Audit report, Brooks County Board of Education, Quitman, Georgia, year ended June 30, 1999

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AUDIT REPORT

BROOKS COUNTY BOARD OF EDUCAnON

QUITMAN, GEORGIA

YEAR ENDED JUNE 30, 1999

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STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

BROOKS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHffiITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

16

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

17

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

18

2 SCHEDULE OF STATE REVENUE

20

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

21

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

23

5

BY PROGRAM

24

BROOKS COUNTY BOARD OF EDUCAnON - TABLE OF CONTENTS -
SECTION II 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 INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL \V. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334X400
June 23, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Brooks County Board"ofEducation
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 Brooks County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Brooks County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial au~its contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also. includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

99ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, 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, 1998, were improperly recorded in the year ended June 30, 1999. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements 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 Brooks County Board of Education as of June 30, 1999, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government AuditinE Standards, we have also issued our report dated June 23, 2000, on our consideration ofthe Brooks County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Brooks County Board of Education taken as a whole. The accompanying combining statements (Exhibits G and H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
99ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~l.~llWW. H_intonW.~~ State Auditor
RWH:jb 99ARL-13

BROOKS COUNTY BOARD OF EDUCATION

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

BROOKS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1999

EXHIBIT "B"

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
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
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

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1999 JUNE 30,1998

$ 10,032,196,13 $ -1,959.93
3,238,670.34 111,303.96

388,882.08 $ 10,421,078.21 $

2,376,507.67

2,374,547.74

3,238,670.34

205,032.59

316,336.55

9,760,923.09 2,346,004.54 2,913,817.03
416,200.49

$ 13,380,210.50 $ 2,970,422.34 $ 16,350,632.84 $ 15,436,945.15

$ 8,302,116.31 $ 1,082,870.22 $ 9,384,986.53 $ 8,740,727.53

454,709.59 409,409.63 341,165.00 238,666.13 1,109,297.19 170,071.21 1,072,104.34 755,132.86 144,725.49
5,089.76
451,694.44

81,663.12 186,915.81
146,685.96
12,721.24 1,557.97 2,192.95
198,992.68 1,358,904.86

536,372.71 596,325.44 341,165.00 385,352.09 1,109,297.19 182,792.45 1,073,662.31 757,325.81 144,725.49 204,082.44 1,358,904.86 451,694.44

484,160.75 537,439.86 314,988.69 314,585.65 986,131.82 184,996.94 952,507.76 700,919.89 132,663.69 203,385.80 1,239,974.71 204,778.20

$ 13,454,181.95 $ 3,072,504.81 $ 16,526,686.76 $ 14,997,261.29

$

-73,971.45 $ .102,082.47 $ -176,053.92 $ 439,683.86

$

$

-9,309.14

$

-9,309.14 $

9,309.14 $ 9,309.14 $

9,309.14 $ -9,309.14
0.00 $

26,991.06 -26,991.06
0.00

$

-83,280.59 $

1,225,435.56

-92,773.33 $ -176,053.92 $ 439,683.86

710,287.79

1,935,723.35

1,488,479.67

2,150.28 -1,701.91

2,150.28 -1,701.91

9,709.37 -2,149.55

FUND BALANCE JUNE 30

$ 1,142,154.97 $

617,962.83 $ 1,760,117.80 $ 1,935,723.35

The notes to the general purpose financial statements are an integral part of this statement. -3-

BROOKS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NONGAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1999

EXHIBIT C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 9,752,965.00 $ 10,032,196.13

-1,959.93

3,111,723.15

3,238,670.34

41,346.00

111,303.96

Total Revenues

$ 12,906,034.15 $ 13,380,210.50

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

$ 8,216,444.09 $ 8,302,116.31

424,250.86 412.861.29 321,515.48 233,606.78 1,061,370.50 188,615.93 879,034.24 720,010.39 145,566.52
26,076.80

454,709.59 409,409.63 341,165.00 238,666.13 1,109,297.19 170,071.21 1,072,104.34 755,132.86 144,725.49
5,089.76

350,830.50

451,694.44

Total Expenditures

$ 12,980,183.38 $ 13,454,181.95

Excess of Revenues over (under) Expenditures

$ -74,149.23 $ -73,971.45

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

-9,309.14

Total Other Financing Sources (Uses)

$

-9,309.14

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

-74,149.23 $

-83,280.59

FUND BALANCE JULY 1.1998

1.130,175.07

1,225,435.56

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

-21,438.42

FUND BALANCE JUNE 30. 1999

$ 1,034,587.42 $ 1,142,154.97

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 378,865.90 $ 388,882.08

2,382,999.87

2,376,507.67

191,450.00

205,032.59

$ 2,953,315.77 $ 2,970,422.34

$ 1,131,373.23 $ 1.082,870.22

83,977.00 203,752.68
21,000.00 166,672.68

81,663.12 186,915.81
146,685.96

12,743.00 200.00

12,721.24 1,557.97 2,192.95

211,777.50 1,275,920.00

198,992.68 1.358,904.86

$ 3,107,416.09 $ 3,072,504.81 $ -154,100.32 $ -102,082.47

$

9,309.14

$

9,309.14

$ -154,100.32 $ 673.082.25 52.107.51

-92,773.33 710,287.79
2,150.28 -1,701.91

$ 571,089.44 $ 617,962.83

The notes to the general purpose financial statements are an integral part of this statement. -5-

BROOKS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30,1999

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Instruction Operating Income
NONOPERATING REVENUES Interest Eamed Net Income
FUND BALANCE JULY 1 Adjustments Initial Contribution by Benefactor
FUND BALANCE JUNE 30

MACK AND CLYDE HUGHES
WATSON MEMORIAL
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1999 JUNE 30,1998

$

0.00 $

0.00 $

0.00

$

27.96 $

27.96 $

$

-27.96 $

-27.96 $

60.28

60.28

$

32.32 $

32.32 $

0.00

0.00

50,000.00

50,000.00

$

50,032.32 $

50,032.32 $

0.00 0.00
0.00 0.00 0.00
0...._00...

The notes to the general purpose financial statements are an integral part of this statement. -6-

BROOKS COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"E"

Cash Flows from Operating Activities: None
Cash Flows from Noncapital Financing Activities: Initial Contribution from Benefactor
Cash Flows from Investing Activities: Cash Paid for Bank Service Charges
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

MACK AND CLYDE HUGHES
WATSON MEMORIAL
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1999 JUNE 30,1998

$

0,00 $

0.00 $

0.00

$

50,000.00 $

50,000.00 $

$

-27.96 $

-27.96 $

$

49,972.04 $

49,972.04 $

$

0.00 $

0.00 $

0.00
0.00 0.00 0.00

$

49,972.04 $

49,972.04 $

...;,0.0..0,;"

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

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Brooks 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 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.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose fmancial statements.
The general pmpose 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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a 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 in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue .sources 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.

- 8-

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT j'F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Mack and Clyde Hughes Watson Memorial Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to proyide scholarships to graduating Brooks County High School Seniors in the top five percent of their class.
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 of these 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.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property 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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education
- 9-

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
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 Brooks County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this 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, to the Georgia Department ofEducation. 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 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when
- 10-

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

either the asset or revenue recognition criteria has been met. Receivables recorded on the general pmpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Brooks County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 31, 1998 (levy date). Taxes were due on December 31, 1998. The lien date for property taxes was January I, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Brooks County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board.

The tax millage rate levied for the 1998 tax year (calendar year) for the Brooks County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.32 mills

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 of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements of expenditures/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.

- 11 -

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they, are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations 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 of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the 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. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe 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 of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home
- 12-

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS

Loan Bank, the Federal Intennediate Credit Bank, the Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $4,189,154.90. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1999, as follows:

Risk Category

Bank Balance

1

$ 354,281.32

2

2,449,380.86

3

1.385.492.72

Total

$ 4,189.154.90

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 of loss associated with torts, assets and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

- 13 -

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 4: RISK MANAGEMENT

The Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks 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:

Beginning of Year Liability .

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1998 1999

$

0.00 $

978.00 $

978.00 $

0.00

$

0.00 $

1.886.00 $

1,886.00 $

0.00

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

Position Covered

Amount

Superintendent Each Principal

$ 100,000.00 $ 14,200.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$221,795.82 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$155,492.67

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$14,218.15

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$52,085.00

- 14-

BROOKS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1999

Note 6: 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 7: SUBSEQUENT EVENTS

On November 2, 1999, the voters ofBrooks County voted in favor of a Special Purpose Local Option Sales Tax referendum for education purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot of Brooks County, is as follows:

"Shall a one percent sales and use tax be imposed in the Brooks County School District for a period of time not to exceed twenty consecutive calendar quarters and for the raising of not more than $4,000,000.00 for the acquisition, construction, and equipping ofcapital outlay projects at North Brooks Elementary, Brooks Middle School, Quitman Elementary School, and Brooks County High School including the Brooks County High School football stadium?"

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone fmancial 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

- 15 -

100% 100% 100%

$ 1,050,878.46 $ 937,739.17 $ 863,083.12

BROOKS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1999

EXHIBIT"G"

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30,1999 JUNE 30, 1998

$ 648,294.46 $ 48,756.01

$ 697,050.47 $ 783,598.45

$ 215,689.84

215,689.84

195,531.25

15,754.97 4,763.63

15,754.97 4,763.63

13,604.69 6,465.54

Total Assets

$ 668,813.06 $ 48,756.01 $ 215,689.84 $ 933,258.91 $ 999,199.93

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

$

20,651.78 $

55,748.82

Total Liabilities

$

76,400.60 $

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

Unreserved

Undesignated

15,754.97 4,763.63
571,893.86 $

Total Fund Equity

$ 592,412.46 $

$ 11,669.61 29,040.90 8,045.50
48,756.01 $

20,727.66 $ 43,828.19 116,134.24
9,449.38
190,139.47 $

20,727.66 76,149.58 $ 200,923.96 17,494.88
315,296.08 $

$

25,550.37 $

25,550.37

0.00 0.00 $

0.00 25,550.37 $

15,754.97 $ 4,763.63
571,893.86
617,962.83 $

68,458.17 190,345.50
30,108.47 288,912.14
13,604.69 6,465.54
690,217.56 710,287.79

Total Liabilities and Fund Equity

$ 668,813.06 $

48,756.01 $ 215,689.84 $ 933,258.91 $

999,199.93

See notes to the general purpose financial statements.

- 16-

BROOKS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1999

EXHIBIT"H"

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30,1998

REVENUES

State Funds Federal Funds Other Funds

$ 80,806.00 $ 308,076.08

$ 388,882.08 $ 382,366.02

954,742.57

$ 1,421,765.10

2,376,507.67

2,346,004.54

205,032.59

205,032.59

189,945.86

Total Revenues

$ 1,240;581.16 $ 308,076.08 $ 1,421,765.10 $ 2,970,422.34 $ 2,918,316.42

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation

$ $ 1,358,904.86

269,888.23 $ 40,806.34
73.00
39.95 108.89

812,981.99 $ 1,082,870.22 $ 1,000,096.29

40,856.78 186,842.81
146,685.96 12,721.24 1,557.97 2,153.00
198,883.79

81,663.12 186,915.81
146,685.96 12,721.24 1,557.97 2,192.95
198,992.68 1,358,904.86

181,515.11 190,031.06
18,038.94 102,855.85
12,279.30 215.00
7,967.27 189,250.89 1,239,974.71

Total Expenditures

$ 1,358,904.86 $ 310,916.41 $ 1,402,683.54 $ 3,072,504.81 $ 2,942,224.42

Excess of Revenues over (under) Expenditures

$ -118,323.70 $

-2,840.33 $

19,081.56 $ -102,082.47 $

-23,908.00

OTHER FINANCING SOURCES

Operating Transfers In

2,840.33

6,468.81

9,309.14

26,991.06

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

$ -118,323.70 $

0.00 $

25,550.37 $

-92,773.33 $

3,083.06

FUND BALANCE JULY 1

710,287.79

0.00

0.00

710,287.79

699,644.91

Food Inventory - Net Change in Period Donated Commodities Purchased Food

2,150.28 -1,701.91

2,150.28 -1,701.91

9,709.37 -2,149.55

FUND BALANCE JUNE 30

$ 592,412.46 $

0.00 $

25,550.37 $ 617,962.83 $ 710,287.79

See notes to the general purpose financial statements.

-17 -

BROOKS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAMfGRANT

CFDA NUMBER

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant

10.553 10.555

Total Child Nutrition Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)

10.550

Total U. S. Department of Agriculture

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Grant 1999 Grant Flow Through 1999 Grant Preschool 1997 Grant 1999 Grant

84.173
84.027
84.173 84.173

Total Special Education Cluster

Other Programs Pass-Through From Berrien County Board of Education d/b/a Southem Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1998 Summer 1999 Grant 1999 Summer Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1999 Grant Title II Eisenhower Professional Development 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1998 Grant Safe and Drug-Free Schools 1999 Grant

84.011 84.011 84.011
. 84.010
84.281
84.298
84.276 84.186

PASSTHROUGH
ENTITY 10
NUMBER
NfA $ N/A
$
NlA $
NlA $ N/A NlA NlA
$
N/A NlA NlA
NlA NlA NlA NlA NlA

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

257,784.34 650,068.31 $ 907,852.65 $

(2) 1,312,014.94 (3) 1,312,014.94

46,889.92 954,742.57 $

46,889.92 1,358,904.86

7,706.00 $ 134.352.79
-1,959.93 12.061.22
152,160.08 $

7,735.53 (3) 135,675.12 (3)
12,062.14 (3) 155,472.79

26.685.05 15,565.64 10.988.90

26,685.05 15,565.64 8.320.27

850.524.22 27,357.54 15.545.74 52,071.29 12.974.56

850,524.22 18,081.34 15.545.74 38,465.75 12,974.56

-18 -

BROOKS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30,1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant
Total U. S. Department of Education
Labor, U. S. Department of Pass-Through From Southeast Georgia Regional Development Center Senior Community Service Employment Program Title V
1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 84.243

N/A $ N/A
$

43,628.00 $

48,495.26 (3)

20,000.00

20,000.00

1,227,501.02 $ _......:.:1,=.21.;.:0"-,1:.;;:3""0:.;;:.6=..2

17.235

NlA $

192,304.15 $

192.552.92 (3)

Total Federal Financial Assistance
N/A = Not Available

$ 2,374,547.74 $

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1999 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 Brooks 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.

2,761,588.40

See notes to the general purpose financial statements.

- 19-

BROOKS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1999

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Record Grant 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
CONTRACTS Education, Georgia Department of Leadership Development Program Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 5,597,575.00 861,917.00 506,544.00 249,697.00 70,169.00
1,599,804.00
333,994.00 109,370.00 235,719.00 250,019.60 84,705.00
6,137.00 22,018.00 28,842.00 -1,056,828.00 751,708.00
$ 67,795.00
18,102.49 155,492.67
486.00 31,406.39
6,202.83 2,044.50 14,218.15 3,197.50
52,085.00

$
80,806.00 5,607.75
52,185.26

5,597,575.00 861,917.00 506,544.00 249,697.00 70,169.00
1,599,804.00
333,994.00 109,370.00 235,719.00 250,019.60 84,705.00
6,137.00 22,018.00 28,842.00 -1,056,828.00 751,708.00 80,806.00 67,795.00
18,102.49 155,492.67
486.00 31,406.39
6,202.83 2,044.50 14,218.15 3,197.50
5,607.75 52,185.26

250,283.07

250,283.07

52,085.00

1,000.00 28,775.00

1,000.00 28,775.00

$ 10,032,196.13 $

See notes to the general purpose financial statements.

- 20-

388,882.08 $ 10,421,078.21

BROOKS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE 30,1999

SCHEDULE "3"

EXPENDITURES

ASSISTIVE TECHNOLOGY

COMPUTERS IN THE CLASSROOM

PRE-KINDERGARTEN PROGRAM

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Student Transportation Services

Other Support Services

5,607.75 $

52,185.26 $

212,095.22 $
40,806.34 73.00 39.95
108.89

TOTAL
269,888.23
40,806.34 73.00 39.95
108.89

Total Expenditures

$

5,607.75 $

52,185.26 $

253,123.40 $ =====3=10..,.9==1=6=.4==1

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program

$

224,529.18

5,607.75 52,185.26 28,594.22

$

310,916.41

See notes to the general purpose financial statements.

- 21 -

BROOKS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

7,215,733.00 $ _ _--=.23~4:..z.;,6::..;1~7.:.::.0~0

$

7,519,009.53

335,796.98 $ _ _--=.28:::.:5:.!..,4.:..;1~7.:.::.9-=-4

$

7,854,806.51

-61,219.03 $ _ _...:.7.!.7:-.,=-93=..:.,5=.:8::.:.7.:...;.4~8

$

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

See notes to the general purpose financial statements. - 23 -

BROOKS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30,1999

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

648,644,00

$

583,779,60 $

0,00

1,597,788.00

1,438,009,20

$ 2,246,432,00 90 $ 2,021,788,80 $

0.00

657,444,00 90

591,699.60

1,375.528.00 90

1.237.975,20

688,598,00 90

619.738,20

134.744,00 90

121,269.60

494.829,00 90

445.346.10

$ 5,597,575,00

$ 5,037,817.50 $

0,00

$

804,119.00

$

723.707,10 $

0.00

$

804.119,00 90 $

723,707,10 $

0.00

57.798,00 90

52,018,20

$

861,917,00

$

775,725.30 $

0.00

$

506,544.00 90 $

455,889.60 $

0.00

$ 6,966,036.00

$ 6,269,432.40 $

0,00

$

197,267.00 90 $

177,540.30 $

0.00

52,430.00 100

52,430.00

$

249,697.00

$

229,970.30 $

0,00

$ 7,215,733,00

$ 6,499,402,70 $

0,00

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

$

22,135.00

$

22,135.00 $

0.00

48,034.00

48,034.00

0.00

$

70,169,00 100 $

70,169.00 $======0;;,;,0=0

- 24

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

583,779.60 $

667,983.29 $

17,422.87 $

685,406.16

1,438,009.20

1,361,734.38

42,117.09

1,403,851.47

$ 2,021,788.80 $ 2,029,717.67 $

59,539.96 $ 2,089,257.63 $

0.00

591,699.60

706,006.79

27,437.68

733,444.47

0.00

1,237,975.20

1,441,649.47

62,076.98

1,503,726.45

0.00

619,738.20

961,686.83

87,391.44

1,049,078.27

0.00

121,269.60

167,012.62

39.93

167,052.55

0.00

445,346.10

655,228.24

37,374.95

692,603.19

0.00

$ 5,037,817.50 $ 5,961,301.62 $

273,860.94 $ 6,235,162.56

$

723,707.10

$

13,240.37 $ 301,707.15 457,789.72

1,356.00 $ 2,969.49 5,762.51

14,596.37 304,676.64 463,552.23

$

723,707.10 $

772,737.24 $

10,088.00 $

782,825.24

0.00

52,018.20

54,340.08

667.00

55,007.08

0.00

$

775,725.30 $

827,077.32 $

10,755.00 $

837,832.32

$

455,889.60 $

470,093.60 $

802.00 $

470,895.60

0.00

$ 6,269,432.40 $ 7,258,472.54 $

285,417.94 $ 7,543,890.48

$

177,540.30 $

52,430.00

$

229,970.30 $

260,536.99 $
260,536.99 $

$ 50,379.04
50,379.04 $

260,536.99 50,379.04
310,916.03

0.00 2,050.96

$ 6,499,402.70 $ 7,519,009.53 $

335,796.98 $ 7,854,806.51 $

2,050.96

$

22,135.00

48,034.00

$ ==,;,;70~,,;,;16;;9;,;;'0=0

$

44,366.97 $

44,366.97

28,233.74

28,233.74

$

72,600.71 $

72,600.71 $ ========0=.0=0

- 25 -

I I I I I
I I I I I
I I I I I
I I I I I
I I I I I
I I I I I
I I I I I
I I

SECTION IV FINDINGS AND QUESTIONED COSTS

I I I I
I I I
I I I I
I I I I
I I I
I I I
I I I I
I I I
I I I
I I I I
I I I I
I I I
I I I
I I I I
I I I I
I I I
I I I I
I I I I
I I I
I I I

BROOKS COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Brooks County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Brooks County Board of Education disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets

The reportable condition described above is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Brooks 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 Brooks County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. Type of Rc:mort Issued on Compliance for Major Programs The auditor's opinion on the Brooks 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 .510(a) ofOMB Circular A-133 The Brooks County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Education Agencies

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

9. Low Risk Auditee The Brooks County Board of Education was audited as a low risk auditee based on a waiver granted

by the U. S. Department of Education.

.

- 1-

BROOKS COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EXPENDITURES/LIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $2,050.96 Finding Control Number: FS-6141-99-01
The Brooks County Board of Education reported to the Georgia Department of Education on DE form 0420 underexpenditures of Quality Basic Education(QBE) funds of $2,050.96 for the operations portion of the Media Center Program. This underexpenditure occurred because the Board expended less than the minimum expenditure requirement for this QBE Program. These funds should be returned to the Georgia Office of Treasury and Fiscal Services.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6141-99-02
The Brooks County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
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