Candler County Board of Education, Metter, Georgia, report on audit the of financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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CANDLER COUNTY BOARD OF EDUCATION

-

MEITER, GEORGIA



REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2000


Russell W. Hinton state Auditor

CANDLER COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

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

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS


ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

.G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES



1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BY PROGRAM

2
4
6
7



18

20

22

24

26
'28
29
31 32

CANDLER 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 ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33

SECTION ill

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

S

Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION"IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS




SECTION I
FINANCIAL



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 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Candler County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Candler County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Candler 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to fmancial audits 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 ofmaterial 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:

2000ARL-13A

* The general purpose financial statements ofthe Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 Candler County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity . with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated June 8, 2001, on our consideration of the Candler County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Candler County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through 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 of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such 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 stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13A

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


RWH:gp 2000ARL-13A

Ru sell W. Hinton State Auditor






CANDLER COUNTY BOARD OF EDUCATION

-

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

159,979.33 $

165,593.83 $

2,107,320.17

100,077.60

281,959.33

11,336.84 2,729.45

Total Assets

$

260,056.93 $

461,619.45 $ _ _=2,107,320.17

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable

Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories
Food
Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

3,883.29 $

38,383.75

144,436.93

988.74

22,372.06

$

570,658.15

685,522.83



$

4,872.03 $

205,192.74 $

1,256,180.98

$

270.47

11,336.84 ,



2,729.45

$

825,895.19

25,244.00

242,089.95

0.00

256,426.71 $ _ _~8~ 51,1~ 39.1~ 9

$

260,056.93 $ _-=46-.1,619.45 $ _ _.:=2,107,320.17

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


EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT



TOTALS

_J_U_NE---3l(0M, 2e0m0o0randumJUONnEly~)30:-,""':"1:::":99=9-

$

687,183.33

$ 3,120,076.66 $ 6,306,338.73

187,674.09

569.711.02

374,648.04

$

874,857.42

11,336.84 2,729.45
874,857.42

12,239.25 1,714.83
1,143,587.99

3.025,142.58 2,219,911.46

3,025,142.58 2,219,911.46

3,756,412.01 118,556.14

$

874,857.42 $

6,119,911.46 $ 9,823.765.43 $ 11,713;496.99

$

42,267.04 $

90.101.02

144,436.93

120,449.22

23.360.80

10,981.51

570,658.15

226,590.55

685,522.83

67,865.19

$

2,219,911.46

2.219.911.46

118,556.14

3,900,000.00

3,900.000.00

4,900,000.00

$

6,119,911.46 $ 7,586,157.21 $ 5,534,543.63

$

874.857.42

0.00 874,857.42

$

270.47 $

33,506.78

874,857.42

1,143.587.99

8.040.61

11,336.84 2,729.45 825,895.19 25.244.00

12.239.25 1.714.83
3,980,988.75

497,274.85

998,875.15

$ 2,237,608.22 $ 6,178,953.36

$

874,857.42 $=====.-6,119,911.46 $ 9,823,765.43 $ 11,713,496.99

-3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
-
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Lease 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

$ 7,649,732.72 $

504,365.64

1,396.591.52

1,844,654.82 168,884.44

225,369.33

$ 9,663,271.98 $ 2,126,326.49

$ 6;316,037.36 $ 1,052,785.58

389,313.02 265,030.60 190,934.24 252,278.34 816,310.10 116,881.87 619,406.66 401,948.25
21.50 82,474.83
23,590.48

98,864.74 76,938.86
8,185.91 2,592.81
8,945.64 2,735.78
13,026.81 886,658.26

98,644.68 8,869.37

$ 9,581,741.30 $ 2,150,734.39

$

81,530.68 $ _ _~ -24= ,40~ 7.9~ 0

$;....---6=00=,0= 00.~00
$_----6-0:0=,00=0.0=0

$

-518,469.32 $

773,654.22

-24,407.90 280,722.40
-902.41 1,014.62

FUND BALANCE JUNE 30

$

The notes to the general purpose financial statements are an integral part of this statement. -4-

255,184.90 $ _ _2:=;56;;;;:,426.71

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

_ _---'(Memorandum OnIYJ

_

YEAR ENDED

JUNE 30; 2000

JUNE 30, 1999

$ 8,154,098.36 $ 7,825,196.95

1,396,591.52

1,365,569.79

$

200,000.00 $

876,346.91

2,921,001.73

2,643,527.73

139,525.16

60,045.52

593,824.45

628,041.19

.



$

339,525.16 $

936,392.43 $ 13,065,516.06 $ 12,462,335.66

$ 7,368,822.94 $ 7,042,483.30

$

20,286.85

6,249,087.87

488,177.76 341,969.46 190,934.24 260,464.25 818,902.91 137,168.72 628,352.30 404,684.03
21.50 95,501.64 886,658.26 23,590.48 6,249,087.87

334,048.69 317,190.67 170,483.87 287,084.70 670,759.16 110,113.73 716,188.49 377,410.05
79,816.16
898,961.46 1,253.72
1,083,656.74


$ 1,000,000.00

1,098,644.68

80,763.13

204,550.00

213,419.37

302,932.00

573.00

573.00

-

$ 6,269,374.72 $ 1,205,123.00 $ 19,206,973.41 $ 12,473,145.87



$ -5,929,849.56 $

-268,730.57 $ -6,141,457.35 $ _ _~-1~0=,8.10!.2.1.

$ 2,200,000.00
600,000.00
$ 2,800,000.00
$ -3,129,849.56 $
3,980,988.75

$. 2,200,000.00 600,000.00 $ -600,000.00
$ 2,200,000.00 $

6,614.85 -6,614.85
= 0.0~0

-268,730.57 $
1,143,587.99


-3,941,457.35 $

-10,810.21

6,178,953.36

6,185,163.68

-902.41 1,014.62

5,348.78 -74.8.89

$

851,139.19 $

874,857.42 $ 2,237,608.22 $ 6,178,953.36

-5-

CANDt..ER COUNTY BOARD OF EDUCATIQN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT 'C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BAS IS):..--

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 7,325,475.00 $ 7,649,732.72

1,753,090.66 25,000.00

1,844,654.82 168,884.44

Total Revenues EXPENDITURES

$ 9,103,565.66 $ 9,663,271.98


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 Community Services
Debt Service Principal Interest
Total Expenditures

$ 6,049,502.00 $ 6,316,037.36

253,900.00 193,280.00 169,280.00 223,854.82 723,887.00 116,100.00 935,950.00 365,249.00
73,676.00

389,313.02 265,030.60 190,934.24 252,278.34 816,310.10 116,881.87 619,406.66 401,948.25
21.50 82,474.83

1,270.00

23,590.48

98,644.68 8,869.37

$ 9,105,948.82 $ 9,581,741.30

Excess of Revenues over (under) Expenditures

$ -2,383.16 $ 81,530.68

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -600,000.00 $ -600,000.00

Total Other Finandng Sources (Uses)

$ -600,000.00 $ -600,000.00

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

$ -602,383.16 $ -518,469.32

FUND BALANCE JULY 1. 1999
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

726,398.29 94.10

773,654.22

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 137,813.00 $ 504,365.64
1,322,529.24 1,396,591.52

210,449.00

225,369.33

$ 1,670,791.24 $ 2,126,326.49

$ 682,706.00 $ 1,052,785.58

81,425.00 44,039.00

98,864.74 76,938.86

2,350.00 1,335.00

8,185.91 2,592.81

8,945.64 2,735.78

20,400.00 854,072.28

13,026.81 886,658.26

$ 1,686,327.28 $ 2,150l34.39 $ -15,536.04 $ -24,407.90


$

129.70

$--1~ 29.7~0

$ -15,406.34 $ -24,407.90

264,354.37

280,722.40

11,255.28

-902.41 1,014.62

FUND BALANCE JUNE 30, 2000

$ 124,109.23 $ 255,184.90

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

$ 260,203.31 $ 256,426.71

CANDLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Candler County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time 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 financial statements. .
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational
activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

CANDLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities:
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
. GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
-
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day
- 8-

CANDLER COUN1Y BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
.
The Candler County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures 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 ofthis tentative budget by the Board, such budget is advertised at

least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of .the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables
-9-

CANDLER COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Candler County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 11, 1999 (levy date). Taxes were due on January 20, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Candler County Tax
Commissioner bills and collects the property taxes for the Board of Education, withholds 1% of
taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.
The tax millage rate levied for the 1999 tax year (calendar year) for the Candler County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):
School Operations
SALES TAXES
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,076,346.91 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $3,842,668.90 has been collected or on December 31, 2002, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in

- 10-

CANDLER COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures 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 of this data.

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool
balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,
waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of anyone 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,

- 11 -

CANDLER COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS

AtJune 30, 2000, the bank balances were $3,810,243.63. The amounts ofthe 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, 2000, as follows:

Risk Category

Bank Balance

1

2

3



$ 906,254.94 1,920,612.87 983,375.82 -

Total



$ J,8l.QJ43.63

- 12-

CANDLER COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of

assets; errors or omissions; job related illness or injuries to employees; natural disaster and

unemployment compensation.

.

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts

for claims within the General Fund with expenditure and liability being reported when it is probable

that a loss has occurred, and the amount of that loss can be reasonably estimated.



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


1999 2000

Beginning of Year Liability_

Claims and Changes in Estimates

Claims Paid

End of Year Liability_

$

0.00 $

4,200.00 $

4,200.00 $_ _- ,0,.= 00

$

0.00 $

8,258.00 $

8,258.00 $_ _- ,0,.= 00

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

Position Covered

Amount

Superintendent Financial Director Curriculum Director Principals

$ 50,000.00 $ 10,000.00 $ 5,000.00 $ 3,000.00 - $ 10,000.00

-13 -

CANDLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

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

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

_ _ _~P-=urp~o.2.lse~

_

General Government - Series 1997

Interest Rates 4.05% - 4.25%

Amount $ 3,900.000,OQ

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

Balance July 1, 1999

Capital Leases

General Obligation
Bonds

Total

$ 118,556.14 $ 4,900,000.00 $ 5,018,556.14

Additions Capital Leases

2,200,000.00

2,200,000.00

Deductions Debt Retired
Balance June 30, 2000

98,644.68 - 1,000,000.00 1,098,644.68 $ 2J12.911A6 $ 3.900.000.00 $ 6. 11 9.9 L1.46

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

Fiscal Year Ended June 30
2001 2002 2003 2004 2005
Total Principal and Interest
Deduct: Imputed Interest

Capital Leases

General Obligation
Bonds

Total Debt

$ 166,155.74 130,822.41 120,000.00 120,000.00
2,174,342.36

$ 1,164,050.00 1,522,550.00 1,563,750.00

$ 1,330,205.74 1,653,372.41 1,683,750.00 120,000.00 2,174,342.36

$ 2,711,320.5-1 $ 4.2~Q,J5Q!QQ $ .26I,67Q.51

491,409.05

Net Present Value of Future Minimum Lease Payments $~9,911.46

- 14-

CANDLER COUNTY BOARD OF EDUCATION.

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $169,211.93 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$146,810.42

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $4,861.51

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$17,540.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available:



Project

Unearned Executed Contracts

Funding Available From State

New Metter High School

$ 841.Q14.06 $ 227.192!00



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

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.

- 15 -

CANDLER COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: SUBSEQUENT EVENTS
On March 20, 2001, the voters of Candler County voted in favor of a General Obligation Bonds/ Special Purpose Option Local Sales Tax referendum for educational purposes. The authorization of the bonds and imposition of the tax approved by the voters, as stated on the Official Ballot of Candler County, isas follows:
"Shall $10,000,000 in aggregate principal amount ofCandler County School District General Obligation Bonds be authorized to be, issued for the purpose ofproviding funds to pay all or a portion ofthe cost ofthe construction, renovation and modification ofthe Metter Elementary School and the current Metter MiddlelHigh School, system wide repair ofroofs, the cost ofthe acquisition, construction and equipping of the new Metter High School, additions to the physical education facilities and construction ofan athletic complex thereof, instructional and administrative technology improvements for existing schools, and adding to, renovating, repairing, improving, and equipping existing school buildings, and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary property therefore, both real and personal, to pay capitalized interest incident thereto, and to pay expenses incident to accomplishing the foregoing; and, in order to raise not more than $8,500,000 to pay a portion ofthe debt service on such bonds and to pay a portion ofthe costs of the capital outlay projects described above, shall a one percent sales and use tax for educational purposes of the Candler County School district be re-imposed within Candler County for a maximum period of time of 20 calendar quarters commencing upon the termination ofthe one percent sales and use tax for educational purposes presently in effect?"
Note 10: 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 of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 16-

CANDLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 10: RETmEMENT P. LANS
Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 716,464.35 $ 704,664.58 $ 636,251.76


- 17 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable

Inventories Food Donated Commodities Purchased Food
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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

268,122.57 $

56,859.04

11,336.84 2,729.45

-=--========== $

282,188.86 $

56,859.04

$

3,111,33 $

13,545.47



22,921.29

39,884.55

3,429.02

$

26,032.62 $ _ _..5.6.,:8.5:9:.0=4=~

$

11,336.84

2,729.45

242,089.95 $

$

256,156.24 $

=0.:0::0.. =0:.0::0..

$

56,859.04

See notes to the general purpose financial statements. - 18-

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

324,981.61 $

335,099.10

$

281,959.33

281,959.33

115,066.83


11,336.84 2,729.45

12,239.25 1,714.83

$

281,959.33 $

621 ,007.23 $ ===........~4"6"4=,=1=2=0=.=0=1=

$

159,387.78 $

159,387.78

21,726.95

38,383.75 $

51,966.88

81,631.09

144,436.93

120,449.22

18,943.04

22,372.06

10,981.51

$

281,688.86 $

364,580.52 $ _ _..1.:8..:3;:=,3:.9:..7.:..:6::.1.:..

-



$

270.47 $

270.47 $

33,506.78

11,336.84 2,729.45

12,239.25 1,714.83

0.00

242,089.95

233,261.54

$

270.47 $

256,426.71 $ _ _=2::8..&0,.:7..:2:=2.:..4:.:0:..

$


281 ,959.33 $

621 ,007.23 $=====4=64=,1=2=0~.0~1~

- 19-

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

REVENUES

State Funds Federal Funds Other Funds

Total Revenues



EXPENDITURES

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

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES

Operating Transfers In

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

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

53,076.00 $

425,834.64

608,289.70

225,369.33

$

886,735.03 $ _ _.4.2..5:,=8=3..4...6:.4=~

$

352,334.20

46,360.39 9,173.57 269.20

8,945.64

$ _---':;.8:.7..7:,.9.J0=6=.6=2_

8,751.64

$

877,906.62 $ _ _.4.2..5:,=8=3..4...6:.4=~

$

8,828.41 $

0.00

$

8,828.41 $

0.00

247,215.62

0.00

-902.41 1,014.62

===-==== $ ===.....,;2;0,;;5.6..,156.24 $ _ _

0.00

See notes to the general purpose financial statements.

- 20-

,

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

25,455.00 $

504,365.64 $

488,602.45

788,301.82

1,396,591.52

1,365,569.79

225,369.33

227,547.66

$

813,756.82 $ 2,126,326.49 $ 2,081,719.90

$

700,451.38 $ 1,052,785.58 $ 1,108,906.15

52,504.35 67,765.29
7,916.71 2,592.81
2,735.78 13,026.81

98,864.74 76,938.86
8,185.91 2,592.81
8,945.64 2,735.78 13,026.81 886,658.26

83,066.86 43,043.04
1,393.64 4,797.00
40.00 11,072.89 2,002.19 40,139.96 898,961.46

$

846,993.13 $ 2,150,734.39 $ 2,193,423.19

$

-33,236.31 $

-24,407.90 $

-111,703:29


6,614.85

$

-33,236.31 $

-24,407.90 $

-105,088.44

33,506.78

280,722.40

381,210.95

-902.41 1,014.62

5,348.78 -748.89

$

270.47 $

280,722.40

- 21 -

CANDLER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000

ASSETS Cash and Cash Equivalents

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

2,082,076.17 $=====0~.0~0

LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Total Fund Equity
Total Liabilities and Fund Equity


$

570,658.15 $

685,522.83

$

1,256,180.98 $

0.00 = 0.0~0

$

825,895.19

$_---82-5:,89=5=.1~9

_-====_===== $

2,082,076.17 $

0.00





See notes to the general purpose financial statements. - 22-

EXHIBIT "G"

LOTTERY PROJECT

TOTALS
JUNE 30, 2000 JUNE 30, 1999

$

25,244.00 $ 2,107,320.17 $

$

0.00 $

570,658.15 $

226,590.55

685,522.83

67,865.19

$

0.00 $

294,455.74

$ 25,244.00
25,244.00 $

825,895.19 $
25,244.00

3,980,988.75

$.

4,275,444.49





-23 -

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

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Lease 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

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$
139,525.16

200,000.00

$

139,525.16 $_---2-0=0,0=00=.0=0

$

20,286.85 $

0.00

6,249,087.87

$ 6,269,374.72 $

---0-.:0:0=

$ -6,129,849.56 $_---20-0,=00~0~.00=

$ 2,200,000.00
800,000.00
-25,244.00 $ _ _-=200=,00=0.0=0
$ 2,974,756.00 $ _ _-=200=,00=0.0=0

$ -3,155,093.56 $

0.00

3,980,988.75

0.00

FUND BALANCE JUNE 30

$

825,895.19 $ ......._ _~0.~ 00

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

EXHIBIT "H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

200,000.00

139,525.16 $_~25~ 2,7~ 20.~ 09

$

0.00 $

339,525.16 $_--25=2,7=20~.0~ 9

$

0.00 $

20,286.85

6,249,087.87 $ 1,068,581.74

$

--:::O~.O~O $

6,269,374.72 $

1,068,581.74

$

~O.:.:::.O~O $ -5,929,849.56 $ _~-8~ 15,~ 861= .65

$ 2,200,000.00

$

25,244.00

825,244.00

-225,244.00

$

25,244.00 $ 2,800,000.00

$

25,244.00 $ -3,129,849.56 $

-815,861.65

0.00

3,980,988.75

4,796,850.40

$

25,244.00 $

851,139.19 $ 3,980,988.75

- 25-

CANDLER COUNTY BOARD QF EDUCATION SCHEDULE OF EXPENDITURES OF FEQERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services School Breakfast Program National School Lunch Program







Pass -Through From Office of School Readiness

Food and Nutrition Program



Food Services
Summer Food Service Program for Children

10.553 10.555
10.559

Total Child Nutrition Cluster

N1A

$ 143,311.96

N/A

385,519.64 $

(2)
835,021.54 (3)

N/A

32,704.93 _----"(:.l2):....-_

$ 561,536.53 $

835,021.54

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program
Total U. S. Department of Agriculture

10.550 10.558

N1A

42,885.08

42,885.08

N1A

3,868.09 _----"(=2)~_

$ 608,289.70 $_---87-7:,9~06=.6~2

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 Building Improvement Flow-Through Preschool

.
-



84.173 84.027 84.173

Total Special Education Cluster
Other Programs-
Pass-Through From First District Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act TiUe I Migrant Education
Pass-Through From Georgia Department of Education Elementary and Secondary Education Act TiUe I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants TiUe VI Innovative Education Program Strategies Class Size Reduction

84,011
84.010 84.281 84.318 84.298 84.340

N1A

$

5,897.02 $

N1A

130,127.66

N1A

6,225.66

$ 142,250.34 $

5,897.02 130,127.66
6,225.66
142,250.34

N1A

67,317.12

71,470.66

N1A
NlA

N1A
N1A NlA

373,751.35 15,745.02 -7.01 14,405.00 55,929.00

373,751.35
26,375.07 7,300.44 14,405.00 55,929.00

- 26-

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

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 Goals 2000

State and Local Education Systemic Improvement

Grants



Total U.S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 84.276

N/A

$ 26,706.00 $

26,706.00

N/A

92,205.00

103,350.27

$ 788,301.82 $ _ _.8.:2:1:.,.5:.3.8.=.~1.3=..

Total Federal Financial Assistance
N/A = Not Available

$ 1,396,591.52 $ -"";':';;1;';,;6;'9;'09;,;4,;;4,;4;';.'7;'5;;'

Notes to the Schedule of Exllenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program, the School Breakfast Program and Summer Food Service Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The Board did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the

Candler County Board of Education and is presented on the modified accrual basis of accounting which

is the same basis of accounting used in the presentation of the general purpose financial statements.



See notes to the general purpose financial statements.

- 27-

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

SCHEDULE "2"

AGENCY/FUNDING

GRANTS Education, Georgia Department of

Quality Basic Education General and Career Education Programs

Special Education Programs

Remedial Education Program
Media Center Programs

Staff Development Programs

Indirect Cost

Pupil Transportation

Regular

Bus Replacement

Sparsity Grant Middle School Incentive Program

Special Instructional Assistance

In-School Suspension

Migrant Education

Counselors

Technology Specialist

Local Five Mill Share

Educational Equalization Formula

Food Services

Vocational Education

Other State Programs

Alternative Program

Apprenticeship Program At.Risk Summer School Program



Health Insurance

Innovative Programs

Mentor Teachers

Preschool Handicapped Program

Remedial Summer School

Teachers' Retirement

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 Communities in Schools of Georgia
Reading First Program

GOVERNMENTAL FUND TYPES SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 4.221.937.00
591,052.00 138,944.00 179.693.00
48.027.00 1,130.606.00

206,248.00 64,051.00 78,404.00 161.094.80
256.608.00 67,008.00 10,257.00 19.095.00 28.842.00
-640,923.00 598,483.00
$
195,469.26

50.278.00



2,000.00

7,453.98

146.810.42

5,000.00

6,318.00

26.824.00

2.750.75

4,861.51

$ 4,221,937.00
591.052.00 138,944.00 179,693.00
48,027.00 1,130,606.00

53.076.00

206,248.00 64,051.00 78,404.00 161,094.80
256,608.00 67.008.00 10.257.00 19.095.00 28,842.00
-640,923.00 598,483.00
53.076.00 195,469.26

50.278.00 2,000.00 7,453.98
146.810.42 5,000.00 6.318.00
26.824.00 2.750.75

4.861.51

9.245.77 53,000.00

9,245.77 53,000.00

363.588.87

363.588.87

17.540.00

17.540.00

-25.000.00

25,455.00

25.000.00 25,455.00

$ 7,649.732.72 $ 504.365.64 $ 8,154,098.36
See notes to the general purpose financial statements. - 28-

CANDLER COUNTY BOARD OF EDUCATION SCHEDUL:, OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

PROJECT
For the purpose of acquiring, constructing and equipping a new Metter high school

ORIGINAL ESTIMATED
COST(...:1..L) -

CURRENT ESTIMATED
COST@)_

AMOUNT EXPENDED IN CURRENT
YEAR (.3....)'--

AMOUNT EXPENDED
IN PRIOR YEARS

$ 6,300,000.00 $ 8,130,700.66 $ 6,453,637.87 $ 1,600,787.91


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



-

~:,e notes to the general purpose financial statements. -29 -

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

SCHEDULE "4"


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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

5,131 ,626.00 $ _ _---:1.:5=:9.=,.6.:2.::1.::.:0..:0:..

$

5,249,198.76

30 1,993.20 $ -_-=':::..::..2L:6:"6::,':2:';0:.5::.:.9.:6:..

$

5,551,191.96

-8,060.27 5,543,131.69

$

0.00 $====~0.0=0

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

CANDLER COUNTY BOARD OF EDUCATION ANAb.YSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY pROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENQ.ED JUNE 30, 2000

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MIDTERM

$

447,113.00

$

402,401.70 $

1,278,063.00

1,150,256.70

$ 1,725,176.00 90 $ 1,552,658.40 $

570,071.00 90

513,063.90

973,881.00 90

876,492.90

420,703.00 90

378,632.70

216,755.00 90

195,079.50

315,351.00 90

283,815.90

$ 4,221,937.00

$ 3,799,743.30 $

0.00 0.00
--0=.0~0

$

571,998.00

$

514,798.20 $

0.00

$

571,998.00 90 $

514,798.20 $

19,054.00 90

17,148.60

$

591,052.00

$

531,946.80 $

$

138,944.00 90 $

125,049.60 $

$ 4,951,933.00

$ 4,456,739.70 $

$

144,013.00 90 $

129,611.70 $

35,680.00 100

35,680.00

$

179,693.00

$

165,291.70 $

0.00
--0=.0~0
--=.0:..=0.0=.
.....0.:.:0:=0.
0.00 -0=..0;0;..

Total Fourteen Weighted and Media Center Programs $ 5,131,626.00

$ 4,622,031.40 $

=-0=.0=0

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

$

15,600,00

$

15,600.00 $

0.00

32,427.00

32,427.00

0.00

$

48,027.00 100 $

48,027.00 $ ....._=......;;;0.=.0=0

- 32

SCHEDULE "S"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

402,401.70 $

514.645.15 $

10.102.76 $

524.747.91

1,150.256.70

1.093.195.40

48,436.47

1.141.631.87

$ 1.552.658.40 $ 1.607.840.55 $

58.539.23 $ 1.666.379.78 $

0.00

513.063.90

565.612.13

33.788.23

599.400.36

0.00

876,492.90

981.697.60

47.012.55

1.028,710.15

0.00

378.632.70

671.951.66

98.948.94

nO.900.60

0.00

195.079.50

240.220.71

8.820.68

249.041.39

0.00

283.815.90

305.114.26

14.n9.21

319,893.47

0.00

$ 3.799.743.30 $ 4.372,436.91 $

261.888.84 $ 4.634.325.75

$

514.798.20

$

$

514.798.20 $

17,148.60

$

531.946.80 $

$

125,049.60 $

$ - 4,456.739.70 $

153.046.09 $
370.178.15 54.279.85
5n.504.09 $
23.053.85
600.557.94 $
124.237.88 $

5,097.232.73 $

193.20 $
1.869.13

153.239.29 372.047.28
54,279.85

2,062.33 $

579.566.42

1,441.71

24.495.56


3.504.04 $ _---'~6:0.4;.0.6;1;..9;8~

813.08 $_-..1:2=5.0=50=.96-

- 266.205.96 $

5.363,438.69

0.00 0.00
0.00


$

129.611.70 $

35.680.00

$

165.291.70 $

151.966.03

$

$ _ _=3~5..:7:8:7:.2:.4.

151.966.03 35.787.24

151.966.03 $

35.787.24 $_-..:~,1,8-=7;.7;5;;3;.2..7.

$ 4.622.031.40 $ 5.249.198.76 $

301,993.20 $ 5.551.191.96 $ ..........

0.00 0.00
===0.00

$

15,600.00

32,427.00



$

37.289.12 $

37.289.12

11.662.50

11.662.50

48.027.00

$

48,951.62 $

48.951.62 $ ....._ _-=-=....0...0.0..

33 -

SECTIONll 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 8, 2001

Honorable Roy E. Barnes, Governor
Members of the General Assembly
Members of the State Board of Education

and Superintendent and Members ofthe Candler County Board of Education

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 of Candler County Board of Education as of and for the

year ended June 30, 2000, and have issued our report thereon dated June 8, 2001. 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 auditing standards generally accepted in the United States of America and the standards

applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States.

.

Compliance

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

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Candler 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

2000YB-40A

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Candler County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6211-00-0 I and FS-6211-00-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6211-0002 to be a material weakness.
This report is intended solely for the information and use ofmanagement, members of the Candler County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
,..----

RWH:gp
2000YB-40A

sell W. Hinton te Auditor
-




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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214
Atlanta, Georgia 30334-8400
June 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education

and Superintendent and Members of the Candler County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofCandler County Board ofEducation with the types ofcompliance
requirements described in the u.s. Office of Management and Budget (OMB) Circular A-i33
Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Candler County Board of Education'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 ofCandler County Board ofEducation's management. Our responsibility is to express an opinion on Candler County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Candler County Board of Education's compliance with those requirements and performing such otherprocedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Candler County Board of Education's compliance with those requirements.
2000SA-I0A

,

In our opinion, the Candler County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Candler 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 Candler 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 ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness isa condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving-the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Candler County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

,--_R,espectfully submitted,

-

RWH:gp
2000SA-IOA

Ru sell W. Hinton State Auditor



SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS


CANDLER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6211-93-06 FS-6211-97-02 FS-6211-98-01 FS-6211-98-02 FS-6211-98-03 FS-6211-99-01 FS-6211-99-02 FS-6211-99-03

Previously Reported Corrective Action Implemented Further Action Not Warranted Previously Reported Corrective Action Implemented Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

EMPLOYEE COMPENSATION Inadequate Personnel Files/Teachers' Compensation Contracts Finding Control Number: FS-6211-99-02

Employee contracts for fiscal year 2001 contain complete salary information. All salary schedules and supplements were approved by the Board.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6211-99-03
-
The Board of Candler County has determined that it is not economically feasible at this time to maintain a separate General Fixed Assets Account Group from the primary accounting system provided by the Department ofEducation. Although the Board realizes the significant role the General Fixed Assets Account Group has on the financial statements, it has decided not to take any action at this time. The Board hopes that this issue will be addressed in the accounting system software updates issued by the Department of Education in the future.

SECTIONN FINDINGS AND QUESTIONED COSTS




-

CANDLER COUNTY BOARD OF EDUCATION

SCHEDULE OF FINDINGS AND QUESTIONED COSTS



YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. TYPe of Report Issued on the Financial Statements The auditor's opinion on the Candler CountyBoard ofEducation'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 Candler County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Employee Compensation

General Fixed Assets

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

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

5. Type of Report Issued on Compliance for Major Programs

The auditor's opinion on the Candler County Board ofEducation's report on compliance with

. requirements applicable to major programs was unqualified.

-

6. Audit Findings Required to be Reported by Section .51O@) ofOMB Circular A-133 The Candler CountyBoard 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 - Food Services - Summer Food Service Program for Children 84.027 Individuals with Disabilities Education Act - Part B - Special Education-. Flow-Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.173 Individuals with Disabilities Education Act": Part B - Special Education Preschool

- 1-

CANDLER COUNTY BOARD OF EDUCATION



SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS
8.' TYPe "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Candler County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
n FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Inadequate Payroll Procedures Reportable Condition Finding Control Number: FS-6211-00-01
The accounting procedures of the Board were insufficient to provide for adequate control over employee compensation functions. The following deficiencies were noted:
(1) Local and extended day/year supplements were not approved by the Board. A complete schedule of salary supplements and stipends was not available for audit.
(2) Employment contracts failed to include documentation for all applicable salary supplements.
. (3) All payroll changes, stipends and time sheets did not include proper authorization.
These deficiencies were the results ofthe Board's failure to have written policies and procedures for employee compensation functions. Management failed to submit a schedule ofsalary supplements and stipends to the Board for approval, to document all contract changes and to require payroll changes be properly authorized.
The Board should develop and implement policies and procedures to ensure that salary supplements and stipends are Board approved, employment contracts are complete and payroll changes are properly authorized.



-2-

CANDLER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
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-6211-00-02 The Candler 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 ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.


-3-