Audit report, Crisp County Board of Education, Cordele, Georgia, year ended June 30, 1998

AUDIT REPORT CRISP COUNTY BOARD OF EDUCATION
CORDELE, GEORGIA YEAR ENDED JUNE 30, 1998

CRISP 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 AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

21

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

24

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

25

3 SCHEDULE OF STATE REVENUE

27

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

28

5 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

29

CRISP COUNTY BOARD OF EDUCATION TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

6

OVERALL

31

7

BY PROGRAM

32

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

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 21, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Crisp 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 Crisp County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Crisp 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 fmancial 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.

98ARL-13B

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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

RWH:gp 98ARL-13B

State Auditor

CRISP COUNTY BOARD OF EDUCAnON

CRISP COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 3Q 1998

cash and cash Equivalents
Invesbnenls
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided In Future Vea..
For Payment of: Contract- Cordele Office Building Authority Capital Lease Agreements
Total Assets

GENERAL FUND 873.329.26
1,137,365.08
145,448.80

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

563.074.04

471.122.49

250,000.00

301,239.27

483,504.97

51,272.55 21,405.71

2156,143.14

1,186,991.57

954.627.46

LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft Accounts Payable salaries Payable Notes Payable Expired Grant Balances Payable Retainages Payable Capital Lease Agreementa . Contract- Cordele Office Building AuthorIty
Total Uabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of State Programs For Inventories Food Donated Commodities Purchased Food For SPLDST Projects Unreserved Designated for Self~lnsurance Undesignated
Total Fund Equity

1,052,917.56 80,000.00

225,934.97 316,106.25
22,102.24

323,533.72 2.749.55

1112917.56 $ 564,143.46 $

326,283.27

$

39,073.19

93,279.95

303,998.20 700154.19
1,043.225.58

51,272.55 21,405.71
456.889.90 622.848.11

573,384.17
54,980.02 628,344.19

Total Uabilities and Fund Equity

2,156,143.14

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

1,186,991.57

EXHIBITA

DEBT SERVICE
FUND
0.00

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND
1,546.83

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum OnM

JUNE 30 1998

JUNE 3D. 1997

1.909,072.62

1.680,248.24

1.387,365.08

1.578,654.45

930,193.04

318,884.80

51.272.55 21.405.71

29.749.38 15,8n.56

$ 4,670,000.00 445.504.15

4,670,000.00 445.504.15

4,875,000.00 535653.74

$

0.00 $

1.546.83

5.115.504.15

9414813.15 $ 9,033:868.17

$

445,504.15

4.670,000.00

5.115.504.15

1.602.386.25 316.106.25 60.000.00 22.102.24 2,749.55 445,504.15
4670000.00
7.118.848.44 $

276.360.67 787,007.77 326.299.05
9.999.55 535,853.74 4 875,000.00
6.810,320.78

0.00

1 546.83

0.00

1.546.83

39,073.19 93,279.95
51,272.55 21.405.71 573,364.17
303,998.20 1.213.570.94
2,295.964.71

22.570.62 3.033.11
29.749.38 15,877.56
373.232.61 1779084.11 2.223.547.39

0.00 $

1.546.83

5115.504.15

9414.813.15

9.033.868.17

-3-

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$ 18,205,727,57

$ 18,205,727,57 $ 17,173,616.01

3,516,996,64

3,516,996.64

3,429,086.18

$

486,594,80

6,464,285,41

6,484,285.41

4,818,700.60

549,999,34 $

2,686.25

552,685.59

662,835,04

$

486,594,80 $ 28,757,008,96 $

2,686.25 $ 28,759,695,21 $ 26,084,237,83

$ 16,622,287,57

$ 16,622,287,57 $ 15,729,575,88

1,971,699,32 906,920,55 496,867,86 479,580.89
1,730,712,15 126,466,73
1,868,707.65 883,957,06 16,267.44 429,131.07 $
1,694,807,80 814,284,26

3,112.81

1,971,699.32 906,920.55 496,867.86 479,580.89
1,730,712,15 126,466,73
1,888,707.65 883,957.06 16,267.44 432,243.68
1,694,807,80 814,284,26

1,4n,542,76 734,458,50 456,684.11 398,668,38
1,519,397,61 123,707,99
1,969,nl,62 997,845,69 90,422,58 258,902,94
1,765,965.46 649,439.53

$

295,149.59

295,149,59

191,029,86

353,981,11

415.35

415.35

295,149,59 353,981,11
415.35

249,346,26 361,049,89
972.86

$

486,594.80 $ 28,711,216.40 $

3,112.81 $ 28,714,329,21 $ 26,783,752,26

$

0.00 $

45,792,56 $

-426,56 $

45,366,00 $ -699,514,43

$

15,455,71

-15,455.71

$

0,00

$

600,000,00

$

15,455,71

-15,455,71

$

0.00 $

600,000,00

$

0,00 $

45,792,56 $

-426.56 $

45,366,00 $

-99,514,43

0.00

2,221,574,00

1,973.39

2,223,547.39

2,325,560,69

21,523.17 5,528,15

21,523.17 5,528,15

-3,133.57 614,70

$

0.00 $ 2,294,417,88 $

1,546.83 $ 2,295,964,71

2,223,547.39

-5 -

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

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.
FIDUCIARY FUND TYPE - 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. This fund includes:
EXPENDABLE TRUST FUND Hospitality Fund - the fund used to account for contributions and expenditures of private funds which are designated to be used for the purchase of refreshments at the Superintendent's discretion.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for an agreement with the Cordele Office Building Authority for the financing of the construction of various school facilities and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All govermnental 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 included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other fmancing 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.
Govermnental 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, intergovermnental grants and investment income.
- 8-

CRISP COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. 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, 1998, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Crisp 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. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe 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
COMPOSmON 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.
-9-

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSmON OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(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 ofany corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations ofother political subdivisions ofthe 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.

- 10-

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Crisp County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on September 3, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January I, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Crisp County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1997 tax year (calendar year) for the Crisp County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

~mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,920,463.01 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $14,579,536.99 has been collected or on September 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

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.

- 11 -

CRISP COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Tenn Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL LONG-TERM DEBT
Recorded in the General Long-Tenn Debt Account Group is the Board's liability for a contractual obligation with the Cordele Office Building Authority for the acquisition and construction of major capital facilities and the liability for various capital lease agreements.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total colunms on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these colunms do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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 ofsecurities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe 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 ofor 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,
- 12-

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 2: DEPOSITS AND INVESTMENTS

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

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

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

(5) Bonds ofany 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 ofindebtedness, 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 Horne Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $3,072,567.27. 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, 1998, as follows:

Risk Category

Bank Balance

1 2 3
Total

$ 500,000.00 2,572,567.27 0.00
$ 3 072 567 27

- 13-

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30,1998, the carrying value ofthe Board's total investments was $1,137,365.08. The investments are classified as to risk categories as follows:

Type oflnvestment
U. S. Government
Local Government Investment Pools
Total Investments

Risk Categories 2

$ 9748 !4 $

000 $

Carrying Amount
000 $ 9,748.14 $

Fair Value
56,825.00

I 127616.94 112761694 $ 113736508 $ 118444194

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for 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

- 14-

CRISP COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 2: DEPOSITS AND INVESTMENTS
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 offunds from local governments; operating and trust funds ofGeorgia'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 instnnnents 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, 1998 was 29 days. The average investment duration for Fund 6 on June 30, 1998 was .96 years.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks 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 participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994 to develop and administer a plan to reduce risk of loss on account ofgeneral liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage.
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.

- 15 -

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30.1998

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General 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 expenditure 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 $250,000.00 loss per occurrence, up to the statutory limit

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

Beginning o f Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1997 1998

$

0.00 $

30,725.87 $

30.725.87 $

0.00

$

0.00 $

41,534.84 $

41,534.84 $

0.00

The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage 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 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 ofYear Liability

1997 1998

$

0.00 $

2.396.00 $

2.396.00 $

0.00

$

0.00 $

7.116.00 $

7,116.00 $

0.00

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

Position Covered

Superintendent All Employees

$ 50,000.00 $ 100,000.00

- 16 -

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Crisp County Board of Education has entered into various lease agreements as lessee for a heating! cooling system, lights and ceiling at the middle school and for softball field/tennis courts at the high school. These lease agreements qualify as capital leases for accounting purposes and therefore have been reported at the present value of the future minimum lease payments as of the date of their inception.

CONTRACf - CORDELE OFFICE BUILDING AUTHORITY - The Board entered into a contract with the Cordele Office Building Authority, dated July 1, 1991, for the financing of the construction of various school facilities. Under the terms of the contract, the Authority issued $5,575,000.00 in revenue bonds on behalfofthe Board to finance the cost ofacquiring, constructing, furnishing and equipping a new high school to be owned by the Board and the costs ofmaking renovations and modifications to existing schools owned by the Board. The Board has contractually agreed to make semi-annual payments, from April 1, 1992 through October 1,2011, to the Authority sufficient to retire principal and interest on the bonds. The obligation of the Board is absolute and unconditional so long as any ofthe bonds remain outstanding. Under the contract, the Board of Education agreed to levy an annual tax on all taxable property within the boundaries of the Board, at such rates, within any limits prescribed by law, as may be necessary to make payments required by the contract.

The changes in General Long-Term Debt during the fiscal year ended June 30,1998, were as follows:

Capital Leases

Contract Cordele Office Building Authoritv

Total

Balance July I, 1997

$ 535,653.74 $ 4,875,000.00 $ 5,410,653.74

Deductions Payments

90,149.59

205,000.00

295,149.59

Balance June 30, 1998

$ 44550415 $4670 000 00 $ 511550415

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows:

- 17 -

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

Contract Cordele Office Building Authority

Total Debt

1999 2000 2001 2002 2003 2004 - 2008 2009 - 2013

$ 118,228.20 118,228.20 118,228.20 118,228.20 29,557.05

$ 533,602.50 545,182.50 554,992.50 552,982.50 554,742.50
2,782,810.00 1.692.100.00

$ 651,830.70 663,410.70 673,220.70 671,210.70 584,299.55
2,782,810.00 1.692.100.00

Total Principal and Interest

$ 502,469.85 $ 7216412 50 $771888235

Deduct: Imputed Interest

56.965.70

Net Present Value ofFuture Minimum Lease Payments

$ 445504 15

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$426,755.06 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$338,137.15

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$19,796.91

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $68,821.00

- 18 -

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. TIris 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 ofthese proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 8: ACCUMULATED EMPLOYEES' LEAVE

The Board's administrative staffand certain other full-time employees earn ten days ofannual leave each year. Annual leave may be accumulated to a maximum of ten days. While the Board does not have a written policy, it is the practice ofthe Board to pay employees an amount based on unused leave, up to the maximum accumulation, at the current rate of pay, upon retirement or termination of employment. 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 aione financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees 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

1998 1997 1996

100% 100% 100%

$ 1,867,349.36 $ 1,714,427.78 $ 1,600,922.50

- 19 -

CRISP COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1998

EXHIBIT"E"

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

SCHOOL FOOD
SERVICES FUND

LOTTERY

FEDERAL

TOTALS

PROGRAMS PROGRAMS JUNE 30, 1998 JUNE 30, 1997

$ 280,150.19 $ 117,163.98 $ 165,759.87 $ 583,074.04 $ 673,013.89

250,000.00

250,000.00

26,107.09

275,132.18

301,239.27

266,470.76

51,272.55 21,405.71

51,272.55 21,405.71

29,749.38 15,877.56

Total Assets

$ 628,935.54 $ 117,163.98 $ 440,892.05 $ 1,166,991.57 $ 985,111.59

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EgUIJY
Fund Balances Reserved For Continuation of Federal Programs For Continuation of Stale Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignaled
Total Fund EqUity

$ 27,385.56 71,981.82

46,560.88 $ 151,988.53 70,603.10 173,521.33
22,102.24

$ 99,367.38 $ 117,163.98 347,612.10 $

225,934.97 $ 316,106.25 22,102.24
564,143.46 $

131,499.17 318,033.77
449,532.94

$ 51,272.55
21,405.71
456,889.90 $
$ 529,568.16 $

$ 93,279.95 $

93,279.95 $

22,570.62 3,033.11

0.00

0.00

0.00 $ 93,279.95 $

51,272.55 21,405.71
456,889.90
622,848.11

29,749.38 15,877.56
464,347.98
535,578.65

Total Liabilities and Fund Equity

$ 628,935.54 $ 117,163.98 $ 440,892.05 $ 1,186,991.57 $ 985,111.59

See notes to the general purpose financial statements.

-20 -

CRISP COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNp YEAR ENDEp JUNE 30 1998

EXHIBIT"P

~
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support services Pupil 5ervIces Improvement of InslnJdional services General Administration School Administration Maintenance and Operation of Plant Student Transportation services Other Support Services Food services Operation
Total Expend"ures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operatin9 Transfers In
Excess of Revenues and Other Financing Sources over (under) Expend""res
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$ 120,254.00 $ 750,474.51 $ 1,191,882.00

1,293,133.61

2,140,556.44

273,580.24

82,304.44

2,052,610.51 3,433,690.05
355,864.68

$ 1,686,967.85 750,474.51 3,414,742.68 $ 5,852,185.24

1,900,613.39 3,266,189.07
262,155.51
5,430,957.97

605,007.61 $ 2,227,502.22 $ 2,833,509.83 $ 2,737,356.77

1,694,425.93

90,480.61
23.75 15,345.09 39,532.07 5,464.56

535,548.58 386,816.64 112,610.64
24,120.63 22,744.32 88,799.96

626,029.19 366,816.64 112,634.59 15,345.09 63,652.70 28,208.88 88,799.96 1,694,425.93

565,171.67 179,415.44 154,279.05
15,933.34 63,128.09 46,804.96 30,387.31 1,764,687.98

1,694,425.93 $ 756,853.69 3,356,143.19 $ 5,607,422.81 $ 5,557,164.61

-7,458.08 $ -6,379.18

58,599.69 $ 44,762.43 $ -126,205.64

$ -7,458.08 509,974.92
21,523.17 5,528.15

3,346.07

12,109.64

15,455.71

-3,033.11 $ 3,033.11

70,709.33 $ 22,570.62

60,218.14 $ -126,205.64

535,578.65

664,304.16

21,523.17 5,528.15

-3,133.57 614.70

FUND BALANCE JUNE 30

$ 529,568.16

0.00 $ 93,279.95

622,648.11 $ 535,578.65

See notes to the general purpose financial statements.

-21-

CRISP COUNTY BOARD OF EDUCATION
COMBINING BAlANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1998

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Recalvable
Total Assets

~ $ 54,980.02

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 1998 JUNE 30, 1997

458,021,75 $ 513,001.77

$ 310,065,41

---$

44,628,83

438,876.14

483,504.97

44,628.63

$ 54,980,02 $

44.628.83 $ 896:897.89 $ 998,506,74 $ 354,694,24

LIABILITIES AND FUND EOUITY
LIABILITIES
Cash Overdraft Accounts Payable Retainages Payable
Total Liabilities
FUNDEOUITY
Fund Balancas Reserved For SPLOST Projects Unreserved Undesignatad
Total Fund Equity

$
$ 54,980,02 $ $ 54,980,02 $

41,879.28 2,749.55
44,628.83 $

323,533,72 323,533.72

41,879.28 $ 323,533,72
2749,55

276,360,67 3,224,00 9,999.55

368,162,55

289,584.22

$ 0,00 0.00 $

573,354.17 $ 573,384.17

0.00

54,980.02 $

573,384,17 $ 628,344.19 $

65,110.02 65.110,02

Total Liabilities and Fund Equity

$ 54 980.02 $

44,628.83

896,897.89 $ 996,506,74 $ 354.694.24

See notes to the general purpose financial statements.

-22 -

CRISP COUNTY BOARD OF EDUCATION
COMBINING SIATEMENT OF REVENUES EXPENDiTURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30 1998

EXHIBIT"H"

REGULAR

GEORGIA STAlE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30 1997

~
Taxes other Funds

0.00 $

0.00 $ 1,433,868.21 2416.05

1,433,868.21 2,416.05

121500.00

Total Revenues

-----!lJ!!!... $

0.00 $ 1.436,284.26

1,436,284.26

121,500.00

EXPENDITURES

Current Instruction Support Servioes Pupil services Maintenance and Operation 01 Plant other Support services
C8pllalOuUay Salaries Employee Bene8ts Land and Land Improvements Building and Building Improvements Equipment

$

0.00

10,130.00

13,899.23
12,288.00 1,819.01
91,018.07
170,212.19 561,710.59
11 975.00

13,899.23
12,288.00 1,819.01
91,016.07
170,212.19 571,840.59
11.975.00

39,398.51 2,993.25
449,1n.96

Total Expendltu.... Exoess 01 Revanues over (under) ExpendItuI8S

--.!!J!!L $ $--.!!J!!L $

10130.00 -10,130.00

862920.09 573,384.17

873,050.09 563234.17

491587.72 -370,067.72

OTHER FINANCING SOURCES rUSES)

C8pIIaI Leese Operating Transfera In Operating Transtera Out

$ $ -10,130.00

10,130.00

10,130.00 -10130.00

435,1n.74 49,774.42 -49,774.42

Talal Other Flnancin9 Sources (Uses)

$ -10,130.00 $

10,130.00

0.00 $ 435,177.74

Exoess of Revenues and other Financln9 Sources
over (under) ExpendItuI8S and Other Financing uses $ -10,130.00 $

0.00

573,384.17

563,234.17 $ 65,110.02

FUND BALANCE JULY 1

85110.02

0.00

0.00

65,110.02

0.00

FUND BALANCE JUNE 30

$ 54,980.02 $

0.00 $ 573:384.17

628,344.19 $ 65,110.02

See notes to the general purpose financial statements.

-23-

CRISP COUNTY BOARD OF EDUCATION

SCHEDULE "1"

SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30, 1998

At June 30, 1998, the Crisp County Board ofEducation had no outstanding contractual commitments for the purpose of making computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concem for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue.
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
Validationffesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30,1998, the financial accounting system was determined to be at the Awareness Stage.
The Board's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department of Education). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As of June 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software.

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

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENpED JUNE 30 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Agriculture. U. S. Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant Netional School Lunch Program 1998 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Direct Impact Aid 1998 Grant Pass-Throu9h From Georgia Department of Education Elementary and Secondary Education Act Trtlel Grants to Local Educational Agencies 1997 Grant 1998 Grant Tille!! Eisenhower Professional Development 1997 Grant 1998 Grant TlUeVl Innovative Education Program Stra1Ilgies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1997 Grant 1998 Grant Individuals with Disabilities Education Act Parl B - Special Education Flow Through 1998 Grant Preschool 1997 Grant 1998 Grant Special Projects 1997 Grant 1998 Grant Safe and Dru9-Free Schools 1997 Grant 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant
Total U. S. Department of Education

CFDA ~

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

.
. 10.553 10.555 10.550

N1A $

278,605.70

(2)

N/A

919,797.72 $ 1,599.695.74 (3)

N/A

94.730.19

94.730.19

$ 1,293,133.61 $ 1.694,425.93

84.041

$

15.024.67

(5)

84,010

N/A

84.010

N/A

84.281

N1A

84.281

N1A

84.298

N1A

-11.320.91 1,212,028.83 $

1.212,028.83

14,504.38 32,293.00

18,859.38 28,188.45

33,472.00

36,707.87 (3)

84,276

N1A

84.276

N1A

52,500.00 173,333.00

53,368.09 84,157.60

84.027

N/A

84.173

N1A

84.173

N1A

84.027

N1A

84.027

N1A

84.186

N/A

84.166

N/A

202,322.37
-155.11 151,871.78
-31.56 149,879,93
-6.612.18 63,166.79

202,322.37 151,871.78 (6) 149,879.93 63,166.79

84.048

N1A

68,468.25

76,119.44 (3)

$ 2,150.747.24 $ 2 076,692.53

-25-

CRISP COUNTY BOARD OF EDUCATION
SCHEPULE OF EXPENDITURES OF FEpERAl AWARPS
YEAR ENDED JUNE 30 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Labor, U. S. Departmant of Pass-Through From Flint Regional Devalopment canter Job Training Partnarship Act
OTHER FEDERAl ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA ~

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250

N/A $

4,833.87 $

4,833.87

$ _ _-"6""8,,",28,,,1,,,.9~2

(4)

Total Federal Financial Assistance

$

N/A = Not Availabla

Notes to the Schedula of Expenditures of Federal AwardS

(1) The amounts shown for tha Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the cunent fiscal year.
(2) Expend~ures for the School Breakfast Program were not msintained separately and are included in the 1998 National School Lunch Program.
(3) Expend~ures for this program include Stale, and/or Other Funds. Expend~res are not maintained by fund source.
(4) Expend~res on this program were not msintained by fund source. (5) Funds earned on this program do not require reporting of expend~res[ (6) Includes Federal Assistance of $151 ,871.78 provided to subrecipients.
Major Programs are identif..d by an astarisk r> in front of tha CFCA number[

The accompsnying schedule of expend~res of Federal awards includes the Federal grantaclivily of the Crisp County Board of Education and is presentad on tha modified accrual basis of accounting which is the same basis of accounting used in tha presentation of the general purposa financial statamenls.

3?75[952[33

See notes to the general purposa financial statements.

-26-

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENpEp JUNE 30 1999

SCHEDUVE "3"

AGENCY/FUNDING

GRANTS

Educatioo, Georgia ~rtment 01

QuaJity eosie Educotion

General and Career Education Programs

Special Education Programs

Remedial Education Program

Modia center Prt>gIOII1S

Sloff Devolopmont progroms

Indirect Cosl

Pupil Tronaportolion

Rogulor

Bus Replacement

Middle SChool Incentive Program

Special Instructional Assistance

In-$chaol Suspension

Micf..tenn Adjustment

Migrant Mjd..term Adjustment

Counsolors Glides 4 ond 5

Technology Training

Local Fair Share

Educational Equalization Funding Grant

Food SoNicos

Vocational Education

elsie Grant

Other State Programs

Ad Volorom ToxAdjuslmonl

Attemstive Program

At-Risk Summer School Program

Environmental Science Program

Health Insurance

Mentor Teacher Program

Proschool Handicoppod progrom

Remedial Summer School Program

Sovoroly Emotionolly Disturbod

Spociol Educotion Low Incidonco Gront

Sludont Rocords

Teachers' Retirement

Lottory Progrom

A/lomotivo Progrom

InstnJctional Technology

_

Tochnology

CIoSS/<lOl11 Tochnology

Georgia Children's Trust Fund Commission Socond Slop Progrom

Office of School Readiness Pro-Klndorgorlen Progrom

Offico 01 T.....ury and Fiscol Sorvicoa Public Sdlool Employees Retirement

CONTRACTS EdUcation. Georgia Department of Middlo ScI1oo1 Allor SchooVSummor progrom

Georgia School Age Care Association The 3:00 Project

Georgia Child care Council Aft_I Project

See notes to the general purpose financial statements.

27

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

9,053,506.00 1,739,619.00
427,787.00 380,681.00 118,317.00 2,532,902.00
441,677.00 143,087.00 344,435.00 338,325.00 83,334.00 143,448.00
1,663.00 37,333.00 43,263.00 1,476,669.00 1,064,379.00
40,643.43
90,659.00 98,500.00 15,965.50
1,000.00 338,137.15
1,880.00
7,532.65
12,248.00 5,653.50 19,796.91
6,040.54
68,621.00

120,254.00
242,613.00 949,269.00
4,132.00 7,795.34 119,340.00
619,207.17

9,053,506.00 1,739,619.00
427,767.00 360,681.00 118,317.00 2,532,902.00
441,677.00 143,067.00 344,435.00 338,325.00 63,334.00 143,448.00
1,663.00 37,333.00 43,263.00 1,478,689.00 1,064,379.00 120,254.00
40,643.43
90,659.00 98,500.00 15,965.50
1,000.00 336,137.15
1,680.00 242,613.00
7,532.65 949,269.00
12,246.00 5,653.50 19,796.91
4,132.00
7,795.34 119,340.00
6,040.54
619,207.17
68,621.00

8,460.48 8.606.33 4005.57

8,460.46 6,606.33 4005.57

16143117.06 S 2,062 810.51

18205727.57

CRISP COUNTY BOARp OF EOUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 1998

SCHEDULE "4"

The repayment of all principal and Interest ooming dua April " 1998, and thereafter the 9enerel obligaUon debt evidenoed by the Inte'llovemmental Contrect, dated as of July " 1991, between the Crisp County School DiStrict and the Cordele Office Building Authority in the sum 01 $6,454,454.00
The exercise of purchase opuons under exisUng lease oontracts lor middle scho.I"E-Wing heating/oooling system, lights, ceiling, and SO_II fieldltennis oourts at the high school In the sum 01 $615,247.00
Funding of additional projects in the sum of $9,430,299.00, the remaining balance 01 the projected revenues, to include renovations and modernizations of the auditorium and gymnasium buiidings at Crisp County Middle School and A. S. Clari< Elementary School; improvement of driveways, parking areas, and drainage at auditoriums, schools, bus shop, and warehouses; replacement of worn out and inefficient heeting/cooling units, re-roofing, renovations, improvements, minor eddllions and equipping of exisUng schools 01 the Crisp County School System, bus shop, bus remps and canopies; expand aecurity and electronic surveillance systems lor the high school and middle school; provide metal storage bam for agriculture progrem: provide minimum 013 netwoIked computers for each classroom In the school system to include all wiring, flxtures, other technology: replace wom out desks and chaire; purchase of maintenance and supply warehouse and acquisition 01 all property; modernize or repiace underground fuel storege tanks at bus shop, replacement 01 press box, lights, poles, and replacement and expansion 01 bleachere at the present football field; Improve exisUng baseball, track and band practice fields and facilities

ORIGINAL ESTIMATED
COSH1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT
YEAR(3)

AMOUNT EXPENDED IN PRIOR
YEARS

6,454,454.00 $ 6.454,454.00 $

368,366.60 $

0.00

615.247.00

615.247.00

118,228.20

0.00

9.430,299.00

9,430.299.00

862,920.09

16,500.000.00

1,349,514.89 $

0.00
....l::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 oost lor the project. Includes all oost from project inception to oompleUon.

(3) The voters 01 Crisp County approved the Imposition of a 1% sales tax to fund the above projects. Amounts expended lor these projects may Include sales tax proceeds. stata. local property taxes and/or other funds over the life 01 the project.

See notes to the general purpose financial statements.

-28-

CRISP COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENPITURES LOTTERY PROGRAMS
YEAR ENDED JUNE 30. 1998

SCHEDULE "S"

EXPENDITURES
Cunenl Instrucllon Support servtoes Pupil services General Adminl_on SChool Administration Main1enance and Operation of Plant
SbJdenl Transportation servtoes
Total Expendilunls

ALTERNATIVE SCHOOL

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

4,132.00 $

8,498.76 $ 119,487.00 $

473,889.85
90,480.61 23.75
15,345.09 39,532.07 5.464.56

606,007.61
90,480.61 23.75
15,345.09 39,532.07
5,464.56

4.132.00

8498.76 $

119.487.00 _ _ _..:6~2:.4.",73!25oi!.93:l. $ 756 853.69

RECAP: selarles and Benefits Pre-Kindergarten Program Other ExpendibJres Alternative SChool Program Instrucllonsl Technology Assislive Technology Classroom Technology Pre-Kindergarten Program

$ 583,507.74
4,132.00
8,496.76 119,487.00 41,228.19

756.853.69

See notes to the general purpose financial statements.

-29-

CRISP COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - aUALrrv BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1998

GENERAL AND CAREER EPUCATION PROGRAMS

Kindergarten rJ

Gradesl-3(")

SUl>-Total- K-3

Grades 4 - 5 rJ
r> Grades 8- 8
Grades 9 -12 rJ
r> High School Leboretorles

Vocetionel Education Leboratories (")

Total General and Career Education Programs

SPECIAL EPUCATION PROGRAMS

Regular Programs

category I (")

categoryllrJ

category Category

'" rv

rrJl

Sul>-Total- Regular

Category VI (Gifted) (")

Total Special Education Programs

REMEDIAL EDUCATION PROGRAM 0

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

5aIaries Operations

Total Media Center Programs

Total Fourteen weighted and Media center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

ORIGINAL -lL.

REQUIRED ORIGINAL

MID-TERM

1,073,536.00

2,379,663.00

3,453,199.00 90

1,112,842.00 90

2,048,821.00 90

1,147,536.00 90

825,502.00 90

665,808.00 90

9,053,508.00

$

966,182.40 $ 2,141,898.70 3,107,879.10 1,001,557.80 1,843,758.80 1,032,782.40
582,951.80 599,225.40 8,148,155.40

0.00 0.00 143,448.00 143,448.00

1,808,333.00

$ 1,447,499,70 $

0,00

1,808,333.00

131,288.00

1,739,819.00

$

427,787.00

11,220,912.00

90

1,447,499.70

80

118,157.40

$ 1,585,657.10

90

385.008.30

$ 10,098,820.80 $

0.00
0,00 0.00 143,448.00

309,873.00 90

278,885.70 $

0.00

70,888.00 90

63,61920

380.581.00

342,504.90

0.00

11,601,473.00

10,441,325.70 $

1_4.3.,44=8.0..0~

STAFF [)EVELOPMENI PROGRAMS Cost of Instruction Professional Development
Total Stall Development Programs rJ IdentifieS Fourteen Weighted Programs. see notes to the general purpose financial statements.

34.316.00 84,001.00

34,316.00 84,001.00

118,317,00 100 $

118,317.00 $

0.00 0.00
...,1:0.;::00::,

- 32 -

SCHEDULE "7"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUtlTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMEtlT

966,182.40

989.931.87 $

15,995.37

1,005.927.24

2,141.696.70

2,626.233.98

83,338.35

2.711,572.33

3.107,879.10 $ 3.618,165.85

99.333.72

3,717,499.57

0.00

1.001.557.80

1.348,491.15

25.843.65

1,372.134.60

0.00

1.843.758.90

2.077.533.84

49,691.09

2,127,224.93

0.00

1,176.230.40

1.499.696.21

123.699.03

1,623.395.24

0.00

562.951.80

607,911.51

50,607.38

658,518.89

0.00

599,225.40

606,211.02

51.291.54

657,502.56

0.00

6,291,603.40

9,756.009.58

400,266.41

10,156.275.99

1,447.499.70

604.735.19 763.170.48 253.143.81

1,273.48 7,979.03 10,405.20 2,808.92

1,273.48 612,714.22 n3,575.66 255,952.73

1.447,499.70

1,621,049.48 $

22.486.63

1,843,516.11

0.00

118.157.40

141,912.15

2,726.14

144,638,29

0.00

1.565,657.10

1,762.961.63

25.192.n $ 1.788,154.40

385.006.30 $

362,760.67

2.253.35 $

365.034.02

0.00

$ 10,242.268.60 $ 11.901.751.88

427,712.53

12,329.484.41

$

278,885.70

421,065.88

421,065.88

0.00

63,619,20

$

65,748.60

65,748.60

0.00

342,504.90

421,065.88 $

65,748.60

486.814,28

10.584,773.70 $ 12,322.817.56

493,461.13 $ 12,816,278.69 $

0.00

34,316.00 84,001.00
118,317.00

85,688.55 33,701.28

85,688.55 33,701.28

119,389.83 $_~1~1:.9.~38:::9;;:.83:;;.

0.00

- 33

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. IIINTON
STATE AUDITOR
(404) 656-2H4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 21, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Crisp 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 fmancial statements of Crisp County Board of Education as of and for the year ended June 30, 1998, and have issued our report thereon dated May 21, 1999. 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 ofthe United States.
Compliance
As part of obtaining reasonable assurance about whether Crisp County Board of Education's financial statements are free ofmaterial 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 Crisp 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 certain matters involving the internal control over financial reporting and its operation
98YB-40

that we consider to be reportable conditions. Reportable conditions involve matters corning to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in ourjudgement, could adversely affect Crisp County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-640l-98-01 and FS-6401-98-03.
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, all of the reportable conditions noted above are considered 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,
7~tC)4~
Russell W. Hinton State Auditor
RWH:gp 98YB-40

RUSSELL W. HINTON
STATE AUDITOR
(404) 856-2174

254 Washington Streel, S.w., Suile 214 Aiianla, Georgia 30334-8400
May 21, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Crisp County Board ofEducation
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 Crisp County Board of Education with the types of compliance requirements described in the U.S. 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, 1998. Crisp County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Crisp County Board of Education's management. Our responsibility is to express an opinion on Crisp 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-l33, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 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 Crisp County Board of Education's compliance with those requirements and perfonning 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 Crisp County Board of Education's compliance with those requirements.

98SA-I0

In our opinion, the Crisp County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 1998.
Internal Control Over Compliance
The management of Crisp 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 Crisp County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness 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 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 ofpublic record.
Respectfully submitted,
~.fI2 ~.4J..:$;;
Russell W. Hinton State Auditor
RWH:gp 98SA-1O

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

CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6401-93-03 6401-93-04 FS-6401-97-01 FS-640 I c97-02 FS-6401-97-03

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

CORRECTIVE ACTIONIRESPONSES

CASH AND CASH EQUlVALENTS GENERAL LEDGER Inadequate Separation of Duties Finding Control Number: FS-6401-97-0l

We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations this fmding cannot be totally resolved.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6401-97-03

We concur with this finding. Due to current staffing 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.

SECTION IV FINDINGS AND QUESTIONED COSTS

cmSPCOUNTYBOARDOFEDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998

SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Crisp County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Crisp County Board of Education disclosed fmancial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents General Fixed Assets

General Ledger

All ofthe reportable conditions described above are considered to be material weaknesses.

3. Noncompliance Material to the Financial Statements The audit ofthe Crisp County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Crisp County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. Type of Renort Issued on Compliance for Major Programs The auditor's opinion on the Crisp County Board of Education's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported bv Section .5 IO(a) ofOMB Circular A-l33 The Crisp County Board ofEducation's audit did not disclose audit findings required to be reported by section .5 IO(a) ofOMB Circular A-l33.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

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

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

-I-

cmSPCOUNTYBOARDOFEDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Separation of Duties Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6401-98-01
The Crisp County Board of Education did not provide for adequate separation of duties in the performance of accounting functions and related procedures. The following deficiencies were noted:
(1) Bank reconciliations are reconciled by someone that is directly connected to cash operations and are not reviewed by an administrator independent of cash operations.
(2) Journal entries were not reviewed by someone independent of the general ledger posting function.
These conditions were a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employees can be reassigned to achieve a higher degree of internal controls with existing staff.
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-6401-98-02
On December 31, 1997, the General Fund had an unpaid loan outstanding in the amount of $60,000.00. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows:
"The governing authority ofany county, municipality or other political subdivision of this state may incur debt by obtaining temporary loans in each year to pay expenses... Such loans shall be payable on or before December 31 of the calendar year in which such loan is made..."
This condition occurred because the Board was not aware ofthe requirement that temporary loans shall be payable on or before December 31 of the calendar year in which such loan is made. Repayment of loans should be made in conformity with constitutiona1limitations.
-2-

CIDSP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
IT FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6401-98-03 The Crisp 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 ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
-3-