Audit report, Bulloch County Board of Education, Statesboro, Georgia, year ended June 30, 1998 [June 30, 1998]

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AUDIT REPORT BULLOCH COUNTY BOARD OF EDUCATION
STATESBORO,GEORGIA YEAR ENDED JUNE 30, 1998
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

BULLOCH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

24

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

25

3 SCHEDULE OF STATE REVENUE

27

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

28

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

31

6

BYPROGRAM

32

BULLOCH COUNTY BOARD OF EDUCATION - 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 0MB CIRCULAR A-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONIV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 18, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Bulloch 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 Bulloch County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Bulloch County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable
to financial audits contained in Government Auditin& Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free-of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
The general purpose financial statements 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.

98ARL-13B

* 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 aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Bulloch County Board of Education as of June 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government AuditinG Standards, we have also issued our report dated June 18, 1999, on our consideration of the Bulloch County Board of Education's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants.
The year 2000 supplementary information on Schedul~ "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Bulloch County Board ofEducation is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Bulloch County Board of Education does business are or will become year 2000 compliant.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Bulloch County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 2 through 6), 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 Organ'izations, are presented for purposes ofadditional 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.
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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~(Q 0.-(]~ Russell W. Hinton State Auditor
RWH:jb 98ARL-13B

BULLOCH COUNIT BOARD OF EDUCATION

BULLQCH COUNTY BQARD QF EDU~ATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1998

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Due from Other Funds
Inventories Food Donated commodities Purchased Food
Amount Available In Debt Service Fund
Amount to be Provided In Future Years For Payment of: Bond Debt Cspltal Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 5,657,262.61 $

107,509.31 $ 11,908,679.45

350,000.00

1,866,600.00

5,063,704.57

566,262.84

3,486,332.19

657,680.83

96,539.38 17,582.96

Total Assets

$ 11,378,648.01 $ 1,137,894.49 $ 17,261,611.64

LIABlbl!IES AND FUND EQUITY
UABIUTIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Retalnages Payable Due to Other Funds Capital Lease Agreements General Obligation Bonds Payable
Total Uabllities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated COmmodities Purchased Food For Purpose of Bond Issue For State Cspltal Outlay Projects Unreserved Undeslgnated
Total Fund Equity

$ 1,292,909.27 $ 3,822,911.99
28.55

72,894.06 $ 358,031.03
2,264.17

55.06 981,054.16

$ 511151849.81 $

433.189.26 $

9811109.22

$

630.89

$ 61262.798.20 $ 61262-798.20 $

96,539.38 17,582.96
$
589.952.00 704-705.23 $

13,185,461.20 422,119.81
21672.921.41
1612801502.42

Total Uabllltles and Fund Equity

$ 11,378,648.01 $

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

-2-

1,137,894.49 $

17,261,611.64

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum On~}

JUNE 3011998

JUNE 3011997

$

353,599.22

$ 18,027,050.59 $ 17,494,276.52

468,302.28

2,684,902.28

12,340,179.58

9,116,299.60

7,388,037.37

2,468.00

657,680.83

96,539.38 17,582.96

$

164,220.67

164,220.67

83,935.85 9,570.25
74,917.63

18,835,779.33 871128.17

18,835,779.33 871128.17

19,385,082.37 42U77.92

$

8211901.50 $

19.0871128.17 $ 4916871183.81 $ 5712001345.49

$ 1,365,858.39 $ 1,256,562.72

4,180,943.02

3,716,781.01

2,292.72

15,581.71

981,054.16

609,662.30

$

657,680.83

657,680.83

$

87,128.17

87,128.17

421,877.92

1910001000.00

1910001000.00

1914601000-00

$

657.680.83 $

19.087.128.17 $ 26.2741957.29 $ 25.480.465.66

$

164,220.67

0.00

$

164.220.67

$

630.B9

164,220.67 $

74,917.63

96,539.38 17,582.96 13,185,461.20 422,119.81

83,935.85 9,570.25
17,951,549.81 4,617,481.23

91525.671.61

819821425.06

$ 23_412.226.52 $ 31.719.879.83

$

8211901.50 $

1910B7112B.17 $ 4916871183.B1 $ 5712001345.49

-3-

.

BULLOCH COUNTY BOARD OF EDUCATION

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30, 1998

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}
Acaued Interest on Bonds Sold Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Discount on Bonds Sold 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

$ 30,461,804.41 $ 86,642.16
13,819,063.98 656,010.06
$ 45,023,520.61 $

728,488.39 4, 134,468.97
969,495.99
5,832,453.35

$ 27,688,329.09 $
2,023,704.50 830,446.53
1,240,917.67 333,518.31
3,158,790.15 173,324.11
3,096,157.76 2, 168,066.96
889,736.12 116,229.31
206,421.15

1,812,369.86
282,068.97 68,281.50 47,204.43 100,509.97 15,372.51 16,280.51 746.33
999.92 68,359.37 3,363,955.59
334,749.75 17,538.81

$ 41,925,641.66 $ $ 3,097,878.95 $

6,128,437.52 -295,984.17

$ $ -3,296,116.n
$ -3,296,116.n $

$

-198,297:82 $

6,461,096.02

151,130.n
1511130.n
-138,853.40 822,942.39
12,603.53 8,012.71

FUND BALANCE JUNE 30
The notes to the general purpose financial statements are an Integral part of this statemenl -4-

$ 6,262,798.20 $

704,705.23

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

{Memorandum Onl:t'.}

YEAR ENDED

JUNE 30, 1998

JUNE 301 1997

$ 5,635,788.88

$ 36,826,081.68 $ 34,611,969.23

4,221,111.13

3,932,622.11

$ 1,481,276.30

15,300,340.28

14,028,722.15

812,120.24

21,774.52

2,459,400.81

2,227,749.49

$ 6,447,909.12 $ 1,503,050.82 $ 58,806,933.90 $ 54,801,062.98

$ 17,428,330.49 $
$ 17,428,330.49 $ $ -10,980,421.37 $

$ 29,500,698.95 $ 27,177,605.75

2,305,773.47 898,728.03
1,288,122.10 434,028.28
3,174,162.66 189,604.62
3,096,904.09 2, 168,066.96
890,736.04 184,588.68 3,363,955.59 17,634,751.64

2,214,619.37 1,009,937.42
988,171.18 469,475.78 2,219,755.95 491,008.58 2,955,654.18 1,986,163.69 353,247.34 136,397.47 3,017,205.48 9, 153,533.91

460,000.00 1,185,375.83
7 417.95

794,749.75 1,202,914.64
7,417.95

313,769.31 38,519.25

1,652,793.78 $ 67,135,203.45 $ 52,525,064.66

-149,742.96 $ -8,328,269.55 $ 2,275,998.32

$ 2,900,000.00 $ $ 2,900,000.00 $ $ -8,080,421.37 $
24,360,923.79

239,046.00 $ 239,046.00 $

$
3,296,176.77 -3,296,176.77
0.00 $

74,304.61 904.90
19,460,000.00 -9,856.30
2,978,934.17 -2,978,934.17
19,525,353.21

89,303.04 $ 74,917.63

-8,328,269.55 $ 31,719,879.83

21,801,351.53 9,947,626.98

12,603.53 8,012.71

-20,010.26 -9,088.42

$ 1612801502.42 $

164.220.67 $ 23.412.226.52 $ 31-719.879.83

-5-

Bl.!LLQQl:I QQUND'.: BQABD QE EDl.!QAIIQN . QQMBINED SIAIEMENI QE BEYENUES EXEENDII!.!BES AND Ql:IAN~ES IN El.IND BALANQES
Bl.!D~EI AND AQil.!AL - (NQN-!:zMe BASIS)
!:zENEBAL AND SEEQIAL BE~NUE El.!NDS XEAB ENDED JUNE 30 1998

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

BEYENUES

State Funds Federal Funds Taxes Other Funds

$ 29,000,032.39 $ 30,461,804.41

99,029.38

86,642.16

12,430,833.00 13,819,063.98

250,000.00

656,010.06

Total Revenues
EXEENPIIUBES

$ 41 1TT9,894.TT $ 45,023,520.61

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

$ 28,567,797.19 $ 27,688,329.09

2,246,278.91 1,095,155.87 1, 151,688.65
362,554.00 2,676,248.80
243,872.95 3,073,032.48 2,208,727.97
780,478.49 98,586.65 496.58
210,565.88

2,023,704.50 830,446.53
1,240,917.67 333,518.31
3,158,790.15 173,324.11
3,096,157.76 2,168,066.96
889,736.12 116,229.31
206,421.15

Total Expenditures

$ 42,715,484.42 $ 41,925,641.66

Excess of Revenues over (under) Expenditures

$ -935,589.65 $ 3,097,878.95

Qil:IEB EINANQIN!:z SQUBQES (USES)

Other Sources Other Uses
Total Other Financing Sources (Uses)

$ 296,195.48 -2,974,288.82 $ -31296,176.n
$ -2,678,093.34 $ -3,296,176.n

Excess of Revenues and other Financing Sources over (under) Expenditures and other Financing Uses $ -3,613,682.99 $

-198,297.82

EUND BALANQE JULY: 1 199Z

6,583,3TT.25

6,461,096.02

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

-1,062.67

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 588,615.62 $ 728,488.39

4,277,315.70

4, 134,468.97

902,250.00

969,495.99

$ 5.768,181.32 $ 5,832,453.35

$ 2,064,825.24 $ 1,812,369.86

253,818.33 265,882.86 49,090.39 99,976.58
6,261.12
121,154.25 2,000.00
130,306.08 3,303,585.23
21,000.00

282,068.97 68,281.50 47,204.43
100,509.97 15,372.51 16,280.51 746.33
999.92 68,359.37 3,363,955.59
352,288.56

$ 6,317,900.08 $ 6,128,437.52

$ -549,718.76 $ -295,984.17

$ 201,800.00 $ -194,811.71

$

6,988.29 $

157,130.n 157,130.n

$ -542,730.47 $ -138,853.40

818,545.61

822,942.39

40,579.30

12,603.53 8,012.71

EUND BALANQE JUt:IE ~ 199

$ 219681631.59 $ 61262i798,20

$

3161394.44 $

704i7os.23

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

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Bulloch County Board ofEducation (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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental :functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in complianc~ 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 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 ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes~ These funds are received primarily from the GeorgiaDepartment ofEducation and from the Federal government to accomplish specific educational objectives.
-7-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and material 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 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis 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, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1997 and ending in early June 1998. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
-8-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Bulloch County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral 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
COMPOSITTON 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.
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 of one 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 ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State ofGeorgia 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,
-9-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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

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

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 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 Bulloch County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on September 29, 1997 (levy date). Taxes were due on December 22, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Bulloch 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 1997 tax year (calendar year) for the Bulloch County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

9.4mills --1...Q mills

~mills

SALES TAXES

Local Option Sales Tax revenue during the fiscal year amounted to $6,615,846.19 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the Board.

-10-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of m~jor 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 of the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
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 not present :financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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
-11-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 2: DEPOSITS AND INVESTMENTS
surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 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 any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates ofindebtedness, 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 and 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, 1998, the bank balances were $23,974,376.06. 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.

- 12-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 2: DEPOSITS AND INVESTMENTS

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, 1998, as follows:

Risk CateJNIY

Bank Balance

1

$ 300,276.92

2

20,250,902.13

3

3,423, 197,01

Total

$23.974.376.06

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

At June 30, 1998, the carrying value ofthe Board's total investments was $468,302.28. The investments are classified as to risk categories as follows:

Type of Investment
U.S. Government

Risk Categories 2

Carrying
Amount

Fair
Value

S 468,302.28 S

o.oo s.__-=o.o-=o s 4s,302.2s s 46s.302.2s

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

-13 -

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss 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, errors or omissions and job related illness or injuries to employees. However, the errors or omissions policy excludes coverage for discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

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

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

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

Beginning ofYear
Liability

Claims and Changes in
Estimates

Claims
Paid

EndofYear
Liability

1997

$

Q,QQ $

l,74B;QQ $

l,Z4B,QQ $

Q,QQ

1998

$

Q,QQ $

1,821,QQ $

1,821,QQ $

Q,OQ

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

Position Covered

Amount

Superintendent Each Principal ChiefFinancial Officer

$ 20,000.00 $ 20,000.00 $ 20,000.00

Note 5: GENERAL LONG-TERM DEBT

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

-14-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 5: GENERAL WNG-TERM DEBT
GENERAL OBLIGATION DEBT OUTSTANDING
General Obligation Bonds currently outstanding are as follows:

Pw::pose

Interest Rates

Amount

General Government - Series 1996 General Government - Series 1997

4.70%- 6.00% $ 9,000,000.00

4.80%- 7.00%

10,000,000.00

$ 19.000.000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

Balance July 1, 1997

General

Capital

Obligation

Leases

Bonds

Total

$ 421,877.92 $19,460,000.00 $19,881,877.92

Deduction Payments

334,749,75

460,000.00

794.749,75

Balance June 30, 1998

$ 87.128.17 $19.000.000.00 $19.087.128,17

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year
Ended June 30
1999 2000 2001 2002 2003 2004-2008 2009-2013 2014-2017
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

General

Capital

Obligation

Total

Leases

Bonds

Debt

$ 88,072.14 $ 1,640,640.00 $ 1,728,712.14 1,625.590.00 1,625,590.00 1,613,890.00 1,613,890.00 1,600,240.00 1,600,240.00 1,593,240.00 1,593,240.00 7,918,715.00 7,918,715.00 8,010,442.50 8,010,442.50
6,537,262,50 6,537,262.50

$ 88,072.14 $30.540.020.00 $30.628.092. 14

943,97

$ 87.128.17

- 15 -

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$737,637.60 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$595,843.61
)J
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $24,023.99

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$1 l 7,770.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1998, together with funding available:

Project

Unearned Executed
Contracts

Funding Available
From State

Statesboro High Renovations Mattie Lively Elementary and Sallie Zetterower
Elementary Renovations Stilson Elementary Renovations Nevils Elementary Renovations Portal Middle/High Renovations 94/94S-616-004, 95/96-616-008 and 97-616-004 95/96-616-007 97/97S-616-057 97/97S-616-056 98/97S-616-058 98/97S-616-059

$ 5,114.43

719,873.03 164,071.09 409,920.71 529,201.00 235,958.35 132,502.89 1,763,966.72 5,354,975.96 4,235,610.00
4,430,575.78

$ 692,054.00 253,331.00 242,757.00
2,968,471.00 2,335,968.00
2,859,266.50

$17.91.769.96 $ 9.351.847.50

The amounts described in this note are not reflected in the general purpose financial statements.

-16-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 8: 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.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81 % and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
1998 1997 1996

Percentage
Contributed
100% 100% 100%

Required
Contribution
$ 3,186,212.88 $ 2,879,247.51 $2,741,356.70

-17 -

BULLOCH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 1998

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Total Assets
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
Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
-18-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 120,139.52 $

400.89

350,000.00

313,127.39

96,539.38 17,582.96

- - - - - $ 897,389.25 $

400.89

$

27,295.45 $

166,019.46

$ 193,314.91 $

252.80 148.09 400.89.

$

96,539.38

17,582.96

589,952.00 $

0.00

$ 704,074.34 $

0.00

- - - - - $ 897,389.25 $

400.89

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAM

TOTALS JUNE 30, 1998 JUNE 30, 1997

$

49,044.29

$

169,584.70 $

553,401.81

350,000.00

340,179.58

190,862.43 $

62,273.02

566,262.84

709,948.94

2,468.00

96,539.38 17,582.96

83,935.85 9,570.25

$

239,906.72 $

62,273.02 $ 1,199,969.88 $ 1,699,504.43

$

$

45,148.18

192,011.57

2,116.08

$

239,275.83 $

62,075.39 $ 197.63
62,273.02 $

62,075.39 $ 72,894.06 358,031.03 2,264.17
495,264.65 $

462,464.31 65,864.03 340,928.93 7,304.77
876,562.04

$

630.89

0.00 $

$

630.89 $

$

630.89

0.00 0.00 $

96,539.38 $ 17,582.96
589,952.00
704,705.23 $

83,935.85 9,570.25
729,436.29
822,942.39

$

239,906.72 $

62,273.02 $ 1,199,969.88 $ 1,699,504.43

-19-

.

BULLOCH COUNTY BOARD OF EDUCATION

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30, 1998

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 Business Administration Maintenance and Operation of Plant Central Support Services Other Support Services Food Services Operation
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Q#ler Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general purpose financial statements. -20-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

219,716.00 $

2,035,259.31

969,495.99

$ 3,224,471.30 $

417,224.42 417,224.42

$

134,719.32

2,505.58

$ 3,363,955.59
$ 3,363,955.59 $ $ -139,484.29 $

10,030.72 9,616.57
16,280.51
999.92 15,605.80
334,749.75 17,538.81
542,046.98
-124,822.56

124,822.56

$ -139,484.29 $

0.00

822,942.39

0.00

12,603.53 8,012.71

------ $

704,074.34 $

0.00

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAM

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$ $ 2,099,209.66
$ 2,099,209.66 $

91,547.97 $ 91,547.97 $

728,488.39 $ 4,134,468.97
969,495.99
5,832,453.35 $

678,928.58 3,843,531.21
858,138.42
5,380,598.21

$ 1,653,466.54 $
219,025.54 68,281.50 47,204.43 90,479.25 5,755.94
746.33
45,532.19

$ 2,130,491.72 $

$

-31,282.06 $

24,184.00 $ 60,537.85
7,221.38
91,943.23 $ -395.26 $

1,812,369.86 $
282,068.97 68,281.50 47,204.43 100,509.97 15,372.51 16,280.51 746.33 999.92 68,359.37
3,363,955.59
334,749.75 17,538.81
6,128,437.52 $
-295,984.17 $

1,687,896.36
211,911.69 103,729.64 43,733.77 88,113.52
5,865.04
526.60
60,338.85 3,017,205.48
313,769.31 38,519.25
5,571,609.51
-191,011.30

31,912.95

$

630.89 $

0.00

395.26

157,130.77

228,934.17

0.00 $ 0.00

-138,853.40 $ 822,942.39

37,922.87 814,118.20

12,603.53 8,012.71

-20,010.26 -9,088.42

$

----- 630.89 $

0.00 $

704,705.23 $

822,942.39

-21-

BULLOCH COUNTY BOARD OF EDUCATlON COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE30 1998

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

JUNE 301 1998

JUNE 301 1997

$ 2,918,690.07 $ 11,318,861.20

$ 14,237,551.27 $ 12,973,295.51

1,866,600.00

1,866,600.00

10,000,000.00

$ 3,486,332.19

3,486,332.19

2,322,526.77

Total Assets

$ 2,9181690.07 $ 1311851461.20 $ 314861332.19 $ 1915901483.46 $ 2512951822.28

LIABILITIES AND FUND eaurry
LIABILmes
Cash Overdraft Accounts Payable Retainages Payable
Total Uablllties
fUNDEaurry
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignatecl
Total Fund Equity

$

245,768.66

$

245-768,66

$ 2,328,871.82 $ 2,328,871.82 $

55.06

55.06

735,285.50

981,054.16

$ 3,064,212.38 $ 3,309,981.04 $

325,236.19 609,662.30 934,898.49

$ 13,185,461.20 $

$ 2,6n,921.41

0.00

$ 2,sn,921.41 $ 13,185,461.20 $

$ 13,185,461.20 $ 17,951,549.81

422,119.81

422,119.81

4,617,481.23

0.00 422,119.81 $

2,6n1921.41

1,791,892.75

16,280,502.42 $ 24,360,923.79

Total Uablllties and Fund Equity

$ 219181690.07 $ 1311851461.20 $ 314861332.19 $ 1915901483.46 $ 2512951822.28

See notes to the general purpose financial statements.

-22-

BULLOCH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30. 1998

EXHIBIT"H"

REVENUES

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

YEAR ENDED

JUNE 30.1998

JUNE 301 1997

State Funds OtherFunds

$ 5,635,788.88 $ 5,635,788.88 $ 5,594,864.12

$ 88,733.52 $ 723,386.72

812,120.24

758,847.79

Total Revenues

$ 88,733.52 $ 723,386.72 $ 5,635,788.88 $ 6,447,909.12 $ 6,353,711.91

EXPENDITURES

Current Support Services Business Administration
Capital Outlay Salaries Employee Benefits Land and Land Improvements Building and Building Improvements Equipment

$
$ 192,664.14 4,266,904.06

0.00

$

$

46,200.00 $

46,200.00

6,151.88

6,151.88

877,711.79

1,070,375.93

11,531,881.22

15,798,78528

506,817.40

506,817.40

235,889.06
5,800.00 8,524,672.10
1,995.00

Total Expenditures

$ 4,459,56820 $

0.00 $ 12,968,762.29 $ 17,428,330.49 $ 8,768,356.16

Excess of Revenues over (under) Expenditures

$ -4,370,834.68 $ rn,38s.n $ -7,332,973.41 $ -10,980,421.37 $ -2,414,644.25

Qil:iER flNAt!CIN!i SOl,,!RgE (!.!ES}

Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Discount on Bonds Sold Operating Transfers In Operating Transfers Out

$ 5,251,863.34

$

$ -5,489,475.33

$

904.90

3,137,611.99 $ 8,389,475.33 -5,489,475.33

19,460,000.00 -9,856.30
10,186,426.46 -7,436,426.46

Total Other Ananclng Sources (Uses)

$ 5,251,863.34 $ -5,489,475.33 $ 3,137,611.99 $ 2,900,000.00 $ 22,201,048.60

Excess of Revenues and Other Ananclng Sources over (under) Expenditures and Other Ananclng Uses $ 881,028.66 $ -4,786,088.61 $ -4,195,361.42 $ -8,080,421.37 $ 19,786,404.35

fl.!NP BALANCE JULY 1

1,791,892.75 17,951,549.81

4,617,48123

24,360,923.79

4,574,519.44

fl.!NP BALANCE JUNE 30

$ 216n1921.41 $ 131185146120 $

4221119.81 $ 1612801502.42 $ 2413601923.79

See notes tD the general purpose financial statements.

.23.

BULLOCH COUNTY BOARD OF EDUCATION

SCHEDULE "1"

SCHEDULE OF REQlJIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30. 1998

At June 30, 1998, the Bulloch County Board ofEducation had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue.
Assessment Stage - The actual process of identifying all ofits systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
Validation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was detennined to be at the Awareness Stage.
The Board's financial accounting software (GENESIS) and hardware (Wang VS) are owned by the State (Georgia Department ofEducation). These systems have been detennined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department of Education has remediated the GENESIS- software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards of education currently utilizing the GENESIS accounting software.

See notes to the general purpose financial statements.
-24-

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Agriailture, U. S. Department of Direct Food and Nutrition Program Summer Food Service Program for Children 1998 Grant Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1)
Total U. S. Department of Agriailture
Education, U. S. Department of Pass-Through From First Distrid Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Ad Title1 Migrant Education 1998 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Ad Trtlel
Grants to Local Educational Agencies
1998 Grant Title II
Eisenhower Professional Development 1998Grant
TrtleVI Innovative Education Program Strategies 1998Grant
Individuals with Disabilities Education Ad Part B - Special Education Flow Through 1998 Grant Preschool 1998Grant
Vocational Education - Basic Grants to States
High School Program Basic Grant 1998 Grant Tech-Prep Education 1998Grant
TotalU.S.DepartmentofEducation

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 10.559

$

68,301.11

(2)

* 10.553
* 10.555 10.550

NIA

438,851.19

(2)

NIA

1,325,697.06 $ 3, 161,545.64 (3)

NIA

202,409.95

202,409.95

$ 2,035,259.31 $ 3,363,955.59

84.011

NIA $

13,542.10 $

13,542.10

84.010

NIA

84.281

NIA

84.298

NIA

1,385,647.60 64,108.85 49,164.00

1,417,141.55 (3) 63,477.96 49,164.00

* 84.027

NIA

* 84.173

NIA

438,583.16 28,214.30

438,583.16 28,214.30

84.048 84.243

NIA

88,184.58

88,603.58 (3)

NIA

31,765.07

31,765.07

$ 2,099,209.66 $ 2,130,491.72

-25-

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Justice,U.S.Departmentof

Pass-Through From Children and Youth Coordinating Council

Juvenile Justice Delinquency Prevention and Treatment

97J-01-9704-0015

16.540

NIA $

9,595.16 $

9,595.16

OTHER FEDERAL ASSISTANCE

Defense, U. S. Department of Dired Department of the Anny R.O.T.C. Program

$

77,047.00 $

771047.00

Total Federal Financial Assistance

$ 4,221,111.13 $ 5,581,089.47

N/A=Not Available

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 Summer Food Service Program for Children and the School Breakfast Program were not maintained separately and are induded in the 1998 National School Lunch Program.
(3) Expenditures for this program indude State, and/or Other Funds. Expenditures are not maintained by fund source.
r> Major Programs are Identified by an asterisk in front of the CFDA number.

The Board did not provide Federal Assistance to any Subrecipient

The acoompanying schedule of expenditures of Federal awards indudes the Federal grant adivity of the Bulloch County Board of Education and is presented on the modified accrual basis of acoounting which is the same basis of acoounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

-26-

BULLOCH COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1998

SCHEDULE 3

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 Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Ad Valorem Tax Adjustment Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teacher Program National Teacher Certification Grant Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Financial and Management Equipment Instructional Technology Asslstlve Technology Classroom Technology
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Human Resources, Georgia Department of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 17,906,981.00 3,359,006.00 746,754.00 751,716.00 225,189.00 4,741,278.00
976,639.00 335,306.00
1,251.00 236,978.00 828,814.00 172,147.00 131,884.00
75,403.00 115,369.00 -3,311,350.00 -3,654,471.00 3,944,350.00 1,645,312.00
$ 59,470.00
202,063.00 96,400.00 26,540.51 971.45
595,843.61 3,008.00 2,386.00
95,886.00 8,885.85
24,023.99

219,716.00
4,132.00 26,897.00 13,074.00 227,466.00

$ 17,906,981.00 3,359,006.00 746,754.00 751,716.00 225,189.00 4,741,278.00
976,639.00 335,306.00
1,251.00 236,978.00 828,814.00 172,147.00 131,884.00
75,403.00 115,369.00 -3,311,350.00 -3,654,471.00 3,944,350.00 1,645,312.00 219,716.00 59,470.00
202,063.00 96,400.00 26,540.51 971.45
595,843.61 3,008.00 2,386.00 95,886.00 8,885.85
24,023.99
4,132.00 26,897.00
13,074.00 227,466.00

117,770.00

$ 5,635,788.88 145,655.42

5,635,788.88 145,655.42 117,770.00

91,547.97

91,547.97

See notes to the general purpose financial statements.

$ 30,461,804.41 $

728,488.39 $ 516351788.88 $ 36,826,081.68

-27-

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1998

EXPENDITURES
Current Instruction Support Services Pupil Services General Administration School Administration Business Administration Central Support Services Other Support Services Debt Service
Total Expenditures
RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Alternative School Program Financial and Management Equipment Instructional Technology Assistive Technology Classroom Technology Pre-Kindergarten Program

ALTERNATIVE SCHOOL PROGRAM

FINANCIAL AND MANAGEMENT
EQUIPMENT

$

4,132.00

$

9,616.57

16,280.51

999.92

$

-------- 4,132.00 $

26,897.00

$

141,293.29

4,132.00 26,897.00

13,074.00 352,288.56
4,362.13

$ _ _5_4_2._046_.9_a

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

SCHEDULE "4"

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY

TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

13,074.00

$

$

352,288.56

117,513.32 $ 2,505.58 10,030.72
15,605.80

134,719.32
2,505.58 10,030.72 9,616.57 16,280.51
999.92 15,605.80 352,288.56

$

13,074.00 $

352,288.56 $

145,655.42 $

542,046.98

-29-

BULLOCH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1998

SCHEDULE "5"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries {1) (2) Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

22,879,959.00 $

597,906.00

$

__ __ 23,785,251.43
2,255,162.70 $

2_.,_0_6_5_.,_525.93

$

26,040,414.13

-368, 119.97 $ _ _2_5_,6__72__,2_9_4_.1_6

Amount of Underexpenditure for Total Allotment

$

Note: {1) Salary accruals {July and August 1998 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals {July and August 1997 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

------ 0.00 $

0.00

See notes to the general purpose financial statements. - 31 -

BULLOCH COUNTY BOARD OF EDUCATION
ANALYSIS OF MINIMUM EXPENDJIURE REQUIREMENTS BY PROGRAM GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
VEAR ENDED JUNE 30. 1998

GENERAL ~Q CARl;;ER EQUCATION PROGRAMS Klndergartan ()

Grades 1 3 ()

Sub-Total K-3
Grades 4 5 r)

Grades 6 8 ()

Grades 9 12 ()

High School Laboratories ()

Vocational Education Laboratories ()

Total General and career Education Programs

SPECIAL EDUCAIIQN PROGRAMS

Regular Programs

category I r>

category category category

IIIIVllcrr>>)

Sub-Total Regular
rl category VI (Gifted)

Total Special Education Programs

REMED~ EQL!CAI]ON PROGRAM C:l
Total Fourteen Weighted Programs

MEDIA GENIER PROGRAMS
Salaries Operations

Total Media Center Programs

Total Fourteen Weighted and Media Center Programs

STAFF QEYELQPME!il PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs
M Identifies Fourteen Weighted Programs.
(1) Salary accruals (July and August 1998 Deferred Salaries) reported as expenditures In the General Purpose Financial Statements are not Included
on this analysis In order to comply with program
guidelines.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$ 2,072,987.00

$ 1,865,688.30 $

0.00

5,073,985.00

4,566,586.50

$ 7,146,972.00 90 $ 6,432,274.80 $

0.00

2,245,959.00 90

2,021,363.10

4,013,275.00 90

3,611,947.50

2,214,363.00 90

1,992,926.70

1,425,361.00 90

1,282,824.90

861,051.00 90

774,945.90

$ 17,906,981.00

$ 16,116,282.90 $

0.00

$ 3,150,251.00

$ 2,835,225.90 $

95,000.00

$ 3,150,251.00

208,755.00

$ 3,359,006.00

$

746,754.00

s 22,012,741.00

90 $ 2,835,225.90 $

90

187,879.50

$ 3,023,105.40 $

90 $

6721078.60 $

$ 19,8111466.90 $

95,000.00 20,502.00 115,502.00
0.00 115,502.00

$

618,983.00 90 $

555,284.70 $

0.00

134:733,00 90

121,259.70

s 751,716.00

s s 676,544.40

0.00

s 221764,457.00

s 20,488,011.30 $

115,502.00

s

65,322.00

s

s 65,322.00

0.00

159,887.00

159,867.00

0.00

s

s 225,189.00 100

225,189.00 $

0.00

(2) Salary accruals (July and August 1997 Deferred Salaries) reported as expenditures In the prior year General Purpose Financial Statements are Included on this analysis as required by program guldeHnes.

- 32 -

SCHEDULE s

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

s s s 1,865,688.30

2,032,940.77

s 102,379.05

2,135,319.82

4,586,586.50

4,760,181.45

418,571.08

5,178,752.53

s s s 6,432,274.80

6,793,122.22

s s 520,950.13

7,314,072.35

0.00

2,021,363.10

2,555,379.25

188,708.75

2,744,088.00

0.00

3,611,947.50

4,029,729.62

611,364.69

4,641,094.31

0.00

1,992,926.70

2,709,284.86

326,390.60

3,035,675.46

0.00

1,282,824.90

1,454,577.39

26,607.87

1,481,185.26

0.00

774,945.90

1,044,481.97

173,885.24

1,218,367.21

0.00

s s s s 16,116,282.90

18,586,575.31

1,847,907.28

20,434,482.59

s 2,930,225.90 s

s 121,161.24
784,453.04
2,395,181.42
163,905.07

s 453.10
3,144.02
43,780.95
2,381.22

121,614.34 787,597.06 2,438,962.37 166,286.29

s s s 2,930,225.90

3,464,700.77

s 49,759.29

3,514,460.06

0.00

208,381.50

226,846.64

4,181.06

231,027.70

0.00

s s s 3,138,607.40

3,8911547.41

s 53,940.35

3,7451487.78

s s 672,078.60

s 576,929.51

s 163,678.30

740,607.81

0.00

s s s s 19,926,968.90

22,855,052.23

2,065,525.93

24,920,578.16

s s 555,284.70

930,199.20

s

930,199.20

0.00

1211259.70

s

189,638.77

189,636.77

0.00

s s 676,544.40

s 930,199.20

s 189,636.77

1,119,835.97

s s s 20,603,513.30 $ 23,785,251.43 $ 2,255,162.70

26,040,414.13

0.00

s

65,322.00

159,867.00

s_ _ _22_5,.,,.1e.e,..o.o.

s

145,343.93 $

145,343.93

120,147.41

120,147.41

$

265,491.34 $

2s5r491_34 s_______o_.oo_

- 33 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 18, 1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Bulloch 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 STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofBulloch County Board ofEducation as of and for the year ended June 30, 1998, and have issued our report thereon dated June 18, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government Auditin1: Standards, issued
by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Bulloch County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government
Auditin& Standards.
Internal Control Over Financial Rq,ortinK
In planning and performing our audit, we considered Bulloch County Board ofEducation's internal control over :financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its
98YB-40

operation that we consider to be a reportable condition. 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 ourjudgement, could adversely affect Bulloch County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6161-98-01.
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that 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 normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above, is considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record.
Respectfully submitted,
~,,_,_Ql_ w' ~:=k.. Russell W. Hinton State Auditor
RWH:jb 98YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 18, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Bulloch County Board of Education
REPORT ON COMPLIANCE WITH REQJJIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIR,CULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Bulloch County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Bulloch County Board ofEducation's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Bulloch County Board of Education's management. Our responsibility is to express an opinion on Bulloch County Board ofEducation's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditinii Standards, issued by the
Comptroller General ofthe United States; and 0MB Circular A-133,Audits ofStates, Local Governments, and Non-Pro.fit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Bulloch County Board of Education's compliance with those requirements and performing such other procedures as we considered necessacy in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Bulloch County Board ofEducation's compliance with those requirements.

98SA-10

In our opinion, the Bulloch County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1998.
Internal Control Over Compliance
The management of Bulloch 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 Bulloch 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 0MB Circular A-133.
Our consideration of the 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 ofrisk 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 of performing 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 for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record.
Respectfully submitted,
~PQ.w. 4:...
Russell W. Hinton State Auditor
RWH:jb 98SA-10

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

BULLOCH COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6161-93-03 FS-6161-97-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6161-97-01

The Board is interested in implementing a General Fixed Assets Account Group within the formal accounting records however, due to budgetary and software constraints, recording General Fixed Assets was not pursued. The Board is evaluating a timely and cost-effective approach to the General Fixed Assets Account Group.

SECTION IV FINDINGS AND QUESTIONED COSTS

BULLOCH CQUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
I SUMMARY OF AUDITOR'S RESULTS
1. I}l)e of Re,port Issued on the Financial Statements The auditor's opinion on the Bulloch County Board ofEducation's :financial statements was qualified for various departures from generally accepted accounting principles.
2. Re,portable Conditions in Internal Control Disclosed by the Audit of the Financial Statements
The audit report for the Bulloch County Board ofEducation 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 wealmess.
3. Noncompliance Material to the Financial Statements
The audit of the Bulloch County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the :financial statements.
4. Reportable Conditions in Internal Control Over Mruor ProlWlfls
The audit report for the Bulloch County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type ofReport Issued on Compliance for Major Prom.ms
The auditor's opinion on the Bulloch County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findin~s Required to be Reported by Section ,SlO(a) of 0MB Circular A-133
The Bulloch 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: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Summer Food Service Program for Children 84.027 Individuals with Disabilities Act - Part B - Special Education - Flow Through 84.173 Individuals with Disabilities Act - Part B - Special Education - Preschool
8. 'uPe "A" Promxu Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee
The Bulloch County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department ofEducation.
- 1-

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED ruNE 30. 1998
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6161-98-01 The Bulloch 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 financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment 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.
-2-