.15 $
138.06
3,588.21 $ 0.00 $

0.00 $

-=0..:.,::.0=0

3,450.15 $
138.06

-3,450.15 187.47

3,588.21 $ _ _---.,;-3:;.,t;.2=6=2..:.,::.6=8

0.00 $ _ _---=3::..!:,2=.:6::=2..:..::.6=8

Cash and Cash Equivalents - June 30

$

3,588.21 $

3,588.21 $ =====O...O.=::O


-


The notes to the general purpose financial statements are an integral part of this statement.
-9-

BEN HILL COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
,
REPORTING ENTITY
The Ben Hill 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.

- 11 -

BEN HILL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 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:

NONEXPENDABLETRUSTFUND
Cumbee-McCall Fund - the fund used to account for an endowment ofwhich the corpus is to be
invested and preserved intact with the resultant income to be used for the purpose of providing
for the care and support of underprivileged children.

EXPENDABLE TRUST FUND Fitzgerald High School College Preparatory Fund - the fund used to account for income distributed by the Trustee and used to provide for expenditures pursuant to recommendations of an advisory committee.





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 and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements 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.

- 12-

BEN HILL COUNfY BOARD OF EDUCATION

E' .. IBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

All nonexpendab1e trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.

Governmental and expendable trust funds are accounted for using the modified accrual basis of

accounting under which:

.

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income.

Expenditures are generally recognized when the related fund liability is incurred.

A departure from the above definitions is the accounting treatment afforded the final two 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 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day . period beginning in early August 1999 and ending in late May 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, tlie similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

BUDGET

The Ben Hill County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all

- 13-

BEN HILL COUNfY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
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.
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 AI1notated 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 of return 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 of the United States government,
(5) Prime banker's acceptances,

- 14-

BEN HILL COUNTY BOARD OF EDUCAnON

EXHIDIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
,
PROPERTY TAXES

The Ben Hill County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 14, 1999 (levy date). Taxes were due on December 20, 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 Ben Hill 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.

Tax millage rates levied for the 1999 tax year (calendar year) for the Ben Hill County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

17.0 mifis
1.5 mills

18.5 mills

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 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.

- 15 -

BEN HILL COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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 ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows 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 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 ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa 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:

- 16-

BEN HILL COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS
(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 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, 2000, the bank balances were $6,019,445.47. The amounts ofthe total bank balancesare

classified into three categories of credit risk:
Catego.ry 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. -
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 2000, as follows:


- 17 -

BEN HILL COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

Risk Category

Bank Balance

1

$ 357,849.14

2

5,661,596.33

3

0.00

Total

$ 6,019,445.47

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; unemployment compensation and dental coverage.

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. 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 loss related to natural disaster. The Board has not experienced any loss related to this risk 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 of that loss can be reasonably estimated.

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


Beginning of Year Liability_

Claims and Changes in Estimates

Claims Paid

End ofYear Liability_

1999 2000

$ 4,928.00 $

0.00 $ 4,928.00 $

. "O. :.: .O=.O

$

0.00 $ 2,415.00 $ 2,415.00 $_ _---"O:..:.::.O=.O

- 18-

BEN HILL COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for dental coverage ofits employees and their dependents. Estimated claims are budgeted by management based on known claims and prior experience. The employees contribute a premium to the program and the Board funds any deficits.

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


Beginning
of Year
Liability_

Claims and Changes in Estimates

Claims Paid

End ofYear
Liability_

1999 2000

$

0.00 $ 96,950.65 $ 96,950.65 $,

~O~.O~O

$

0.00 $ 90,462.75 $ 90,462.75 $,_ _~O~.O~O

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

Position Covered

Amount

Superintendent Military Property Custodian Each Principal Director ofBudget and Finance Each Lunchroom Manager and Assistant Manager Each Secretary and Bookkeeper Payroll Administrator
-
Note 5: GENERAL LONG-TERM DEBT

$ 100,000.00 $ 25,000.00 $ 10,000.00 $ 9,000.00 $ 5,000.00 $ 5,000.00 $ 4,000.00

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

_ _ _ _=P.=urp.=.os=eO-- _

Interest Rates

Amount

General Government - Series 1993

2.65% - 5.35% $ 2,490,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows:

- 19-


BEN HILL COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

EXHffiIT "F"

Note 5: GENERAL LONG-TERM DEBT

Balance July 1, 1999
Deductions Payments
Balance June 30, 2000

Capital Leases

General Obligation
Bonds

Total

$ 17,187.89 $ 2,735,000.00 $ 2,752,187.89



17,187.89

245,000.00

262,187.89

$==~O~.O~O $ 2,490,000.00 $ 2,490,000.00

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 2006 - 2010

$ 378,707.50

382,360.00

384,940.00

386,402.50



386,702.50

1,179,715.00

Total Principal and Interest
-
Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $263,114.94 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 $196,788.44

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$25,765.50


- 20-

BEN HILL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: 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 $40,561.00

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 8: 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 ac,cordance 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 of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent aGtuary. The required employer contribution rate is 1129% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 1,469,222.68 $ 1,465,339.09 $ 1,354,190.93

- 21 -

,
BEN HILL 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
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

548,512.74 $

40,777.55

7,243.97

50,437.38

25,522.91 3,978.85

$

585,258.47 $ ==...;;9=1.,.2..;.;,14,;.;.=9.3...

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances 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

$

15,005.05 $

31,972.08

61,533.85

58,319.94

922.91

$

76!538.90 $ _ _...:9~1.l::,2:..:..1.4.~:::.:93~



$

25,522.91

3,978.85

479,217.81 $

$

508,719.57 $

~O.~OO:::... .=.:O.:.::.OO~

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
- 22-

$

585,258.47 $ ===9=1~,2;.,;,1..;:4';,;;;,93~

.EXHIBIT "G"

FEDERAL PROGRAMS

OTHER PROGRAMS


TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

4,787.85 $

594,078.14 $

625,535.71

$

360,851.58

418,532.93

135,005.83

25,522.91 3,978.85

20,657.48 2,716.98

$

360,851.58 $

4,787.85 $ 1,042,112.83 $ ===78=3::!::,9=1,;;,;6.=00,,=

$

156,233.94

73,963.03

130,641.14

13.47

$ -.-==.3..6:0.,:8.=51...5=8-

$

156,233.94

120,940.16 $

57,599.72

250,494.93

210,906.68

936.38

15,745.76

$

528,605.41 $ _ _2::.:8:..:4.::,2:.=.52::..:...:.;16~



$

14,666.00

$

4,787.85 $

4,787.85

4,787.85

25,522.91 3,978.85

20,657.48 2,716.98

$

.::.;o.:=.oo~

0.00

479,217.81

456,835.53

$

0.00 .$

4,787.85 $

513,507.42 $ _ _4..;.;9;,.;9""6";.;;.6.;;;.;3.=84~

$

360,851.58 $

4,787.85 $ 1,042,112.83 $ ===78=3::!::,9=1,;;,;6.=00,,=

- 23-

BEN HILL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

REVENUES

State Funds Federal Funds Other Funds

$

101,952.00 $

664,303.33

908,508.79

334,710.73

Total Revenues

$

1,345,171.52 $ _ _6~6;...;4..1.,;,3;..;;;.0~3'..;..33,,-

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation

$

$ _ _1.;..:.,3=2=2.:..;7..,.;..89=':;;;;..24~

520,448.04
49,246.48 33,946.15
1,495.00
20,427.41 38,740.25

Total Expenditures


Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES

$ 1,322,789.24 $ _ _6=6;...;4..1.,;,3;.;;.0=3...;..33=-



$

22,382.28 $

0.00



Operating Transfers In

Excess of Revenues and Other Financing Sources over (under) Expenditures

$

22,382.28 $

0.00

FUND BALANCE JULY 1

480,209.99

0.00



Food Inventory - Net Change in Period Donated Commodities Purchased Food

4,865.43 1,261.87

FUND BALANCE JUNE 30
See notesto the general purpose financial statements. - 24-

$

508,719.57 $ =====0.=00==

EXHIBIT "H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ $ 1,783,329.45
10,440.00
$ 1,793,769.45 $

0.00 $ 0.00 $

766,255.33 $
2,691,838.24 345,150.73
3,803,244.30 $

650,698.28 2,444,281.04
322,585.84
3,417,565.16


$ 1,572,204.22 $

0.00 $ 2,092,652.26 $ 1,769,812.01

26,905.71 116,509.28
9,354.30 42,445.65
20,000.00 16,738.25 59,824.13
1,351.33

76,152.19 150,455.43
9,354.30 43,940.65
40,427.41 55,478.50 59,824.13 1,324,140.57

76,828.71 98,311.13 54,849.53
2,710.86 338.00
35,216.18 34,699.11 56,697.03 1,300,957.41

$ 1,865,332.87 $

$

-71,563.42 $

0.00 $ 0.00 $

3,852,425.44 $
-
-49,181.14 $

3,430,419.97 -12,854.81



56,897.42

56,897.42

66,004.39

$

-14,666.00 $

14,666.00

0.00 $ ".

7,716.28 $

4,787.85

499,663.84

53,149.58 442,741.18

4,865.43 1,261.87

4,836.86 -1 ,063.78

$

0.00 $

4,787.85 $

513,507.42 $ ==4...9.;",;;;9=,6=63=.=8.4...

- 25-

BEN HILL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000

EXHIBIT "I"

ASSETS

NON EXPENDABLE TRUST FUND CUMBEEMCCALL FUND

EXPENDABLE TRUST FUND FITZGERALD HIGH SCHOOL
COLLEGE PREPARATORY
FUND

TOTALS JUNE 30, 2000 JUNE 30, 1999

Cash and Cash Equivalents $
Investments

3,588.21 $


1,556.55 $
3,588.21

5,144.76 $ 3,588.21

3,366.78 3,450.15

Total Assets

$

3,588.21 $

5,144.76 $

8,732.97 $ ==,.;;;6~,8=1=6.=93~

FUND EQUITY
Fund Balances Reserved
For Endowment Corpus $
Unreserved Undesignated
Total Fund Equity $

2,000.00

$

1! 588.21 $ _ _-.:::.J5,,-=-14:.:...4~.7:...::6:..,.

3,588.21 $


5,144.76 $

2,000.00 $
6,732.97

2,000.00 4,816.93

8,732.97 $=.=~6~,8=16=.=93;;",



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

BEN HILL COUNTY BOARD OF EDUCATION

SCHEDULE QF EXPE~DITURES 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

Total Child Nutrition Cluster

10.553
10.555

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 Capacity Building Improvement Grant Flow Through Preschool

84.173 84.027 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 Georgia Technology Literacy Challenge Title VI
Innova-tive Education 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
Pass-Through From National Center for Community Education Twenty First century Community Leaming centers! After School Leaming Centers


84.010
84.281 84.318 84.298 84.340 84.276 84.186
84,048
84.287A

Total U. S. Department of Education

Health and Human Services. U. S. Department of Pass-Through From Georgia Department of Human Resources Public Health Service Act Title XIX Prevention and Treatment Block Grant

93.959

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A

$

157,715.14

(2)

N/A

679,179.67 $

1,251,175.26 (3)

$

836,894.81 $

1,251,175.26

N/A

71,613.98

71,613.98

$

908,508.79 $ _--:.;1,c:::32:::2:,,;,7:..::8~9:::,2:::..4

N/A $

2,703.47 $

N/A

195,743.59

N/A

41,347.00

$

239,794.06 $

2,703.47 195,743.59 41,347.00
239,794,06

N/A

901,595.67

901,595.67

N/A

21,987.00

36.653.00

N/A

105,849.66

105,849.66

N/A

29.833.00

29,833.00

N/A

104,818.00

104,818.00

N/A

148,455.00

148,455.00

N/A

14,066.00

14,066.00

N/A

49.544,00

49,544.00

N/A

121,505.55

131,945.55 (3)

$ 1.737,447.94 $ _ _1:..;7,:..::6:::,,2,.::::55~3~.9:::..4

N/A $

12,000,00 $

1.:,:2""0",0.:;0.,,,,00:<..

- 27-

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$

33,881.51 $

90,778.93 (3)

Total Federal Financial Assistance

N/A = Not Available

$ 2,691,838.24 $ _...;3~,1~8~8'o:.:12:;:;2;;.:.1.:.1

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 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 Subrecipienl.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Ben Hill 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.




See notes to the general purpose financial statements.

-28 -

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

GRANTS Agriculture, Georgia Department of Agriculture Facility

$

100,000.00 $

100,000.00

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

8,488,554.00 1,231,808.00
276,034.00 349,695.00
89,275.00 2,171,446.00

Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs

342,072.00 89,125.00
305,064.00 370,519.00
72,984.00 37,017.00 28,842.00 -1,185,865.00 1,241,063.00
$
33,090.00

Altemative Program Apprenticeship Program At-Risk Summer School Program Extended Year Health Insurance Mentoring Program Preschool Handicapped Program Remedial Summer School Program Special Education Low Incidence Grant Special Population Teachers' Retirement Year 2000 Project Funding Lottery Programs

57,624.00 35,000.00 20,901.98
1,000.00 196,788.44
5,900.00 48,357.00
3,727.58 17,042.00 5,761.76 25,765.50 20,154.00

Assistive Technology

Computers in the Classroom

101,952.00

15,249.88 78,401.00

8,488,554.00 1,231,808.00
276,034.00 349,695.00
89,275.00 2,171,446.00
342,072.00 89,125.00
305,064.00 370,519.00
72,984.00 37,017.00 28,842.00 -1,185,865.00 1,241,063.00 101,952.00 33,090.00
57,624.00 35,000.00 20,901.98
1,000.00 196,788.44
5,900.00 48,357.00
3,727.58 17,042.00
5,761.76 25,765.50 20,154.00

15,249.88 78,401.00

Office of School Readiness Pre-Kindergarten Program

570,652.45

570,652.45

Office of Treasury and Fiscal Services Public School Employees Retirement

40,561.00

40,561.00

CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Middle School After-School Program

90,000.00 44,888.45
-

90,000.00 44,888.45

$ 14,554,194.71 $

766,255.33 $

100,000.00 $ 15,420,450.04

See notes to the general purpose financial statements.

- 29-

BEN HILL COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment
-

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

10,346,091 .00 $ _ _-.:::..31.:...:45~,::,::3:.;:.3.:.::0.:.0

$

10,695,560.40

706,724.96 $ _ _......:;.:63::.=3:.!,,5:,:..:::5..::;6.:.=2~0

$

11,402,285.36

-12,986.78
$ _ _1:..:.1.!.3::,.::;89::.z;,2=.,:9:.:;:8.5:.:.:::,.8

$

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



See notes to the general purpose financial statements.
- 31 -


~5N HILL COUNTY BOARD OF EDUCATIQN ANALYSIS QF M!NIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
Q.ENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000

ill=NERAL AND CAREER EDUCATION PROGRAMS Kindergarten (0) 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 Category II (0) Category III (0) Category IV (0) Sub-Total - Regular Category VI (Gifted) (0) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C1
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

810,261.00

$

729,234.90 $

2,360,063.00

2,124,056.70

$ 3,170,324.00 90 $ 2,853,291.60 $

1,102,774.00 90

992,496.60

1,839,914.00 90

1,655,922.60

833,195.00 90

749,875.50

730,253.00 90

657,227.70

812,094.00 90

730,884.60

$ 8,488,554.00

$ 7,639,698.60 $

0.00 0.00
--=0:.;.:.0:.::..0

$ 1,070,238.00

$

963,214.20 $

0.00

$ 1,070,238.00 90 $

963,214.20 $

161,570.00 90

145,413.00

$ 1,231,808.00

$ 1,108,627.20 $

$

276,034.00 90 $

248,430.60 $

$ 9,996,396.00

$ 8,996,756.40 $

$

283,376.00 90 $

255,038.40 $

66,319.00 100

66,319.00

$

349,695.00

$

321 ,357.40 $

0.00
--=0:.;.:.0:.::..0 ..;;,0..;;,.0..;;,,0 ..;;,0..;;,.0..;;,,0
0.00 -=0c:.::.0;.:::.0

Total Fourteen Weighted and Media Center Programs $ 10,346,091.00

$ 9,318,113.80 $=-====,,0,;;;.0=0

STAFF DEVELOPMENT PROGRAtvlS Cost of Instruction Professional Development
Total Staff Development Programs (0) Identifies Fourteen Weighted Programs.

$

28,996.00

60,279.00

$

28,996.00 $

60,279.00

0.00

$

89,275.00 100 $

89,275.00 $=======0;;,;.0=0

See notes to the general purpose financial statements.

- 32 -

SCHEDULE "4"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

729,234.90 $

614,347.63 $

21,169.02 $

635,516.65

2,124,056.70

2,193,130.90

68,663.47

2,261,794.37

$ 2,853,291.60 $ 2,807,478.53 $

89,832.49 $ 2,897,311.02 $

0.00

992,496.60

1,279,557.25

57,257.76

1,336,815.01

0.00

1,655,922.60

1,733,698.68

110,961.01

1,844,659.69

0.00

749,875.50

895,692.23

149,370.43

1,045,062.66

0.00

657,227.70

1,186,338.25

18,606.65

1,204,944.90

0.00

730,884.60

652,475.51

137,514.80

789,990.31

0.00

$ 7,639,698.60 $ 8,555,240.45 $

563,543.14 $ 9,118,783.59

$

963,214.20

$

512,702.43 $ 669,579.18 148,372.62

20,182.35 $ 30,360.90 19,339.19

532,884.78 699,940.08 167,711.81

$

963,214.20 $ 1,330,654.23 $

69,882.44 $ 1,400,536.67

0.00

145,413.00

195,648.19

130.62

195,778.81

0.00

$ 1,108,627.20 $ 1,526,302.42 $

70,013.06 $ 1,596,315.48

$

248,430.60 $

324,504.51 $

0.00 $ _---"3""24~,;;.;50;....;4,;,,;;.5_'_1

0.00

$ 8,996,756.40 $ 10,406,047.38 $

633,556.20 $ 11,039,603.58

$

255,038.40 $

289,513.02

$

289,513.02

0.00

66,319.00

$ _ _...:7..::3;:.;,1..::6;:;8,:.:.,76;:..

73,168.76

0.00

$

321,357.40 $

289,513.02 $

73, 168.76 $ _--.::3:=62:.:.,6~8~1.:.:.7..;:..8

$ 9.318,113.80 $ 10,695,560.40 $

706,724.96 $ 11,402,285.36 $ ='=======0=.0=0

$

28,996.00

60,279.00

$ ===89;;.-,2;;,;7=5;;;;.0.0..

$

59,559.56 $

59,559.56

41,402.75

41,402.75

$

100,962.31 $

100,962.31 $ = = = = = =..0.,;;;.0.0..

33


SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS



RUSSELL W. HINTON
STATE AUDITOR
1404) 656-2174

.._...
n1 b
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-X400
May 10,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly . Members of the State Board of Education
and Superintendent and Members of the Ben Hill County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Ben Hill County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated May 10,2001. 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 auditing standards generally accepted in the United States of America 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 Ben Hill County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Ben Hill 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
2000YB-40A

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 Ben Hill 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-6091-00-0 I and FS-6091-00-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6091-0002 to be a material weakness.
This report is intended solely for the information and use ofmanagement, members ofthe Ben Hill 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,
.
w.
R sell W. Hinton
State Auditor
RWH:jb 2000YB:40A

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-X400
May 10, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly
Members of the State Board ofEducation
and
Superintendent and Members of the
Ben Hill 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 Ben Hill County Board of Education with the types of

u.s. compliance requirements described in the


Office ofManagement and Budget (OMB) Circular

A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year

ended June 30, 2000. Ben Hill 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 ofBen Hill County Board ofEducation's management. Our responsibility is to express

an opinion on Ben Hill County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, 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 Ben Hill 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 Ben Hill County Board ofEducation's compliance with those requirements.

2000SA-IOA

In our opinion, the Ben Hill County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
.
The management of Ben Hill 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 Ben Hill 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-I33.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, 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 ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members ofthe Ben Hill 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-IOA

R sell W. Hinton



State Auditor



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





BEN HILL COUNTY BOARD OF EDUCAnON 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-6091-98-01 FS-6091-98-02 FS-6091-98-03 FS-6091-98-05 FS-6091-99-01 FS-6091-99-02 FS-6091-99-03 FS-6091-99-04

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

CORRECTIVE ACTIONIRESPONSES

CASH AND CASH EQUIVALENTS EXPENDITURESILIABILITIESIDISBURSEMENTS Inadequate Separation of Duties Finding Control Number: FS-6091-99-01

Beginning May 1, 2001, once signatures have been affixed to checks, someone other than the Bookkeeper or the School Nutrition. Director will review both the claim and the payment to ensure the accuracy between them.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6091-99-04

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the formal accounting records.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6091-98-01 FA-6091-99-01

Previously Reported Corrective Action Plan Implemented Previously Reported Corrective Action Plan Implemented


SECTIONN FINDINGS AND QUESTIONED COSTS

BEN HILL 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 Ben Hill County Board ofEducation's financial statements was qualified 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 Ben Hill County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents General Fixed Assets

Expenditures/Liabilities/Disbursements


Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Ben Hill 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 Ben Hill County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. me of Report Issued on Compliance for Major Programs

The auditor's opinion on the Ben Hill 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 .5IOl]) ofOMB Circular A-133 The Ben Hill County Board of Education's audit did not disclose audit findings required to be reported by section .5 IO(a) ofOMB Circular A-133.

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 I - Grants to Local Educational

Agencies

8. .TYPe "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

- 1-


BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Ben Hill 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 EQUNALENTS EXPENDITURES/LIABLITIESIDISBURSEMENTS Inadequate Separation of Duties Reportable Condition Repeated From Prior Year Finding Control Number: FS-609l-00-0l
The Board did not provide for adequate separation ofduties in the School Food Services Fund for the performance of the following accounting functions and procedures related to cash and cash equivalents and expenditures/liabilities/disbursements: -
The processing ofpayments and subsequent review ofprocessed payments was not separated from recording payments on the accounting records.
Check signing was not separated from the processing of payments.
These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision.to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.

Management's Response:
Beginning May 1, 2001, once signature have been affixed to checks payable to school nutrition vendors, someone other than the Bookkeeper or the School Nutrition Director will review both the claim and the payment to ensure the accuracy between them.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-609l-00-02
The Ben Hill County Board of Education did not establish a General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe Board being incomplete and not
-2-

BEN HILL 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-6091-00-02 in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, 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. Management's Response: Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional staff, the Board has decided not to pursue the recording of general fixed assets on the formal accounting records. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

-3-