GA A~OO .R; E2b B Grades 1 - 3 C, Sub-Tolal - 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 C, Category II (") Category Ill (") Category IV (") Sub-Total - Regular Category V (Gifted) C, Total Special Education Programs REMEDIAL EDUCATION PROGRAM(") Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Thirteen Weighted and Media Center Programs ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 389,377.00 $ 350,439.30 $ 1,096,014.00 986,412.60 $ 1,485,391.00 90 $ 1,336,851.90 $ 537,904.00 90 484,113.60 977,445.00 90 879,700.50 460,834.00 90 414,750.60 382,813.00 90 344,531.70 363,940.00 90 327,546.00 $ 4,208,327.00 $ 3,787,494.30 $ 46,572.00 41,194.00 87,766.00 23,098.00 69,313.00 3,489.00 21,344.00 -73,524.00 131,486.00 $ 677,123.00 $ 609,410.70 $ -19,512.00 $ 677,123.00 90 $ 609,410.70 $ 63,293.00 90 56,963.70 $ 740,416.00 $ 666.374.40 $ $ 182,528.00 90 $ 164,275.20 $ $ 5,131,271.00 $ 4.618,143.90 $ -19,512.00 2,345.00 -17,167.00 -11,324.00 102,995.00 $ 140,934.00 90 $ 126,840.60 $ 41,774.00 90 37,596.60 $ 182,708.00 $ 164,437.20 $ 5,147.00 1,433.00 6,580.00 $ 5,313,979.00 $ 4,782,581.10 $ 109,575.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development (") Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements. $ 31,654.00 32,088.00 $ 31,654.00 $ 32,088.00 420.00 0.00 $ 63,742.00 100 $ 63,742.00 $ 420.00 ====== - 40 - SCHEDULE "10" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNTOF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 397,011.30 $ 416,178.79 $ 13,201.82 $ 429,380.61 1,027,606.60 1,113,423.07 53,401.76 1,166,824.83 $ 1,424,617.90 $ 1,529,601.86 $ 66,603.58 $ 1,596,205.44 $ 0.00 507.211.60 678,749.47 21,789.54 700,539.01 0.00 949,013.50 918,612.28 124,001.09 1,042,613.37 0.00 418,239.60 534,388.96 48,672.08 583,061.04 0.00 365,875.70 359,801.03 41,632.20 401,433.23 0.00 254,022.00 304,173.74 103,312.69 407,486.43 0.00 $ 3,918,980.30 $ 4,325,327.34 $ 406,011.18 $ 4,731,338.52 $ 589,898.70 $ 4,052.32 24,nS.91 $ 507,426.31 44,730.08 $ 1,763.87 14,093.68 1,435.01 4,052.32 26,490.78 521,519.99 46,165.09 $ 589,898.70 $ 580,935.62 $ 17,292.56 $ 598,228.18 0.00 59,308.70 69,421.38 1,546.62 70,968.00 0.00 $ 649,207.40 $ 650,357.00 $ 18,839.18 $ 669,196.18 $ 152,951.20 $ 250,607.35 $ 3,348.19 $ 253,955.54 0.00 $ 4,n1,138.90 $ 5,226,291.69 $ 428,198.55 $ 5,654,490.24 $ 131,987.60 $ 246,355.71 $ 246,355.71 0.00 39,029.60 $ 42,680.63 42,680.63 0.00 $ 171,017.20 $ 246,355.71 $ 42,680.63 $ 289,036.34 $ 4,892,156.10 $ 5,472,647.40 $ 470,879.18 $ 5,943,526.58 $ 0.00 $ 32,074.00 32,088.00 $ ......==64=,1=62==00= $ 32,499.34 $ 32,499.34 32,088.70 32,088.70 $ 64,588.04 $ 64,588.04 $ ======0.=00= - 41 - BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30, 1995 SCHEDULE "11" BOARD MEMBER ADDRESS Mr. John I. Lee, Chairman (*) Route 1, Box 126 Nahunta, Georgia 31553 Mr. William Kyser(*) Route 2, Box 93-8 Nahunta, Georgia 31553 Mr. David I. Lee(*) Route 1, Box 40 Hoboken, Georgia 31542 Mr. Claude Smith (*) P. 0. Box 173 Nahunta, Georgia 31553 Mr. Robert Willis (*) P.O. Box71 Hoboken, Georgia 31542 COMPENSATION TRAVEL $ 2,225.00 $ 476.40 2,375.00 577.54 2,250.00 198.00 2,275.00 2,250.00 397.09 $ 11,375.00 $ =====1,=64=9=.03= (*) Denotes Board Members Serving as of June 30, 1995 See notes to the general purpose financial statements. - 42 - SECTION II COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 26, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe 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 statements of the Brantley County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated April 26, 1996. 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, 1995, 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 of Education 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 ofl~ws, regulations, contracts, and grants. However, the objective of our 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. 95CRL-10 The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 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:gp 95CRL-10 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 26, 1996 Honorable Zell Miller, Governor Members ofthe 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, 1995, and have issued our report thereon dated April 26, 1996. 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 of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995: ( 1) 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 an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 95CRL-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 of this report. 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. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is 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, CLV:gp 95CRL-50 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 26, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Brantley County Board ofEducation 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, 1995, and have issued our report thereon dated April 26, 1996. 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: (1) 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 programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Brantley County Board ofEducation 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. 95CRL-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 of Management 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 taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30. 1995. 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 immaterial instances of noncompliance with the requirements referred to above which are described in the Schedule of Findings and Improper or Questioned Costs. We considered these instances ofnoncompliance 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 programs for the year ended June 30. 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, ~~ Claude L. Vickers State Auditor CLV:gp 95CRL-90 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 26, 1996 Honorable Zell Miller, Governor Members ofthe 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 of the Brantley County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated April 26, 1996. 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 1995 general purpose financial statements of the Brantley County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung: (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. 95CRL-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 of Education 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, L~ Claude L. Vickers State Auditor CLV:gp 95CRL-120 SECTION III INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 26, 1996 Honorable Zell Miller, Governor Members ofthe 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, 1995, and have issued our report thereon dated April 26, 1996. 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 purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 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 of internal 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, 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 95ICL-3 be detected. Also, projection of any evaluation of the structure to future periods is subject to 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. In planning and perfonning our audit ofthe general purpose financial statements ofthe Brantley County Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, 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 in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. 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 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 Fixed Assets (3) General Ledger 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 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 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 April 26, 1996. 95ICL-3 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:gp 95ICL-3 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 26, 1996 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 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, 1995, and have issued our report thereon dated April 26, 1996. 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 major Federal financial assistance programs and have issued our opinion thereon dated April 26, 1996. 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 of Management 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 taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, 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, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major 95ICL-8 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 April 26, 1996. 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 of internal 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 (I) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (I) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level of Effort, 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. 95ICL-8 During the year ended June 30, 1995, the Brantley County Board of Education expended 63% of its total Federal financial assistance under major Federal financial assistance programs. 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 each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. 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 of the 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 fo 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 programs for the year ended June 30, 1995, and this report does not affect our report thereon dated April 26, 1996. 95ICL-8 This report is intended for the information 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:gp 95ICL-8 SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Unearned Payments to Board Member Financial Statements Amount $25.00 Audit Control Number 6131-93-02 The audit report for the year ended June 30, 1992, called attention to $25.00 of unearned per diem payments to a Board Member. As ofthe date ofbur audit report, no reimbursement was received for this overpayment. The Board should obtain reimbursement of$25.00 for deposit in 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 of Education 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. 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, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$85.73 for the StaffDevelopment - Professional Development Program. 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 of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Salary Overpayments Financial Statements Amount: $1,686.00 Audit Control Number 6131-94-02 The audit report for the year ended June 30, 1994, reported payments to various employees totaling $1,686.00 for unused vacation, which was a violation of Board vacation/leave policy. In the year under review, no reimbursement was received for this overpayment. Reimbursement of$1,686.00 should be secured for deposit to the Board's General Fund. AUDIT FOLLOW-UP/RESOLUTION Salary Underpayment Financial Statements Finding Resolved Audit Control Number 6131-94-03 The audit report for the year ended June 30, 1994, noted that a salary underpayment of $184.17 was made to an employee due to an error in salary computation. This matter had not been resolved at June 30, 1995. However, in the subsequent fiscal year, an additional payment of$184.17 was made to the employee to resolve the underpayment. AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $128.07 Audit Control Number 6131-94-04 The audit report for the year ended June 30, 1994, reported an overpayment to an employee of the School Food Service Fund (CFDA 10.553 and 10.555) in the amount of $128.07. In the year under review, no reimbursement was received for this overpayment. Reimbursement of $128. 07 should be secured for deposit to the Board's School Food Service Fund. AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 6131-94-07 The audit report for the year ended June 30, 1994, reported that the Board failed to submit a copy of the 1993 audit report to the Ware County Board ofHealth, from whom the Board received Drug Free Schools Program (CFDA 84.186) funds. During the year under review, the Board submitted a copy of the 1993 report, as required. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Sign Daily Reports Federal Financial Assistance Finding Resolved Audit Control Number 6131-94-09 The audit report for the year ended June 30, 1994, stated that the Board failed to sign the Georgia Department of Education DE form O118, "Daily Record of Number of Lunches Served," as required by the Georgia Department ofEducation School Nutrition Program Record Keeping Guide. For the year under review, the DE form O118 was signed by the Program Manager/Director, as required. 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, 1994, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. For the year under review, the Board implemented internal accounting control procedures to provide adequate separation of employee duties in all areas except the School Food Services Fund (CFDA 10.550, 10.553, 10.555, 10.558 and 10.564). This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions of the School Food Services Fund. 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 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 for the year ended June 30, 1994, 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 ofland, buildings and equipment owned by the BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEARENDEDJUNE30, 1995 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 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. AUDIT FOLLOW-UP/RESOLUTION Improper Lease Agreement Financial Statements Finding Resolved Audit Control Number 6131-94-01 The audit report for the year ended June 30, 1994, noted an improper lease agreement with Trust Company Bank of Southeast Georgia for computer equipment dated April 27, 1994. This lease agreement, beginning May 24, 1994, and continuing through November 24, 1997, did not contain the required governmental escape clause. This lease had not been amended at June 30, 1995. However, in the subsequent fiscal year, the Board amended this lease agreement to include provisions as required by State Laws. GENERAL LEDGER Failure to Record Accounting Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-94-05 The audit report for the year ended June 30, 1994, stated that 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. For the year under review, this condition continued to exist. 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. BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IlvfPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR/CURRENT YEAR CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 6131-94-06 The audit report for the year ended June 30, 1994, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirements for Grant Funds," were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit tests of cash management procedures again revealed excessive cash balance accumulations by the ~oard. During fiscal year 1995, the program had an average cash balance of$9,821.92 with excessive ending monthly cash balances in six months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs of the program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Board. REPORTING Delinquent Program Report Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-94-08 The audit report for the year ended June 30, 1994, stated that the Board did not file the required reports for the Elementary and Secondary Education Act, Chapter 1, Education of Deprived Children Program (CFDA 84.010) within the required time period. The DE form 0467, Chapter 1 Comparability Report, is due November 1 annually. For the year under review, the Board submitted the DE form 0467 on December 1, 1994, to the Georgia Department of Education. 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, 1995 CURRENT YEAR EXPENDITURES/LIABILITIES/DISBURSEMENTS Vendor Overpayment Financial Statements Nonmaterial Noncompliance Audit Control Number 6131-95-01 In the year under review, a payment in the amount of $125.00 was made in excess of amounts due to a Board member. This overpayment was due to an oversight made by the accounts payable clerk. Reimbursement of $125.00 should be secured and deposited to the Board's General Fund. OTHER REQUIREMENT CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Sign Monthly Report Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-95-02 A review ofthe monthly 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 ofEducation DE form 0107, "System Claim and Requisition for Reimbursement," report was not signed by the Superintendent as required by the Georgia Department of Education School Nutrition Program Record Keeping Guide. The Board should implement adequate procedures to monitor daily reports to ensure compliance with Georgia Department of Education guidelines. SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS BRANTLEY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 AUDIT FOLLOW-UP/RESOLUTION Unearned Payments to Board Member Financial Statements Amount $25.00 Audit Control Number 6131-93-02 We concur with this finding. The Board has been unable to collect the unearned per diem payment from the past Board member. 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. As addressed in the previous year this finding will be resolved by the Georgia Department ofEducation through a future increase in the Board's local fair share portion of QBE 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. As addressed in the previous year this finding will be resolved by the Georgia Department ofEducation through a future increase in the Board's local fair share portion of QBE Allotments. AUDIT FOLLOW-UP/RESOLUTION Salary Overpayments Financial Statements Amount: $1,686.00 Audit Control Number 6131-94-02 We concur with this finding. As addressed in the previous year this finding will not be resolved by the Board. AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $128.07 Audit Control Number 6131-94-04 We concur with this finding. As addressed in the previous year this finding will not be resolved by the Board. BRANTLEY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 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. Steps have been implemented to assign duties to administrative personnel and accounting personnel to rectify this finding. 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 recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staffthe Board has decided not to pursue the recording of general fixed assets on the financial statements. GENERAL LEDGER Failure to Record Accounting Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-94-05 We concur with this finding. The William M. Roberson Scholarship Fund has been recorded within the Board's accounting records as of June 30, 1996 as instructed by the audit department. CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Audit Control Number 6131-94-06 We concur with this finding. Accounting personnel will review the DE 0147 to the general ledger to assure that accounts payable needs adequately reflect fund requisitions. BRANTLEY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 REPORTING Delinquent Program Report Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-94-08 We concur with this finding. EXPENDITURES/LIABILITIES/DISBURSEMENTS Vendor Overpayment Financial Statements Nonmaterial Noncompliance. Audit Control Number 6131-95-01 We concur with this finding. We will seek reimbursement to be deposited to the Board's General Operating account. OTHER REQUIREMENT CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Sign Monthly Report Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-95-02 We concur with this finding. Steps have been implemented to insure that all System Claims are signed by the Superintendent.