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

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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COFFEE COUNTY BOARD OF EDUCATION
DOUGLAS, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton state Auditor

COFFEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

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

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

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

Page
2
4 6
7
18
20
22
24
26
27
28
30 31

COFFEE COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF M

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BY PROGRAM

Page
33 34

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-133

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

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

SECTION I FINANCIAL


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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 2,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Coffee 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 Coffee 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 Coffee 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
2000ARL-13

* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 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 Coffee County Board ofEducation as of June 30, 2000, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated February 2, 2001, on our consideration of the Coffee 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 Coffee County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) 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-13



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:jb 2000ARL-13

Ru sell W. Hinton State Auditor

COFFEE COUNTY BOARD OF EDUCAnON


COFFEE 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

$ 3,732,306.82 $ 2,102,190.80 $ 6,881,365.36

457,009.52

55,616.33

830,200.25

49,846.07
32,322.95

Total Assets

$ _ _4,189,316.34 $ 2,239,976.15 $ 7,711,565.61

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

1,713.00 $ 118,564.25

512,054.43

56,455.11

$

135,920.00

15,102.00

16,000.00

$

1,713.00 $

703,073.79 $ _ _1..:.;:5~1J.:0:;'::2:,:2'c.:.00,,-

$

6,183.02

49,846.07
32,322.95 $

7,560,543.61

$ 4,187,603.34

1,448,550.32

0.00

$ 4,187,603.34 $ 1,536,902.36 $ . 7,560,543.61

Total Liabilities and Fund Equity

$ _ _4,189,316.34 $ 2,239,976.15 $

The notes to the general purpose financial statements are an integral part of this statement.
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7,711,565.61

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum OnIV--:--:-:-:~

JUNE 30, 2000

JUNE 30, 1999

$

343,484.43

$ 13,059,347.41 $ 8,239,397.65

561.07

1,343,387.17

1,747,853.72

$

344,045.50

49,846.07 32,322.95
344,045.50

52,564.58 26,583.50
325,184.11

1,010,954.50 75,299.33

1,010,954.50 75,299.33

1,249,815.89 203,411.04

$

344,045.50 $

1,430,299.33 $ 15,915,202.93 $ 11,844,810.49

$

120,277.25 $

107,491.83

512,054.43

469,453.45

56,455.11

47,821.54

135,920.00

264,562.00

15,102.00

209,504.00

16,000.00

$

75,299.33

75,299.33

203,411.04

1,355,000.00

1,355,000.00

1,575,000.00

$

1,430,299.33 $ 2,286,108.12 $ 2,877,243.86

$

344,045.50

0.00
$ _ _34=4~,O:..:4=5.:=5=-0

$

6,183.02 $

27,467.49

344,045.50

325,184.11

49,846.07 32,322.95 7,560,543.61
5,636,153.66
$ 13,629,094.81 $

52,564.58 26,583.50 3,537,964.57 281,718.00
4,716,084.38
8,967,566.63

$ _......;3:;;;44:;;;,,045.50 $

1,430,299.33 $ 15,915,202.93 $ 11,844,810.49

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

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

$ 29,297,639.34 $
9,682.32 9,832,523.01
653,643.28
$ 39,793,487.95 $

1,899,578.34 4,910,743.94
837,851.88
7,648,174.16

$ 25,703,169.71 $
2,426,221.51 1,397,097.22 1,162,744.74
447,097.91 2,386,806.53
305,840.86 2,723,103.99 1,763,995.45
202,824.58 79,781.88 4,049.66

3,545,203.22
350,847.45 532,818.85
3,672.72 25,388.07 18,988.43
753.55
640.32
65,750.24 3,242,180.46

124,738.72 12,741.59

$ 38,740,214.35 $ _.....;7""",7'-"8;.;:;.6=,2....;.;43:.;..3=-1~ $ 1,053,273.60 $ _ _-1.:.::3;.::.81.:::,0.:::.;69::.:..1.:.;:5:-

$

$

-4:.::8.t.::,8~16:::..:.:::.;98::...

32,397.34

$

-48,816.98 $ _ _....::3:,:21.:::,3.::.;97:..::.3:::,.4:-

$ 1,004,456.62 $

-105,671.81

3,183,146.72

1,639,553.23

-2,718.51 5,739.45

FUND BALANCE JUNE 30

$ 4,187,603.34 $

The notes to the general purpose financial statements are an integral part of this statement.
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1,536,902.36

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

_ _----:(Memorandum Only)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 4,711,135.98 $
269,557.30
$ 4,980,693.28 $

$
347,965.12 15,421.27

31,197,217.68 $
4,920,426.26 14,891,624.11
1,776,473.73

31,353,991.25 4,511,360.78 14,268,800.25 1,404,098.64

363,386.39 $ 52,785,741.78 $ 51,538,250.92

$ 1,256,251.88
$
$ 1,256,251.88 $
$ 3,724,441.40 $

$ 29,248,372.93 $ 27,064,772.04

2,777,068.96 1,929,916.07 1,166,417.46
472,485.98 2,405,794.96
306,594.41 2,723,103.99 1,764,635.77
202,824.58 145,532.12 3,246,230.12 1,256,251.'88

2,627,361.19 1,719,127.02 1,107,720.21
347,932.00 2,254,461.35
314,811.86 2,526,812.38 1,526,310.85
177,506.04 78,681.61 2,896,530.08 5,339,073.90

220,000.00 124,525.00

344,738.72 137,266.59

438,437.85 . 174,711.27
780.00

344,525.00 $ 48,127,234.54 $ 48,595,029.65

18,861.39 $ 4,658,507.24 $ 2,943,221.27

$

16,419.64

$ _ _...:1.:,6'1.:.4.:.:19:.:;6' ::,..4:...

$ 3,740,861.04 $ 3,819,682.57

$

48,816.98 $

339,822.76

-48,816.98

-339,822.76

$

0.00 $

0.00

18,861.39 $ 325,184.11

4,658,507.24 $ 8,967,566.63

2,943,221.27 6,042,571.92

-2,718.51 5,739.45

-10,216.72 -8,009.84

$ 7,560,543.61 $

344,045.50 $ 13,629,094.81 $ 8,967,566.63

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COFFEE 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

BASISI_

REVENUES

State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 28,099,796.01 $ 29,297,639.34

60,000.00

9,682.32

9,661,250.00

9,832,523.01

675,000.00

653,643.28

$ 38,496,046.01 $ 39,793,487.95

EXPENDITURES

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

$ 25,775,681.54 $ 25,703,169.71

1,952,104.50 1,546,023.54
993,170.78 350,028.61 2,485,465.69 385,448.28 3,536,857.87 2,004,526.43 176,521.93
63,726.00
50,000.00

2,426,221.51 1,397,097.22 1,162,744.74
447,097.91 2,386,806.53
305,840.86 2,723,103.99 1,763,995.45
202,824.58 79,781.88 4,049.66
137,480.31

TEltal Expenditures

$ 39,319,555.17 $ 38,740,214.35

Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {US~ Other Sources Other Uses Total Other Financing Sources (Uses)

$ -823,509.16 $ 1,053,273.60

$

-265,000.00 $ _.-,;;-48=,8:.:;16:::.:..9:::.:8~

$

-265,000.00 $ _-=-4!!:8~,8~16!:!:..92!8i...

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ -1,088,509.16 $ 1,004,456.62

FUND BALANCE JULY 1, 1999

4,365,231.70

3,183,146.72

Food Inventory Net Change in Period Donated Commodities Purchased Food

FUND B, ALANCE JUNE 3Q, 2000

$ 3,276,722.54 $ 4,187,603.34

SPECIAL REVENUE FUND

ACTUAL

{BUDGET

BUDGET

BASISI_

$ 1,603,818.56 $ 1,899,578.34

4,199,944.00

4,910,743.94

829,600.00

837,851.88

$ 6,633,362.56 $ 7,648,174.16

$ 2,837,867.89 $ 3,545,203.22

375,954.00 294,230.30
25,978.02 22,480.00
184.95

350,847.45 532,818.85
3,672.72 25,388.07 18,988.43
753.55

11,000.00

640.32

22,038.00 3,331,522.54

65,750.24 3,242,180.46

$ 6,921,255.70 $ 7,786,243.31 $ -287,893.14 $ -138,069.15

$

32,397.34

$ _--:3::::2~,3::::9.:..:7..::::34;:...

$ -287,893.14 $ -105,671.81

1,241,404.44

1,639,553.23

-2,718.51 5,739.45

$

953,511.30 $ 1,536,902.36

The notes to the general purpose financial statements are an integral part of this statement.
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COFFEE COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Coffee County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, 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.

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COFFEE COUNTY BOARD OF EDUCAnON

EXHIDIT "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
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COFFEE COUNTY BOARD OF EDUCAnON

EXHlliIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
period beginning in early August 1999 and ending in late May 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 Coffee 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 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.

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COFFEE COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Coffee County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 2, 1999 (levy date). Taxes were due on December 1, 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 Coffee 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 Coffee County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.25 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $5,055,660.98 and was recorded in the Capital Projects and Debt Service Funds. The Board has received the maximum amount ofsales tax authorized and collection ofthe sales tax was terminated.

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.

- 10-

COFFEE COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

,



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

COMPENSATED ABSENCES

Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value of accumulated compensated absences at June 30, which will be
payable from future resources has not been recorded in the General Long-Tenn Debt Account Group
as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Tenn 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 confonnity 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.

- 11 -

COFFEE COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 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,
(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 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 $14,273,965.58. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 12 -

COFFEE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

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

$ 543,484.00

2

6,910,481.58

3

6,820,000.00

Total

$14.273.925.58

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with assets.

The Board participates in the Georgia School Boards Association Risk and Insurance Management
System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to
reduce risk ofloss on account ofgeneral liability and property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of selfinsurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse). Payment of excess insurance for the system varies by line of coverage.

- 13-

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims ana prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning
of Year
Liability_

Claims and Changes in Estimates

Claims Paid

End of Year
Liability_

1999 2000

$

0.00 $ 8,274.00 $ 8,274.00 $

-""0=.0'-"-0

$

0.00 $

0.00 $

0.00 $_ _----:=0=.0=0

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 ofworkers' 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 All Other Employees

$ 100,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

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

- 14-

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

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

_ _ _~P-=um~os~e~

_

General Government - Series 1980

Interest Rate 8.5%

Amount $ 1.355.000.00

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

Balance July 1, 1999
Deductions Debt Retired Cancellations
Balance June 30, 2000

Capital Leases

General Obligation
Bonds

Total

$ 203,411.04 $ 1,575,000.00 $ 1,778,411.04

124,738.72 3,372.99

220,000.00

344,738.72 3,372.99

$ 75,299.33 $ 1,355,OOQ.00 $ 1,430,299.33

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

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002

2003 2004 2005

$ 20,556.00 $ 340,187.50 $ 360,743.50

20,556.00

334,575.00

355,131.00

20,556.00

332,475.00

353,031.00

20,556.00

328,675.00

349,231.00

6,851.98

323,175.00

330,026.98

Total Principal and Interest

Deduct: Imputed Interest

Net Present Value ofFuture Minimum Lease Payments $ 75,299.33

- 15 -



COFFEE COUNTY BOARD OF EDUCAnON

EXHIBIT "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 $590,292.35 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 of Non-Certified Personnel In the amount of$451,363.97

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $36,428.38

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$102,500.00

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

LWOO/99S-634-002

$ 3.090.015.00

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.

- 16-

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: ACCUMULATED EMPLOYEES' LEAVE

The Board's twelve month professional personnel earn one and one-quarter days ofsick and personal leave each month with a maximum accumulation of forty-five days. Upon termination of employment, all sick and personal leave is forfeited. Upon retirement, twelve month employees will be paid for unused accumulated personal leave up to the maximum accumulation allowed. See Note
1 - Compensated Absences

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 ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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

Fiscal Year

2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 3,007,394.42 $ 2,941,271.31 $ 2,702,643.33

- 17 -

COFFEE 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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 1,619,116.19 $

190,381.02

274.15

3,456.00

49,846.07 32,322.95

$

1,701 ,559.36 $ ==.;.;19;,,;3~,8;,;;;;3.;..;7,=02::.:

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY

Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

10,820.89 $

41,178.70

160,019.13

136,658.32

16,000.00

$

170,840.02 $ _ _-,-19;;.;:3:.:.::,8::..;:3...:..7';.;:;.0=-2

$

49,846.07

32,322.95

1,448,550.32 $

$ 1,530,719.34 $

O.::.,:.=.;OO=_ .=.;O.:.::,OO=__

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
- 18-

$

1,701 ,559.36 $ ==.;.;19;,,;3~,8;,;;;;3.;..;7'=02::.:




EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

292,693.59 $

0.00 $ 2,102,190.80 $ 1,879,482.49

51,886.18

55,616.33

370,233.76

49,846.07 32,322.95

52,564.58 26,583.50

$

344,579.77 $

0.00 $ 2,239,976.15 $ 2,328,864.33

$

. 66,564.66

215,376.98

56,455.11

$ _ _3=.::3:.=83~:,.::.96=.:.:..:..;75~

$

64,544.28

$

118,564.25

107,491.83

512,054.43

469,453.45

56,455.11

47,821.54

16,000.00

$

703,073.79 $ _ _6=.::8:.=9~,3~1~1..:.;1O~

$

6,183.02

0.00 $

$

6,183.02 $

$

344,579.77 $

$

6,183.02 $

27,467.49

49,846.07 32,322.95

52,564.58 26.583.50

0::.:,.0::.,:0:...

1,448.550.32

1,532,937.66

0.00 $ _...;.;1,536,902.36 $ _...:.;1,639,553.23

0.00 $ 2,239,976.15 $ 2,328,864.33

-19 -

COFFEE 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
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

214,790.00 $ 1.484,763.17

2,105,904.79

837,851.88

$

3,158,546.67 $ _ _1-,-,".4-"-,8;.;4-"7"~,6..;;;.;3.....;..17~

$ 1,209,056.95

91,900.29 144,187.31

21,040.77

18,988.43

$

753.55

566.82

3,242,180.46

$

3,242,934. 1 $ _ _1.:.L'4..:.;:8:.:5~7,..;.4.::.,:0...::.57:.-

$

-84,387.34 $

-977.40

$

-84,387.34 $

1,612,085.74

-2,718.51 5,739.45

977.40
0.00 0.00

FUND BALANCE JUNE 30
See notes to the general purpose financial statements.
- 20-

$ 1,530,719.34 $ ====0=..;;;.;00=

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

18,102.17 $

2,804,839.15

$ 2,822,941.32 $

181,923.00 $ 181,923.00 $

1,899,578.34 $
4,910,743.94 837,851.88
7,648,174.16 $

1,716,707.57 4,506,973.96
871,077.06
7,094,758.59

$ 2,157,437.59 $
258,947.16 385,417.22
3,672.72 4,347.30
73.50 65,750.24

$ 2,875,645.73 $

$

-52,704.41 $

178,708.68 $
3,214.32
181,923.00 $ 0.00 $

3,545,203.22 $
350,847.45 532,818.85
3,672.72 25,388.07 18,988.43
753.55
640.32 65,750.24 3,242,180.46
7,786,243.31 $
-138,069.15 $

2,755,186.36
644,233.76 444,769.19
19,856.80 23,238.99 26,820.65
4,521.30 4,419.43 6,671.98 13,224.24 2,893,308.11
18,761.89 3,089.09
6,858,101.79
236,656.80

31,419.94

$

-21,284.47 $

27,467.49

32,397.34

58,104.76

0.00 $
0.00

-105,671.81 $
1,639,553.23

294,761.56 1,363,018.23

-2,718.51 _ _--=-5,739.45

-10,216.72 -8,009.84

$

6,183.02 $

0.00 $ 1,536,902.36 $ 1,639,553.23

- 21 -

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

ASSETS Cash and Cash Equivalents Accounts Receivable

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

151,022.00 $ 6,730,343.36

830,200.25

Total Assets

$

151,022.00 $ ==7i:::!:,=56;.;;0:l::,5.4..=3.=61=

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated

Total Fund Equity
Total Liabilities and Fund Equity

$

135,920.00

15,102.00

$ _ _1.:.::5:....:.10l.::.'::22=..:..O.::.,:O=--

$ 7,560,543.61

$

0.::..:.=.;00:;...

0.00

$

0.00 $ _......:....7,~5.:.;60::.z.,=-54.:.:3;.;;.6~1~

$

151,022.00 $ ==7=,=56:..;;0=,5=4=3.=61=

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

EXHIBIT "G"

LOTIERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $ 6,881,365.36 $ 3,380,828.82

830,200.25

912,919.75

$

0.00 $ 7,711,565.61 $ 4,293,748.57

$

135,920.00 $

264,562.00

15,102.00

209,504.00

$

151 ,022.00 $ _ _4~7.....:4J.::,0..:;.66=-:.0.;:;.;:0;...

$ 7,560,543.61 $ 3,537,964.57
281,718.00

$

:::.;o.~OO~

0.00

0.00

$

0.00 $ 7,560,543.61 $ 3,819,682.57

$

0.00 $ 7,711,565.61 $ 4,293,748.57

- 23-

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

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

0.00

$ 4,711,135.98

269.557.30

$

0.00 $ 4,980.693.28

$

58,340.64 $

37,362.50

239.797.00

232,400.47

38,597.47

$

298.137.64 $ _ _.=.;30::.:8;.:.:.3:.::6.=.;0.:..:.44~

$

-298,137.64 $ _ _4..:.J.,.::..67:..:2~,3:.::3=2.:.::,84~

$

16,419.64

_ _ _ _ _ _ $ _ _-.::..64.:.::97~,...:::5.::;3.:.::,80=-

$

16.419.64 $ _ _-.=.64..:.;:9:.z.7;,:..:5-=-3:.8::;:.::-0

$

-281.718.00 $ 4.022,579.04

281,718.00

3.537,964.57

$

0.00 $ ==7:.!:,5=6:.=0...5..4===:3.:::.61==

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

EXHIBIT "H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

0.00

$ 1,533,240.00

$ 4,711,135.98

4,372,003.30

269,557.30

115,117.35

$

0.00 $ 4,980,693.28 $ 6,020,360.65

$

21,587.50 $

117,290.64 $

31,470.00

483,702.41

955,899.88

5,025,488.35

144,463.89

183,061.36

282,115.55

$

649,753.80 $ 1,256,251.88 $ 5,339,073.90

$

-649,753.80 $

3,724,441 .40 $ _ _6;;.:8;..;.1.z=,2~86:;.:.7..:..;:5;-.

$

649,753.80 $

666,173.44 $ 3,594,900.23

-649,753.80

-3,313,182.23

$

649,753.80 $

16,419.64 $ _---..;2:.:8;..;.1.1.7:..'.:;18:.:,.0.:;.:0;-.

$

0.00 $ 3,740,861.04 $

963,004.75



0.00

3,819,682.57

2,856,677.82

$

0.00 $ 7,560,543.61 $ 3,819,682.57

- 25-

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

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2000 JUNE 30, 1999

$ 343,484.43 $

0.00 $

343,484.43 $

324,097.32

561.07

561.07

1,086.79

Total Assets

$

344,045.50 $

0.00 $

344,045.50 $ ===32;;;;;5,.,;,1..8..4.....1...1.;,.,

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 344,045.50
_ _ _ _0::...;.=..:00::... $

Total Fund Equity $ 344,045.50 $

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

344,045.50 $
0.00

325,184.11 0.00

0.00 $

344,045.50 $ ===3;;;;;2.5..=,1=84=.1,;,,;1=



See notes to the general purpose financial statements. - 26-

COFFEE COUNTY BOARD OF EDUCATION

.EXHIBIT "J"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30. 2000

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

$

3,440.12 $

344,525.00 $ 347,965.12 $ 356,317.41

15,421.27

15,421.27

12,711.30

Total Revenues

$

18,861.39 $

344,525.00 $ 363,386.39 $ 369,028.71

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees
Total Expenditures

$

0.00 $

220,000.00 $ 220,000.00 $ 205,000.00

124,525.00

124,525.00

142,587.50

780.00

$

0.00 $

344,525.00 $ 344,525.00 $ 348,367.50

Excess of Revenues over (under) Expenditures $

18,861.39 $

0.00 $

18,861.39 $

20,661.21

FUND BALANCE JULY 1

325,184.11

0.00

325,184.11

304,522.90

FUND BALANCE JUNE 30

$ 344,045.50 $

0.00 $ ==3.4....4..,045.50 $

325,184.11

See notes to the general purpose financial statements.

- 27-

COFFEE CQUNTY BOARD QF EDUCATION SCHEDULE QF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553
10.555

N/A $
N/A
$

473,345.85
1,446,270.99 $
1,919,616.84 $

(2)
3,109,464.08 (3)
3,109,464.08

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

10.550 10.558

N/A

133,469.93

133,469.93

N/A $

52,818.02 _ _J.::.(2)~_ _
2,1 05,904.79 $ _-.:::.3,~24~2::.;,9~34=.0:.:..1

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

84.027 84.173

N/A $
N/A
$

512,535.81 $
88,900.05
601,435.86 $

512,535.81 88,900.05
601,435.86

Other Programs Direct Impact Aid Pass-Through From Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Pass-Through From Georgia Department of Education Department of Education Appropriations Act Class Size Reduction Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Safe and Drug-Free Schools Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education

84.041

9,682.32

(4)

84.011
84.340
84.010 84.281 84.318 84.298 84.186
84.048

N/A

71,496.72

79,364.43 (3)

N/A

200,218.00

202,894.41 (3)

N/A

1,505,556.52

1,505,556.52

N/A

41,132.36

41,132.36

N/A

125,000.00

125,000.00

N/A

53,308.00

53,308.00

N/A

30,354.00

42,211.81 (3)

N/A
$

82,476.00 2,720,659.78 $

84,248.95 (3) 2,735,152.34

Health and Human Services, U. S. Department of . Pass-Through From Children and Youth Coordinating Council of Georgia Abstinence Education Block Grant 98-A-18-0003 99-A-18-0003
Total U. S. Department of Health and Human Services

93.235 93.235

N/A $
N/A
$

12,495.93 $
35,710.25
48,206.18 $

17,188.35 (3) 44,086.67 (3)
6::,.1:..:,2::.,:7.,:::5:;:=.0:=,.2

- 28-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Pass-Through From Children and Youth Coordinating Council of Georgia S.TAR. Program 98J-18-9705-0001 99J-18-9805-000 1
Total U. S. Department of Justice

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.540 16.540

N/A $ N/A
$

23,155.51 $
22,500.00

57,868.06 (3) 21,350.31

45,655.51 $ _ _-!,;79~.2:.1~8:.:.::.3~7

Total Federal Financial Assistance

$

4,920.426.26 $ _...:;:,6..:1.,.:,:18::,;,.5;;:.:7:,::9:;.:.7,:.4

N/A = Not Available

Note to the Schedule of Expenditures of Fe.QQral Awards

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

(4) Expenditures on this program were 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 Subrecipienl.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Coffee County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.



See notes to the general purpose financial statements.

- 29 - .

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Children and Youth Coordinating Council of Georgia Abstinence Education Block Grant
Community Affairs, Georgia Department of Govemor's Emergency Funds (1) Local Assistance Grant
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Altemative Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom
Human Resources, Georgia Department of Family Connection
Office of Planning and Budget Georgia Challenge Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education. Georgia Department of Georgia's Reading Challenge Student Athletic Facilitating Education
OTHER Education, Georgia Department of Reimbursement for GENESIS Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

18,102.17 $

18,102.17

$

7,000.00

8,625.00

7,000.00 8,625.00

16,352,773.00 3,022,842.00 559,731.00 703,677.00 190,219.00 4,223.504.00
710,492.00 223,617.00
34,440.00 545,835.00 1,219,926.00 102.366.00 458,817.00
69,226.00 86,527.00 -2,798,534.00 2,395,308.00
54,463.00
105.079.00 1,500.00
451,363.97 5,000.00
16,524.00 100,011.00
9,990.86 36,428.38
108.388.13
21,250.00
102,500.00

214,790.00
28,401.22 163,456.00 1,292.905.95

16,352,773.00 3,022,842.00 559,731.00 703,677.00 190,219.00 4,223.504.00
710,492.00 223,617.00
34,440.00 545,835.00 1,219,926.00 102,366.00 458,817.00
69,226.00 86,527.00 -2,798,534.00 2,395.308.00 214,790.00 54,463.00
105,079.00 1,500.00
451,363.97 5,000.00
16,524.00 100,011.00
9,990.86 36,428.38
28,401.22 163,456.00
108,388.13
21,250.00
1,292,905.95
102.500.00

60,000.00 500.00

181.923.00

241,923.00 500.00

108,250.00

108,250.00

$ 29.297,639.34 $ 1,899.578.34 $ 31.197.217.68

(1) The purpose of the funds are for Improvements to the Practice Field at Coffee High School.

See notes to the general purpose financial statements.

-30-

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

Acquiring, constructing, and equipping the following capital outlay projects at a total maximum cost of $11 ,299,425.00: (i) a new elementary school, (ii) renovations and improvements to Ambrose Elementary, Eastside Elementary, Westside Elementary, Satilla Elementary, West Green Elementary, Nicholls Elementary, Broxton Elementary, East Coffee Middle School, West Coffee Middle School, (iii) installation of air conditioning in the gymnasium and construction of new track and storage facilities at Coffee County High School, and (iv) a new central office for the school system

$ 11,299,425.00 $ 11,299,425.00 $

958,114.24 $ 6,301,955.76

The retirement of all previously incurred general obligation debt of the school system in a maximum amount of $2,700,575.00

2,700,575.00

2,700,575.00

344,525.00

697,742.50

$ 14,000,000.00 $ 14,000,000.00 $ 1,302,639.24 $ 6,999,698.26

(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 each project. Includes all cost from project inception to completion.
(3) The voters of Coffee County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the general purpose financial statements.

- 31 -

COFFEE 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

$

21,029,523.00 $ _ _---::.;66::.::8~8,:.::0~1:.::.0.:..0

$

21,912,694.10

1,411 ,863.75 $ _ _1.:...!:,2:::3:.::88~:,.:::6::;6.~95:::..

$

23,324,557.85

-441,751.40
$ _~2=2:.L:'8::.:;8::2.!.8::;,.::.06::;.~45:::..

$

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

See notes to the general purpose financial statements. - 33 -

COFFEE COUNTY BOARD OF ~DUCATION 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 Catego.ry VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (:l Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,820,753.00

$ 1,638,677.70 $

0.00

5,221,327.00

4,699,194.30

$ 7,042,080.00 90 $ 6,337,872.00 $

0.00

2,065,738.00 90

1,859,164.20

175,000.00

3,291,960.00 90

2,962,764.00

40,000.00

1,954,528.00 90

1,759,075.20

1,252,553.00 90

1,127,297.70

745,914.00 90

671,322.60

105,000.00

$ 16,352,n3.00

$ 14,717,495.70 $ _ _3;:;:2:.;;;0.:..;;,0;.;;.0.:.;0.",,00:..

$ 2,553,424.00

$ 2,298,081.60 $

19,500.00

$ 2,553,424.00 90 $ 2,298,081.60 $

19,500.00

469,418.00 90

422,476.20

$ 3,022,842.00

$ 2,720,557.80 $ _ _....:1~9.:.::,5::::.00:::..::::OO~

$

559,731.00 90 $

503,757.90 $ _ _...:5:.:.1.:.::,O::::.00:::..:.:::00~

$ 19,935,346.00

$ 17,941,811.40 $ _-.::3:::;90::".,5::.:0::::0.:.:::.0~0

$

565,412.00 90 $

508,870.80 $

138,265.00 100

138,265.00

$

703,677.00

$

647,135.80 $

0.00 ---"0""'.0;.:..0

Total Fourteen Weighted and Media Center Programs

$ 20,639,023.00

$ 18,588,947.20 $ _ _3.9.0..,5.0;;;;;;0.0..0..

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

$

61,759.00

128,460.00

$

61,759.00 $

128,460.00

$

190,219.00 100 $

190,219.00 $

0.00 0.00
....,;;0,;,;;.0,;;;.0

- 34 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,638,677.70 $ 1,938,074.20 $

70,674.48 $ 2,008,748.68

4,699,194.30

4,731,951.84

325,366.03

5,057,317.87

$ 6,337,872.00 $ 6,670,026.04 $

396,040.51 $ 7,066.066.55 $

0.00

2,034,164.20

2,543,498.20

165,445.32

2,708,943.52

0.00

3,002,764.00

3,246,279.83

199,454.74

3,445.734.57

0.00

1,759,075.20

1,861,128.63

212,453.20

2.073,581.83

0.00

1,127,297.70

1,628,921.60

81,721.55

1,710,643.15

0.00

776,322.60

967,914.67

93,572.79

1,061,487.46

0.00

$ 15,037,495.70 $ 16,917,768.97. $ 1,148,688.11 $ 18,066,457.08

$ 2,317,581.60 $

232.30 $ 709,144.69 1,848,612.48 250,705.15 175,521.65

1,606.09 $ 9,798.87 48.373.85 6,117.41
256.85

1,838.39 718,943.56 1,896,986.33 256,822.56 175,778.50

$ 2,317.581.60 $ 2.984,216.27 $

66.153.07 $ 3,050.369.34

0.00

422,476.20

426,677.55

15,846.73

442,524.28

0.00

$ 2,740,057.80 $ 3,410,893.82 $

81,999.80 $ 3,492,893.62

$

554,757.90 $

611,599.71 $

8,179.04 $ _--,6;..;,19;;;.:.,77.;..;.;:;8"",.7.;:,.5

0.00

$ 18,332,311.40 $ 20,940,262.50 $ 1,238,866.95 $ 22,179,129.45

$

508,870.80 $

972,431.60

$

972,431.60

0.00

138,265.00 _ _ _ _ _ _ $ _---.;1;..;,72"",;;.;99;.;;6,;,;;;.8.;:,.0

172,996.80

0.00



$

647,135.80 $

972,431.60 $

172,996.80 $ 1.145,428.40

$ 18,979,447.20 $ 21,912,694.10 $ 1,411,863.75 $ 23,324,557.85 $

0.0.0.;;.

$

61,759.00

128,460.00

$ _.....:1.,90...2.1.;,;;9,;,;;.0.0.

$

162,245.34 $

162,245.34

29,011.14

29,011.14

$

191,256.48 $

191,256.48 $

0.0..0..

- 35 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS


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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
February 2,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Coffee County Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofCoffee County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated February 2,2001. 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 generally accepted auditing standards 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 Coffee 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 Coffee 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 control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40



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 Coffee 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-6341-00-02.
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 of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Coffee 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-40

Ru sell W. Hinton State Auditor

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

l71b
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-R400
February 2, 2001

Honorable Roy E. Bames, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Coffee 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-B3
Ladies and Gentlemen:
Compliance
We have audited the compliance ofCoffee 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. Coffee County Board of Education's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofCoffee County Board ofEducation's management. Our responsibility is to express an opinion on Coffee County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-B3, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Coffee County Board ofEducation's compliance with those requirements and performingsuch other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Coffee County Board of Education's compliance with those requirements.
2000SA-IO

In our opinion, the Coffee 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 Coffee 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 Coffee 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 Coffee 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-IO

Ru ell W. Hinton State Auditor

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6341-98-03 FS-6341-99-0 1 FS-6341-99-02

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

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6341-99-02

The management of the Coffee County Board of Education chooses not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records due to volume and cost.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6341-99-01

Previously Reported Corrective Action Implemented


SECTION IV FINDINGS AND QUESTIONED COSTS

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
1. me of Report Issued on the Financial Statements The auditor's opinion on the Coffee County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Coffee County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Coffee County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Maior Programs The audit report for the Coffee 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 Coffee County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Reguired to be Reported by Section .510W ofOMB Circular A-B3 The Coffee 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 84.027 Individuals with Disabilities Education Act - Part B - Special EducationFlow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
- 1-

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Coffee County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EXPENDlTURESILIABILITIESlDlSBURSEMENTS Improper Expenditure Nonmaterial Noncompliance Amount: $569.00 Finding Control Number: FS-6341-00-01
In the year under review, an expenditure of $569.00 was made from the Board's General Fund to reimburse the Superintendent for a sea cruise with the High School chorus. The Official Code of Georgia Annotated Section 20-2-411 provides, in part, as follows:
"... school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses; for extracurricular and interscholastic activities, including literary events, music, and athletic programs within individual schools and between schools in the same or different school systems when such activities are sponsored by local boards ofeducation as an integral part of the total school program, and for no other purpose..."
Expenditures of this nature are considered to be beyond the customary scope of expenditures for "educational purposes". These expenditures occurred because management disregarded the specific limitations imposed upon the Board by Georgia Laws. Appropriate action should be taken by the Board to secure reimbursement in an amount of$569.00 for deposit to the Board's General Fund.

Management's Response:
The management ofthe Coffee County Board ofEducation has collected the $569.00 from the past Superintendent Moore. This deposit is within the current fiscal year 2001 General Fund.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6341-00-02
The Coffee County Board of Education did not establish a 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 ofthe Board being incomplete and not
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COFFEE 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-6341-00-02 in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, and equipment owned by the Board and should include, but may not be limited to date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: We concur with this recommendation. The management ofthe Coffee County Board ofEducation chooses to not maintain a system-wide General Fixed Assets Account Group within the formal accounting records due to current staffing limitations, volume and cost. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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