Audit report, Colquitt County Board of Education, Moultrie, Georgia, year ended June 30, 1999

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AUDIT REPORT COLQUITT COUNTY BOARD OF EDUCATION
MOULTRIE, GEORGIA YEAR ENDED JUNE 30,1999
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STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

COLQUIIT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

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

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

COLOUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS _

SECTION I

FINANCIAL

EXHIBITS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

34

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

35

2 SCHEDULE OF STATE REVENUE

38

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

39

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

40

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

41

6

BY PROGRAM

42

SECTIONll
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

COLQUITT COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-
SECTION III 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
25~ Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-X400
May 9, 2000

Honorable Roy E, Barnes, 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, 1999, as listed in the table of contents. These general purpose 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.

99ARL-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, 1999, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, 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, 1998, were improperly recorded in the year ended June 30, 1999. 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 the 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 ofthe Colquitt County Board of Education as of June 30, 1999, 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 9,2000, on our consideration of the Colquitt County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, con1!acts 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 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-l33, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe 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 financial statements taken as a whole.
99ARL-l3

A copy of this report has been filed as a pennanent 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,

RWH:jb 99ARL-13

Ru sell W. Hinton State Auditor

COLQUITT COUNTY BOARD OF EDUCATION

ASSETS
Cash and Cash Equivalents
Investments
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 Agreement

COLQUITI COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1999

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

394,232.35 $

123,986.59 $ 4,719,736.61 $

2,249,867.11

10,058,523.48

933,345.91

706,751.23

DEBT SERVICE
FUND 1,201 ,467.32
628,557.20

29.464.32 7,265.15

Total Assets

$ 3,577,445.37 $

867,467.29 $ 14,778,260.09 $ 1,830,024.52

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

$

123,666.81 $

596,524.03

7,996.46

313,020.91

$

728,187.30 $

313,020.91

$

186,756.66

$

77,738.82

2,500.00

$ 1,830,024.52

80,681.50 3,232,268.39
$ 3,577,445.37 $

29,464.32 7,265.15 $

14,272,840.71 50,486.00

100,050.52

141,912.47

139,279.99 $ 14,465,239.18 $

0.00 1,830,024.52

Total Liabilities and Fund Equity

$ 3,577,445.37 $

867,467.29 $ 14,778,260.09 $

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

-2-

1,830,024.52

EXHIBIT "A"

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPES
TRUST FUNDS

$

310,338.41 $

14,833.71

816,238.29

146,946.31

661.26

ACCOUNT GROUP GENERAL
LONGTERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 1999

JUNE 30,1998

$ 6,764,594.99 $ 3,272,737.42

13,271,575.19

1,232,658.22

2,269,315.60

971,094.60

$

1,830,024.52

29,464.32 7,265.15
1,830,024.52

31,262,87 10.993.11

12,919.975.48 527,433.04

12,919,975.48 527,433.04

$ 1,126,576.70 $

162,441.28 $

15,277,433.04 $ 37,619,648.29 $ 5,518,746.22

$

34,771.52

$

34,771.52

$

436,687.72 $

596,524.03

7,996.46

34,771.52

$

527,433.04

14,750,000.00

527,433.04 14,750,000.00

114,269.27 532,436.22
81,961.86 32,934.19 92,961.21 10,329.03

$

15,277,433.04 $ 16,353,412.77 $

864,891.78

$ 1,091,805.18

$

75,000.00

0.00 $ 1,091,805.18 $

87,441.28 162,441.28

$ 1,091,805.18 $ 1,052,264.80

186,756.66 2,500.00
1,830,024.52 75,000.00 77,738.82

144,908.50 9,077.89
75,000.00 128,273.61

29,464.32 7,265.15
14,272,840.71 50,486.00
80,681.50 3,561,672.66
$ 21,266,235.52 $

31,262.87 10,993.11
25,109.08
84,083.50 3,092,881.08
4,653,854.44

$ 1,126,576.70 $

162,441.28 $

15,277,433.04 $ 37,619,648.29 $ 5,518.746.22

- 3

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1999

JUNE 30,1998

$ 34,562,978.99 5,272,681.34
11,234,547.46 1,866,320.67 $
$ 52,936,528.46 $

$ 3,585.05

34,562,978.99 $ 5,272,681.34
11,234,547.46 1,869,905.72

32,441,490.19 4,870,741.09 8,377,108.16 1,165,988.32

3,585.05 $ 52,940,113.51 $ 46,855,327.76

$ 31,186,149.49
2,413,579.22 1,039,167.48 1,123,475.80
655,250.10 $ 2,795,801.43
892,091.24 4,405,283.50 1,799,667.08
217,652.86 115,133.80 3,311,627.21
17,009.18 36,164.53 1,604,749.96
61,065.36 23,387.64
$ 51,697,255.88 $
$ 1,239,272.58 $

$ 31,186,149.49 $ 28,829,386.09

3,420.20

2,413,579.22 1,039,167.48 1,123,475.80
658,670.30 2,795,801.43
892,091.24 4,405,283.50 1,799,667.08
217,652.86 115,133.80 3,311,627.21
17,009.18 36,164.53 1,604,749.96

2,113,493.70 1,158,888.11
986,977.45 594,976.12 2,716,428.02 575,118.82 3,808,539.02 1,823,674.32 127,550.37
64,600.35 3,196,490.05
45,131.37 266,775.66

61,065.36 23,387.64

3,420.20 $ 51,700,676.08 $ 46,308,029.45

164.85 $ 1,239,437.43 $

547,298.31

$

39,812.50

14,750,000.00 588,498.40 639,695.13 -679,235.51

$ 15,338,770.52

$ 1'6,578,043.10 $ 3,439,472.47

-1,798.55 -3,727.96

$

39,812.50

14,750,000.00 588,498.40 639,695.13 $ -679,235.51

$ 15,338,770.52 $

292,176.41 -560,530.87
-268,354.46

164.85 $ 50,279.31

16,578,207.95 $ 3,489,751.78

278,943.85 3,197,614.41

-1,798.55 -3,727.96

12,760.65 432.87

$ 20,011,989.06 $

50,444.16 $ 20,062,433.22 $ 3,489,751.78

-5-

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 30,1999

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 31,275,053.00 $ 32,231,807,13

8,652,950,00 261,186,36

9,444,335.44 672,261,29

Total Revenues

$ 40,189,189.36 $ 42,348,403.86

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 Enterprise Operations Community Services Operations
Capital Outlay Debt Service

$ 27,606,071.91 $ 27,424,957.69

2,016,010.70 1,051,746.68 1,129,441.93
331,196.11 2,696,511.80
583,265.91 3,825,835.38 1,785,850.64
131,948.08 24,000.00 96,635.00

1,976,617.78 980,411.68
1,114,875.85 336,994.70
2,795,801.43 678,556.41
4,290,018.47 1,741,730.34
217,652.86 82,259.66 49,838,57 17,009,18

21,664.88 84,453.00

Total Expenditures

$ 41,278,514.14 $ 41,812,842.50

Excess of Revenues over (under) Expenditures

$ -1,089,324,78 $ 535,561.36

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses
Total Other Financing Sources (Uses)

$ 588,498.40

$ -560,303.58

-679,235.51

$ -560,303.58 $

-90,737.11

Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1998

$ -1,649,628.36 $ 2,639,428.18

444,824.25 3,132,621.12

Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30.1999

$ 989,799.82 $ 3,577,445.37

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,763,121.62 $ 1,767,095,86

4,895,984,60

5,272,681.34

664,000.00

831,861.48

$ 7,323,106.22 $ 7,871,638,68

$ 3,382,441.24 $ 3,761,191.80

399,199.35 91,574,00
328,380,36

436,961.44 58,755.80 8,599.95 318,255.40

280.00 94,885.59 104,149.71

172.53 115,265.03
57,936.74

55,146.00 3,087,992,15

32,874.14 3,261,788.64

51,481.00

36,164.53

$ 7,595,529.40 $ 8,087,966.00 $ -272,423.18 $ -216,327.32

$

79,391.55

$

79,391.55

$ -272,423.18 $ -136,935,77

291,668.92

281,742.27

-1,798.55 -3,727.96

$

19,245.74 $ 139,279.99

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

EXHIBIT "0"

TYPE FUNOS
OOOM SCHOLARSHIP
FUNO

TOTALS (Memorandum Only)
YEAR ENOEO JUNE 30, 1999 JUNE 30, 1998

$

0.00 $

156,758.14 $

109,807.32

$

111,288.92 $

108,352.99

$

2,817.00

5,848.00

5,426.00

76,578.63

43,122.81

$

2,817.00 $

193,715.55 $

156,901.80

$

-2,817.00 $

-36,957.41 $

-47,094.48

2,872.10

37,116.67

47,633.02

$

55.10 $

159.26 $

538.54

39,540.38

268,354.46

$

55.10 $

39,699.64 $ 268,893.00

53,165.80

1,164,102.66

895,209.66

$

53,220.90 $ 1,203,802.30 $ 1,164,102.66

- 9-

EXHIBIT "E"

TYPE FUNDS
ODOM SCHOLARSHIP
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30.1999 JUNE 30. 1998

$

156.758.14 $

109.807.32

-111.288.92

-108.352.99

$

-2.807.00

-5,838.00

-5,416.00

-74.741.30

-49.723.48

$

-2.807.00 $

-35.110.08 $

-53.685.15

$

0.00 $

39.540.38 $ 268.354.46

$

0.00 $

39.540.38 $ 268.354.46

$

2,932.10 $

67,425.58 $

42.267.62

-285.238.29

-635.000.00

-10.00

-10.00

-10.00

$

2.922.10 $ -217.822.71 $ -592.742.38

$

115.10 $ -213.392.41 $ -378.073.07

$

2.880.80 $

531.259.94 $

909.333.01

$

2.995.90 $

317.867.53 $ .....~5=31=.2=5=9=.9==4

$

-2.817.00 $

-36.957.41 $

-47.094.48

1.837.33

-6.600.67

10.00

10.00

10.00

$

-2.807.00 $

-35.110.08 $ ...........-.5""'3_.6_8.5...1..5=

- 11 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

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 ~ther entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintain,ed 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 ofthese accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in 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 of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (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

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
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 of proprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the Board.
INTERNAL SERVICE 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:
NONEXPENDABLETRUSTFUNDS Class of 1988 Scholarship Fund and McKee Scholarship Fund - the funds 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.
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 adorn 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.
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 and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are
- 14-

COLQWTT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A 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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. 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.

- 15 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
BUDGET
The Colquitt 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 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 ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savingsand loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
- 16-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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.

PROPERTY TAXES

The Colquitt County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on November 17, 1998 (levy date). Taxes were due on January 25, 1999. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. 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 1998 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

8.9 mills

- 17 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SALES TAXES
Local Option Sales Tax revenue during the fiscal year amounted to $4,444,911.52 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation ofthe Board.
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,790,212.02 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $21,809,787.98 has been collected or on December 31,2003, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). 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.
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.
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
- 18 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
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 financial 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.
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 pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) 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:
(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,
- 19-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS

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

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

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

(7) Bonds, bills, notes, ceitificates 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, 1999, the bank balances were $13,192,425.38. 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 insuranc,e) 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, 1999, as follows:

Risk Category

Bank Balance

1 2 3
Total

$ 523,622.74 4,140,564.39 8,528.238.25
$13.192.425.38

CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value ofthe Board's total investments was $13,124,628.88 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not

- 20-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS
required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. 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 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.

- 21 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1999

Note 4: RISK MANAGEMENT

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

The Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user fund on the basis of the 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:

1998 1999

Beginning of Year Liability

Claims and Changes in Estimates

$

39.534.86 $

43.122.81 $

$

32,934.19 $

76,578.63 $

Claims Paid

End of Year Liability

49,723.48 $ 74,741.30 $

32,934.19 34,771.52

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:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1998 1999

$

0.00 $

1.094.00 $

1,094,00 $

0.00

$

0.00 $

3,042.00 $

3.042.00 $

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

- 22-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Colquitt County Board of Education has entered into a lease agreement as lessee for air conditioning equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1998 General Government - Series 1999

3.9% 3.9%

$ 9,000,000.00 5,750,000.00

$14,750,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1998

$

0,00 $

0.00 $

0,00

Additions Capital Leases G. O. Bonds

588,498.40

588,498.40

14,750,000.00 14,750,000,00

Deductions

61.065.36

61.065.36

Balance June 30, 1999

$ 527.433.04 $14,750,000.00 $15.277.433.04

At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows:

- 23-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30
2000 2001 2002 2003 2004 2005 - 2006
Total Principal and Interest

Capital Leases

General Obligation
Bonds

Total Debt

$ 101,343.60 101,343.60 101,343.60 101,343.60 101,343.60 118.234.20

$ 671,125.00 2,585,275.00 3,186,772.50 3,285,622.50 3,395,892.50
3$89,392.50

$ 772,468.60 2,686,618.60 3,288,116.1 0 3,386,966.10 3,497,236.10 4,007 ,626. 70

$ 624,952.20 $17,014,080.00 $17,639,032.20

Deduct: Imputed Interest

97,519.16

Net Present Value of Future Minimum Lease Payments

$ 527.433.04

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$857,912.37 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$671,664.24

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $40,750.13

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$145,498.00

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
- 24-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 7: CONTINGENT LIABILITIES

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

Note 8: 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 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$ 3,471,046.40 $ 3,200,436.20 $ 2,929,761.01

- 25-

COLQUITT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1999

EXHIBIT"G"

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1999 JUNE 30,1998

$ 286,622.32 $ 206,677.44

$ 493,299.76 $ 590,121.27

8,058.55

$ 698,692.68

706,751.23

454,327.54

29,464.32 7,265.15

29,464.32 7,265.15

31,262.87 10,993.11

$ 331,410.34 $ 206,677.44 $ 698,692.68 $ 1,236,780.46 $ 1,086,704.79

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

$ 369,313.17 $

$ 31,077.27 $ 36,685.90

55,903.64

163,553.08

169,991.54

262,979.41

7,996.46

369,313.17 $ 123,666.81 596,524.03
7,996.46

$ 194,630.35 $ 206,677.44 $ 696,192.68 $ 1,097,500.47 $

77,105.88 114,269.27 532,436.22
81,151.15
804,962.52

$ 29,464.32 7,265.15
100,050.52 $
$ 136,779.99 $

$

2,500.00 $

2,500.00 $

9,077.89

0.00 0.00 $

0.00 2,500.00 $

29,464.32 7,265.15
100,050.52
139,279.99 $

31,262.87 10,993.11
230,408.40
281,742.27

Total Liabilities and Fund Equity

$ 331,410.34 $ 206,677.44 $ 698,692.68 $ 1,236,780.46 $ 1,086,704.79

See notes to the general purpose financial statements.

- 26-

COLQUITT COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"H"

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

REVENUES

State Funds Federal Funds Other Funds

$ 209,164,00 $ 1,557,931,86

$ 1,767,095,86 $ 1,782,374,16

2,085,495,28

$ 3,187,186,06

5,272,681.34

4,870,741.09

831.861.48

831,861.48

778,630.69

Total Revenues

$ 3,126,520,76 $ 1,557,931,86 $ 3,187,186,06 $ 7,871,638,68 $ 7,431,745,94

EXPENDITURES

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

$ 1,302,221.69 $ 2,458,970,11 $ 3,761,191.80 $ 3,456,090.84

$ 3,256,878,64

141,511.50 3,031.81
77,211.92
12,864.94 21,090.00

295,449,94 55,723,99 8,599.95
241,043.48 172.53
102,400.09 36,846,74 32,874.14 4,910.00 36,164.53

436,961.44 58,755.80 8,599.95
318,255.40 172.53
115,265.03 57,936,74 32,874.14
3,261,788.64 36,164.53

417,556.36 127,043.59
19.95 291,650.98
25,814.96 124,209.32 40,390.81 38,855.43 3,143,116.78 27,899,40

Total Expenditures

$ 3,256,878.64 $ 1,557,931,86 $ 3,273,155.50 $ 8,087,966.00 $ 7,692,648.42

Excess of Revenues over (under) Expenditures

$ -130,357.88 $

0.00 $ -85,969,44 $ -216,327.32 $ -260,902.48

OTHER FINANCING SOURCES

Operating Transfers In

79,391.55

79,391.55

94,172.49

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ -130,357.88 $

0.00 $

-6,577.89 $ -136,935.77 $ -166,729.99

FUND BALANCE JULY 1

272,664.38

0.00

9,077.89

281,742.27

435,278.74

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-1,798.55 -3,727,96

-1,798.55 -3,727.96

12,760.65 432.87

FUND BALANCE JUNE 30

$ 136,779.99 $

0.00 $

2,500.00 $ 139.279.99 $ 281,742.27

See notes to the general purpose financial statements.

- 27-

COLQUITT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1999

ASSETS Cash and Cash Equivalents Investments
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

141,912.47 $

4,525,438.14

10,058,523.48

$

141,912.47 $ 14,583,961.62

$

311,120.91

$

311,120.91

$ 14,272,840.71

$

141,912.47

0.00

$

141,912.47 $ 14,272,840.71

$

141,912.47 $ 14,583,961.62

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

EXHIBiT "i"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

39,516.00 $

LOTTERY PROJECT

TOTALS

JUNE 30,1999

JUNE 30,1998

12,870.00 $ 4,719,736.61 $

128,399.32

10,058,523.48

$

39,516.00 $

12,870.00 $ 14,778,260.09 $ ===12=8=,3=99=.=32==

$

1,900.00 $

313,020.91

$

92,961.21

10,329.03

$

1,900.00 $

313,020.91 $ _ _1.;..:;0;.;:;3.1.=,2~90::.:;.2=-4:....

$ 14,272,840.71

$

39,516.00 $

10,970.00

50,486.00 $

25,109.08

0.00

0.00

141,912.47

0.00

$

39,516.00 $

10,970.00 $ 14,465,239.18 $ _ _-=2=5,1,..;.,1.;:;.;09:;.;..0;:.:8:....

$

39,516.00 $

12,870.00 $ 14,778,260.09 $ ==1=2=8,3=99:=.3=2=

- 29-

COLQUITT COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1999

FUND BALANCE JUNE 30

$

141,912.47 $ 14,272,840.71

See notes to the general purpose financial statements. - 30-

EXHIBIT "J"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30,1999

JUNE 30,1998

$

564,076.00 $

564,076.00

$

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

362,197.90 $ _ _---:::2=,8..:...71.:..:..9;:..:0'-

$

0.00 $

564,076.00 $

926,273.90 $ _ _----'-2""',8_71..:....9;;..;0'-

$

213,362.30

$

512.00

512.00

$

48,100.00

980,526.65

1,253,330.70 $

263,275.66

30,121.47

329,242.38

$

48,100.00 $

1,011,160.12 $

1,796,447.38 $

263,275.66

$

-48,100.00 $

-447,084.12 $

-870,173.48 $

-260,403.76

$ 14,750,000.00

$

87,616.00 $

432,945.04

660,789.58 $

251,281.82

-100,486.00

-53,277.90

$

87,616.00 $

432,945.04 $ 15,310,303.58 $

198,003.92

$

39,516.00 $

-14,139.08 $ 14,440,130.10 $

-62,399.84

0.00

25,109.08

25,109.08

87,508.92

$

39,516.00 $

10,970.00 $ 14,465,239.18 $ ===2=5=,1=,=09:=,0=8=

- 31 -

COLQUITT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1999

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

NONEXPENDABLETRUSTFUNDS

ENDOWMENT FUNDS

CLASS OF 1988 SCHOLARSHIP

MCKEE SCHOLARSHIP

ODOM SCHOLARSHIP

FUND

FUND

FUND

$

909.09 $

3,624.13 $

2,995.90

5,500.00

48,500.00

50,000.00

24.75

218.25

225.00

Total Assets

$

6,433.84 $

52,342.38 $ ======53=,2=2=0...9..=0

FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Un designated
Total Fund Equity

$

6,000.00 $

19,000.00 $

50,000.00

433.84

33,342.38

3,220.90

$

6,433.84 $

52,342.38 $ ===5=3=,2=:20==:.9==:0,=

See notes to the general purpose financial statements. - 32-

EXHIBIT "K"

EXPENDABLE TRUST FUNDS

GOFF

MILLSAP

PIPPIN

SCHOLARSHIP

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

FUND

TOTALS

JUNE 30, 1999

JUNE 30.1998

$

:),399.20 $

1,212.33 $

693.06 $

14,833.71 $

14.333.27

31,076.31

11.870.00

146.946.31

146.946.31

139.84

53.42

661.26

837.59

$

36.615.35 $

1.212.33 $

12,616.48 $

162,441.28 $===1=62=,1=1=7=.1=7

$

36.615.35 $

1.212.33 $

$ 1=2=.6;..;.16=.....;.;48"-

75.000.00 $ 87.441.28

75.000.00 87.117.17

$

36.615.35 $

1.212.33 $

12.616.48 $

162,441.28 $ ===1:::::62=.=11=7=.1=7

- 33-

COLQUITI COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1999

EXHIBIT "L"

REVENUES

GOFF SCHOLARSHIP
FUND

MILLSAP SCHOLARSHIP
FUND

PIPPIN SCHOLARSHIP
FUND

TOTALS YEAR ENDED JUNE 30,1999 JUNE 30, 1998

Other Funds EXPENDITURES

$

1,884.06 $

1,020,22 $

680,77 $

3,585.05 $

3,569.43

Current

Support Services

General Administration

$

Excess of Revenues over (under) Expenditures $

FUND BALANCE JULY 1

1,744.00 $ 140,06 $
36,475,29

1,006.00 $ 14,22 $
1,198,11

670.20 $ 10,57 $
12,605,91

3,420,20 $ 164,85 $
50,279.31

3,467.76 101.67
50,177,64

FUND BALANCE JUNE 30

$

36,615.35 $

1,212.33 $

12,616,48 $

50,444,16 $

50,279.31

See notes to the general purpose financial statements.

- 34-

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 3D. 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant Pass-Through From Office of School Readiness Food and Nutrition Program Summer Food Service Program for Children 1998 Grant 1999 Grant
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Nutrition Education and Training Program 1999 Grant Food Distribution Program
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1999 Grant Preschool 1999 Grant Part C - Special Education Special Education Capacity Building Improvement 1999 Grant
Total Special Education Cluster

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555
. 10.559 10.559

N/A

$

557,399.94

(2)

N/A

1,446,728.69 $ 3,159,985.52 (3)

N/A

44,180.29

59,668.76 (3)

N/A

37,186.36

37,224.36 (3)

$ 2,085,495.28 $ 3.256,878.64

10.564 10.550

N/A

4,910.00

4,910.00

N/A

(1)

(1)

$ 2,090,405.28 $ 3,261,788.64

84.027 84.173
84.173

N/A

$

NlA

NlA $

421,606.95 $ 68,455.03
479.90 490,541.88 $

421,606.95 68,455.03
479.90 490,541.88

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

Grants to Local Educational Agencies

1999 Grant

84.010

N/A

Title II

Eisenhower Professional Development

1998 Grant

84,281

NlA

1999 Grant

84.281

N/A

Title III

Technology Literacy Challenge Fund Grants

1999 Grant

84.318

N/A

Title VI

Innovative Education Program Strategies

1999 Grant

84.298

NlA

Goals 2000

State and Local Education Systemic Improvement Grants

1998 Grant

84.276

NlA

1,800,816.27 -300.24
16,801.19 75,000.00 59,202.00 71,804.57

1,800,816.27 8,776.95
16,801.19 75,000.00 59,202.00 71,804.57

- 35-

COLQUITI COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S, Department of Other Programs Pass-Through From Georgia Department of Education Goals 2000 State and Local Education Systemic Improvement Grants 1999 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant Pass-Through From Southwest Georgia Regional Mental Health, Mental Retardation and Substance Abuse Board Safe and Drug-Free Schools 1999 Grant Pass-Through From Berrien County Board of Education d/b/a Southem Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1998 Summer 1999 Grant 1999 Summer
Total U. S. Department of Education
Justice, U. S. Department of Pass-Through From The Office ofthe Governor Children and Youth Coordinating Council Juvenile Justice and Delinquency Prevention 95J-19-9705-0002 97J-19-9705-0002 98J-19-9805-0002
Total U. S. Department of Justice
Labor, U. S. Department of Direct Job Training Partnership Act Contract 97-151 Contract 98-B-85
Total U. S. Department of Labor
Defense, U. S. Department of Direct Department of the Navy R.O.T,C, Program 1999 Grant Troops to Teachers 1999 Grant
Total U, S. Department of Defense

CFDA NUMBER
84.276 84,048 84.243
84.186
84.011 84.011 84.011
16.540 16.540 16.540
17.250 17.250

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A

$

144,289.65 $

144,289.65

N/A

83,985.30

83,985.30

N/A

4,797.75

4,797.75

N/A

20,000,00

20,000,00

N/A

57,926.36

57,926.36

N/A

84,503.64

84,503.64

N/A

90,601.28

90,601.28

$

2,999,969.65 $

3,009,046.84

NlA

N/A

$

NlA

$

$ 10,697.06 34,722.00
45,419.06 $

0.70 10,697.06 34,722.00
45,419.76

$

46,754.48 $

46,754.48

50,239.63

50,239.63

$

96,994.11 $

96,994,11

$

32,393,24 $

111,784,79 (3)

7,500.00

5,000.00

$

39,893.24 $

116,784.79

Total Federal Financial Assistance
N/A = Not Available

- 36-

$

5,272,681.34 $

6,530,034.14

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30,1999
Notes to the Schedule of Expenditures of Federal Awards
(1) Commodities valued in the amount of $127,089.89 were received during the current fiscal year and were not recorded in the Board's financial statements.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1999 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the 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 general purpose financial statements.

SCHEDULE "1"

See notes to the general purpose financial statements.

- 37-

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999

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 Migrant 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 Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Preschool Handicapped Program PSAT Exam Remedial Summer School Program Student Records Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital Outlay

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 17,512,477.00 3,667,641.00 603,730.00 751,535.00 210,189.00 4,651,411.00
875,292.00 295,780.00 216,500.00 615,469.00 1,003,590.00 132,113.00
8,695.00 70,931.00 115,370.00 -2,460,922.00 2,682,831.00
$ 92,030.00
154,900.00 25,128.18
500.00 671,664.24
97,073.00 438.00
11,494.08 6,007.50
40,750.13

209,164.00
13,094.42 159,171.00
$

$ 17,512,477.00 3,667,641.00 603,730.00 751,535.00 210,189.00 4,651,411.00

875,292.00 295,780.00 216,500.00 615,469.00 1,003,590.00 132,113.00
8,695.00 70,931.00 115,370.00 -2,460,922.00 2,682,831.00 209,164.00 92,030.00

154,900.00 25,128.18 500.00
671,664.24 97,073.00 438.00 11,494.08 6,007.50 40,750.13

564,076.00

13,094.42 159,171.00 564,076.00

Office of School Readiness Pre-Kindergarten Program

1,385,666.44

1,385,666.44

Office of Treasury and FisCal Services Public School Employees Retirement

145,498.00

145,498.00

Office of the Governor Georgia Council for the Arts Georgia Challenge Grant

10,000.00

10,000.00

CONTRACT Education, Georgia Department of Reading First Program

23,692.00

23,692.00

$ 32,231,807.13 $ 1,767,095.86 $ 564,076.00 $ 34,562,978.99

See notes to the general purpose financial statements.

- 38-

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30,1999

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

The acquiring of real property for new

facilities; renovating, repairing,

improving and equipping existing

school buildings, other buildings and facilities,

including fumiture and equipment,

acquisition of property for new school

facilities and system-wide technology

acquisitions and improvements.

The expenditure limit for the project

is $23,600,000.00

$

23,600,000.00 $

23,600,000.00 $

573,635.91 $

0.00

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion.
(3) The voters of Colquitt County approved the imposition of a 1% sales tax to fund the above project 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 project.

See notes to the general purpose financial statements.

- 39-

COLQUIIT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOITERY PROGRAMS YEAR ENDED JUNE 30,1999

SCHEDULE "4"

EXPENDITURES

ASSISTIVE TECHNOLOGY

COMPUTERS IN THE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

General Administration

Maintenance and Operation of Plant

Student Transportation Services

13,094.42 $

159,171,00 $

1,129,956.27 $
141,511.50 3,031,81
77,211.92 12,864.94 21,090.00

TOTAL
1,302,221.69
141,511.50 3,031.81
77,211.92 12,864.94 21,090.00

Total Expenditures

$

13,094.42 $

159,171,00 $

1,3~5,666.44 $ 1,557,931.86

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program

$ 1,264,833,72
13,094,42 159,171,00 120,832.72

$ 1,557,931.86

See notes to the general purpose financial statements.

-40 -

COLQUITT COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

SCHEDULE "5"

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

$

22,535,383.00 $ _ _-..::.68::..:3:..z.;,6=-4:....:.1.:..::.0~0

$

23,956,081.61

1,627,963.16 $ _ _ ,..:..l1-,42:.;5:.z.;,9;.;:8,",-7.:.:.8..;..4

$

25,584,044.77

-299,361.12 $ _--=2:.::.5!.:,2.::..84;,,:.;,6:.;:8~3.:.::.65=-

$

0.00 $=====0.=00=

See notes to the general purpose financial statements. - 41 -

COLQUITT COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1999

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3
n 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 GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$ 1.868,924.00

$ 1.682,031.60 $

5.003,955.00

4.503.559.50

$ 6.872.879.00 90 $ 6.185.591.10 $

2.115.705.00 90

1.904.134.50

3.717.089.00 90

3.345.380.10

2,464.709.00 90

2.218.238.10

1.315.347.00 90

1.183.812.30

1.026,748.00 90

924,073.20

$ 17.512,477.00

$ 15.761.229.30 $

0.00 0.00
0.00

$ 3,341,158.00

$ 3.007.042.20 $

0.00

$ 3,341,158.00 90 $ 3,007,042.20 $

326,483.00 90

293,834.70

$ 3,667.641.00

$ 3,300,876.90 $

$

603,730.00 90 $

543.357.00 $

$ 21.783.848.00

$ 19.605,463.20 $

$

597,016.00 90 $

537,314.40 $

154.519.00 100

154.519.00

$

751,535.00

$

691,833.40 $

$ 22.535.383.00

$ 20.297,296.60 $

0.00
0.00 0.00 0.00
0.00 0.00
0.00

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

$

66,292.00

$

66,292.00 $

0.00

143,897.00

143.897.00

0.00

$

210,189.00 100 $

210,189.00 $=====0=.0=0

- 42

SCHEDULE "6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,682,031.60 $

1,895,363.64 $

81,322.62 $ 1,976,686.26

4,503,559.50

5.264,038.64

247,628.56

5,511,667.20

$ 6,185,591.10 $ 7,159,402.28 $

328,951.18 $ 7,488,353.46 $

0.00

1,904,134.50

2,418,905.19

123,164.22

2,542,069.41

0.00

3,345,380.10

4,460,321.95

311,513.14

4,771,835.09

0.00

2,218,238.10

2,512,435.14

349,796.41

2,862,231.55

0.00

1,183,812.30

1,301,916.26

74,312.06

1,376,228.32

0.00

924,073.20

1,119,705.97

115,902.68

1,235,608.65

0.00

$ 15,761,229.30 $ 18,972,686.79 $ 1,303,639.69 $ 20,276,326.48

$ 3,007,042.20 $

$ 1,105,470.35 1,723,957.36
282,745.32 152,963.26

14.85 $ 21,560.96 36,034.18 11,607.70
8,473.83

14.85 1,127,031.31 1,759,991.54
294,353.02 161,437.09

$ 3,007,042.20 $ 3,265,136.29 $

77,691.52 $ 3,342,827.81

0.00

293,834.70

355,397.64

9,840.68

365,238.32

0.00

$ 3,300,876.90 $ 3,620,533.93 $

87,532.20 $ 3,708,066.13

$

543,357.00 $

513,940.09 $

34,815.95 $

548,756.04

0.00

$ 19,605,463.20 $ 23,107,160.81 $ 1,425,987.84 $ 24,533,148.65

$

537,314.40 $

848,920.80

$

848,920.80

0.00

154,519.00

$

201,975.32

201,975.32

0.00

$

691,833.40 $

848,920.80 $

201,975.32 $ 1,050,896.12

$ 20,297,296.60 $ 23,956,081.61 $ 1,627,963.16 $ 25,584,044.77 $

0.00

$

66,292.00

143,897.00

$ =====2=10=,=18=9=:.0=0

$

184,526.17 $

184,526.17

26,741.69

26,741.69

$

211,267.86 $

211,267.86 $=======0;,;;.0=0

43 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w., Suite 214 Atlanta, Georgia 30334-1\400
May 9,2000

Honorable Roy E. Barnes, 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, 1999, and have issued our report thereon dated May 9,2000. 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 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 financial 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
99YB-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 of the 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 financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6351-99-03.
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, we consider item FS-6351-99-03 to be a material weakness.
This report is intended solely for the information and use of management, members of the Colquitt 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,
~~J.~ell W~. Himnton ~.~ State Auditor
RWH:jb 99YB-40

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-R400
May 9, 2000

Honorable Roy E. Barnes, 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 CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Colquitt County Board of Education with the types of compliance
u.s. requirements described in the 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, 1999. 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 ofthe 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.

99SA-10

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, 1999.
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 ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Colquitt 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,
W'. -II~ ~'
R ssell W. Hinton State Auditor
RWH:jb 99SA-IO

SECTION III 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. 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6351-96-01 FS-6351-97-01 FS-6351-98-01 FS-6351-98-02

Previously Reported Corrective Action hnplemented Further Action Not Warranted Unresolved - See Corrective ActionJResponses Unresolved - See Corrective ActionJResponses

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $77,738.82 Finding Control Number: FS-6351-98-0 I

These funds will be returned to the Georgia Department of Education through an increase in the local five mill share in a subsequent fiscal year.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6351-98-02

The Board has decided not to pursue the recording of general fixed assets in the accounting records because of the costs related to getting these values established.

SECTION IV FINDINGS AND QUESTIONED COSTS

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
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 and for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the 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 ,51O(a) of OMB Circular A-133 The Colquitt County Board ofEducation's audit did not disclose audit findings required to be reported by section ,51O(a) ofUMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10,555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Summer Food Services Program for Children
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 was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education,
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COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS Uncollateralized Deposits Nonmaterial Noncompliance Finding Control Number: FS-6351-99-01
The Colquitt County Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding the public funds may not have a deposit at anyone time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 ten percent ofthe public funds being secured after the deduction of the amount of the deposit insurance."
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with state laws governing deposits and investments.
GENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial Noncompliance Finding Control Number: FS-6351-99-02
The Board failed to transfer required local effort funds for GSFIC and Exceptional Growth projects from local funds to the GSFIC Capital Projects and the Lottery Capital Projects as required for the approved State Capital Outlay Projects for the 1999 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units ofAdministration (FMGLUA) and the agreements signed by the Board to receive the funding through Georgia State Financing and Investment Commission (GSFIC) require that the Board transfer local matching funds by year end and designate those funds by project name and number. Correcting audit adjustments were necessary to transfer $39,516.00 from the Capital Projects Bond fund to GSFIC Project No. 99S-635-003 and to transfer $12,870.00 from the Capital Projects Bond fund to Lottery Project No. 99S-635-007 as required. The Board should implement procedures to ensure that all required local transfers are made by the time required.
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COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
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-6351-99-03 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. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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