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

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BERRIEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITIJRES 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, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL .

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

22

CAPITALPROffiCTSFUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

26

SCHEDULES

1 SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROffiCTS

31

ANALYSIS OF MINIMUM EXPENDITIJRE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

33

5

BY PROGRAM

34

BERRIEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-
SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
. ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 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 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 Berrien County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Berrien 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 Berrien 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 generaHy 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 perform 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.
2000ARL-13

* 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 impropetly 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 puqiose financial statements referred to above present fairly, in all material respects, the financial position of the Berrien County Board of Education as ofJune 30, 2000, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Governrnent Auditing Standards, we have also issued our report dated April 10, 2001, on our consideration ofthe Berrien County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and gr~nts. That report is an integral part of an audit performed in accordance with Governrnent 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 Berrien County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5),
which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-l33, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose finanCial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the 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.
2000ARL-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 ofthe State, as provided for by Official Code of Georgia Annotated Section 506-24.
Respectfully submitted,
w~-
R sell W. Hinton State Auditor
RWH:gp 2000ARL-13

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BERRIEN COUNTY BOARD OF EDUCATION

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

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$ 6,593,622,80 $ 4,947,751,24

1,218,639,97

7,716,635.65

$

211,576.95

575,909.86

660,290.03

1,228,70

3,071.75

31,708.41 10,737.42

26,080.04 11,778,33

$

9,645,000.00

7,877.32

9,645,000.00 7,877.32

10,615,000.00 142,449,27

$

211,576.95 $

9,652,877,32 $ 18,064,724.48 $ 24,123,056,31

$

211,576.95

$

$

211,576.95 $

$
7,877.32 9,645,000.00

211,576,95 $ 634,882.64 163,405,62 151,232,87 367,390.86 731,641.19
7,877.32 9,645,000.00

177,069,58 153,821.87 137,667,38
2,596.02 294,795.47
77,997.80 142,449.27 10,615,000,00

9,652,877.32 $ 11,913,007.45 $ 11,601,397.39

$

0.00

$

0.00

$

291,418.78

$

7,828,00

31,708,41 10,737.42 3,594,055.92 625,324.45 224,524.01

26,080.04 11,778.33 10,122,272.15 517,370.49 26,286.00

1,677,538,82

1,526,453.13

$ 6,171,717.03 $ 12,521,658.92

$

211,576.95 $

9,652,877,32 $ 18,064,724.48 $ 24,123,056.31

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

REVENUES

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'.

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

Enterprise Operations

Capital Outlay

Debt Service

Principal

,;

Interest

Paying Agent Fees

,,
,
,- _._---
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Total Expenditures

.-

Excess of Revenues over (under) E"Ilenditures

OTHER FINANCING SOURCES (USES)

Operating Transfers In

Operatin9.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

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Food Inventory Net Change in Period Donated Commodities Purchased Food

,
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FUND BALANCE JUNE 30

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GENERAL FUND

SPECIAL
_ J"
REVENUE
FUND

$ 12.126.789,86 $

493.783,82

29.250.00' , , 3,489,485,31

2.609.809,67

301.120,90

340.696,00

$ 15.066.970,43 $ 4.323.967,13

$ 9.796.760,68 $ 1,225.631.27

500,511,94

342.266.42

. '507.027,01 - _ . 229,462.81

310,470.46

1,967.91

340,221.43

181,161.66

939,629.44

4,167.60

104.171.34

968,407.65

29,114.90

756,964.53

5.726.42

115,781.89

151,009.17

1.442.703.26

1.102.279.43

2,066.55, .,

10.724.52

79,525.90

2.580.00

134,571.95 9.119.29

$ 14,738,301.43 $

' $ , ' , '

326.669.00 $

4.578,066.22 -254,101.09

$

$

-250.844.90

$

-250.844.90 $

43,771.90 43,771.90

$

77,824.10 $

1,324,412.11

-210,329.19 531,318.17

" $ 1,402.236.21 $

5,628.37 -1.040.91
<.
325,576.44

The notes to the general purpose financial statements are an integral part of this statement. " -4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$ 12,620,573.68 $ 12,017,256.67

3,518,735.31

2,768,727,55

$ 1,270,421.85

3,880,231.52

3,767,830.34

$

445,975.96

1,087,794.86

1,307,027.15

$

445,975.96 $ 1,270,421.85 $ 21,107,335.37 $ 19,860,841.71

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

EXHIB1T"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

Slate Funds Federal Funds
Taxes
Other Funds

$ 11,852.648.72 $ 12,126.789.86

29,250.00

2,326.027.26

2.609.809.67

136.558.97

301,120.90

Total Revenues

$ 14,315,234.95 $ 15.066,970.43

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 Enterprise Operations
Capital Outlay Debt Service

$ 9.749,486.70 $ 9.798,780.68

443.689.66 502.939.24 302.489.32 303,864.59 956,273.05 105.451.03 1,108,928.80 724,315.71 121.077.12 150.636.59

500.511.94 507,027.01 310.470.46 340.221.43 939.629.44 104,171.34 988.407,85 756,984.53 115,781.89 151,009.17

2.200.00 220,000.00

2.088.55 79,525.90 143.691.24

Total Expenditures

$ 14.691.351.81 $ 14.738,301.43

Excess of Revenues over (under) Expenditures

$ -316,116,86 $ 328,669.00

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 233.359,00 $ -250,844.90

Total Other Financing Sources (Uses) $ 233.359.00 $ 250.844.90

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-609.475.86 $

77,824.10

FUND BALANCE JULY 1 1999

1,234.891.11

1,324,412.11

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

FUND BALANCE JUNE 30 2000

$ 625.415.25 $ 1.40f236.21

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 442,891.00 $ 493,783.82

3,172.848.05

3,489.485.31

326.267.00

340,698.00

$ 3,942.006.05 $ 4,323,967.13

$ 961,780.72 $ 1,225,831.27

341.384.98 194.248.00
146.609.35

342,288.42 229.482.81
1,987.91 181,161.66
4,187.60

14,896.00

29.114.90 5.726.42

1.120,820.00 1.029,143.53

1.442.703.28 1,102.279.43
10.724.52 2,580.00

$ 3,808.882.58 $ 4,578,068.22 $ 133,123.47 $ 254.101.09

$ 43.771.90 $ 43.771.90

$ 133.123.47 $ -210,329.19

487.137.39

531,318.17

39.432.47

5,628.37 -1,040.91

$ 580,828.39 $ 325,576.44

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

BERRIEN COUNTY BOARD OF EOUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPQRTING ENTITY

The Berrien 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" TheBoard is organized as a separate legal entity arid has

the power to lc<vy taxes and issue bond);, Its,budgetjs not subject to approval by any other entity,

Accordingly, the Board is a primary government and c()nsists of all the organizations that compose

its legal'entity,'

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FUND ACCOUNTING

The Board uses funds and an account group to report on its financial position and the results of its opera~ions, . Fund accounting is designed to demonstrate legal cOlppliance 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 no! directly affect expendable available financial resources, e,- _ 'f' ,
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 c~st 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 aqcounts are reflected in these financial statements, To conform to generally accepted accounting _, ~riI1ciples, these accounts shol!!d be ~ecorded in the general purpose financial statements,

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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

government,al units, unless otherwise disclosed in these notes, Funds and the account group

preseriied'in this report are as follows: ' '

GOVERNMENTAL FUND TYPES ~ ate used to account for all or most ofa Board's educational activities, Governmental Fund Types include:

GENERAL FUND - the fund used to'accounrfor 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,

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BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note I: 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.
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 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 froin 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.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the relate.d 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
-9-

'. , BERRIEN COUNTY BOARD OFEDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES' ,

period beginning in middle August 1999 and ending in late May 2000:. Personnel contracts for this employment period specify that compensation be pai~ 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 expenditilres by the Board subsequent to June 30, 2000. Also, the State's portion of the compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to. June 30,' 2000.' Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30,1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be'recorded when
. incurred, rather than when funds are received or disbursed. T'. ' ..
BUDGET

The Berrien County Board of Education's budget is a complete financial planJor the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is rc' no statutory p,rohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds isprepared.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 iii 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.

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.' CASH AND CASHEQUIVAI:.ENTS

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r.'COMPOSITIQN OF DEPOSITS" ,( 'l:-

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Cash and cash equivalents consist ofdeposits 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 insuredState chartered building and loan associations.

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BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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-earningcontracts 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 of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(I) 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,

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

PROPERTY TAXES

The Berrien County Board of Commissioners fixed the property tax levy for the 1999 tax year . (calendar year) on November 23,1999 (levy date). Taxes were due on February 10, 2000, The lien date for property taxes was January I, 1999. Taxes collected within the current fiscal year or within

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BERRIEN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

.NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

60 days after year-end are reported as revenue in fiscal year 2000. The Berrien 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.

j' .

,,'

The tax millage rate levied for the 1999 tax year (calendar year) for.the Berrien County Board of

Education was as follows (a miIIequals $1 per.thousand dollars ofassessed value):'

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School Operations

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10.50 mills

. SALES TAXES:

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Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and

debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to

$ I ,270,42 1.85 and was recorded in the Debt Service Fund. The State will terminate collection of

this tax once an additional $6,271,836.46'has been collected or on December 31,2002, whichever

occurs
,

f.irst.

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, ..

INVENTORIES

FOOD INVENTORIES'

.'

.' i

Inventories of donated food commodities used in the preparation of meals are reported on the

Combined Balance Sheet at their Federally assigned '1alue. 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.

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PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 2000, are recorded as prepaid items.

. : GENERAL OBLIGATION.BONDS j'.

,.,.

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.

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BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45~8-I2 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 of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance, If a depository elects the pooled method (OCGA 45-8-13, I) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than I 10 percent ofthe daily pool balance. OCGA Section 45-8- I I (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:
(I -) 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,

- 13-

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT"D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS:

(4) Bonds, bills, notes, certificates of indebtedness or otherobligation's of the counties or municipalities of the State of Georgia,

. I.. '

.i:..

(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,

,

.0 ....

.

f

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the

State of Georgia, and

'). ., _. ' ,. f' t' ';

': "

.. --,

(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 Feder,!1 Intermediate Credit Bank, the

Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage

. ,.,r Association, and the Federal National MortgageAssociation. '.

,.

, '.'

.' , .

CATEGORIZATION OF DEPOSITS

At June 30, 2000, the bank balances were $8,460,404.27. The amounts ofthe total bank balances are

classified into three categories of credit risk:

' " ',.,

.. ..

Category I - Cash that is insured (e.g., Federal depository insurance) orcollateralized 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.' J,: ':', '.' ' .

.Category 3 - Uncollateraliz~d deposits. (This includes any bankbahince that is collateralized

n , . . . with securities' held 'bythe pledgingfimmcial institution, or by, its .trust

, ,',

' . 'department or agent but not in the Board's name.)

, .,

"

-,

.. ,i

:~ ... ~,~ ... .,f~

-,".

'"

. , The Board's deposits are classified by risk category at June 30, 2000, as:follows:

, '.

.1: :

,..

Risk Category

Bank Balance

. I '. " (
2 .3 . d4l

. ~ 10 ':.:11('

_it.". i

{

I.. ~,

", '. ,

$ 617,451:01 7,006,168.18 ' 836,785,08

Total
."

.: .

t _ .,.

$ 8.460.404.27
",

CATEGORIZATION OF INVESTMENTS

:AtJune 30; 2000, the carrying value of the Board's'total'investments was $1,218,639.97 which is

materially the same as fair value. This investment consisted, entirely of funds invested in the Local

Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal

Services which are not required to be categorized since the Board did not own any specific

~r_-14_

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

identifiable securities in the pool. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments, A description of the Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6, Georgia Fund I is a stable net asset value investment pool which follows Standard and Poor's criteria for AAArn rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value), Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares, Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U, S,

Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S,

Government or any of its agencies or instrumentalities, banker's acceptances and repurchase

agreements. The weighted average maturity of Georgia Fund I may not exceed 60 days, The

weighted average maturity for Georgia Fund I on June 30, 2000, was 23 days, The average

investment duration for Fund 6 on June 30, 2000, was ,80 year,

.

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for

school breakfast and lunch programs. These commodities are recorded at their Federally assigned

value, See Note 1 - Inventories

'

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation,

The Board has obtained commercial insurance for risk ofloss associated with torts, assets 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,

- 15 -

. BERRIEN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

. JUNE 30, 2000

Note 4: RISK MANAGEMENT

' .. :

.. The Board has'elected to 'self-insure for all 'losses related to natural disaster. In addition, the Board

has elected to self-insure for errors or omissions, which includes;among.other risks, risks for sexual

harassment and discrimination. .The Board hils not experiencedany.losses related to these risks in

the past three years.

,.: . . (

, .,

The Board is self-insured with regard tounemployment compensation claims, The Board accounts

for claims within the' same fund that the employee's salary and :benefits were paid.' Glaims are

accounted for with expendi~ure and liability being reported 'when it is probable that a loss .has

occurred; and the amount of that loss can be reasonably estimated..

,_, I,

i - , . ' I

.:.'~, i . ;

.Changes 'in the unemployment compensati~n claims liability during the last two fiscal years are as

follows:'

,

':"'

,

1999 ',l 2000 . . ')

. "

"$

"$

., :.~,"".'

j c.'

Beginning'.. Claims and ..

of Year
Liability ..

(,::hanges in,
'.Estimates ' ....

1.615.00 $

765.00 $

340.00' $

6) 17.07 $

,.
,
I
Claims Paid
2,040.00 4.514.58

..,.

End of Year

LiabiliJv

".

$

340.00.

$

1.942.49 .

The Board has purchased surety bonds.t,o provide additional insurance coverage as follows:

...

.

T. J J.







J '. ,

.

Pc>sition Covered

Amount
.... 'r

,

Superintendent



.' All Employees (per LOss)

... I '.~.

, .,.,... t

$ 20,000,00
$ ?,OOO,OOi

Notes: OPERATING LEASES

. " ,.

Berrien County Board of Education has entered into various leases as lessee for building space and

copiers. These leases are considered for accounting purposes to be operating leases, Lease

expenditures for the' year ended June 30, 2000, amounted to $14,747,64, Future minimum'iease

payments for these leases are as follows:

.

Year Ending

"" 2001': '

.,

.'

. :L

',' .

Note 6: GENERAL LONG-TERM DEBT

Amount
$_=>bIl..!J18<.!1,.,l,6~4

" CAPITAL LEASES" '.

' .1'

.

. _ " . ,.

',' ,

.

The BeiTienCoun~yBOlii'd'()fEducatioh has, ente~ed into v~ous leaSe agree~ents as lessee for copy'

machines and air 'conditioners,

These

lease

agreements
.

qualify

as

capital

.le'ases

for

accounting

,- 16-

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: GENERAL LONG-TERM DEBT

purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception,

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

Purpose

Interest Rates

Amount

General Government - Series 1998

4,0% - 4.4% $ 9,645,000.00

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

Capital Leases

General Obligation
Bonds

Total

BalanceJuly I, 1999

$ 142,449.27 $10,615,000.00 $10,757,449.27

Deductions Debt Retired
Balance June 30, 2000

'134.571.95

970.000,00 1.104.571.95

$ 7,877.32 $ 9.645.000.00 $ 9,652.877.32

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

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002 2003 2004 2005 2006 - 2010
Total Principal and Interest
Deduct: Imputed Interest

$ 7,986.55 $ 1,423,230.00 $ 1,431,216.55 1,427,630.00 1,427,630.00 1,434,170,00 1,434,170.00 1,443,105,00 1,443,105,00 1,454,175.00 1,454,175,00 4,431 ,455.00 4,431,455.00
$ 7,986,55 $11.613.765.00 $11.621.751.55
109.23

Net Present Value of Future Minimum Lease Payments ,'$

7877.32

- 17 -

BERRIEN COUNTY BOARD OF EOUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 7: ON-BEHALF PAYMENTS

,
"

The' Board has recognized revenues and expenditures in the amount of $274,793,14 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies,

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$220,215,64

Paid to the Teachers Retirement System of Georgia _,

For Teachers Retirement System (TRS) Employer's Cost

In the amount of $6,342,50, '..~

',' '.

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$48,235,00 '
,
Note 8:' SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available:

Project

"

Unearned' Executed Contracts

Funding Available From State

New Berrien County High School 00G/99S-6 I 0-003 ..
.

$ 2,360,544,16 502.247.19 $ 236,571.00
$ 2,862,791,35 $ 236,571 00

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

Note 9: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and

review by grantor agencies, This could result in requests for reimbursement to the grantor agency

for any' expenditures which are disallowed under grant terms, The Board believes that such

disallowances, if any, will be immaterial to its overall financial position,

,

'

The Board is a defendant in various legal proceedings pertaining to matters incidental to' the' performance of routine Board operations, The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements,

,- 18 -

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL SpATEMENTS

JUNE 30, 2000

Note 10: 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 of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS, The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary, The required employer contribution rate is 11,29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 1,180,179.40 $ 1,213,016,25 $ 1,115,688,99

- 19 -

BERRIEN COUNTY BOARD OF EDUCATION,

COMBINING BALANCE SHEET

1"

SPECIAL REVENUE FUND

JUNE 30, 2000

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

"

. Total Assets " -

.,

-" "

r

.2
"
,
;
"

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

-
SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ ,3,30,048,73 $
,

, 40,823,60

3,552,85

,

,)" ..'1
y
;..

.
,- 31,708.41
10,737.42

~

.d
I"~.

$

376,047.41 $

40,823.60

,,

"

,- ,

.,

$

3,585.01 $

11,376.82

46,885.96

29,446.78

$

50,470,97 $

40,823.60

$

31,708.41

10,737.42

283,130.61 $

0.00

$

325,576.44 $

0,00

Total Liabilities and Fund Equity

$

376,047.41 $ =~.;4:.::0:.;;,8:::;2~3.~60~

See notes to the general purpose financial statements. 1,- 20

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

680,040.88

$ 1,050,913.21 $

536,933.02

157,310.63 $

6,834.00

167,697.48

123,536.12

31,708.41 10,737.42

26,080.04 11,778.33

$

837,351.51 $

6,834.00 $ 1,261,056.52 $ =~6:=;:98~,3~2;;,7;;;:.5~1

$

$

609,809.52

77,172.88

150,369.11

$

837,351.51 $

6,834.00 $ 6,834.00 $

6,834.00 624,771.35 $ 153,505.62 150,369.11
935,480.08 $

32,445.94 131,967.38
2,596.02
167,009.34

$

291,418.78

$

31,708.41

10,737.42

26,080.04 11,778.33

$

0.00 $

0.00

283,130.61

202,041.02

$

0.00 $

0.00 $

325,576.44 $

531,318.17

$

837,351.51 $

6,834.00 $ 1,261,056.52 $ =~6:;::98~,3~2;;,7;;;:.5~1

,,21 "

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

-

REVENUES

i~

State Funds Federal Funds Other Funds

. Total Revenues , EXPENDITURES

Current Instruction

.o,r

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Maintenance and Operation of Plant

Student Transportation Services

Other Support Services

Food Services Operation'

Enterprise Operations

Capital Outlay

Total Expenditures

\'
.. "

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES

Operating Transfers In

Excess of Revenues and Other Financing Sources ;~ .,. 1 over (under) Expenditures

FUND BALANCE JULY 1

"

Food Inventory - Net Cha.nge in, Period

c

Donated Commodities

Purchased Food

SCHOOL FOOD
SERVICES FUND

LOl7TERY ' PROGRAMS

~
'\:$ ,

79,320,00: $'. 773,918,04 340,698,00

- , 354,463,82

$ 1,193,936,04 $

354,463,82

$

$ 1,102,121.93 10,7J4,5:!.

.
$ 1,112,846,45 $

$

81,089,59 $

314,556:15 31,707,95 119,25 994,91 4,14 6,042,97 5,310,00
2,580,00 361,315,37
-6,851,55

$

81,089,59 $

239,899,39

,

"

...

5,628,37

-1,040,91

6,851,55
0,00 0,00

FUND BALANCE JUNE 30 See notes to the general purpose financial statements,
- 22-

$

325,576.44 $ ====O~,~OO;:,.

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ $ 2,715,567.27
$ 2,715,567.27 $

60,000.00 $ 60,000.00 $

493,783.82 $ 3,489,485.31
340,698.00
4,323,967.13 $

411,513.72 2,768,727.55
321 ,208.19
3,501,449.46

$

901,100.89 $

249,047.87 229,213.99
993.00 181,157.52
4,187.60 23,071.93
272.82 1,442,703.28
157.50

$ 3,031 ,906.40 $ $ -316,339.13 $

10,174.23 $ 61,532.60
149.57
143.60
72,000.00 $ -12,000.00 $

1,225,831.27 $
342,288.42 229,482.81
1,987.91 181,161.66
.4,187.60 29,114.90
5,726.42 1,442,703.28 1,102,279.43
10,724.52 2,580.00
4,578,068'.22 $
-254,101.09 $

949,195.28
271,932.13 174,097.42
189,434.02 639.03
22,833.35 691.82
909,630.84 1,097,000.28
3,615,454.17
-114,004.71

24,920.35
$ -291,418.78 $ 291,418.78 .

12,000.00

43,771.90

0.00 $ 0.00

-210,329.19 $ 531,318.17

-114,004.71 641,477.88

5,628.37 -1,040.91

5,282.04 -1-.437.04

$

0.00 $

0.00 $

325,576.44 $ _....:5~3.l.l1,311il8~.lb7

-23-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

I.
-'--".,;.

. BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$ 4,003,643.98 $

99,523.06

692,838.58 3,048.04

.5,25,801.39

Total Assets

\
LIABILITIES AND FUND EQUITY

LIABILITIES

,....

Cash Overdraft

..

Accounts Payable

Contracts Payable

Retainages Payable

Total Liabilities

Ii',
r

FUND EQUITY

Fund Balances

Reserved

For Purposes of Bond Issue

'c

For SPLOST Projects

For State Capital OuUay Projects

Unreserved

Undesignated

Total Fund Equity

Total Liabilities and Fund Equity

$ 4,699.530.60 $

625,324.45

"

. ,. I,"'.

$

, 6,442.63.
367,390.86 .

731,641.19'

>-
$ 1,105,474.68

$ . 3,594,055.92 $

625,324.45

0.00' $ 3,594,055.92 $

0.00 625,324.45

$ 4,699,530.60 $ ~~6~2;:,5,~32:;;4:;;.4~5~

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

EXHIBIT"G"

LOTIERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

224,524.01 $ 4,327,691.05 $ 3,296,412.93

1,218,639.97

7,716,635.65

3,048.04

71,257.03

$

224,524.01 $ 5,549,379,06 $ 11,084,305.61

$

$

6,442.63

367,390,86

731,641.19

$ 1,105,474.68 $

45,583,70
294,795,47 77,997,80
418,376.97

$ 3,594,055,92 $ 10,122,272,15

625,324.45

517,370.49

$

224,524.01

224,524.01

26,286,00

0.00

0.00

0,00

$

224,524.01 $ 4,443,904.38 $ 10,665,928.64

$

224,524,01 $ 5,549,379.06 $ 11,084,305,61

.. 25 ..

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

REVENUES
Other Funds
EXPENDITURES
Current Support Services Business Administration'
Capital Outlay Land and Land Improvements Building and Building Improvements

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION ,SALES TAX

,, .'

$

'414,793,85 $

31,182,11

_. -- - _. .

$

3,175,00 $

47,433,94 6,667,401,14

30,00

Total Expenditures

,$ 6,718,010,08 $

30,00

Excess of Revenues over (under) Expenditures ,;,
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out

$ 6,303,216,23 $

.
$

$
-,
225,000,00

31,152,11
225.000,00 148,198,15

Total Other Financing Sour"!'s (Uses)

$

225.000,00 $

76,801,85

Ex~ess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$ -6.528.216,23 $

107.953,96

FUND BALANCE JULY 1

10.122.272,15

517.370.49

FUND BALANCE JUNE 30

oc
' ,$,

...'\.

3.594.055,92 $

625.324.45

....

-.

See notes to the general purpose financial statements, ,"-26-

EXHIBIT "H"

LOTIERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

445,975.96 $

683,405.60

$

3,205.00 $

4,671.40

$

2,225.84

49,659.78

6,609.15

6,674,010.29

1,168,233.72

$

8,834.99 $ 6,726,875.07 $ 1,172,905.12

$

-8,834.99 $ -6,280,899.11 $ -489,499.52

$

207,073.00 $

432,073.00 $

26,286.00

373,198.15

-70,181.43

$

207,073.00 $

58,874.85 $

-43,895.43

$

198,238.01 $ 6,222,024.26 $ -533,394.95

26,286.00

10,665,928.84

11,199,323.59

$

224,524.01 $ 4,443,904.38 $ 10,665,928.84

- 27

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

-

CFDA --NUMBER

'\~ I Agriculture. U, S. Department of
Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and ~utrition Program Food Services School Breakfast Program National School lunch Program

10.553 10.555

PASSTHROUGH
ENTITY ID
NUMBER--

FEDERAL REVENUE IN PERIOD
',

EXPENDITURES IN PERIOD
,.

N/A

$ 182,798.76

C
(2)

N/A

520,543.70 $

1,042,270.87 (3)

Total Child Nutrition Cluster

$ 703,342.46 $

1,042,270.87

Other Programs PassThrough From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture

10,550
~ ~.

N/A

70,575,58 " -$ 773,918.04 $

70,575.58 1.1 12.846.45

Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs

94.004

N/A

$

5.000.00 $

5.000.00

Education, U. S. Depa~ment of

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

Grants to Local Educational Agencies

Migrant Education

Title II

Eisenhower Professional Development TiUeVI

, ..

Class Size Reduction

Innovative Education Program Str:Btegies

Goals 2000

State and Local Education Systemic Improvement

Grants

Safe and Drug-Free Schools

Stewart B. McKinney Homeless Assistance Act

Education for Homeless Children and Youth

Vocational Education Basic Grants to States.

High School Program

Basic Grant

84.010 ' 84.011_
84.281 84.340 84.298
84.276 84.186 84.196
84.048

N/A

$ 517.922.46 $

517.928.36 (3)

N/A

1.874.822.44

'2.161..730.39 (4)

N/A . -:,...,
N/A
N/~

16,000.00
80.803.00 20.864.32

20.544.98 (3)
86.792.17 (3) 20.864.32

N/A

130.949.00

136.784.61 (3)

N/A

12.382.00

13.712.44 (3)

NlA

4.333.73

4.333.73

NlA

38,960.00

38.960.00

Total U. S. Department of Education

$ 2.697,036.95 $ 3.001 ,651.00

Justice. U. S. Department of Pass-Through From Council of Juvenile Court Judges of Georgia Juvenile Accountability Incentive Block Grant Pass-Through From Georgia Children and Youth Coordinating Council S.T.A.R. Program

16.523 16.540

N/A

$

4.250.00 $

N/A

25,000:00

4.993.61 (3) 25,000.00

Total U; S. Department of Justice

$ 29.250.00 $

29.993.61

... .-28-

BERRIEN COUNTY BOARD OF EDUCATION . SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Labor, U. S. Department of Pass~Through From South Georgia Regional Development Center Job Training Partnership Act
OTHER FEDERAL ASSISTANCE
Justice. U. S. Department of Pass~ Through From Georgia Children and Youth Coordinating Council In-School Probation

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250

N/A

$ 10,187.92 $

10,512.20 (3)

16.0FA

NJA

$

3,342.40 $

14,743.20 (3)

Total Federal Financial Assistance

$ 3,518,735.31 $_.,,;;4,,",1.:.;74::.,7:,;4~6:;;.4~6

NJA = Not Available

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 andlor 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.

(4) Include Federal Assistance of $1 ,406,565.55 provided to sUbrecipients,

Major Programs are identified by an asterisk (.) in front of the CFDA number.

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

-29"

BERRIEN COUNTY BOARDOF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2000

SCHEDULE "2"

':
AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

--GRANTS
Community Affairs, Georgia Department of Local Assistance Grant

";1

$

10,000.90 $

10,000.00

-CoJuunvceilnoilfeJOuvffeennidleerCsouPTr:ot gJUradmges of Get?rgia

,'

$

750.00

750.00

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs

6,961,601.00

6,961,601.00

Special Education Programs

1,031,914.00

1,031,914.00

"

Remedial Education Program

Media Center Programs

" ,-'

472,280.00

301,802.00

,~

~72,280.00

301,802.00

Slaff Development Programs

79,357.00

79,357.00

Indirect Cost Pupil Transportation

1,890,358.00

1,890,358.00

Regular

381,085.00

381,085.00

Bus Replacement

117,672.00

117,672.00

Middle SchoOl Incentive Program

Special Instructional Assistance

,

In-School Suspension

266,962.00 249,988.00 69,420.00

266,962.00 249,988.00
69,420.00

Migrant Mid-term Adjustment Counselors Grades 4 and 5

4,103.00 '28,123.00; .

4,103.00 . 28,123.00

Technology Specialist

28,842.00

28,842.00

Local Five Mill Share

-1,203,720.00

-1,203,720.00

Educational Equalization Funding Grant Food Services Vocational Education

942,055.00, 76,683.00

. r 79,320.00

942,055.00 79,320.00 76,683.00

Other State Programs

Alternative Program At-Risk Summer School Program Health Insurance Innovative Progra'ms Mentor Teacher Program Remedial Summer School Program Teachers' Retirement

96,605.00

13,121.-32

' 220,215.64

'.. .

5,000.00

-1' -.

1,458.00

-4;954.40" C

,'.

6,342.50

96,605.00 13,121.32 220,215.64 5,000.00 1,458.00 4,964.40 6,342.50

Lottery Programs

Assistive Technology Computers in the Classroom

15,148.00 70,201.00

15,148.00 70,201.00

Human Resources, Georgia Department of Family Connection

50,000.00

50,000.00

Office of School Readiness Pre--Kindergarten Program

269,114.82

269,114.82

Office of Treasury and Fiscal Services Public School Employees Retirement

48,235.00

48,235.00

CONTRACT Education, Georgia Department of Georgia Reading Challenge

31,583.00

31 ,583.00

See notes to the general purpose financial statements.

$ 12,126,789.86 $ - 30-

493,783.82 $ 12,620,573.68

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

SCHEDULE "3"

PROJECT
Acquire, constructing and equipping one new high school facility; adding to, renovating. repairing. improving and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith; acquiring any necessary properly therefore, both real and personal; and to pay expenses incidental to accomplish the foregoing

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 11,345:000,00 $ 11,345,000,00 $ 7,166,660,08 $ 2,331,757,07

(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 cost estimate of total cost for the project, Includes all cost from project inception to completion,
(3) The voters of Berrien County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local properly taxes and/or other funds over the life of the project.

See notes to the general purpose financial statements, - 31

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

SCHEDULE "4"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

8,767,597,00 $

271,986,00

$

8,477,166.89

394,621,61 $

$

8,871,788.50

333,563.50

$

0,00 $====,;;;O~.O~O

See notes to the general purpose financial statements. - 33 -

~BERRIENCOUNTY BOARD OF EDUCATION
BY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30 2000

-~

, . GENERAL" AND CAREER EDUCATION PROGRAMS

- , Kindergarten (.)
Grades 1 - 3 (.)

;;
,.

SubTotal' K-3 .
., Grades 4 - 5 (.)

Grades 6 - 8 (.)

Grades 9 - 12 (.)

.'

High Sc~ool ~aborato~e~ (.)

Vocational Education Laboratories (.)

Total General and Career Education Programs

SPECIAL EDUCATION PROGRAMS

" RegUlar Programs

Category.! (.)

....

Category II (0)

Category III (oJ

Category IV CO)

Category V (oJ

Sub-Total- Regular

Category VI (Gifted) (0)

Total Special Education Programs

REMEDIAL EDUCATION PROGRAM (.)

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries Operations

Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

777,743.00

$

699.968.70 $

0.00

1,947,997.00

1,753,197.30

$ 2.725.740.00 90 $ 2,453.166.00 $

0.00

}38.841.00 1,613,325.00
859.290.00

90

754.956.90

C

90
90 ' .

1,451,992.50 773,361.00

298.985.00 90

269.086.50

625.420.00 90

562.878.00

$ 6.961.601.00

$ 6,265.440.90 $

0.00

$

779,448.00

$

701,503.20 $

0.00

$

779.448.00 90 $

701.503.20 $

0.00

252.466.00 90

227.219.40

$ 1.031.914.00

$

928.722.60 $

0.00

$

472.280.00 90 $

425.052.00 $

0.00

$ 8,465.795.00

$ 7.619.215.50 $

0.00

$

242.420.00 90 '$

218.178.00 $

0.00

59,382.00 100

59,382.00

$

301.802.00

$

277.560.00 $

0.00

Total Fourteen Weighted and Media Center Programs $ 8.767.597.00

$ 7.896.775.50 $

0.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (.) Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

25,774.00

53.583.00

$

25,774.00 $

53.583.00

$

79.357.00 100 $

79.357.00 $

" - 34 -

. ,.

0.00 TI.OO
0.00

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

699,968,70 $

736,534,38 $

18,970.68 $

753,505.06

1,753,197.30

1,874,905.19

55,113.93

1,730.019.12

$ 2,453,166.00 $

2,411,439.57 $

72,084.61 $ 2,483,524.18 $

0.00

754,956.90

862,467.84

40,455.33

902,923.17

0.00

1,451,992.50

1,438,877.33

53,347.63

1,492,224.96

0.00

773,381.00

838,902,43

60,024.99

898,927.42

0.00

269,086.50

481,148.38

15,738.86

496,887.24

0.00

562,878.00

543,912.02

53,582.37

597,494.39

0.00

$ 6.265.440.90 $

6,576,747.57 $

295,233.79 $ 6.871,981.36

$

701,503.20

$

39,998.87 $ 413,309.82 452,275.48
19,843.60 89,544.24

2,453.24 $ 3,668.27 10,599.14
36.03 8,467.61

42,450.11 416,978.09 482,874.62
19,679,83 98,011.85

$

701,503.20 $

1,014,770.01 $

23,224.29 $ 1,037,994.30

0.00

227,219.40

222,361.41

6,530.80

228,892.01

0.00

$

928,722.60 $ 1,237,131.42 $

29,754.89 $ 1,286,888.31

$

425,052.00 $

424.107.67 $

8,574.82 $

432,682.49

0.00

$ 7,619.215.50 $ 8,237,986.66 $

333,563.50 $ 8.571.550.16

$

218.178.00 $

239,180.23

$

239,180.23

0.00

59,382.00

$

61,058.11

61,058.11

0.00

$

277,560.00 $

239,180.23 $

61,058.11 $

300,238.34

$ 7,896.775.50 $

8,477,166.89 $

394,621.61 $ 8,871.788.50 S

0.00

$

25.774.00

53,583.00

$ ==,;,79;;"=35=7,,.0=0

$

61,983.87 $

61.963.87

17,393.13

17.393.13

$

79,357.00 $

79,357.00 $ _~====.;O~.;;::OO"

35

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. H,NTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WashinglOn Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
April 10, 200 I

Honorable Roy E. Barnes, Governor Members of the General Assembly' Members of the State Board of Education
and Superintendent and Members of the Berrien 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 Berrien County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated April 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 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 Berrien County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In plarming and performing our audit, we considered Berrien County Board of Education's internal control over financial reporting in order to determine our.auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

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over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Benien County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-61 0 1-00-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Benien 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.
- ~'~O 02,~.~ Respectfully submitted, Russell W. Hinton State Auditor
RWH:gp 2000YB-40

RUSSELL W. HINTON
STATE AUDITOR {404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W" Suite 214 Atlanta, Georgia 30334-8400
April 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 Berrien County Board of Education

REPORT ON COMPLIANCE WITH REOUIREMENTS 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 ofBerrien County Board ofEducation with the types ofcompliance

u.s. requirements described in the

Office of Management and Budget (OMB) Circular A-133

'Compliance Supplement that are applicable to each ofits major Federal programs for the year ended

June 30, 2000. Berrien County Board of Education's major Federal programs are identified in the

accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements.of

laws, regulations, contracts and grants applicable to each of its major Federal programs is the

responsibility ofBerrien County Board ofEducation's management. Our responsibility is to express

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

We conducted our audit of compliance in accordance withgenerally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States. Local Governments. and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whethernoncompliance with the types of compliance 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 Berrien County Board ofEducation'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 Berrien County Board of Education's compliance with those requirements.

2000SA-IO

In our opinion, the Berrien County Board of Education complied, in all material respects, with the requirements referred. to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Berrien 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 Berrien 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-l33.
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 oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 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 of management, members of the Berrien 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.4~ Russell W. Hinton State Auditor
RWH:gp 2000SA-IO

SECTIONill . AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

BERRIEN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIQR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIQNED CQSTS

FINDING CONTROL NUMBER AND STATUS

FS-6 IO I-98-01 FS-6 I01-98-02 FS-6 I01-99-01 FS-6 IO I-99-02 FS-61 0 I -99-03

Previously Reported Corrective Action Implemented Further.Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain GeneraIFixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-6IOI-99-03

Due to the lack ofpersonnel, the Berrien County Board ofEducation does not maintain a General Fixed Assets Account Group and in all likelihood will not do so until the Georgia Department of Education mandates this requirement.

SECTIONN FINDINGS AND QUESTIONED COSTS

BERRIEN COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's opinion on the Berrien County Board of Education'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 Berrien County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Berrien 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 Berrien County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Berrien County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .5 lOCal of OMB Circular A- 133 The Berrien County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: _ 84.010 Elementary and Secondary Education Act - Title 1- Grants to Local Educational Agencies 84.011 Elementary and Secondary Education Act - Title I - Migrant Education
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Berrien County Board of Education did not qualify as a low risk auditee as defined by _ Section .530 ofOMB Circular A-133.
- 1-

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

n FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

GENERAL FIXED ASSETS

)

Failure to Maintain 'General Fixed Assets Account Group '"i . ' " T

Reportable Condition - Material Weakness

-,

Repeated From Prior Year

Finding Control Number: FS-6101-00cOl'
.

The Berrien County Board of Education did not maintain a system-wide General Fixed Assets

Account Group within the formal accounting records as required by generally accepted accounting

principles. This condition results in the general purpose financial statements.of the Board being

incomplete and not in accordance with generally accepted and accounting principles. Appropriate

action should be taken by the Board. to establish accounting controls and procedures to provide for

maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an

inventory ofland, buildings and equipment owned by.the Board and should include, but may not be

limited to,' date acquired, acquisition,cost, estimated replacement cost, location and description.

Detailed records should be maintained of all additions and deletions to .the,General Fixed Assets

Account Group.

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ill ' FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

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No matters were reported.

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