Brantley County Board of Education, Nahunta, Georgia, report on audit of financial statements of the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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I
BRANTLEY COUNTY BOARD OF EDUCATION
NAHUNTA, GEORGIA
--
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

B~EYCOUNTYBOARDOFEDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS



GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

Page
2 4 7 8 9 11
22
24
26 27
28
29

BRANTLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

ADDITIONAL FINANCIAL INFORMATION

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BY PROGRAM

Page
30 32 33
35 36

SECTIONll
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUl VIM.I' Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
May 23,2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly



Members of the State Board of Education

and

Superintendent and Members of the

Brantley County Board of Education

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

Ladies and Gentlemen:

We have audited the accompanying general purpose financial statements of the Brantley County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Brantley County Board of

Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.

Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2000ARL-13A



As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

* The general purpose financial statements ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.

* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.

The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
--
In our opinion, except for the effects of such 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 ofthe food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the"general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Brantley County Board of Education as of June 30, 2000, and the results of its operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with accounting principles generally accepted in the United States ofAmerica.

In accordance with Government Auditing Standards, we have also issued our report dated May 23,

2001, on our consideration of the Brantley County Board of Education's internal control over

financial reporting and our tests of its compliance with certain provisions of laws, regulations,

contracts and grants. That report is an integral part of an audit performed in accordance with

Government Auditing Standards and should be read in conjunction with this report in considering the

results of our audit.

-

-


2000ARL-13A

Our audit was perfonned for the purpose of fonning an opinion on the general purpose financial statements of the Brantley County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such infonnation 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 detennined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such infonnation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.

RWH:jb 2000ARL-13A

Respectfully submitted,

w.
ell W. Hinton Auditor











BRANTLEY COUNTY BOARD OF EDUCAnON

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


ASSETS Cash and Cash Equivalents Investments

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,014,457.58 $ 129,691.27 $

18,161.24

30,000.00

Accounts Receivable

Inventories

Food

Donated Commodities



Purchased Food

Amount Available in Debt Service Fund



224,284.59

288,634.01

38,679.84 10,885.93

Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

Total Assets

$..-..:.1,268,742.17 $

467,891.05 $ ==~1~8~,1~6.:.,;1.:;;24;;,.,

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Designated for Scholarships Undesignated
Total Fund Equity

$

23,075.20 $ 144,957.23

217,790.33



12,049.88

-

$

23,075.20 $ _ _:::..:37:..::4:..:..7.:::.97:...::.4~4~

$

1,254.30

$

16,000.00

1,244,412.67 $ 1,245,666.97 $

38,679.84 10,885.93
$
27,527.84 93,093.61 $

18,161.24
0.00 18,161.24

Total Liabilities and Fund Equity

$ 1,268,742.17 $

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

-2-

467,891.05 $ _===..:.:18~,1~6;.:,,1.~24;;,.,

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE NON EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only~)"......,.-:-=_

JUNE 30, 2000

JUNE 30, 1999

$

201,364.50

$ 1,363,674.59 $ 2,259,944.18

415,000.00 $

10,000.00

455,000.00

40,000.00

144,661.49

516.70

658,096.79

545,566.12

$

761,025.99

38,679.84 10,885.93
761,025.99

40,512.82 6,826.33
631,133.91

$

761,025.99 $

2,073,974.01 351,273.46

2,073,974.01 351,273.46

2,928,866.09 158,315.70

10,516.70 $

3,186,273.46 $ 5,712,610.61 $

$

168,032.43 $

68,096.67

217,790.33

200,550.02

12,049.88

9,730.00

346,761.74

97,603.55

$

351,273.46

351,273.46

158,315.70

-

2,835,000.00

2,835,000.00

3,560,000.00

$

3,186,273.46 $ 3,584,146.10 $ 4,441,057.68

$

761,025.99

$

0.00

$

761,025.99 $

$

761,025.99 $

10,000.00
516.70 0.00
1~0:c,5:..:.1~6..:.:70~

$

1,254.30 $

161,108.32

16,000.00

18,500.00

761,025.99

631,133.91

10,000.00

10,000.00



38,679.84

.10,885.93

18,161.24

40,512.82 6,826.33
163,610.35

516.70 1,271,940.51

515.30 1,137,900.44

$ 2,128.464.51 $ 2,170,107.47

10,516.70 $

3,186,273.46 $ 5,712,610.61 $ 6,611,165.15

-3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 12.634.203.56 $
2,616,793.29 80,643.14
$ 15,331.639.99 $

714,970.77 1,831,210.64
307,899.52
2,854.080.93

$ 9.611.564.87 $ 1,499.943.22

413,838.89 531,128.93 471.893.20 275.626.80 1,031,124.32
84,516.93 1,181.096.20 1,180,440.40
30,798.00 9,588.41
90,452.15

89,458.14 118,826.86
3,986.68 3,069.13 1,785.60
14,519.03 8,324.22
3,459.99 1,257.921.43

101,260.26 4,707.33


$ 15,018,036.69 $ 3.001,294.30

$

313,603.30 $ _---.:.-.:.:14~7~.2:.:.1~3.~37:..-



$

294.218.02

$

-496,700.42

7,778.52

$

-202,482.40 $ _ _--!.7.z.!..7....!..7~8.c::!:52=_

$

111.120.90 $

1,134,546.07

-139,434.85 230.301.84

-1,832.98 4,059.60

FUND BALANCE JUNE 30

$ 1,245,666.97 $ _ ........:;9~3~.0~93;:.;;.6~1:...

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

-4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

_ _ _(Memorandum Only:..L.)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ $ _ _~6::..:1.r.::,3~6::.:2.~26~

$

61,362.26 $

$
1,012,349.85 9,744.58
1,022,094.43 $

13,349,174.33 $
1,831,210.64 3,629,143.14
459,649.50
19,269,177.61 $

13,034,613.78 1,861,931.22 3,349,696.56 438,465.93
18,684,707.49

$

689,233.27

$

$

689,233.27 $

$

-627,871.01 $

$ 11,111,508.09 $ 10,394,803.97

725,000.00 172,806.25
896.10

503,297.03 649,955.79 475,879.88 278,695.93 1,032,909.92 84,516.93 1,195,615.23 1,188,764.62 30,798.00 13,048.40 1,257,921.43 779,685.42
826,260.26 177,513.58
896.10

457,329.34 564,042.10 417,262.72 278,229.37 897,932.92 67,589.46 1,034,417.21 993,601.59 15,041.89 14,142.78 1,112,713.26 2,217,635.48
790,628.25 214,035.34
1,154.90

898,702.35 $ 19,607,266.61 $ 19,470,560.58

123,392.08 $

-338,089.00 $

-785,853.09

$

482,421.90 $

$

482,421.90 $

$

-145,449.11 $

163,610.35

$
6,500.00
6,500.00 $

294,218.02
496,700.42 $
-496,700.42
294,218.02 $

189,468.76 -189,468.76
O~.~OO~

129,892.08 $
631,133.91

-43,870.98 $
2,159,592.17

-785,853.09 2,942,846.14

-1,832.98 4,059.60

4,371.29 -1,772.17

$ _ _..:1~8,161.24 $ _ ......7.6..1..,025.99 $ 2,117,947.81 $ _ _2,159,592.17

-5-

BRANTI.EY COUNTY BOARD OF EDUCATION COMBIN~ STATEMEiNT OF REVI;NUES, EXPEiNDITURES AND GHANGES IN FUND BALANGEiS
BUDGET AtiP AGIUAL - (NON-GAAP BASIS} GENERAL A@ SPEGIAL REYI;NUE FUNDS
YEAR EiMPEiD JUNji 30, 2000

EXHIBIT C

REVENUES

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}~

State Funds Federal Funds Taxes Other Funds

$ 12,185,341.00 $ 12,634,203.56

2.461,336.00 70.000.00

2,616.793.29 80.643.14

Total Revenues

$ 14,716,677.00 $ 15,331,639.99

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



$ 9,653,439.08 $ 9,611,564.87

405,187,00 591,107.92 465,275.00 356,661.00 1,039,781.00
95,253.00 1,316,687.00
986,510.00 45,702.00 14.674.00

413,838,89 531,128.93 471,893.20 275.626.80 1,031,124.32 84,516.93 1,181,096.20 1,180,440.40
30,798.00 9,588.41

307,400.00

90.452.15 105,967.59

Total Expenditures

$ 15,277,677.00 $ 15.018,036.69

Excess of Revenues over (under) Expenditures OTHER FINANGING SOURGES (US~

$

-561,000.00 $ _~31~3:l.l,6~0~3.~30~

Other Sources Other Uses

$ 294,218.02
-496,700.42

Total Other Financing Sources (Uses)

$ -202,482.40

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

-561.000,00 $

111,120.90

FUND BALANGE JULY 1, 1999

564,477.70

1.134,546.07

Adjustments Food Inventory Net Change in Period
Donated Commodities Purchased Foods

400,000.12

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)L-_

$

570.754.54 $

714,970.77

1,791,407.14

1,831,210.64

294,325.58

307,899.52

$ 2.656,487.26 $ 2,854,080.93

$ 1,314,900.54 $ 1,499.943.22

141,869.00

107.610.00

18,003.00

,

100.00

89,458.14 118,826.86
3.986.68 3.069.13 1,785.60

6,287.00

14,519.03 8,324.22

2,959.00 1,257.082.32

3,459.99 1,257,921.43

$ 2,848.810.86 $ 3,001,294.30 $ -192,323.60 $ -147,213.37

$

2,500.00 $

7,778.52

$

2,500.00 $ _ _..l.7....:.,7..:..:78::.::.5~2;....

$ -189.823.60 $ -139,434.85

191,947.85

-3,467.72

230,301.84

-1,832.98 4,059.60

FUND BALANGE JUNE 30, 2000

$ 403,477.82 $ 1,245.666.97

$

-1 ,343.47 $ _ _9:.:3~10~9~3.;:;:,6.:..1



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


BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "0"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 2000

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income (Loss)
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
WILLIAM M. ROBERSON SCHOLARSHIP
FUND

TOTALS

_ _ _(Memorandum OnlyL)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

0.00 $

.=.:O..::. OO=_

$

618.31 $

618.31 $

-=6;.:.2..:.:1..::..85=_

$

-618.31 $

-618.31 $

-621.85

619.71

619.71

618.95

$

1.40 $

1.40 $

-2.90

10,515.30

10,515.30

10,518.20

$

10,516.70 $

10,516.70 $ ===1:.=0;,;;;,5,,;,:15=.3=0,=

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

BRANTLEY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 3D, 2000

EXHIBIT "E"

Cash Flows from Operating Activities: Cash Paid for Scholarships
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
WILLIAM M. ROBERSON SCHOLARSHIP
FUND

TOTALS

(Memorandum Only.L..)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999



$

-618.31 $

-618.31 $

-621.85

618.31

618.31

621.85

$

0.00 $

0.00 $

0.00

0.00

0.00

0.00

Cash and Cash Equivalents - June 30

$

0.00 $

0.00 $ =====0.=00==



-


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

BRANTLEY COUNTY BOARD OF EDUCATION

EXHillIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Brantley County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, experiditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. .
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational
activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for iIi another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 11 -



BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.

FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:

NONEXPENDABLETRUSTFUND William M. Roberson Scholarship Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to a graduating senior of the Brantley County School System.

ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.

BASIS OF ACCOUNTING

-

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

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

- 12-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO mE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As oOune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recotded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded wlien incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Brantley County Board ofEducation's budget is' a: complete fmancial plan for the Board's fiscal
year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

~ 13 -

BRANTLEY COUNfY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) .Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) . Repurchase agreements, and
- 14-


BRANTLEY COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

RECEIVABLES

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

PROPERTY TAXES

The Brantley County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 14, 1999 (levy date). Taxes were due on January 31, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Brantley County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

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

School Operations School Bonds

14.35 mills 1.09 mills

15.44 mills

SALES TAXES



Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $814,992.47 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $1,601,550.65 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

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

- 15 -

BRANTLEY COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS



JUNE 30, 2000


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
,
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do liot present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

- 16-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS
Acceptable security for deposits consists of anyone of or any combination of the following:
(l) Surety bond signed by a surety company duly qualified and authorized to transact business
within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $2,620,250.97. The amounts ofthe total bank balances are classified into 1hree categories of credit risk:
Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 2000, as follows:

-.17-



BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

Risk Category

Bank Balance

1

$ 401,364.50

2

2,218,886.47

3

0.00

Total

$ 2.620,250.97

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1999 2000

Beginning
of Year
Liability_

Claims and Changes in Estimates

Claims Paid

End ofYear
Liability~

$

0.00 $

332:00 $

332.00 $

-"'0. :,>:.0=0

$

0.00 $

820.00 $

820.00 $_ _---->0=.0=0

- 18-

BRANTLEY COUNfY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


Note 4: RISK MANAGEMENT

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

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

Position Covered

Amount

Superintendent Each Principal and Assistant Principal Each Board Member Each Director

$ 100,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Brantley County Board of Education has entered into various lease agreements as lessee for buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

_ _ _ _""-P=urp=os=e<--

_

Interest Rates

Amount

General Government - Series 1979 General Government - Series 1997

6.75% 3.90% - 4.60%

$ 935,000.00 1,900,000.00

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

- 19-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Balance July 1, 1999
Additions Capital Leases
Deductions Debt Retired
Balance June 30, 2000

Capital Leases

General Obligation
Bonds

Total

$ 158,315.70 $ 3,560,000.00 $ 3,718,315.70

294,218.02

294,218.02



101,260.26

725,000.00

826,260.26

$ 351,273.~6 $,l.835.000.00 $ 3.186,273.46

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

Fiscal Year Ended June 30

- General

Capital

Obligation

Leases

Bonds

Total Debt

2001 2002 2003 2004 2005 2006 - 2010

Total Principal and Interest

$ 100,206.97 $ 967,000.00 $ 1,067,206.97

100,206.97 1,011,000.00 1,111,206.97

69,239.38

624,600.00

693,839.38

69,239.38

189,362.50

258,601.88

69,239.38

188,225.00 191,243.75

257,464.38 191,243.75
-

$ 408,132.08 $ 3,171,431.25 $ 3.579.563.33

Deduct: Imputed Interest
-
Net Present Value of Future Minimum Lease Payments

56,858.62 $ 35L273.46

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $226,710.06 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education

Paid to the Georgia Department of Community Health

For Health Insurance ofNon-Certified Personnel

In the amount of$179,608.50

,

- 20-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$1,606.56

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $45,495.00

Note 7: CONTINGENT LIABILITIES

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement
,
System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998


100% 100% 100%

$ 1,152,590.76 $ 1,125,758.55 $ 1,019,712.73

- 21 -


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


ASSETS
Cash and Cash Equivalents
Accounts Receivable .

Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

166,462.56 $

30.749.26

609.02

60,492.54

38,679.84 10,885.93

Total Assets

$

216,637.35 $ ===9..1.:l:O,2;,,;,4=1.=80,,=

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



$

97,169.94 $

24,979.48

42,373.80

66,262.32

$

139,543.74 $ _ _.....:9:..:1-'=,2:..:.4..:.;1.~80=-

$

38,679.84

10,885.93

27,527.84 $

$

77,093.61 $

.:;.;o.~OO=.:;.;O.~OO=-

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

$

216,637.35 $ ===9=1=,2=4,.;,;1',;;,;80,,=

EXHIBIT "G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

197,211.82 $

308,464.90

$

227.532.45

288,634.01


140.182.86

38,679.84 10,885.93

40,512.82 6,826.33

$

227,532.45 $

535,411.60 $ ==4=9:.;;;5,;,;;;,9.8...6=.9..1. =

$

67,520.55 $

67.520.55

22,807.81

144,957.23 $

55,405.05

109,154.21

217.790.33

200.550.02

12,049.88

12.049.88

9.730.00

$

211 ,532.45 $ _ _4.;...;4=2,317.99 $ _-_....;2=6=5""".6=85=.0.;;.;7....;

$

16.000.00 $

16.000.00 $

18,500.00

38,679.84 10,885.93

40.512.82 6.826.33

0.00

27,527.84

164,462.69

$

16.000.00 $

93,093.61 $ _---'2=3=0""",3=0..:..;1..;:;.84,;..



$

227,532.45 $

535,411.60 $ ==4=9:.;;;5,;,;;;,9..8..6=.9...1=

- 23-

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

REVENUES
State Funds Federal Funds Other Funds

Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
-
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

79,810.00 $

633,160.77

733,277.06

307,899.52

$

1,120,986.58 $ _ _6=.:3:.:3:.L.1:'~6=.::0.:.:.,.77:.-

$

530,065.02

67,291.31 18,367.08

$ _ _1.:..l:,2::.;:5:.:,.7J9.:=:'.21.:..;,.4..:.;3;...

1,729.44 14,519.03
1,027.65 161.24

$

1,257,921.43 $ _ _6=.:3:.:3:.L.1:~' 6=0.:.:.,.77:.

$

-136,934.85 $

0.00

$

-136,934.85 $

0.00

211,801.84

0.00

-1,832.98 4,059.60

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

$

77,093.61 $ ====0=.=00=

EXHIBIT "H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999 .

$

2,000.00 $

714,970.77 $

663,297.17

1,097,933.58

1,831,210.64

1,861,931.22

307,899.52

290,528.01

$ 1,099,933.58 $ 2,854,080.93 $ 2,815,756.40

$

969,878.20 $ 1,499,943.22 $ 1,495,497.64

22,166.83 100,459.78
3,986.68 3,069.13
56.16
7,296.57 3,298.75

89,458.14 118,826.86
3,986.68 3,069.13 1,785.60 14,519.03 8,324.22 3,459.99 1,257,921.43

67,195.76 96,505.81 18,642.40 22,587.07 2,995.55 20,257.33 16,272.15 3,569.03 1,112,713.26

$

1,110,212.10 $

3,001,294.30 $

2,856,236.00 - -

-

$

-10,278.52 $

-147,213.37 $

-40,479.60



7,778.52

7,778.52

34,668.99

$

-2,500.00 $

-139,434.85 $

-5,810.61

18,500.00

230,301.84

233,513.33

-1,832.98 4,059.60

4,371.29 -1 ,772.17

$

16,000.00 $

93,093.61 $ ==2:=;3:::;;:0~,3~0.:.;1.,;;;,;84~

- 25-

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 3D, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

BOND PROCEEDS

LOTIERY PROJECT

TOTALS
JUNE 30, 2000 JUNE 3D, 1999

$

0.00 $

18,161.24 $

18,161.24 $ 540,497.54

67,578.10

Total Assets

$

0.00 $

18,161.24 $

18,161.24 $ ===60=8=,0=7.5...=64==

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For Purposes of Bond Issue

For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$



Total Liabilities and Fund Equity $

$

100.00

346,761.74

97,603.55

$ _ _444~.L.:.4""65",,,.2::.:9:....

$
--=.;O.""OO=_
0.00 $
0.00 $

18,161.24 $ 0.00
18,161.24 $
18,161.24 $

$ 18,161.24

163,610.35

0.00

0.00

18,161 .24 $ _---:..:16:.:;:3J.::,6:.:.;10"",.3::,:5:....



18,161.24 $ ==6=0=8,0;,0=75;,;,.64===



See notes to the general purpose financial statements.

26

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

EXHIBIT "J"

BOND PROCEEDS

LOTTERY PROJECT

TOTALS YEAR ENDED
JUNE 30. 2000 JUNE 30. 1999

REVENUES

State Funds Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Building and Building Improvements

$

60,467.01 $



$

60,467.01 $

$ 895.25 $ _----.:6::....:1J..::3,~62~.2:o::6~

675,781.00 54,546.91

895.25 $

61,362.26 $ _.....;.;73:.::0"-".3:,:27.:...:.:;..91;....



$

0.00 $ 689.233.27 $ 689.233.27 $ 2,052.732.59

Total Expenditures

$

0.00 $ 689,233.27 $ 689,233.27 $ 2,052.732.59

Excess of Revenues over (under) Expenditures

$

60,467.01 $ -688,338.02 $ -627,871.01 $ -1,322,404.68

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ $ -224.077.36

706,499.26 $

706,499.26 $ -224.077.36

589.174.13 -589.030.61

Total Other Financing Sources (Uses)

$ -224.077.36 $ - 706,499.26 $ 482,421.90 $ _ _---:1...:.;43::.:,.5:.::2=_

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

-163.610.35 $

18,161.24 $ -145,449.11 $ -1.322.261.16

FUND BALANCE JULY 1

163.610.35

0.00

163.610.35

1,485.871.51

FUND BALANCE JUNE 30
-



$

0.00 $ _~1~8,161.24 $ _ _1;.:;:8,161.24 $ _....,;;16_3.,6-.1.0..3..5...

-

-



See notes to the general purpose financial statements.

27

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2000 JUNE 30,1999

$

43,017.60 $

158,346.90 $ 201,364.50 $ 480,455.76

120,000.00

295,000.00

415,000.00

15,458.63

129,202.86

144,661.49

150,678.15

Total Assets

$

178,476.23 $

582,549.76 $

761,025.99 $ ===63;;,,;1=,1..3..3....9..1....

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 178,476.23 $
0.00

582,549.76 $
0.00

761,025.99 $
0.00

631,133.91 0.00

Total Fund Equity $

178,476.23 $

582,549.76 $

761,025.99 $ ==6,;,;3;;,,;1=,1=3.3..9..1.....




See notes to the general purpose financial statements. - 28-


BRANTLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2000

EXHIBIT "L"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 3D, 2000 JUNE 3D, 1999

REVENUES

Taxes Other Funds

$ 197,357.38 $ 814,992.47 $ 1,012,349.85 $ 951,778.91

1,548.40

8,196.18

9,744.58

7,345.40

Total Revenues

$ 198,905.78 $ 823,188.65 $ 1,022,094.43 $ _-=95"",9"-"1.:.24"",.3,,,,,,1_

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees

$ 125,000.00 $ 600,000.00 $ 725,000.00 $ 640,000.00

67,331.25

105,475.00

172,806.25

203,756.25

364.50

531.60

896.10

1,154.90

Total Expenditures

$ 192,695.75 $ 706,006.60 $ 898,702.35 $ _--=-84.:..,:4Cl.:,9:,..:.1..:,:1...:.:15:<-

Excess of Revenues over (under) Expenditures

$

6,210.03 $ 117,182.05 $ 123,392.08 $ 114,213.16

OTHER FINANCING SOURCES

Operating Transfers In

6,500.00

6,500.00

154,656.25

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

12,710.03 $ 117,182.05 $ 129,892.08 $ 268,869.41

FUND BALANCE JULY 1

165.766.20

465,367.71

631,133.91

362,264.50

FUND BALANCE JUNE 30

$ 178,476.23 $

761,025.99 $ _ _6~3;;.:1.l.:1'~3;;:,;3',;;;,91~

See notes to the general purpose financial statements.

- 29

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

SCHEDULE "1"


FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY
10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

Total Child Nutrition Cluster

10.553 10.555

N/A

$

N/A

$

168,515.95 495,285.23 $
663,801.18 $

(2) 1,193,785.75 (3)
1,193,785.75

Other Programs



Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

Pass-Through From Office of School Readiness

Food and Nutrition Program

Child and Adult Care Food Program

Total U. S. Department of Agriculture

10.550 10.558

N/A
N/A
$

64,135.68

64,135.68

5,340.20

(2)

733,277.06 $ _....:.1,.::2:::;57~,9::.:2:.:1~.4~3

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool

84.027 84.173

Total Special Education Cluster

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

Grants to Local Educational Agencies Title II

-

Eisenhower Professional Development

Title III

Technology Literacy Challenge Fund Grants

Title VI

Innovative Education Program Strategies

Class Size Reduction

Goals 2000

State and Local Education Systemic Improvement Grants

Vocational Education - Basic Grants to States

High School Program

Basic Grant

Tech-Prep Education

Pass-Through From Okefenokee Regional

Educational Service Agency

Safe and Drug-Free Schools


84.010
84.281 84.318 84.298 84.340 84.276
84.048 84.243
84.186

Total U. S. Department of Education

N/A

$

N/A

$

191,725.45 $
48,541.00
240,266.45 $

191.725.45 48.541.00
240,266.45

N/A

462,551.13

462,551.13

N/A

16,000.00

18,532.07 (3)

N/A

125,000.00

125.000.00

N/A

68.780.00

68,780.00

N/A

18,003.00

18.003.00

N/A

110.955.00

110.955.00

N/A

38,947.00

48.693.45 (3)

N/A

5.750.00

5,750.00

N/A

11,681.00

11,681.00

$

1,097.933.58 $

1.110,212.10

Total Federal Financial Assistance
N/A = Not Available

$ 1,831,210.64 $ 2..3.;;;6;;,8,:.;,1;;,;33;;,.5;;,;3;;,.

- 30

BRANTLEY COUNTY BOARD OF EDUCATIQN SCHEDULE QF EXPENDITURES OF FEDERAL AWARDS
YEAR END~ JUNE 30, 2000
Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities. received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Brantley County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.


SCHEDULE "1"






See notes to the general purpose financial statements.

- 31 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indireel Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Education Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers'Retirement Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 6,822,370.00
1,113,678.00 185,109.00 285,819.00 79,567.00
1,835,268.00
506,109.00 134,364.00 252,076.00 250,998.00 66,223.00 141,454.00
2,051.00 27,955.00 57,685.00 -731,066.00 1,233,753.00
$
3,117.00
32,457.83
11,373.0.9 179,608.50
972.00 17,689.00 4,521.58
1,606.56 14,069.00

$
79,810.00 2,000.00 15,198.54
69,138.00

6,822,370.00 1,113,678.00
185,109.00 285,819.00
79,567.00 1,835,268.00
506,109.00 134,364.00 252,076.00 250,998.00 66,223.00 141,454.00
2,051.00 27,955.00 57,685.00 -731,066.00 1,233,753.00 79,810.00
3,117.00
32,457.83 2,000.00 11,373.09
179,608.50 972.00
17,689.00 4,521.58

1,606.56 14,069.00
15,198.54 69,138.00

548,824.23

548,824.23

45,495.00

45,495.00

59,881.00

59,881.00

$ 12,634,203.56 $

See notes to the general purpose financial statements.

- 32-

714,970.77 $ 13,349,174.33

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

The 'new Waynesville Elementary

School, renovations and the addition

of four classrooms at Brantley County

Middle School, renovations and

improvements at Brantley County High

School consisting of three science

classrooms, laboratories, a media

center, an addition to the gymnasium

with new bleachers, construction of a

new girls' softball field, renovations

to existing facilities, renovations to the

gymnasium and physical education

facilities at Hoboken and Nahunta

Elementary Schools

$

3,800,000.00 $

CURRENT ESTIMATED COSTS (=2),--

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

6,507,001.00 $

794,708.27 $ =~4,~53;;;.1;.:;,2;;,;;3;,;;,0=.8=7

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Brantley County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales.tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the general purpose financial statements.

- 33-

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

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

8,535,338.1 0 $

2~7~6:..t.::,6~9~5,:,:::,OO~

$

8,413,541.14

599,696.86 $ _ _--::;53~0:..!.:,3:::2:..:..4:.1.:.~. 3

$

9,013,238.00

-172,631.92 $ _ _..:::8.!8.::.,..:.:40:.!..6::.,:0:.;:6.:.0::.:::...8

$

0.00 $ ====~O;,;,;;,O~O

See notes to the general purpose financial statements.
- 35 -

BRANTLEY COUNT)' BOARD OF EDUCATIQN ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC I;DUCATION PROGRAMS YEAR ENDI;D JUNE 30, 20QO

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category II (*) Category '" (*) Category IV (*) Sub-Total- RegUlar Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM t1
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

757,690.00

$

681,921.00 $

-49,171.50

1,860,496.00

1,674,446.40

173,136.00

$ 2,618,186.00 90 $ 2,356.367.40 $

123,964.50

834,837.00 90

751.353.30

41,897.00

1.523,468.00 90

1,371,121.20

-10,692.90

732,776.00 90

659,498.40

4,988.00

475,443.00 90

427.898.70

19,742.00

637,660.00 90

573,894.00

-43,546.50

$ 6,822,370.00

$ 6, 140, 133.00 $ _---"1~36::.:.,~35:::2:...:.1.;;:..0

$ 1.011.963.00

$

910,766.70 $

-14,455.00

$ 1,011,963.00 90 $

910,766.70 $

-14,455.00

101,715.00 90

91,543.50

33,231.00

$ 1,113.678.00

$ 1,002.310.20 $ _ _~1.::..8,.:..77~6::.,0:.:::..0

$

185,109.00 90 $

166,598.1 0 $ _ _-:::3:::2.~9.:..:19::.,0:.:::..0

$ 8,121,157.00

$ 7,309,041.30 $ _ _~12~2~.2:::0:.::9.:..1:,.;;:..0

$

227,336.00 90 $

204.602.40 $

58,483.00 100

58,483.00

5,000.00 1,153.00

$

285.819.00

$

263,085.40 $ _ _~6:....,1:.::5:.:::3:.O:;.~O

Total Fourteen Weighted and Media Center Programs $ 8,406,976.00

$ 7,572, 126.70 $ ===1~28~,3;;;,;;6;,;;,2;1.;.'0;;.

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

25,836.00

53,731.00

$

25,836.00 $

53,731.00

489.00 0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

79,567.00 100 $

79,567.00 $ ===,;;;48~9~.O;,;;;,0

See notes to the general purpose financial statements.

- 36

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

632,749.50 $

750.701.08 $

39.778.41 $

790,479.49

1,847,582.40

1,881,815.36

170,417.19

2.052,232.55

$ 2,480,331.90 $ 2,632,516.44 $

210,195.60 $ 2,842,712.04 $

0.00

793,250.30

962,942.39

58,20 2.81

1.021,145.20

0.00

1,360,428.30

1,297.539.33

63,073.24

1.360,612.57

0.00

664,486.40

788.387.01

92.952.17

881.339.18

0.00

447,640.70

554.914.79

14,954.09

569.868.88

0.00

530,347.50

484,245.79

68,880.82

553,126.61

0.00

$ 6,276,485.10 $ 6,720.545.75 $

508.258.73 $ 7,228,804.48

$

896,311.70

$

132.586.76 $
790,722.25 55,080.20

2.881.11 $ 13.254.69
2,626.44

135.467.87 803.(J76.94
57,706.64

$

896,311.70 $

978,389.21 $

18,762.24 $

997,151.45

0.00

124,774.50

149.389.10

2.900.42

152.289.52

0.00

$ 1,021,086.20$ 1.127,778.31 $

21,662.66 $ 1,149.,440.97

$

133,679.10 $

169,985.89 $

402. 74 $ _---'1..;..70"".3;:;,.;8;.;;;8,;.;;;.6.:;,.3

0.00



$ 7,431.250.40 $ 8,018,309.95 $

530,324.13 $ 8.548,634.08

--

$

209,602.40 $

395.231.19

$

395.231.19

0.00

59,636.00 _ _ _ _ _ _ $ _ _""69",,,3;:;,.;7..:2.:.:..7.:;,.3

69,372.73

0.00

$

269,238.40 $

395,231.19 $

69,372.73 $ _ _4.:.:6:..:4.:.:.6;.:;0.::.;3.;.:;92:.

$ 7,700,488.80 $ 8,413.541.14 $

599,696.86 $ 9.013,238.00 $ ......= = = = = = 0..0..=0

$

26,325.00

53,731.00

$ ====8.0.',.;;056....0.=0

$

55.337.13 $

55.337.13

25.505.95

25,505.95

$

80,843.08 $

80,843.08 $......= ......====0..0...0..

37


SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS




RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta. Georgia 30334-X400
May 23,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Brantley County Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING 1'ANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Brantley County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated May 23,2001. 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audit's contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.
Compliance

As part of obtaining reasonable assurance about whether Brantley County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2000YB-40A

Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered Brantley County Board ofEducation's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Brantley County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6131-00-01 and FS-6131-00-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6131-0002 to be a material weakness.
This report is intended solely for the infonnation and use ofmanagement, members ofthe Brantley County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
-
,.- R;,;;,es~pectfullysubmitted,

RWH:jb 2000YB-40A

Ru sell W. Hinton State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
May 23,2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board ofEducation

and



Superintendent and Members of the

Brantley County Board of Education

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

Ladies and Gentlemen:

Compliance

We have audited the compliance of Brantley County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular
A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year
ended June 30, 2000. Brantley County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofBrantley County Board ofEducation's management. Our responsibility is to express an opinion on Brantley County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Brantley County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Brantley County Board ofEducation's compliance with those requirements.

2000SA-IOA


In our opinion, the Brantley County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Brantley County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Brantley County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-I33.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members ofthe Brantley County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb 2000SA-IOA

.Ru ell W. Hinton State Auditor


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


BRANTLEY COUNTY BOARD OF EDUCATION

AUDITEE'S RESPONSE

.

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6131-98-01 FS-6131-99-01

Further Action Not Warranted Unresolved - See Corrective Action! Responses


CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6131-99-01

The Brantley County Board ofEducation does not at this time have sufficient resources to maintain a system-wide General Fixed Assets Account Group within the formal accounting records.


-




SECTION IV FINDINGS AND QUESTIONED COSTS


BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Brantley County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Brantley County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents General Fixed Assets

General Ledger

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

3. Noncompliance Material to the Financial Statements The audit of the Brantley County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Brantley County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. me of Report Issued on Compliance for Major Programs

.

The auditor's opinion on the Brantley County Board of Education's report on compliance

with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .5 lOW ofOMB Circular A-B3
The Brantley County Board ofEducation's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-B3.

7. Maior Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies

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

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BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

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9. Low Risk Auditee The Brantley County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.

IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUNALENTS GENERAL LEDGER Accounting/Internal Control Deficiencies Reportable Condition Finding Control Number: FS-6131-00-01

An examination of the internal accounting control procedures revealed the following deficiencies:

1) Banks statements were not reconciled on a timely basis for all bank accounts.

2) Banks statements were not reconciled to the general ledger for the operating and payroll accounts.

These deficiencies were the result of management's failure to establish internal control procedures that are necessary to adequately safeguard and report cash. The Board should implement appropriate procedures and controls to ensure that bank statements are reconciled to the general ledger and that required adjustments are identified and recorded in a timely manner.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group

Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6131-00-02

The Brantley County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose fmancial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should includean inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

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BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

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