Bleckley County Board of Education, Cochran, Georgia, report on audit of the fiscal year ended June 30, 2000

STAlE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
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SLECKLEYCOUNTYBOARD OF EDUCATION
COCHRAN, GEORGIA
REPORT ON AUDfT OF THE FINANCIAL STATEMENTS FOR THEFISCAL YEAR ENDED JUNE30, 2000
RussellW. Hinton . State Auditor

BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

22

2 SCHEDULE OF STATE REVENUE

24

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

25

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

27

5

BY PROGRAM

28

BLECKLEY 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
February 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Bleckley 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 Bleckley 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 Bleckley 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the - Comptroller General of the United States.. Those standards require that we plan and 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 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.
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 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 Bleckley County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated February 8,2001, on our consideration of the Bleckley 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 Bleckley County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits o/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 of the general purpose financial statements and in our opinion, except for the effects of the 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 ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
-~IIU(,.... ~.4l.
Ru ell W. Hinton State Auditor
RWH:gp 2000ARL-13

BLECKLEY COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

850,721.54 $

221,238.44 $

465,299.15

234,581.42

188,511.83

159,418.19

36,807.75 10,341.76

Total Assets

$ 1,085.302.96 $

456,899.78 $ ==6=2=4=,7=1=7.=34==

Total Liabilities and Fund Equity

$ 1,085,302.96 $

456,899.78 $==6;;2;,,;4,!,;,,7,,;.17;,,;.34~

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

EXHIBIT "A"

DEBT SERVICE
FUND

$

0.00

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30,1999

$ 1,537,259.13 $ 1,002,928.69

582,511.44

306,316.45

36,807.75 10,341.76

46,387.01 13,592.12

$

1,280,000.00

423,279.51

1,280,000.00 423,279.51

1,315,000.00 349,296.07

$

0.00 $

1,703,279.51 $ 3,870,199.59 $ 3,033,520.34

$

235,715.09 $

218,067.59

194,334.49

170,201.60

$

423,279.51

423,279.51

349,296.07

1,280,000.00

1,280,000.00

1,315,000.00

$

1,703,279.51 $ 2,133,329.09 $ 2,052,565.26

$

0.00

$

0.00

$

301,516.82 $

218,548.27

25,607.72

26,293.70

599,686.75

296,604.48

36,807.75 10,341.76
762,909.70
$ 1,736,870.50 $

46,387.01 13,592.12
379,529.50
980,955.08

$

0.00 $

1,703,279.51 $ 3,870,199.59 $ 3,033,520.34

-3-

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

FUND BALANCE JUNE 30

$ 1,008,428.75 $===12=8.,;,,7=5=5.=00::;..

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

$
$ 851,244.20 $ 104,750.00 14,304.71

10,952,105.90 $ 1,467,936.95 3,057,865.01 532,108.55

10,298,392.91 1,365,575.56 2,703,988.87 510,660.53

$ 865,548.91 $ 104,750.00 $ 16,010,016.41 $ 14,878,617.87

$ 9,383,352.64 $ 8,583,190.88

$ 92,967.80 490,131.85

807,016.73 389,579.24 269,391.81 293,764.76 806,695.00
52,475.99 788,743.91 769,363.88
7,592.62 44,501.62 1,045,782.58 28,629.00 492,002.82

725,696.71 358,820.59 272,511.08 291,225.09 712,900.27 50,453.02 719,346.19 617,349.92
6,761.12 47,796.69 983,225.64 26,180.79 1,267,393.43

62,923.18 $ 35,000.00

9,411.61

69,750.00

177,865.60 101,362.21

186,045.74 107,047.44

$ 655,434.44 $ 104,750.00 $ 15,458,120.41 $ 14,955,944.60

$ 210,114.47 $

0.00 $

551,896.00 $

-77,326.73

92,967.80
$ 303,082.27 $ 296,604.48

216,849.04

43,220.08

0.00 $ 0.00

768,745.04 $ 980,955.08

-34,106.65 1,011,152.76

-9,579.26 -3,250.36

1,931.61 1,977.36

$ 599,686.75 $

0.00 $ 1,736,870.50 $ =====9=8:=01:,9=55=.0;:,;;8... -5-

BLECKLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-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

$ 9,612,730.45 $ 10,033,069,81

2,350,000.00 103,000.00

2,101,870.81 161,612.51

Total Revenues

$ 12,065,730.45 $ 12,296,553.13

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service

$ 8,127,017.27 $ 8,300,188.99

419,507.00 292,242.00 269,549.00 183,288,00 815,467.00 108,121.00 835,138.00 598,186.00
15,800.00 30,657.00
500,000.00

414,305.76 322,271.64 269,391.81 176,454,05 806,695.00
52,475.99 755,737.02 642,943.05
7,592.62 13,821.00 30,286.94 28,629.00
1,870.97 91,491.52

Total Expenditures

$ 12,194,972.27 $ 11,914,155.36

Excess of Revenues over (under) Expenditures

$ -129,241.82 $ 382,397.77

OTHER FINANCING SOURCES

Other Sources

94,434.88

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-129,241.82 $

476,832.65

FUND BALANCE JULY 1.1999

530,267.23

531,596.10

Adjustments Food Inventory Net Change in Period
Donated Commodities Purchased Food

55,960.18

FUND BALANCE JUNE 30, 2000

$ 456,985.59 $ 1,008,428.75

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 767,152.39 $ 919,036.09

1,422,791.74

1,467,936.95

351,303.00

356,191.33

$ 2,541,247.13 $ 2,743,164.37

$ 1,123,768.49 $ 1,083,163.65

412,807.00 117,626.00

392,710.97 67,307.60

126,324,00

117,310,71

40,675,39 17,070.00
32,508.00 989,482.00

33,006.89 33,453,03
30,680,62 1,015,495.64

10,651.50 $ 2,860,260.88 $ 2,783,780.61 $ -319,013.75 $ -40,616.24

29,446.36

$ -319,013.75 $ -11,169.88

154,975.66

152,754.50

-16,285.31

-9,579.26 -3,250.36

$ -180,323.40 $ 128,755.00

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

BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Bleckley 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 ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally .accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general pwpose 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 fmancial 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.

-8-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

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.
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 from available spendable resources are reported as liabilities in the governmentalfunds. 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 ofaccounting 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 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
-9-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 August 1999 and ending in July 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board beginning in September 1999 and ending in August 2000. As of June 30, 2000, compensation under these employment contracts had been earned, but one ofthe twelve monthly payments; due for July 2000, had not been made. Payments for this month were made and recorded as expenditures by theBoard subsequent to June 30, 2000. Also, the State's portion of the compensation paid in June and July 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.
BUDGET
The Bleckley County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting 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.
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
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BLECKLEY COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Bleckley County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on December 10,1999 (levy date). Taxes were due on February 10,2000. 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 Bleckley County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

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

School Operations

12.25 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $955,994.20 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $2,322,160.26 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

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

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

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BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Notel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

MEMORANDUM ONLY - TOTAL COLUMNS

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

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:

(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,

.

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BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

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

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $2,496,113.71. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

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

Risk Category

Bank Balance

1

$ 300,000.00

2

1,500,836.05

3

695,277.66

Total

$ 2.496.113.71

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

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BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIBIT liD"

NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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 errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

The Board is self-insured with regard to unemployment compensation claims. 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:

1999 2000

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

0.00 $

$

0.00 $

2,091.00 $

Claims Paid

End ofYear Liability

0.00 $

0.00

2,091.00 $

0.00

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1,1991, to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Superintendent All Employees

$ 50,000.00 $ 100,000.00

- 14-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FmANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Bleckley County Board of Education has entered into various lease agreements as lessee for energy and lighting retrofit programs, school buses, school electrical equipment and school lunchroom equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1995

4.00% - 5.75% $ 1.280,000.00

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

Ba~ance July 1, 1999
Additions Capital Leases
Deductions Payments Debt Retired
Balance June 30, 2000

Capital Leases

General Obligation
Bonds

Total

$ 349,296.07 $ 1,315,000.00 $ 1,664,296.07

216,849.04

216,849.04

142,865.60

35,000.00

142,865.60 35,000.00

$ 423,279.51 $ 1.280,000.00 $ 1.703,279.51

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

are as follows:

.

- 15 -

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 2016 - 2020

$ 221,127.57 $ 108,245.00 $ 329,372.57

144,672.49

111,505.00

256,177.49

105,280.30

114,502.50

219,782.80

117,227.50

117,227.50

124,670.00

124,670.00

622,700.00

622,700.00

655,525.00

655,525.00

132,187.50

132,187.50

Total Principal and Interest $ 471,080.36 $ 1,986,562.50 $ 2.457,642.86

Deduct: Imputed Interest

47,800.85

Net Present Value of Future Minimum Lease Payments $ 423.279.51

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $180,830.54 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 of Non-Certified Personnel In the amount of $137,439.55

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $9,406.99

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 $33,984.00

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,

- 16-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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 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%

$ 980,380.17 $ 966,218.54 $ 868,708.00

- 17 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

92,191.67 $

121,426.19

7,130.75

36,807.75 10,341.76

Total Assets

$

139,341.18 $ ==1=2:=8:!::,5:=5=:6.::::94==

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries 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
Total Liabilities and Fund Equity

$

283.42 $

46,111.96

43,853.73

82,444.98

$

44,137.15 $

128,556.94

$

36,807.75

10,341.76

48,054.52 $

$

95,204.03 $

0.00 0.00

$

139,341.18 $==1=2=8=,5::::56=.9=4=

See notes to the general purpose financial statements. - 18-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

7,620.58 $

221,238.44 $

250,089.33

181,381.08

188,511.83

108,804.84

36,807.75 10,341.76

46,387.01 13,592.12

$

189,001.66 $

456,899.78 $ ==4...1=8=,8=7==:3.=:30==

$

87,414.91 $

133,810.29 $

95,917.20

68,035.78

194,334.49

170,201.60

$

155,450.69 $

328,144.78 $ _----=2::.;:6;.;;6J,..;,1..:,.18::;.:..:::.;80::..

$

25,607.72 $

25,607.72 $

26,293.70

36,807.75 10,341.76

46,387.01 13,592.12

7,943.25

55,997.77

66,481.67

$

33,550.97 $

128,755.00 $

152,754.50

$

189,001.66 $

456,899.78 $==4=1=8:!::,8.7..=:3.:=30,,=

- 19 -

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

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

$

95,204.03 $=======,0=.0=:0,=

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

146,270.95 $

919,036.09 $

772,656.97

898,547.50

1,467,936.95

1,360,826.14

17,303.00

356,191.33

346,072.64

$ 1,062,121.45 $ 2,743,164.37 $ 2,479,555.75

$

590,793.96 $ 1,083,163.65 $

991,733.72

275,745.68 61,332.82
79,089.71
17,534.28 30,367.73

392,710.97 67,307.60
117,310.71 33,006.89 33,453.03 30,680.62 1,015,495.64

291,406.85 47,844.54 3,994.83 117,313.71 22,584.73 4,144.41 18,667.26
958,095.73

9,307.08 1,344.42

20,136.83 576.49

$ 1,054,864.18 $ 2,783,780.61 $ 2,476,499.10

$

7,257.27 $

-40,616.24 $

3,056.65

29,446.36

$

7,257.27 $

-11,169.88 $

3,056.65

26,293.70

152,754.50

145,788.88

-9,579.26 -3,250.36

1,931.61 1,977.36

$

33,550.97 $

128,755.00 $===15=:2==:,7=5=4.=50==

- 21 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
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
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture
Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant Tech-Prep Education
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553
10.555

N/A $ 136.063.32

N/A

371,539.78 $

$ 507.603.10 $

(2) 933,400.58 (4)(3)
933,400.58

10.550

N/A

61.786.35

$ 569.389.45 $

61,786.35 995,186.93

94.004

N/A

$

4,000.00 $

196.76

84.027 84.173

N/A

$ 185.505.27 $

N/A

26.686.00

$ 212,191.27 $

185.505.27 26,686.00
212.191.27

84.010
84.281 84.318 84.298 84.340
84.276
84.048 84.243

NJA

378.340.85

378,340.85

N/A

15,998.84

15,998.84

N/A

120.000.00

119,826.71

N/A

14.763.90

8.373.29

NJA

50,398.00

50,398.00

NJA

49,705.00

41.644.09

NJA

26.899.64

N/A

12,500.00

$ 880.797.50 $

26.838.70 12,498.15
866,109.90

- 22-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Family Connection

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.778

N/A

$ 13,750.00 $

188,557.52 (3)

Total Federal Financial Assistance
= N/A Not Available

$ 1,467,936.95 $ ===:2':,;;,05=0~,0~5~1.~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.
(4) Expenditures in the amount of $29,446.36 associated with the inception of a capital lease have been excluded from this schedule.

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

The Board did not provide Federal Assistance to any Subrecipient.

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

- 23-

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teachers Pay for Performance Preschool Handicapped Program Remedial Summer School Teachers'Retirement Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom
Georgia Department of Community Affairs Governor's Emergency Funds (1)
Georgia Department of Human Resources Family Connection
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Georgia's Reading Challenge

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 5,079,275.00
1,502,110.00 239,494.00 222,675.00 63,281.00
1,420,432.00

$ 5,079,275.00
1,502,110.00 239,494.00 222,675.00 63,281.00
1,420,432.00

299,797.00 96,287.00
162,211.00 122,384.00
69,950.00 21,644.00 28,842,00 -680,196.00 879,663,00
$ 68,482.00
5,900.00

299,797.00 96,287.00
162,211.00 122,384.00
69,950.00 21,644.00 28,842.00 -680,196.00 879,663.00 68,482.00
5,900.00

2,000.00 5,859.45
750.00 137,439.55
5,346.00 186,000.00
27,902.00 4,265.82 9,406.99 1,279.00

2,000.00 5,859.45
750.00 137,439.55
5,346.00 186,000.00
27,902.00 4,265.82 9,406.99 1,279.00

14,261.75 53,000.00

14,261.75 53,000.00

10,000.00

10,000.00

146,270.95

146,270.95

637,021.39

637,021.39

33,984.00

33,984.00

75,088.00

75,088.00

$ 10,033,069.81 $ 919,036.09 $ 10,952,105.90
(1) The purpose of the funds are to make improvements to the high school athletic facility.

See notes to the general purpose financial statements.

-24-

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

SCHEDULE "3"

PROJECT
Acquisition, construction and equipping of improvements at the primary, middle and high school, the central offices and the bus maintenance shop and acquisition of school buses
Payment of the principal and interest due on the $1,400,000.00 Bleckley County School District General Obligation School Bonds, Series 1995 from February 1, 1998 through February 1, 2008 and redemption of all outstanding Bonds maturing on February 1, 2008 and thereafter on February 1, 2009

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 3,256,000.00 $ 3,256,000.00 $ 655,434.44 $ 1,416,258.07

1,744,000.00

1,744,000.00

104,750.00

167,221.00

$ 5,000,000.00 $ 5,000,000.00 $ 760,184.44 $ 1,583,479.07

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

See notes to the general purpose financial statements.

- 25-

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

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

7,043,554.00 $ _ _-=.;20:..:8~,5:..:4.;;.3.:.=.0.;:..0

$

7,406,862.20

323,517.70 $ _ _--=.;27:...::9~,8::.=5.;;.3.:.=.0.;:..6

$

7,730,379.90

-34,749.88 $ _ _...:7..,!.;,6:.:9:,.=5J.:,6:,.=3.:.;0.:.:,02=-

$

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

See notes to the general purpose financial statements. - 27 -

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS RegUlar Programs Category I (*) Category II (*) Category III (*) Category IV (*) Sub-Total- Regular Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*j Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$

586,877.00

$

528,189.30 $

1,449,913.00

1,304,921.70

$ 2,036,790.00 90 $ 1,833,111.00 $

645,459.00 90

580,913.10

988,043.00 90

889,238.70

713,395.00 90

642,055.50

246,655.00 90

221,989.50

448,933.00 '90

404,039.70

$ 5,079,275.00

$ 4,571,347.50 $

0.00 0.00
0.00

$ 1,327,244.00

$ 1,194,519.60 $

0.00

$ 1,327,244.00 90 $ 1,194,519.60 $

174,866.00 90

157,379.40

$ 1,502,110.00

$ 1,351,899.00 $

$

239,494.00 90 $

215,544.60 $

$ 6,820,879.00

$ 6,138,791.10 $

$

179,023.00 90 $

161,120.70 $

43,652.00 100

43,652.00

$

222,675.00

$

204,772.70 $

0.00
0.00 0.00 0.00
0.00 0.00

Total Fourteen Weighted and Media Center Programs $ 7,043,554.00

$ 6,343,563.80 $

0.00

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

$

20,516.00

42,765.00

$

20,516.00 $

42,765.00

0.00 0.00

$

63,281.00 100 $

63,281.00 $======0;,;;.00=

See notes to the general purpose financial statements.

- 28 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

528,189.30 $

553,210.97 $

6,305.51 $

559,516.48

1,304,921.70

1,259,316.57

46,043.55

1,305,360.12

$ 1,833,111.00 $ 1,812,527.54 $

52,349.06 $ 1,864,876.60 $

0.00

580,913.10

674,461.87

17,807.37

692,269.24

0.00

889,238.70

1,223,288.40

51,945.62

1,275,234.02

0.00

642,055.50

1,065,098.10

65,772.90

1,130,871.00

0.00

221,989.50

249,007.55

14,171.51

263,179.06

0.00

404,039.70

431,580.32

47,914.45

479,494.77

0.00

$ 4,571,347.50 $ 5,455,963.78 $

249,960.91 $ 5,705,924.69

$ 1,194,519.60 $

7,465.80 233,693.12 $ 891,056.48
82,243.67

$ 5,882.00 9,621.79
403.43

7,465.80 239,575.12 900,678.27
82,647.10

$ 1,194,519.60 $ 1,214,459.07 $

15,907.22 $ 1,230,366.29

0.00

157,379.40

268,537.19

6,089.29

274,626.48

0.00

$ 1,351,899.00 $ 1,482,996.26 $

21,996.51 $ 1,504,992.77

$

215,544.60 $

254,141.92 $

7,895.64 $

262,037.56

0.00

$ 6,138,791.10 $ 7,193,101.96 $

279,853.06 $ 7,472,955.02

$

161,120.70 $

213,760.24

$

213,760.24

0.00

43,652.00

$

43,664.64

43,664.64

0.00

$

204,772.70 $

213,760.24 $

43,664.64 $

257,424.88

$ 6,343,563.80 $ 7,406,862.20 $

323,517.70 $ 7,730,379.90 $

0.00

$

20,516.00

42,765.00

$ ===63..,.2=8=1;,;;.0,;:0

$

45,643.27 $

45,643.27

17,637.73

17,637.73

$

63,281.00 $

63,281.00 $=======0;,;;.0,;:0

- 29 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Bleckley 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 Bleckley County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated February 8, 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 Bleckley 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 ofour 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 Bleckley 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-40

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 Bleckley 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-6121-00-01 and FS-6121-00-02.
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that wou~d 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 noted above, we consider item FS-6121-00-02 to be a material weakness.
This report is intended solely for the information and use ofmanagement, members ofthe Bleckley 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,
~~LU~
Ru ell 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
February 8,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Bleckley 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 Bleckley County Board of Education with the types of
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular
A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Bleckley 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 of Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the .standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 Bleckley 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 Bleckley County Board of Education's compliance with those requirements.
2000SA-I0

In our opinion, the Bleckley 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 Bleckley 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 Bleckley County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
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 Bleckley 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,
L(j.~~
Ru sell W. Hinton State Auditor
RWH:gp 2000SA-1O

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6121-98-01 FS-6121-98-02 FS-6121-99-0 1 FS-6121-99-02

Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6121-99-01

We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perfonn the accounting functions. With stafflimitations this finding cannot be totally resolved.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6121-99-02

We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements. We would add that we will be reviewing any new software programs which may be conducive for us beginning the process.

SECTIONN FINDINGS AND QUESTIONED COSTS

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED 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 Bleckley 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 Bleckley County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents

General Fixed Assets

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 Bleckley 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 Bleckley County Board ofEducation 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-l33 The Bleckley County Board ofEducation's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-l33.

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.

9. Low Risk Auditee The Bleckley County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-l33.

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BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6121-00-01
The Board did not provide for adequate separation of duties in the performance of accounting functions and related procedures related to cash and cash equivalents. The following deficiencies were noted:
1) The bank reconciliations for all accounts were not reviewed by an individual independent of cash operations.
2) The individual recording cash receipts and performing bank deposit functions had custody of the signature plate and also had access to the general ledger.
These conditions were a result ofmanagement's decision to limit the number of administrative 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:
We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this fmding. The Board feels it has provided for the most appropriate assignment ofduties with the number ofpersonnel available to perform the accounting functions. With stafflimitations this finding cannot be totally resolved. Date inapplicable.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6121-00-02
The Bleckley County Board of Education failed to 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 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 of land, buildings and equipment owed by the Board and should include, but may not be
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BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED CQSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6121-00-02 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: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. Date inapplicable. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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