Audit report, Colquitt County Board of Education, Moultrie, Georgia, year ended June 30, 1997

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AUDIT REPORT COLQUITT COUNTY BOARD OF EDUCAnON
MOULTRIE, GEORGIA YEAR ENDED JUNE 30, 1997
~~~~-~--------~~~-------
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

. (NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS/FUND BALANCES

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

E

COMBINED STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

10

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

13

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

28

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

30

COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

35

5

BY PROGRAM

36

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

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

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

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 15, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE . FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Colquitt County Board of Education, as of and for the year ended June 30, 1997, as listed in the table of contents~ These generalpurpose financial statements are the responsibility of the Colquitt County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government 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 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.

97ARL-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, 1997, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1997. Also funds received, subsequent to June 30, 1997, from the Georgia Department of Education for the State's share ofthese 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, 1996, were improperly recorded in the year ended June 30, 1997. 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 Board did not record revenues and expenditures associated with Federal donated commodities
in its general-purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Colquitt County Board of Education as of June 30, 1997, and the results ofits operations and the cash flows of its proprietary and nonexpendable trust funds 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 May 15, 1998, on our consideration ofthe Colquitt County Board of Education's internal control over fmancial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Colquitt County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general-purpose fmancial statements taken as a whole.
97ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude 1. Vickers State Auditor
CLV:cm 97ARL-13

COLQUITT COUNTY BOARD OF EDUCAnON

COLQUITI COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1997

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 2,158,920,83 $

801,585,74

28,763,03

436,965.25

266,846.25 $

161,259.00

18,502.22 10,560.24

Total Assets

$ 2,624,649.11 $ 1,097,494.45 $ ==1.=;6=15,2=59=.=,=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Retained Earnings Unreserved
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

$

111,964,06

522,806.58

27,445.07

70,650.08 3,100.00

$

662,215.71 $ _ _....:.7..:.3""',7=-:50:.;.;.0=8:.-

$

170,937.50

$

82,777,54

22,468.45

84,700,34 2,286,233.73
$ 2,624,649.11 $

18,502.22 10,560.24
$
383,747.83 435,278.74 $

37,102.92
50,406.00 87,508.92

Total Liabilities and Fund Equity

$ 2,624,649.11 $ 1,097,494.45 $ ==1=6=15,2=59=.=,==

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

EXHIBIT "A"

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPES
TRUST FUNDS

TOTALS

(Memorandum Only)

JUNE 30, 1997

JUNE 30, 1996

$

798,582.19 $

160,701.96 $

3,919,790.72 $

3,607,492.66

28,763.03

29,565.15

24,863.01

775.00

890,708.51

1,661,642.70

18,502.22 10,560.24

27,801.06 13,765.21

$

823,445.20 $

161,476.96 $

4,868,324.72 $

5,340,266.78

$

39,534.86

$

39,534.86

$

70,650.08

115,064.06 $

96,944.03

522,806.58

437,929.50

27,445.07

19,700.68

39,534.86

33,019.00

329,326.61

67,815.64

$

775,500.65 $

984,735.46

$

783,910.34

$

0.00

$

783,910.34 $

$

783,910.34 $

948,527.81

75,000.00

170,937.50 22,468.45 75,000.00 82,777.54

75,000.00 154,646.00

86,476.96 161,476.96 $

18,502.22 10,560.24 37,102.92
84,700.34 2,806,864.52
4,092,824.07 $

27,801.06 13,765.21 532,461.18
85,545.88 2,517,784.18
4,355,531.32

$

823,445.20 $

161,476.96 $

4,868,324.72 $

5,340,266.78

-3-

COLQUfTI COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1997

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 28,444,510.25 $ 38,308.34
8,220,849.22 229,534.17

1,748,729.05 $ 4,472,633.09
653,892.22

2,206,458.37 20,728.19

$ 36,933,201.98 $ 6,875,254.36 $ 2,227,186.56

$ 24,076,239.50 $ 3,214,191.78

1,262,022.75 959,168.04 945,603.88 344,535.46
2,405,033.20 416,001.12
3,370,794.35 1,580,314.61
88,406.39 36,902.37 86,419.80
58,763.31

264,155.68 46,690.37 20,793.91
282,051.41 1,513.00

60,749.95 80,409.28

42,629.07 2,895,799.39
28,021.13 2,193.00 $

3,583,751.20

$ 35,630,204.78 $ 6,939,197.97 $ 3,583,751.20

$ 1,302,997.20 $

-63,943.61 $ -1,356,564.64

$ $ -844,115.07
$ -844,115.07 $

114.31 $ 844,000.76 114.31 $ 844,000.76

$ 458,882.13 $ 2,165,766.98

-63,829.30 $ 511,611.85

-512,563.88 600,072.80

-9,298.84 -3,204.97

FUND BALANCE JUNE 30

$ 2,624,649.11 $

435,278.74 $ ===87=,5=08=.92=

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

- 4-

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE
EXPENDABLE TRUST FUNDS

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$ 32,399,697.67 4,510,941.43 8,220,849.22 904,154.58 $
$ 46,035,642.90 $

$ 3,844.44

32,399,697.67 $ 4,510,941.43 8,220,849.22 907,999.02

28,922,146.00 4,233,929.23 7,786,653.88 1,025,729.45

3,844.44 $ 46,039,487.34 $ 41,968,458.56

$ 27,290,431.28
1,526,178.43 1,005,858.41
966,397.79 626,586.87 $ 2,406,546.20 416,001.12 3,431,544.30 1,660,723.89
88,406.39 79,531.44 2,982,219.19 28,021.13 3,644,707.51
$ 46,153,153.95 $
$ -117,511.05 $

$ 27,290,431.28 $ 25,656,929.44

3,017.67

1,526,178.43 1,005,858.41
966,397.79 629,604.54 2,406,546.20 416,001.12 3,431,544.30 1,660,723.89
88,406.39 79,531.44 2,982,219.19 28,021.13 3,644,707.51

1,542,120.08 866,681.52 944,688.89 474,585.11
2,278,528.86 438,381.16
3,599,275.96 1,899,659.89
277,793.78 42,023.76
2,829,039.04 25,782.08
1,070,582.30

3,017.67 $ 46,156,171.62 $ 41,946,071.87

826.77$ -116,684.28 $

22,386.69

$ 844,115.07 -844,115.07

$

0.00

$ 844,115.07 $ 581,203.18

-844,115.07

-641,291.74

$

0.00 $ -60,088.56

$ -117,511.05 $ 3,277,451.63

826.77 $ -116,684.28 $

-37,701.87

49,350.87

3,326,802.50

3,374,685.55

-9,298.84 -3,204.97

-9,298.84 -3,204.97

-7,039.00 -3,142.18

$ 3,147,436.77 $

50,177.64 $ 3,197,614.41 $ 3,326,802.50

-5-

THIS PAGE LEFT BLAHK

COLQUITT 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 30,1997

EXHIBIT"C"

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

COLQUITT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND FIDUCIARY FUND TYPE- NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30,1997

OPERATING REVENUES
Charges for Services Donations
Total Operating Revenues
OPERATING EXPENSES
Current Administration Scholarships Workers' Compensation Claims
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES
Interest Earned
Net Income (Loss) Before Operating Transfer
OPERATING TRANSFERS IN
Transfers From Other Funds
Net Income (Loss) for the Year
RETAINED EARNINGS/ FUND BALANCE JULY 1

PROPRIETARY FUND TYPE WORKERS'
COMPENSATION FUND

FIDUCIARY FUND

NONEXPENDABLE TRUST

CLASS OF 1988

MCKEE

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

$

296.61 $

$

296.61 $

0,00
$
0.00 $

30,000.00 30,000.00

$

114,604.28

$

89,803.73

$

204,408.01 $

$

-204,111.40 $

39,493.93

$

-164,617.47 $

335.00 $ 335.00 $ -335.00 $
331.97
-3.03 $

1,105.00 1,105.00 28,895.00
2,430.80 31,325.80

$

-164,617.47 $

948,527.81

-3.03 $
6,397.67

31,325.80 20,397.81

RETAINED EARNINGS/ FUND BALANCE JUNE 30

$

7..8..3_,.9..1...0...3..4... $

6,394.64 $

51.,7~2_3._61_

The notes to the general purpose financial statements are an integral part of this statement. -8-

EXHIBIT"D"

TYPE FUNDS
ODOM SCHOLARSHIP
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30.1997 JUNE 30.1996

$

0.00 $

296.61 $

98,519.15

30.000.00

$

O=..:.=..;OO~ $

30.296.61 $_---.;9::.;:8.l.:.5'-'-1.:..;9....:..;15~

$ 114,604.28 $

80,068.75

$

3.099.00

4,539.00

3,059.00

89.803.73

55,918.17

$

3.099.00 $ 208,947.01 $ 139,045.92

$

-3.099.00 $ -178,650.40 $

-40,526.77

2,874.54

45,131.24

42,071.75

$

-224.46 $ -133,519.16 $

1,544.98

60,088.56

$

-224.46 $ -133,519.16 $

61,633.54

53,405.53

1.028.728.82

967,095.28

$ ===5=3~.1=8=1.=07== $

895.209.66 $ 1.028,728.82

- 9-

COLgUITI COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30,1997

Cash Flows from Operating Activities: Cash Received from Donations Cash Received from Contributions to Self-Insurance Employee Benefits Cash Paid for Administrative Costs Cash Paid for Scholarships Cash Paid for Workers' Compensation Claims
Net Cash Provided (Used) by Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers-In from Other Funds
Net Cash Provided (Used) by Noncapital Financing Activities
Cash Flows from Investing Activities: Interest Received on Investments Cash Paid for Bank Service Charges
Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

PROPRIETARY FUND TYPE WORKERS'
COMPENSATION FUND

FIDUCIARY FUND

NONEXPENDABLE TRUST

CLASS OF 1988

MCKEE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

$

296.61

-114,604.28

$

-83,287.87

$

30,000.00

-330.00

-1,100.00

$

-197,595.54 $

-330.00 $

28,900.00

$

0.00 $

$

0.00 $

$

41,134.40 $

$

41,134.40 $

$

-156,461.14 $

$

955,043.33 $

0.00 $
0.00 $
332.49 $ -5.00
327.49 $ -2.51 $
6,368.14 $

0.00
0.00
2,274.35 -5.00
2,269.35 31,169.35 20,298.47

$

798,582.19 $

6,365.63 $ ==-=-5.1..,.4..6.7....8.-.2

Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Increase in Claims Payable Net Cash Provided from Investing Activities

$

-204,111.40 $

6,515.86

-335.00 $
5.00

28,895.00 5.00

Net Cash Provided (Used) by Operating Activities

$

-197,595.54 $

The notes to the general purpose financial statements are an integral part of this statement. - 10-

28,900.00

EXHIBIT"E"

TYPE FUNDS
ODOM SCHOLARSHIP
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

30,000.00

296.61 $

98,519.15

-114,604.28

-80,068.75

$

-3,072.00

-4,502.00

-3,010.00

-83,287.87

-39,051.17

$---=-=..-:3.,.0:7:2..:0;0.. $ -172,097.54 $

-23,610.77

$

0.00 $

0.00 $

60,088.56

$

0.00 $

0.00 $

60,088.56

$

2,879.33 $

46,620.57 $

15,596.66

-27.00

-37.00

-49.00

$

2,852.33 $

46,583.57 $

15,547.66

$

-219.67 $ -125,513.97 $

52,025.45

$

53,137.04 $ 1,034,846.98 $

982,821.53

$ ==~52;;,b,9;.;1;,,;,,7,;,;;.3,;..7 $

909,333.01 $ 1,034,846.98

$

-3,099.00 $ -178,650.40 $

-40,526.77

6,515.86

16,867.00

27.00

37.00

49.00

$ ===-3=,0=:7=2=.0==0 $

-172,097.54 $

-23,610.77

- 11 -

THIS PAGE LEn BLANK

COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

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

- 13 -

COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

PROPRIETARY FUND TYPES - the funds used to account for activities of the Board similar to those found in the private sector, where cost recovery and the determination of net income is useful or necessary for sound fiscal management. Internal service funds are a type ofproprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the Board.

WORKERS' COMPENSATION FUND - the fund used to account for Workers' Compensation contributions and expenditures.

FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:

NONEXPENDABLE TRUST FUNDS Class of 1988 Scholarship Fund and McKee Scholarship Fund - the funds used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarships to graduating seniors of the Colquitt County High School.

Odom Scholarship Fund - the fund used to account for an endowment of which the corpus is to be

invested and preserved intact with the resultant income to be used to provide scholarships to graduating

seniors of the Colquitt County High School and awards to be made to fifth graders at Jack Mack Odom

Elementary School.

.

EXPENDABLE TRUST FUNDS Goff Scholarship Fund, Millsap Scholarship Fund and Pippin Scholarship Fund- the funds used to account for scholarships to be made to graduating seniors of Colquitt County High School.

BASIS OF ACCOUNTING

The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current fmancial 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 fmancing 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.

- 14-

COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All proprietary and nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized whenthe 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 1997, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1996 and ending in early June 1997. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1996 and ending in August 1997. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1997, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1997, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1997. Also, the State's portion of the compensation paid in July and August 1997 was received and recorded as revenue in the fiscal year subsequent to June 30, 1997. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1996, were recorded in the year ended June 30, 1997. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by proprietary and nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

- 15 -

COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Colquitt County Board of Education's budget is a complete fmancial 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 of budget control was established by the Board at the aggregate level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations of the internal service funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department 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.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report:

Special Revenue
Fund

FUND BALANCE JULY 1,1996

$ 511,611.85

Adjustments Inventories - July 1, 1996 Food Donated Commodities Purchased Foods

-27,801.06 -13,765.21

Fund Balance July 1, 1996 (Budget Basis)

$ 470,045.58

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

-63,829.30

FUND BALANCE JUNE 30,1997 (Budget Basis)

$ 406.216.28

- 16-

COLQUITT COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. 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:
(l) 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,
(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.
- 17 -

COLQUITT COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Colquitt County Board ofCommissioners fixed the property tax levy for the 1996 tax year (calendar year) on October 2, 1996 (levy date). Taxes were due on December 10, 1996. The lien date for property taxes was January 1, 1996. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1997 since their collection meets the criteria of GASB codification section P70.1 03. The Colquitt 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 1996 tax year (calendar year) for the Colquitt County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

2.J..Q mills

SALES TAXES

Local Option Sales Tax collected by the State and remitted to the Board during the fiscal year amounted to $3,688,216.68 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the Board.

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). The Board uses the purchases method to account for inventories of purchased foods whereby expenditures are recorded at the time of purchase. Both the donated food commodities inventory and the purchased foods inventory reported on the balance sheet are equally offset by reservations of fund balance which indicates that they do not constitute "available spendable resources" even though they are a component ofnet current assets. The Federally assigned value of donated commodity items received and consumed has not been reflected as revenues and expenditures in the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.

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 ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.

- 18 -

COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
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 fmancial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 of money which has not been secured by
surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond
and the market value of securities shall be equal to not less than 11 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the 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,

- 19-

COLQUITT COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT ifF

Note 2: DEPOSITS AND INVESTMENTS

(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 ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

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

(7) Bonds, bills, notes, certificates 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 and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives; the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZAnON OF DEPOSITS At June 30, 1997, the bank balances were $6,958,888.52. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1997, as follows:

Risk Category

Bank Balance

1

$ 500,000.00

2

5,956,278.31

3

502,610.21

Total

$ 6,958,888.52

- 20-

COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS At June 30, 1997, the carrying amount ofthe Board's total investments was $28,763.03 and consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal 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 of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

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

The Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Workers' Compensation Fund to each user fund on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of$I,OOO,OOO.OO loss per occurrence, up to the statutory limit.

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

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

$

16,152.00 $

55,918.17 $

$

33,019.00 $

89,803.73 $

Claims Paid

End ofYear Liability

39,051.17 $ 83,287.87 $

33,019.00 39,534.86

- 21 -

COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 4: RISK MANAGEMENT

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

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

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

0.00 $

$

0.00 $

3,103.00 $

Claims Paid

End of Year Liability

0.00 $

0.00

3,103.00 $

0.00

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

Position Covered

Amount

Superintendent Each Employee (per Loss)

$ 100,000.00 $ 300,000.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $820,723.92 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $680,250.07

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $33,680.85

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$106,793.00

- 22-

COLOUITT COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F

Note 6: CONTINGENT LIABILITIES

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

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 7: ACCUMULATED EMPLOYEES' LEAVE

Twelve month employees of the Board earn two weeks annual leave. Eleven month employees of the Board earn one week of annual leave. Maximum accumulation allowed is four weeks. Upon retirement or termination of employment employees are paid for unused annual leave, up to the maximum accumulation allowed, at their current rate of pay. See Note 1 - Compensated Absences

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone 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 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 2,929,761.01 $ 2,717,268.19 $ 2,440,612.91

- 23-

COLQUITI COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1997

EXHIBIT"G"

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1997 JUNE 30, 1996

$ 555,338,40 $ 179,553.79 $

66,693.55 $

801,585,74 $ 377,283,69

18,250.27

248,595,98

266,846.25

748,268.73

18,502.22 10,560.24

18,502.22 10,560.24

27,801.06 13,765.21

Total Assets

$ 602,651,13 $ 179,553,79 $

315,289,53 $ 1,097,494.45 $ 1,167,118,69

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

$

33,690.65. $
156,150,19
189,840,84 $
18,502.22 10,560,24 383,747.83 $
412,810,29 $

30,525.96 $ 139,198.08
9,829.75 179,553.79 $
$
0.00 0,00 $

47,747.45 $ 227,458,31
17,615.32
292,821.08 $

$ 111,964.06 522,806.58
27,445,07
662,215,71 $

103,778.00 94,098,66
437,929.50 19,700.68
655,506,84

22,468.45 $

22,468.45

0,00 22,468.45 $

18,502,22 $ 10,560.24
383,747,83
435,278,74 $

27,801.06 13,765,21
470,045.58
511,611.85

Total Liabilities and Fund Equity $ 602,651.13 $ 179,553,79 $

315,289,53 $ 1,097,494.45 $ 1,167,118,69

See notes to the general purpose financial statements,

- 24-

COLQUITI COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1997

EXHIBIT"H"

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30, 1996

REVENUES

State Funds Federal Funds Other Funds

$ 182,166.00 $ 1,566,563.05

$ 1,748,729.05 $ 1,587,148.56

1,973,443.42

$ 2,499,189,67

4,472,633.09

4,221,255.41

653,892.22

653,892.22

642,005.20

Total Revenues

$ 2,809,501.64 $ 1,566,563.05 $ 2,499,189.67 $ 6,875,254,36 $ 6,450,409.17

EXPENDITURES

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

$ 1,304,062.20 $ 1,910,129,58 $ 3,214,191.78 $ 3,060,859.04

$ 2,895,799.39

124,272.46 13,745.95
70,678,22 1,513,00
10,805.39 39,292,83
2,193.00

139,883.22 32,944.42 20,793.91
211,373.19
49,944.56 41,116.45 42,629.07
28,021.13

264,155.68 46,690.37 20,793.91
282,051.41 1,513.00
60,749.95 80,409.28 42,629.07 2,895,799,39 28,021.13
2,193.00

220,745.12 90,713.51 45,150.38
201,905.65 9,931.96
20,830.56 68,595.33 24,299.47 2,669,393.58 25,782.08 62,000.00

Total Expenditures Excess of Revenues over (under) Expenditures

$ 2,895,799.39 $ 1,566,563.05 $ 2,476,835.53 $ 6,939,197.97 $ 6,500,206.68

$

-86,297.75 $

0.00 $

22,354.14 $

-63,943.61 $

-49,797.51

OTHER FINANCING SOURCES

Operating Transfers In

114.31

114,31

158.33

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-86,297,75 $

0.00 $

22,468.45 $

-63,829.30 $

-49,639.18

FUND BALANCE JULY 1

511,611.85

0.00

0.00

511,611.85

571,432.21

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-9,298.84 -3,204.97

-9,298.84 -3,204.97

-7,039.00 -3,142.18

FUND BALANCE JUNE 30

$ 412,810.29 $

0,00 $

22,468.45 $ 435,278.74 $ 511,611.85

See notes to the general purpose financial statements,

- 25-

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

COLQUITT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1997

EXHIBIT "I"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS JUNE 30,1997 JUNE 30,1996

$ 50,406.00

$ 40,202.92 $

90,608.92 $ 500,947.15

3,101.66

$

161,259.00

161,259.00

497,371.61

$ 50,406.00 $

161,259.00 $

40,202.92 $ 251,867.92 $ 1.001.420.42

Total Liabilities and Fund Equity $ 50,406.00 $

161,259.00 $

40,202.92 $ 251,867.92 $ 1,001,420.42

See notes to the general purpose financial statements.

- 26-

See notes to the general purpose financial statements.

- 27-

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Undesignated
Total Fund Equity

COLQUITI COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 3D, 1997

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

CLASS OF 1988

MCKEE

ODOM

SCHOLARSHIP SCHOLARSHIP SCHOLARSHIP

FUND

FUND

FUND

$

6,365.63 $

51,467.82 $

52,917.37

29.01

255.79

263.70

$

6,394.64 $

51,723.61 $ ===5=3,=!:,1=8=1.=0=,=7

$

6,000.00 $

19,000.00 $

50,000.00

394.64

32,723.61

3,181.07

$

6,394.64 $

51,723.61 $ ===5=3:=,1=8=1=.0=7

See notes to the general purpose financial statements.

- 28-

EXHIBIT"K"

EXPENDABLE TRUST FUNDS

GOFF

MILLSAP

PIPPIN

SCHOLARSHIP SCHOLARSHIP SCHOLARSHIP

FUND

FUND

FUND

TOTALS

JUNE 30,1997

JUNE 30,1996

$

36,216.62 $

1,183.87 $

12,550.65 $

160,701.96 $

128,923.90

163.90

62.60

775.00

627.98

$

36,380.52 $

1,183.87 $

12,613.25 $

161,476.96 $===12:=9,5=5=1.=88=

$

36,380.52 $

$

36,380.52 $

1,183.87 $

$
1..;.;;2:;,.:.;,6:....;1~3;:;:.2~5

75,000.00 $ 86,476.96

75,000.00 54,551.88

1,183.87 $ ===1=:2,=61=3=.2==5 $

161,476.96 $ ===12:=9,5=5,,;,;1.=88:=

- 29-

COLQUITT COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30,1997

EXHIBIT"L"

GOFF
SCHOLARSHIP FUND

MILLSAP
SCHOLARSHIP FUND

PIPPIN

TOTALS

SCHOLARSHIP

YEAR ENDED

FUND

JUNE 30, 1997 JUNE 30, 1996

REVENUES Other Funds

$

1,880.63 $

1,021.60 $

942.21 $

3,844.44 $

12,598.72

EXPENDITURES

Current Support Services General Administration

$

1,005.00 $

1,011.00 $

1,001.67 $

3,017.67 $

2;032.00

Excess of Revenues over (under) Expenditures $

875.63 $

10.60 $

-59.46 $

826.77 $

10,566.72

FUND BALANCE JULY 1

35,504.89

1,173.27

12,672.71

49,350.87

38,784.15

FUND BALANCE JUNE 30

$

36,380.52 $

1,183.87 $

12,613.25 $ 50,177.64 $

49,350.87

See notes to the general purpose financial statements.

- 30-

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30,1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

Agriculture, U. S. Department of Direct Summer Food Services Program for Children 1996 Grant 1997 Grant

* 10.559

$

* 10.559

Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1997 Grant National School Lunch Program 1997 Grant Food Distribution Program

* 10,553
* 10,555 10.550

N/A
N/A . N/A

Total U, S, Department of Agriculture

$

Education, U. S. Department of 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 1996 Summer 1997 Grant 1997 Summer Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1997 Grant State School Improvement Grants 1997 Grant Title II Eisenhower Professional Development 1997 Grant Title VI Innovative Education Program Strategies 1997 Grant Goals 2000 State and Local Education Systemic Improvement Grant 1997 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1997 Grant Preschool 1997 Grant . Vocational Education - Basic Grants to States High School Program Basic Grant 1997 Grant Tech-Prep Education 1997 Grant Pass-Through From Southwest Georgia Regional Mental Health, Mental Retardation and Substance Abuse Board Safe and Drug-Free Schools 1997 Grant

84,011 84.011 84.011
* 84.010 84.218 84.281 84.298
84.276
* 84.027 84.173
84.048 84.243
84.186

N/A $ N/A N/A
N/A N/A N/A N/A
N/A
N/A N/A
N/A N/A
N/A

Total U. S. Department of Education

$

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

51,006.47 $ 37,093.26

51,224.97 (3) 37,199.51 (3)

525,379.74
1,359,963.95 (1)
1,973,443.42 $

(2)
2,807,374.91 (3) (1)
2,895,799.39

70,932.80 $ 70,232.17 50,383.90

70,932.80 70,232.17 50,497.82 (3)

1,626,008.23 2,135.57
24,902.00 46,590.00

1,626,008.23 2,135.57 16,182.54
46,590.00

15,000.00

1,251.01

305,691.03 49,968.26

305,691.03 49,968.26

89,228.95 10,928.77

89,228.95 10,928.77

15,000.00 2,377,001.68 $

15,000.00 2,354,647.15

- 31 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice. U. S. Department of Pass-Through From Office of the Governor Children and Youth Coordinating Council Juvenile Justice and Delinquency Prevention 95J-19-9505-0001
Labor. U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Job Training Partnership Act Contract 95-B-87 Contract 96-156 Contract 96-B-85
Total U. S. Department of Labor
OTHER FEDERAL ASSISTANCE
Defense. U. S. Department of Direct Department of the Navy R.O.T.C. Program 1997 Grant Troops to Teachers 1997 Grant
Total U. S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.540

N/A $

37.197.50 $ _ _.....:.;37:..1..1.:..09:.;,.7.:.::.5"'-0

17.250 17.250 17.250

N/A $ N/A N/A
$

29.375.32 $ 39.067.11 16,548.06
84.990.49 $

29.375.32 39.067.50 16.548.06
84=.9::.:=9:.::,0.:.:::;8=-8

$

28.523.54

(4)

9.784.80

(4)

$ _ _......;3::.::8:.l:.3::.:=0:.::.8.:.::::34~

Total Federal Financial Assistance N/A = Not Available

$

4.510.941.43 $ ===.5!:.3:;72~.6;;;;;34:=;;;;.9=2

Notes to the Schedule of Expenditures of Federal Awards

(1) Commodities valued in the amount of $153.144.54 were received during the current fiscal year and were not recorded in the system's financial statements.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1997 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 Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Colquitt 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 financial statements for the governmental funds.

See notes to the general purpose financial statements.

- 32-

COLQUITI COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

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 Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Advanced Placement Exams Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Preschool Handicapped Program Remedial Summer School Program Teachers'Retirement Lottery Programs Alternative School Program Instructional Technology
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
OTHER Education, Georgia Department of Reimbursement for RFP Technical Evaluation

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 15,287,020.00 2,712,343,00 568,935.00 642,662.00 208,602.00 4,309,722.00
834,611.00 285,440.00
81,822.00 578,595.00 1,110,341.00 115,261.00 187,558.00
23,870.00 41,344.00 108,626.00 -2,115,334.00 2,272,657.00
$ 92,965.64
800.78 134,900.00
38,862.29 1,500.00
680,250.07 89,673.00 10,459.62 33,680.85

182,166.00
84,895.00 156,760.00

$ 15,287,020.00 2,712,343.00 568,935.00 642,662.00 208,602.00 4,309,722.00
834,611.00 285,440.00
81,822.00 578,595.00 1,110,341.00 115,261.00 187,558.00
23,870.00 41,344.00 108,626.00 -2,115,334.00 2,272,657.00 182,166.00 92,965.64
800.78 134,900.00
38,862.29 1,500.00
680,250.07 89,673.00 10,459.62 33,680.85
84,895.00 156,760.00

106,793.00

$ 2,206,458.37 1,324,908.05

2,206,458.37 1,324,908.05
106,793.00

550.00

550.00

$ 28,444,510.25 $ 1,748,729.05 $ 2,206,458.37 $ 32,399,697.67

See notes to the general purpose financial statements.

- 33-

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1997

SCHEDULE "3"

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Capital Outlay

ALTERNATIVE SCHOOL PROGRAM

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

83,382,00 $

156,760.00 $

1,513.00

1,063,920,20 $
124,272.46 13,745.95 70,678,22
10,805,39 39,292.83
2,193,00

1,304,062,20
124,272,46 13,745,95 70,678.22 1,513,00 10,805.39 39,292.83 2,193.00

Total Expenditures

$

84,895.00 $

156,760.00 $

1,324,908.05 $ 1,566,563.05

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Alternative School Program Instructional Technology Pre-Kindergarten Program

$ 1,077,448.04
84,895.00 156,760.00 247,460.01

See notes to the general purpose financial statements.

- 34-

COLQUITT COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1997

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

$ 19,382,396.50 $

579,351.28

$ 21,140,185.63 1,000,840.65 $
$ 22,141,026.28

878,918.79

-239,114.71 $ 21,901,911.57

$

0.00 $ ========0=:.0=0

See notes to the general purpose financial statements. - 35 -

COLQUITI COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1997

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
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$ 1,721,348.00

$ 1,549,213.20 $ -101,044.45

4,225,481.00

3,802,932.90

156,156.18

$ 5,946,829,00 90 $ 5,352,146.10 $

55,111.73

1,738,042,00 90

1,564,237.80

27,069.32

3,443,042.00 90

3,098,737.80

-57,513.75

1,914,172.00 90

1,722,754.80

255,183.20

1,307,137,00 90

1,176,423,30

-164,919.98

937,798,00 90

844,018.20

-134,374.48

$ 15,287,020.00

$ 13,758,318.00 $ -19,443,96

$ 2,446,854.00

$ 2,202,168.60 $ 221,475,51

$ 2,446,854.00 90 $ 2,202,168.60 $

265,489.00 90

238,940.10

$ 2,712,343,00

$ 2,441,108.70 $

$ 568,935.00 90 $ 512,041.50 $

$ 18,568,298,00

$ 16,711,468.20 $

221,475.51 31,540.41
253,015,92 -65,960.46 167,611.50

$ 515,060.00 90 $ 463,554.00 $

127,602,00 90

114,841.80

$ 642,662.00

$ 578,395.80 $

2,889.56 935.44
3,825.00

$ 19,210,960.00

$ 17,289,864.00 $ 171,436.50

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

$

58,046.00

150,556.00

$

58,046.00 $

150,556.00

674.83 0.00

$ 208,602.00 100 $ 208,602.00 $=====67=:4=,8=3

- 36 -

SCHEDULE "5"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,448,168.75 $ 1,602,573.52 $ 45,171.80 $ 1,647,745.32

3,959,089.08

4,649,756.48

111,053.70 4,760,810.18

$ 5,407,257.83 $ 6,252,330.00 $ 156,225.50 $ 6,408,555.50 $

0.00

1,591,307.12

2,102,619.31

49,655.63 2,152,274.94

0.00

3,041,224.05

4,068,065.32

143,858.97 4,211,924.29

0.00

1,977,938.00

2,417,474.07

122,087.22 2,539,561.29

0.00

1,011,503.32

1,071,723.79

143,330.54 1,215,054.33

0.00

709,643.72

1,114,014.30

136,481.48 1,250,495.78

0.00

$ 13,738,874.04 $ 17,026,226.79 $ 751,639.34 $ 17,777,866.13

$ 2,423,644.11 $

$ 846,571.19 1,432,555.96 268,769.36
89,268.79

860.53 $ 14,908.63 25,211.31 9,491.13 9,422.12

860.53 861,479.82 1,457,767.27 278,260.49
98,690.91

$ 2,423,644.11 $ 2,637,165.30 $ 59,893.72 $ 2,697,059.02

0.00

270,480.51

267,495.66

7,051.00

274,546.66

0.00

$ 2,694,124.62 $ 2,904,660.96 $ 66,944.72 $ 2,971,605.68

$ 446,081.04 $ 445,618.03 $ 60,334.73 $ 505,952.76

0.00

$ 16,879,079.70 $ 20,376,505.78 $ 878,918.79 $ 21,255,424.57

$ 466,443.56 $ 763,679.85

$ 763,679.85

0.00

115,777.24

$ 121,921.86

121,921.86

0.00

$ 582,220.80 $ 763,679.85 $ 121,921.86 $ 885,601.71

$ 17,461,300.50 $ 21,140,185.63 $ 1.000,840.65 $ 22,141,026.28 $

0.00

$ 58,720.83 150.556.00
$ 209,276.83

$ 172,220.92 $ 172,220.92

37,469.65

37,469.65

$ 209,690.57 $ 209,690.57 $ ========0.:=00=

- 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 15, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Colquitt County Board of Education as of and for the year ended June 30, 1997, and have issued our report thereon dated May 15, 1998. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the generalpurpose 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 Colquitt County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of fmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Colquitt 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 over financial reporting and its
97YB-40

operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgement, could adversely affect Colquitt County Board of Education's ability to record, process, summarize and report fmancial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6351-97-01.
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 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 noted above is considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,

CLV:cm 97YB-40

Claude 1. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 15, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Colquitt County Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1997. Colquitt 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 of Colquitt County Board of Education's management. Our responsibility is to express an opinion on Colquitt County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 Colquitt County Board of Education's compliance with those requirements and performing such 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 Colquitt County Board of Education's compliance with those requirements.

97SA-I0

In our opinion, the Colquitt 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, 1997.
Internal Control Over Compliance
The management of Colquitt 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 Colquitt County Board of Education'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 of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one 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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 97SA-I0

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

COLQUITT COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6351-93-02 6351-94-01 6351-94-02 6351-95-01 6351-96-01 6351-96-02 6351-96-03 6351-96-04

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

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6351-93-02

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

EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount $32,242.75 Finding Control Number 6351-95-01

This finding will be resolved by the Georgia Department of Education through a future increase in the Board's local fair share portion of QBE allotments.

EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount $50,534.79 Finding Control Number 6351-96-01

This finding will be resolved by the Georgia Department of Education through a future increase in the Board's local fair share portion of QBE allotments.

- 1-

COLQUITT COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6351-93-07 6351-96-05

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

-2-

SECTION IV FINDINGS AND QUESTIONED COSTS

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Colquitt 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 Colquitt 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 of the Colquitt County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Colquitt County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Colquitt County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-B3 The Colquitt 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 10.559 Summer Food Services Program for Children 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Flow Through
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Colquitt County Board of Education did not qualify as a low risk auditee.
-I -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
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-6351-97-01 The Colquitt County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-