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

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
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CLINCH COUNTY BOARD OF EDUCATION
HOMERVILLE, GEORGIA

REPORT ON AUDIT

OF THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2000





Russell W. Hinton

State Auditor



CLINCH 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

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

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

3

OVERALL

4

BY PROGRAM

Page
2
3
5
6
16
18
20 22
23 24

CLINCH 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
Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONlV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I FINANCIAL



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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta. Georgia 30334-R400
May 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 Clinch 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 ofthe Clinch 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 ofthe Clinch County Board ofEducation'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 Unit.ed States ofAmerica and the standards applicable to financial 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 fmancial 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 ~ell as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm lOn.

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 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.
* 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 ofthe Clinch County Board ofEducation as of June 30, 2000, and the results of its 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 May 8, 200 I, on our consideration ofthe Clinch County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, 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 Clinch County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 4), which
includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits o/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 of the general purpose financial statements and in our .opinion, except for the effects of the 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.

RWH:jb 2000ARL-13A

Respectfully submitted,

t.J.
R: ssell W. Hinton State Auditor








CLINCH COUNTY BOARD OF EDUCATION






-



CLINCH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000

EXHIBIT "A"

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

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTALS _-:=-=-(Memorandum Only)~_ _
JUNE 30, 2000 JUNE 30, 1999

$

352,226.31 $


3,177,712.78

73,410.71 $

425,637.02 $

301,144.50

23,773.98

3,201,486.76

3,275,288.74

146,694.03

292,874.12

439,568.15

242,243.82

2,128.91 5,156.07

2,128.91 5,156.07

3,496.46 4,592.95

Total Assets

$ 3,676,633.12 $

397,343.79 $ 4,073,976.91 $ 3,826,766.47

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable Loans Payable Expired Grant Balances Payable

$

51,275.89 $

864,000.00

Total Liabilities

$

915,275.89 $

FUND EQUITY
-
Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

Unreserved

Designated for Self-Insurance

$

31,454.45

Undesignated

2,729,902.78

Total Fund Equity

$ 2,761,357.23 $


53,756.54 $
112,455.58
26,233.48

105,032.43 $
112,455.58 864,000.00
26,233.48

128,583.22 98,813.10
819,000.00 22,201.04

192.445.60 $ 1,107,721.49 $ 1,068,597.36



$

11,899.34

2,128.91 $
5,156.07

2,128.91 5,156.07

3.496.46 4,592.95

197,613.21

31,454.45 2,927,515.99

31,454.45 2,706,725.91

204,898.19 $ 2,966,255.42 $ 2,758,169.11

Total Liabilities and Fund Equity

$ 3,676,633.12 $

397,343.79 $ 4,073,976.91 $ 3,826,766.47

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

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

EXHIBIT "B"

REVENUES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

_ _ _(Memorandum Onl:x:)

_

YEAR ENDED

JUNE 30, 2000 JUNE 30, 1999

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 6,074,783.46 $

538,341.99 $ 6,613,125.45 $ 6,245,960.47

3,500.00

1,288,607.48

1.292,107.48

1,360,245.31

2,266,778.70

2,266,778.70

2,032,245.46

294,064.76

142,501.65

436,566.41

383,030.54

$ 8,639,126.92 $ 1,969,451.12 $ 10,608,578.04 $ 10,021,481.78

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)

$ 5,342,780.05 $ 1,099,524.84 $ 6,442,304.89 $ 6,064,377.76

413,119.51

53,833.57

466,953.08

462,490.95

252.299.49 167,431.22 310,616.66 559,129.08 169,647.87 639,932.70 390,803.91
25,065.00 16,008.43
792.80

56,174.88 11,632.51 88,057.47
502.14 12,131.49 25,982.05 23,345.16
61,809.21 534,975.98

308,474.37 179,063.73 398,674.13 559,631.22 181,779.36 665,914.75 414,149.07 25,065.00 77,817.64 535,768.78

544,053.72 171,433.94 385,081.32 522,543.23 175,384.82 614,381.55 402,270.75 25,065.00
19,217.96 529,109.11

143,591.28

500.00

144,091.28


87,393.94

$ 8,431,218.00 $ 1,968,469.30 $ 10,399,687.30 $ 10,002,804.05

$

207,908.92 $

981.82 $

208,890.74 $ _ _1~8~,6~7~7...:.:73~

Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

$

39,205.49

-39,205.49

$

o::..:..o~O:...

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

207,908.92 $

FUND BALANCE JULY 1

2,553,448.31

981.82 $

208,890.74 $

18,677.73

204,720.80

2,758,169.11

2,740,406.96

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-1,367.55 563.12

-1,367.55 563.12

-965.24 49.66

FUND BALANCE JUNE 30

$ 2,761,357.23 $

20.4.,898.19 $ 2,966,255.42 $ 2,758,169.11

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

CLINCH COUNTY BOARD OF EDUCATION 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

BASIS),--

REVENUES

State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 5,973,483.55 $ 6,074,783.46

3,500.00

1,908,000,00

2,266,778.70

387,848.24

294,064.76

$ 8,269,331,79 $ 8,639,126.92

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



$ 5,414,434.63 $ 5,342,780.05

458,194.72 302,208.99 194,358.30 306,867.66 582,977.26 163,568.18 685,630.85 397,772.66 25,065.00 21.000.00
142,377.00

413,119,51 252,299.49 167,431.22 310.616.66 559,129.08 169,647.87 639,932.70 390,803.91 25,065.00
16.008.43 792.80
143,591.28

Total Expenditures

$ 8,694,455.25 $ 8,431,218.00

Excess of Revenues over (under) Expenditures $ -425,123.46 $ 207.908.92

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

2,529,603.42 -58,781.61

2,553,448.31

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)~_

$

474,039.44 $

538,341.99

1,549,772,79

1,288,607.48

149,300,00

142,501.65

$ 2,173,112.23 $ 1,969,451.12

$ 1,198,189.72 $ 1,099,524,84

60,760.71 76,120.88 11,632.51 122.259.72
803.48 14,369.53 38,408.62 28,165.00

53,833.57 56,174,88 11,632.51 88,057.47
502.14 12,131.49 25.982.05 23,345.16

68,322.00 547,426.21
3,759.28

61,809.21 534,975.98
500.00

$ 2,170,217.66 $ 1,968,469.30

$

2,894.57 $

981.82

162,704.79 30,743.76

204,720.80
-

-1,367.55 563.12

FUND BALANCE JUNE 30, 2000

$ 2,045,698.35 $ 2,761,357.23

$ _...:.:196;;;;;,,343.12 $ _...:;:204::;:,898.19



The notes to the general purpose financial statements are an integral part of this statement.
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CLINCH 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 Clinch 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 ofall the organizations that compose its legal entity.

FUND ACCOUNTING

The Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.

General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confQrm 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 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 of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.

-6-

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined 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.
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 detennined 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, 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 wefe employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As 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.

-7-

CLINCH COUNTY BOARD OF EDUCATION

EXHIDIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Clinch County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval 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 of the 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 ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.



INVESTMENTS



COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

-8-

CLINCH COUNrY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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 Clinch County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 22, 1999 (levy date). Taxes were due on December 20, 1999. 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 Clinch 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.

The tax millage rate levied for the 1999 tax year (calendar year) for the Clinch County Board of Education was-as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.0 mills

INVENTORIES

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

- 9-

CLINCH COUNTY BOARD OF EDUCATION

EXHIDIT ltD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
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.
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 AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 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 ofthe following:
(l) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
- 10-

.
CLINCH COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

EXHffiIT "D"

Note 2: DEPOSITS AND INVESTMENTS

(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 ofdevelopment authorities created by the laws of the State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $2,938,377.40. 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

$ 191,945.32

2

2,127,545.32

3

618,886.76

Total

$ 4.938,377.40

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $976,749.29 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal

- 11 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAArn rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturitY of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
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.

.- 12 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. 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 is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the Board. 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:

1999
2000

Beginning
of Year
Liability_

Claims and Changes in Estimates

Claims Paid

End ofYear
Liability_

$

0.00 $ 4,704.00 $ 4,704.00 $_ _----'0:..:.:.0:..::.0

$

0.00 $

0.00 $

0.00 $_ _----'O=.O:..=.O

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of$350,000.00 loss per occurrence, up to the statutory limit.

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

Position Covered

Amount

Superintendent Each Principal

$ 25,000.00 $ 25,000.00

Note 5: LOANS PAYABLE

At June 30, 2000, short-term debt (temporary loans) amount to $864,000.00 with interest accruip.g at 6.0 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 of the calendar year in which the loan was made.

- 13-

CLINCH COUNTY BOARD OF EDUCATION

EXHmIT "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 $131,799.91 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$109,326.91

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 $22,473.00

Note 7: CONTINGENT LIABILITIES

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

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 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE

.

Employees 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:

- 14-

CLINCH COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 8: RETIREMENT PLANS
Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 643,782.82 $ 652,041.87 $ 600,670.27



.,

- 15 -

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

ASSETS

Cash and Cash Equivalents

Investments

Accounts Receivable



Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

203,508.94 $

49,719.31

23,773.98

4,585.65

2,128.91 5,156.07

Total Assets

$

239,153.55 $ ===4=9:!:O:,7=19;;,;,.3=1=

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



$

$

8,083.28 $
26,172.08

13,292.15 36,427.16

34,255.36 $ _ _..:4:.:9:.z.7.:.' .:.1.::.;9.:.::;:.3.:-1


$

2,128.91

5,156.07

197,613.21 $

$

204,898.19 $

.: :.;0.:.: ;:.00: . . .
---..,;O::.:..O:::..:O~

Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
-16-

$

239,153.55 $ ==...;4;;;,;;9~,7~1.;;;.9.~3.:.:1

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

253,228.25 $

257,572.95

$

274,501.26 $

13,787.21

23,773.98 292,874.12

22,689.43 116,551.45

2,128.91 5,156.07

3,496.46 4,592.95

$

274,501.26 $

13,787.21 $

577,161.33 $ ==4::i::i0=4:l:O,9=0,;;;;3.=:24=

$

167,211.38 $

31,208.67

49,856.34

26,224.87

$

274,501.26 $

12,606.16 $
1,172.44
8.61
13,787.21 $

179,817.54
53,756.54 $
112,455.58 26,233.48

79,568.30 98,413.10 22,201.04

372;263.14 $ _ _=.;20::..::0:.z..,1:.=8=.;2':.,:.44-=-



$

11,899.34

$

2,128.91

5,156.07

3,496.46 4,592.95

$

0.00 $

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

197,613.21

184,732.05

$

0.00 $

0.00 $

204,898.19 $ _ _=20:...;4C!.,7;,-=2.::.;0.~80=-

$

274,501.26 $

13,787.21 $

577,161.33 $ ==4::i::i0=4:l:O,9=0,;;;;3.=:24=

-17

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

REVENUES

State Funds

Federal Funds

Other Funds



Total Revenues

EXPENDITURES

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

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

LOTTERY PROGRAMS

$

37,850.00 $

424,839.39

366,607.78

142,501.65

$

546,959.43 $ _ _..;,;42:.;4;.l.8;';.;:3c.;:;.9.:.;:;.3.:;..9


$
$ $

$

387,717.69

23,490.93

3,114.13

534,078.27

2,371.16 4,712.09 2,400.00
120.00 463.39 450.00

534,078.27 $ _ _..:.:42::.;4:.z.8:';.;:3.=.;9.:.;:;.39.:;....

12,881.16 $

0.00

-

$

12,881.16 $

0.00

192,821.46

0.00

-1,367.55 563.12



$

204,898.19 $ ====,;;;.;O':;,OO=.

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

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

75,652.60 $

538,341.99 $

321,664.27

$

921,999.70

1,288,607.48

1,360,245.31

-----_.

142,501.65

146,895.97

$

921,999.70 $

75,652.60 .$ 1,969,451.12 $ 1,828,805.55

$

687,954.32 $

30,342.64 54,030.32 11,632.51 84,943.34
502.14 9,760.33 21,269.96 20,945.16 12,034.00
434.32 50.00

$

933,899.04 $

$

-11,899.34 $

23,852.83 $
2,144.56
49,655.21
75,652.60 $ -
0.00 $

1,099,524.84 $
53,833.57 56,174.88 11,632.51 88,057.47
502.14 12,131.49 25,982.05 23,345.16 61,809.21 534,975.98
500.00
1,968,469.30 $
981.82 $

725,634.01
94,753.69 316,785.64
10,645.48 102,975.24
999.41 10,991.19 28,859.63 18,207.29
4,750.32 524,149.34
1,838,751.24
-9,945.69

$

-11,899.34 $

11,899.34

$

0.00 $

39,205.49

0.00 $ 0.00

981.82 $ 204,720.80

29,259.80 176,376.58

-1,367.55 563.12

-965.24 49.66

0.00 $


204,898.19 $ ===20;;,,;4::!::,7=2=0':;,80;;,..


- 19 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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

10.553 10.555

Total Child Nutrition Cluster

Other Programs PassThrough From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1 ) Pass-Through From Georgia Forestry Commission Urban and Community Forestry Grant Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program

10.550 10.664
10.558

Total U. S. Department of AgriCUlture

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

84.173 84.027 84.173

Total Special Education Cluster

Other Programs Pass-Through From Berrien County Board of Education
d/b/a Southem Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Program Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant
Pass-Through From North Georgia Regional Educational Service Agency Tech-Prep Education/Links to Success
Pass-Through From Okefenokee Regional Educational Service Agency Safe and Drug-Free Schools

-
84.011 84.332
84.010 84.281 84.298 84.340

84.276
84.048
84.243
84.186

Total U. S. Department of Education

PASS THROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A $

79,777.26

N/A

258,895.95 $

$ 338,673.21 $

(2)
510,400.39 (3)
510,400.39

N/A

23,677.88

23,677.88

N/A

3,500.00

3,500.00

NlA

4,256.69 _ _(.2::.1),--_

$ 370,107.78 $ _--=5",,3,,-,7,-:;57:.::8:,::.2,,-7

N/A $

6,731.00 $

N/A

209,830.59

N/A

37,379.35

$ 253,940.94 $

6,731.00 209,830.59
37,379.35
253,940.94

NlA

14,514.96

NlA

50,000.00

N/A

318,243.57

NlA

15,075.20

NlA

11,651.00

N/A

45,348.00

NlA

-6,423.38

NlA

42,639.00

NlA

10,000.00

NlA

5,845.65

$ 760,834.94 $


14,514.96

50,000.00
318,243.57 15,075.20 11,651.00 45,348.00 5,475.96
42,639.00
10,000.00
5,845.65 772,734.28

- 20-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Pass-Through From Concerted Services, Incorporated Project Head Start

CFDA NUMBER

PASSTHROUGH
ENTITY
10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.600

N/A

$

161 ,164.76 $ _ _....:.16::.,1:",.,1:..:;6::;:.4:.:..7::.,6

Total Federal Financial Assistance N/A = Not Available

$ 1,292.107.48 $ _.....:.1.::,4~71.:.1.4;:,:7~7,;,;;.3~1

Notes to the Schedule of Expenditures of Federal Awards

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

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

The Board did not provide Federal Assistance to any Subrecipient.

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

21

CLINCH 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 Special Instructional Assistance In-School Suspension Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant 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 Reading First Program
Human Resources, Georgia Department of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 3,281,309.00
1,037,999.00 75,762.00
142,304.00 40,748.00 929,344.00
208,471.00 64,576.00 72,167.00 86,963.00 35,037.00 14,976.00 28,842.00
-649,182.00 472,556.00
$
47,260.00 2,000.00 7,396.35
109,326.91 5,000.00 324.00
18,630.00 3,459.20 17,042.00

$
37,850.00
13,754.30 53,000.00

358,085.09

22,473.00

25,997.39

49,655.21

TOTAL
3,281,309.00 1,037,999.00
75,762.00 142,304.00 40,748.00 929,344.00
208,471.00 64,576.00 72,167.00 86,963.00 35,037.00 14,976.00 28,842.00
-649,182.00 472,556.00
37,850.00
47,260.00 2,000.00 7,396.35
109,326.91 5,000.00 324.00
18,630.00 3,459.20
17,042.00
13,754.3053,000.00
358,085.09
22,473.00
25,997.39
49,655.21

$ 6,074,783.46 $

538,341.99 $ 6,613,125.45

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

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

SCHEDULE "3"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries Operations
Expenditures per Audit

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS


100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

4,537,374.00 $ _ _-.:..:13::.::6~,5:.::2..:.:1.~00=-

$

4,832,027.90

273,464.35 $ _ _-=-24.:...:3:..i.8:'::.::9..:..,7.;.::.9.::..0

$ _ _...:5:.!..,1.:..:0::.::5~,4:..::9=2.:.::2.:::..5

Amount of Underexpenditure for Total Allotment

$

0.00 $ =====0=:,0:=,0





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

CLINCH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED 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 I (*) Category II (*) Category III (*) Category IV (*) Category V (*)

Sub-Total - Regular

Category VI (Gifted) (*)

Total Special Education Programs

REMEDIAL EDUCATION PROGRAM C:}

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries

Operations



Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

311,427.00

$

280,284.30 $

938,942.00

845,047.80

$ 1,250,369.00 90 $ 1,125,332.10 $

446,604.00 90

401,943.60

679,740.00 90

611,766.00

320,895.00 90

288,805.50

278,286.00 90

250,457.40

305,415.00 90

274,873.50

$ 3,281,309.00

$ 2,953,178.10 $

0.00 0.00
--=O~.O:::..O

$ 1,002.169.00

$

901.952.10 $

0.00

$ 1,002,169.00 90 $

901.952.10 $

35,830.00 90

32,247.00

$ 1,037.999.00

$

934,199.10 $

$

75,762.00 90 $

68,185.80 $

$ 4,395.070.00

$ 3,955,563.00 $

$

114,479.00 90 $

27,825.00 100

$ _ _1:.:::4=2.::::304~.OO~

$

103,031.10 $ 27,825.00
130,856.10 $

0.00
--...::0::.::.0::::,0
--=O~.O::::.O ~O~.O~O
0.00
~O~.O~O

Total Fourteen Weighted and Media Center Programs $ 4,537,374.00

$ 4,086,419.10 $=_==~O,;;;:.OO~

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

13.207.00

$

13.207.00 $

0.00

27,541.00

27,541.00

0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

$

40,748.00 100 $

40,748.00 $====~O,;;;:.O~O

24 -

SCHEDULE "4"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

280.284.30 $

281.777.46 $

6,727.62 $

288.505.08

845.047.80

998,362.38

33.097.33

1.031,459.71

$ 1,125.332.10 $

1,280.139.84 $

39.824.95 $ 1,319.964.79 $

0.00

401,943.60

420.380.22

25.8Z7.44

446,207.66

0.00

611,766.00

685.650.17

41.859.33

727.509.50

0.00

288,805.50

326.683.39

40.382.94

367.066.33

0.00

250,457.40

499,416.46

19.509.99

518,926.45

0.00

274,873.50

320.889.42

35,989.77

356.879.19

0.00

$ 2,953,178.10 $

3.533,159.50 $

203.394.42 $ 3,736.553.92

$

901.952.10

$

57.867.56 $
437.816.03 486,674.70
71.075.20 6,437.11

5.264.69 $
20.782.40 9.309.97 1.597.41 409.07

63.132.25 458.598.43 495.984.67
72.672.61 6,846.18

$

901,952.10 $

1.059.870.60 $

37,363.54 $ 1.097.234.14

0.00

,

32,247.00

57.872.25

2,139.94

60;012.19

0.00

$

934.199.10 $

1.117.742.85 $

39.503.48 $ 1.157,246.33

$

68,185.80 $

73.545.25 $

1.000.00 $ _ _..:..74.:...54::..:.:::5::.25~

0.00

$ 3,955,563.00 $

4.724.447.60 $

-
243.897.90 $

4,968.345.50

$

103,031.10 $

107.580.30

$

107.580.30

0.00

27.825.00

$ _ _-=29:;:..566=:..:..4~5

29.566.45

0.00

$

130,856.10 $

107.580.30 $

29.566.45 $ _.......;1""'37'-'.;..14""'6;.;..75;:;..

$ 4,086,419.10 $

4.832.027.90 $

273,464.35 $ 5,105,492.25 $ = = = = = = = 0...0. =0

$

13.207.00

27.541.00

$ ===40;;0,.7.4.,;,;;8;;,;;.0=0

$

23,770.26 $

23,770.26

17.626.36

17.626.36



$

41,396.62 $

41.396.62 $ = = = = = = = 0...0.==0

- 25 -


SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

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

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DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-X400
May 8,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly , Members of the State Board of Education
and Superintendent and Members ofthe Clinch 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
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Ladies and Gentlemen:

We have audited the financial statements ofClinch County Board ofEducation as ofand for the year

ended June 30, 2000, and have issued our report thereon dated May 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.

.

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Compliance

As part of obtaining reasonable assurance about whether Clinch 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 Clinch County Board of Education'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 a certain matter involving the internal control over financial reporting and its 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 ourjudgment, could adversely affect Clinch County Board of Education'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-6321-00-01.
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, the reportable condition noted above is also considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Clinch County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb 2000YB-40A

Russell W. Hinton State Auditor

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-X400
May 8, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

~d

.

Superintendent and Members ofthe

Clinch 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
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Ladies ~d Gentlemen:

Compliance

We have audited the compliance ofClinch County Board ofEducation with the types ofcompliance

u.s. requirements described in the

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. Clinch 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 ofClinch County Board ofEducation's management. Our responsibility is to express

an opinion on Clinch County Board of Education's compliance based on our audit.

We conducted our audi~ ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations. Those st~dards and
OMB Circular A-133 require that we plan and perfonn 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 Clinch County Board of Education's compliance with those requirements and perfonning such other procedures as we considered necessary in the circumst~ces. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detennination on Clinch County Board of Education's compliance with those requirements.

2000SA-10A

In our opinion, the Clinch 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, 2000.
Internal Control Over Compliance
The management of Clinch 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 Clinch County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Clinch County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,


RWH:jb 2000SA-IOA

ussell W. Hinton



State Auditor


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

CLINCH 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

6321-96-01 FS-6321-97-01 FS-6321-98-01 FS-6321-98-02 FS-6321-99-0 1 FS-6321-99-02 FS-6321-99-03

Further Action Not Warranted Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6321-99-03

Due to the current staffing limitations and budgetary considerations prohibiting the hiring of additional administration staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.



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SECTION IV FINDINGS AND QUESTIONED COSTS




CLINCH COUNTY BOARD OF EDUCAnON SCHEDULE OF FIJ\TDINGS 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 Clinch County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the.Clinch 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 weakness.

3. Noncompliance Material to the Financial Statements The audit ofthe Clinch County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
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4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Clinch County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. me of Report Issued on Compliance for Major Programs The auditor's opinion on the Clinch County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.



6. Audit Findings Required to be Reported by Section .slOW ofOMB Circular A-B3

.

The Clinch County Board ofEducation's audit did not disclose audit findings required to be

reported by section .510(a) ofOMB Circular A-B3.

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


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

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

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CLINCH COUNTY BOARD OF EDUCATION SCHEDULE OF FI1\TDINGS 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-6321-00-01

The Clinch 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 costs, 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.

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