novu .Rl 2/,, B'Z W/3-11 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 AUDIT REPORT BRANTLEY COUNTY BOARD OF EDUCATION NAHUNTA, GEORGIA YEAR ENDED JUNE 30, 1994 BRANTLEY 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 FEDERAL FINANCIAL ASSISTANCE 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 GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -ACTUAL AND BUDGET GOVERNMENTAL FUND TYPES 6 D STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 7 E STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE- NONEXPENDABLE TRUST FUND 9 F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 10 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 24 FIDUCIARY FUND TYPES COMBINING BALANCE SHEET 27 BRANTLEY COUNTY BOARD OF EDUCATION TABLE OF CONTENTS SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 28 2 ANALYSIS OF CASH AND CASH EQUIVALENTS 31 3 ACCOUNTSRECENABLE 32 4 DEBT SERVICE REQUIREMENTS TO MATURITY 34 SCHEDULE OF REVENUE 5 STATE FUNDS 35 6 LOCAL AND OTHER FUNDS 36 SCHEDULE OF EXPENDITURES BY OBJECT 7 GOVERNMENTAL FUND TYPES 37 8 LOTTERY PROGRAMS 38 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS 9 OVERALL 39 10 BY PROGRAM 40 11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 42 SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS BRANTLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 12, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Brantley County Board ofEducation INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through F) ofthe Brantley County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose 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 estiniates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 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: 94ARL-14 * 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. * 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, 1994, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation 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, 1993, were improperly recorded in the year ended June 30, 1994. 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 ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Brantley County Board ofEducation as of June 30, 1994, and the results ofits operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles. As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Brantley County Board ofEducation taken as a whole. The combining statements (Exhibits G through I) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Brantley County Board ofEducation. 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 effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the forth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 94ARL-14 A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, L%4L Claude L. Vickers State Auditor CLV:djf 94ARL-14 BRANTLEY COUNTY BOARD OF EDUCATION - 1- ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of: Bond Debt Capi1al Lease Agreements GENERAL FUND GOVERNMENTAL FUND SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 719,638.18 $ 233,786.91 80,661.61 75,253.53 $ 417,463.00 21,525.56 8,394.07 Total Assets $ 800,299.79 $ 338,960.07 $ 417 463.00 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Deferred Revenue Capi1al Lease Agreements General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capi1al Outiay Projects Unreserved Designated for Equipment Purchases Undesignated Total Fund Equity Total Liabilities and Fund Equity 42,261.29 $ $ 71,314.26 81,614.30 8,896.95 2,316.00 257,641.18 $ 42,261.29 $ 164,141.51 $ 257,641.18 $ 64,884.66 $ 23,135.32 1,020.13 21,525.56 8,394.07 $ 159,821.82 $ 65,904.79 $ 53,054.95 $ 159,821.82 692,133.71 758,038.50 $ 121,763.61 0.00 174,818.56 $ 159,821.82 800,299.79 $ 338,960.07 $ 417 463.00 The notes to the general purpose financial statements are an integral part of this statement -2 - EXHIBIT"A" TYPES DEBT SERVICE FUND FIDUCIARY FUND TYPE TRUST FUNDS $ 165,854.55 $ 10,000.00 7,384.07 615.26 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS !Memorandum Onlr) JUNE 30, 1994 JUNE 30, 1993 1,129,279.64 $ 383,577.02 581,377.47 417,999.79 21,525.56 8,394.07 23,615.05 9,244.64 $ 173,238.62 173,238.62 132,161.94 1,396,761.38 389,288.32 1,396,761.38 389,288.32 1,522,838.06 $ 173 238.62 $ 10615.26 $ 1 959288.32 $ 3,699 865.06 $ 2489 436.50 389,288.32 1,570,000.00 257,641.18 113,575.55 $ 81,614.30 8,896.95 2,316.00 389,288.32 1,570,000.00 37,489.86 76,513.78 37,855.05 17,612.57 1,655,000.00 $ 1,959,288.32 $ 2,423,332.30 $ 1,824,471.26 $ 173,238.62 $ 173,238.62 $ 0.00 $ 173,238.62 $ $ 173 238.62 $ 10,000.00 10,000.00 615.26 0.00 10,615.26 10615.26 $ 64,884.66 $ 23,135.32 173,238.62 10,000.00 1,020.13 21,525.56 8,394.07 159,821.82 $ 462,020.18 $ 615.26 813,897.32 1,276,532.76 $ 50,570.54 38,446.03 132,161.94 6,212.34 23,615.05 9,244.64 260,250.54 404,714.70 664,965.24 1 959 288.32 $ 3,699,865.06 $ 2,489,436.50 -3 - BRANTLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994 ~ State Funds Federal Funds t.,ocal and 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 al Plant Student Transportation Services Central Support Services Olher Support Services Food Services Operation Other Operations of Non-Instructional Services Capital Outlay Debt Service Principal Interest Paying Agent Fees Total Expenditures Excess of Revenues TERM REQUIRED 402,463.00 362,216.70 1062622.00 956 359.80 $ 1,465,085.00 90 $ 1,318,576.50 $ 599,955.00 90 539,959.50 8S9,384.00 90 809,445.60 584,030.00 90 525,627.00 251,160.00 90 226,044.00 325 699.00 90 293129.10 $ 4125 313.00 3 712 781.70 $ 362,216.70 109 068.00 1 065 427.80 109,068.00 $ 1,427,644.50 539,959.50 82,093.00 891,538.60 525,627.00 226,044.00 293129.10 191161.00 $ 3 903 942.70 532,169.00 478,952.10 $ 0.00 $ 478,952.10 532,169.00 90 $ 67 508.00 90 599 677.00 72 350.00 90 $ 176 961.00 90 $ 478,952.10 $ 60 757.20 539 709.30 $ 65115.00 $ 159,264.90 $ 0.00 $ 0.00 $ 0.00 $ 1 283.00 $ 478,952.10 60 757.20 539 709.30 65,115.00 160547.90 4,974,301.00 4,476,870.90 $ 192,444.00 $ 4,669,314.90 18,998.18 100 $ 40 854.82 100 18,998.18 $ 40 854.82 59,853.00 59,853.00 $ 656.00 $ 19,654.18 40 854.82 656.00 s _ _s_o._.so_9_.oo_ 5,034 154.00 $ 4,536,723.90 $ 193100.00 $ 4,729 823.90 40. SCHEDULE "'10" REQUIRED ALLOTMENT SALARIES ACTUAL DISTRIBLmON BY RESPECTIVE PORTIONS AMOUNT OF UNDEREXPENDm.JRE FOR REQUIRED ALLOTMENT REQUIRED ALLOTMENT OPERATIONS AMOUNT OF UNDEREXPENDm.JRE FOR REQUIRED ACTUAL ALLOTMENT 352,717.20 $ 406,725.68 1 025910.10 1,378,627.30 s 1188 955.20 1,595,680.88 $ 523,124.10 616,522.41 867,100.90 971,365.83 502,065.90 532,689.90 215,951.40 226,953.29 254453.40 397 942.22 $ 3 741 323.00 $ 4 341154.53 $ 9,499.50 $ 14,884.97 39 517.70 59,102.17 0.00 49,017.20 $ 73,987.14 $ 0.00 16,835.40 25,064.47 0.00 24,437.70 86,490.59 0.00 23,561.10 34,654.34 0.00 10,092.60 112,062.38 0.00 38,675.70 86 791.45 0.00 162,619.70 $ 419 050.37 $ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,085.70 $ 65,406.60 351,452.70 37,791.00 1,948.50 2 424.60 466,109.10 $ 59 046.10 525157.20 s 63 963.90 s 122 858.50 s 24,590.40 23,389.93 407,630.70 32,375.01 487,986.04 $ 80 789.99 $ 568ns.o3 87 672.37 $ 232,087.90 $ s s 4 453,302.60 5,229,690.83 $ 369.90 $ 1,423.80 9,733.50 1,315.80 3,164.44 7,440.46 4,115.28 3,330.76 0.00 12,843.00 $ 18,050.94 $ 0.00 1,709.10 1 792.14 $ 14,552.10 $ 19,843.08 0.00 1151.10 $ 1 218.43 $ 0.00 37,689.40 $ 49,382.43 $ 0.00 216,012.30 $ 489,494.31 $ 0.00 0.00 0.00 0.00 0.00 19,654.18 $ 20,613.37 $ 0.00 40,854.82 40 854.82 0.00 60,509.00 $ 61,468.19 $ 0.00 $ 4,453,302.60 $ 5,229,690.83 $ 0.00 276,521.30 $ 550,962.50 $ 0.00 - 41 - BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30 1994 SCHEDULE "11 BOARD MEMBER ADDRESS Mr. John I. Lee, Chairman C-) Route 1, Box 126 Nahunta, Georgia 31553 Mr. William Kyser C-) Route 2, Box 93-8 Nahunta, Georgia 31553 Mr. David Lee C-) Route 1, Box 39-D Hoboken, Georgia 31543 Mr. Claude Smith C-) P.O. Box 173 Nahunta, Georgia 31553 Mr. Robert Willis C-) P.O.Box71 Hoboken, Georgia 31542 COMPENSATION TRAVEL $ 2,275.00 $ 94.66 2,275.00 354.38 2,275.00 2,250.00 2,300.00 182.96 C-) Denotes Board Members Serving as of June 30, 1994 $ 11,375.00 $ 632.00 See notes to the general purpose financial statements. - 42 - SECTION II COMPLIANCE CIAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 12, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Brantley County Board ofEducation COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial Stiitements ofthe Brantley County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance with laws, regulations, contracts, and grants applicable to Brantley County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective ofour audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 94CRL-10 The results ofour tests indicate that, with respect to the items tested, the Brantley County Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. z:A Claude L. Vickers State Auditor CLV:djf 94CRL-10 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 12, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Brantley County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Brantley County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have applied procedures to test the Brantley County Board ofEducation compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994: (I) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Audit Follow-Up/Resolution (3) Cash Management (7) Administrative Requirements (4) Federal Financial Reports Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of ari opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 94CRL-50 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Brantley County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, d'~~~ Claude L. Vickers State Auditor CLV:djf 94CRL-50 CLAUDE L. VICKERS STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta. Georgia 30334-8400 July 12, 1995 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Brantley County Board of Education SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Brantley County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Brantley County Board ofEducation's compliance with the requirements governing: (I) Types of Services Allowed or Unallowed (5) Applicable Special Tests and Provisions (2) Eligibility (3) Matching, Level ofEffort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements (4) Reporting These requirements are applicable to the major Federal financial assistance program, which is identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, I994. The management of the Brantley County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 94CRL-90 Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. We did not observe the talcing ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report. The results of our audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph. In our opinion, the Brantley County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance program for the year ended June 30, 1994. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:djf 94CRL-90 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 12, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Brantley County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Brantley County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit of the fiscal year 1994 general purpose financial statements of the Brantley County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing: ( 1) Types of Services Allowed or Unallowed (3) Applicable Special Tests and Provisions (2) Eligibility Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Brantley County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 94CRL-120 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Brantley County Board ofEducation had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, tf~~ Claude L. Vickers State Auditor CLV:djf 94CRL-120 SECTION III INTERNAL CONTROL C!AUDE L. VICKERS STATE AUDITOR {404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 12, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Brantley County Board ofEducation REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Brantley County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and 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 general purpose financial statements are free of material misstatement. We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit ofthe general purpose financial statements of the Brantley County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the Brantley County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. 94ICL-3 The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because ofchanges in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories: (1) Cash and Cash Equivalents (6) Employee Compensation (2) Inventories (7) General Ledger (3) Revenue/Receivables/Receipts (8) General Fixed Assets (4) Procurement (5) Expenditures/Liabilities/ Disbursements For all ofthe internal control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (1) Accounting Controls (Overall) (2) General Ledger (3) General Fixed Assets 94ICL-3 A material weakness is a reportable condition in which the design or operation of one or more ofthe specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose 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 structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Brantley County Board of Education's financial statements and this report does not affect our report thereon dated July 12, 1995. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:djf 94ICL-3 Claude L. Vickers State Auditor CLAUDE L. VICKERS $TATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 12, 1995 Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation and Superintendent and Members of the Brantley County Board ofEducation SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Brantley County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to it's major Federal financial assistance program and have issued our opinion thereon dated July 12, 1995. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Brantley County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to 94ICL-12 major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 12, 1995. The management of the Brantley County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS SPECIFIC REQUIREMENTS (1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (1) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level ofEffort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Audit Follow-Up/Resolution (7) Administrative Requirements (5) Applicable Special Tests and Provisions (6) Other Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. 94ICL-12 During the year ended June 30, 1994, the Brantley County Board of Education expended 56% of its total Federal financial assistance under a major Federal financial assistance program and the following nonmajor Federal financial assistance program: Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to the Board's major Federal financial assistance program, which is identified in the Schedule of Federal Financial Assistance, and the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations. As described in the Schedule ofFindings and Improper or Questioned Costs;reportable conditions were noted in the following control categories: (1) Cash Management (2) Administrative Requirements A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program 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 structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness: Administrative Requirements These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Brantley County Board of Education's compliance with requirements applicable to its major Federal financial assistance program for the year ended June 30, 1994, and this report does not affect our report thereon dated July 12, 1995. 94ICL-12 This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:djf 94ICL-12 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED nJNE 30 1994 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6131-93-01 The audit report for the year ended June 30, 1991, stated that the Brantley County Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of $5,192.21 for the Staff Development Program. For the year under review, adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditure as required. AUDIT FOLLOW-UP RESOLUTION Unearned Payments to Board Members Financial Statements Amount: $25.00 Audit Control Number 6131-93-02 The audit report for the year ended June 30, 1992, stated that a Board Member received a per diem payment in excess ofamounts earned. In the year under review, no reimbursement was received for this overpayment. Reimbursement of$25.00 should be secured for deposit to the Board's General Fund. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $934.40 Audit Control Number 6131-93-05 The audit report for the year ended June 30, 1993, stated that the Brantley County Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of$934.40 for the operations portion of the Special Education Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$934.40 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $85.73 Audit Control Number 6131-93-06 The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Program had an underexpenditure of Quality Basic Education (QBE) funds of $85.73 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$85.73 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year. PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6131-93-03 The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was 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 ofinternal control with existing staff. Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report are affected by this finding. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-93-04 The audit report of the year ended June 30, 1993, noted that the management of the Brantley County Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. 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 of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. CURRENT YEAR EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Lease Agreement Financial Statements Nonmaterial Noncompliance Audit Control Number 6131-94-01 The Board entered into a lease agreement with Trust Company Bank of Southeast Georgia for computer equipment, beginning May 24, 1994, and continuing to November 24, 1997, this agreement does not contain the required governmental escape clause. The Board's attention is directed to the Official Code of Georgia Annotated (OCGA) Section 20-2-506 which provides, in part as follows: "(a) Except as otherwise provided in this Code section, each county, independent, or area school system in this State shall be authorized to enter into multiyear lease, purchase, or lease purchase contracts ofall kinds for the acquisition of goods, materials, real and personal property, services, and supplies, provided that any such contract shall contain provisions for the following: (1) The contract shall terminate absolutely and without further obligation on the part of the school system at the close of the calendar year in which it was executed and at the close of each succeeding calendar year for which it may be renewed as provided in this Code section; BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR EXPENDITURES/LIABILITIES/DISBURSE.MENTS Improper Lease Agreement Financial Statements Nonmaterial Noncompliance Audit Control Number 6131-94-01 (2) The contract may provide for automatic renewal unless positive action is taken by the school system to terminate such contract, and the nature ofsuch action shall be determined by the school system and specified in the contract;...". This noncompliance occurred because management was not aware of the provisions ofOCGA Section 20-2506. The Board should amend this lease agreement to include provisions as required by State Laws and should institute procedures to ensure that all future lease or lease-purchase agreements contain the required escape provisions. EMPLOYEE COMPENSATION Salary Overpayments Financial Statements Nonmaterial Noncompliance Amount: $1,686.00 Audit Control Number 6131-94-02 In the year under review, the Board made payments to various employees totaling $1,686.00 for unused vacation, which is in violation of Board policy. Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with Board policies for work actually performed. Reimbursement of $1,686.00 should be secured and deposited to the Board's General Fund. EMPLOYEE COMPENSATION Salary Underpayment Financial Statements Nonmaterial Noncompliance Amount: $184.17 Audit Control Number 6131-94-03 In the year under review, the Board underpaid an employee in the amount of$184.17. This underpayment was a result of a miscalculation by payroll personnel. Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with the contracted salaries for work actually performed. Payment of $184.17 should be made to the employee involved. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR EMPLOYEE COMPENSATION - Financial Statements ALLOWABLE COST/COST PRINCIPLES - Federal Financial Assistance Salary Overpayment Major Program Nonmaterial Noncompliance Amount: $128.07 Audit Control Number 6131-94-04 In the year under review, the Board overpaid an employee of the School Food Service Fund (CFDA 10.553 and 10.555) in the amount of $128.07. This overpayment was the result of a miscalculation by payroll personnel. Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with the contracted salaries for work actually performed. Reimbursement of$128.07 should be secured and deposited to the Board's School Food Service Fund. GENERAL LEDGER Failure to Record Accounting Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-94-05 During the year under review, the Board failed to record the financial activity of the William M. Roberson Scholarship Fund within the Board's accounting records as required by generally accepted accounting principles. The financial statements include audit adjustments to reflect the transactions and balances of this fund. The Board should implement procedures to ensure that the financial activity of all fiduciary funds is recorded in the formal accounting records. CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 6131-94-06 A review of cash management procedures for the Elementary and Secondary Education Act - Chapter I Education ofDeprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 1994, the program had an average cash balance of $30,255.86 with excessive ending monthly cash balances in nine months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs ofthis program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board. BRANTI.EY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6131-94-07 The Board failed to submit a copy ofthe 1993 audit report to the Ware County Board ofHealth, from whom the Board received Drug Free Schools Program (CFDA 84.186) funds. Paragraph 13fof 0MB Circular A128 requires that the recipients of Federal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of this report distribution responsibility by the Department of Audits, management claimed it was unaware of this audit distribution requirement. Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements. REPORTING Delinquent Program Report Federal Financial Assistance Nonmajor Program Nonmaterial Noncompliance Audit Control Number 6131-94-08 A review of program reports submitted by the Board to the Georgia Department of Education for the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children program (CFDA 84.010) for the year under review revealed that Georgia Department of Education DE form 0467, Chapter 1 Comparability Report was not filed by the required due date. This noncompliance occurred because of management's failure to adequately monitor reporting requirements for this program. Appropriate procedures should be established and implemented by the Board to ensure that each program report is submitted by the required due date. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Sign Daily Reports Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-94-09 A review of daily reports prepared by the Board for the Food and Nutrition Program - Food Services National School Lunch Program (CFDA 10.555) for the year under review, revealed that the Georgia Department of Education DE form 0118, "Daily Record of Number of Lunches Served", reports were not signed by the Program Manager/Director as required by the Georgia Department of Education School Nutrition Program Record Keeping Guide. This noncompliance occurred because of management's failure to adequately monitor reimbursement procedures for the program. The Board should implement adequate procedures to monitor daily reports to ensure compliance with Georgia Department ofEducation guidelines. SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30 1994 AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6131-93-01 We concur with this finding. This finding will be resolved through a future increase in the Board's local fair share portion of QBE allotments. AUDIT FOLLOW-UP RESOLUTION Unearned Payments to Board Members Financial Statements Amount: $25.00 Audit Control Number 6131-93-02 We concur with this finding. The Board of Education will make every attempt to collect the money owed to us either through reimbursement or reduction of future payments. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $934.40 Audit Control Number 6131-93-05 We concur with this finding. This finding will be resolved through a future increase in the Board's local fair share portion ofQBE allotments. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $85.73 Audit Control Number 6131-93-06 We concur with this finding. This finding will be resolved through an increase in the Board's local fair share portion ofQBE allotments. ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6131-93-03 We concur with this finding. Changes have already been made which affect the year ended 6-30-95. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30 1994 GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-93-04 We concur with this finding. Due to budgetary considerations the Board has decided not to pursue the recording of general fixed assets on the financial statements at this time. EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Lease Agreement Financial Statements Nonmaterial Noncompliance Audit Control Number 6131-94-01 We concur with this finding. We will resolve this finding by re-negotiating the current lease to include an acceptable termination clause. Upon the initial negotiation of this lease, Trust Company Bank assured the Board ofEducation that this lease did adhere to all requirements for leases by state agencies. EMPLOYEE COMPENSATION Salary Overpayments Financial Statements Nonmaterial Noncompliance Amount: $1,686.00 Audit Control Number 6131-94-02 We concur with this finding. The Brantley County Board of Education, by consensus, agreed to pay these individuals for vacation time not taken during FY94. EMPLOYEE COMPENSATION Salary Underpayment Financial Statements Nonmaterial Noncompliance Amount: $184.17 Audit Control Number 6131-94-03 We concur with this finding. The individual was repaid this amount in FY96. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30 1994 EMPLOYEE COMPENSATION - Financial Statements ALLOWABLE COST/COST PRINCIPLES - Federal Financial Assistance Salary Overpayment Major Program Nonmaterial Noncompliance Amount: $128.07 Audit Control Number 6131-94-04 We concur with this finding. We will attempt to collect this overpayment from the individual. We may be hindered by the fact that this employee is no longer employed by the Board of Education. GENERAL LEDGER Failure to Record Accounting Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-94-05 We concur with this finding in reluctant fashion. The William M. Roberson scholarship is handled by Southeastern Bank as is The Dewitt Moody scholarship. The Board ofEducation was appointed administrator of the trust in name only. The bank is the true administrator of this scholarship fund. Therefore, substance should be considered in this instance rather than its form. CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 6131-94-06 We concur with this finding. We will better forecast our cash needs with respect to all funds received. AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6131-94-07 We concur with this finding. We will ensure thay all grantor agencies receive a copy of our annual audit each year. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEARENDEDJUNE30 1994 REPORTING Delinquent Program Report Federal Financial Assistance Nonrnajor Program Nonmaterial Noncompliance Audit Control Number 6131-94-08 We concur with this finding. In the future, we will file this report in a timely manner. OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Sign Daily Reports Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-94-09 are We concur with this finding. In the future we will ensure that all reports signed by authorized personnel.