\.;n 1-1 
ASOb 
~ RJ 
E~b 
C9 
\~q8-"4 
AUDIT REPORT CRISP COUNTY BOARD OF EDUCATION 
CORDELE, GEORGIA YEAR ENDED JUNE 30, 1999 
\-..~----------------- 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASHINGTON STREET 
ATLANTA, GEORGIA 30334-8400 
 
 crosP CQUNTYBOARD 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 FUND 
 
4 
 
C 
 
COMBINED STATEMENT OF ~VENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND AClUAL 
 
(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 EXPENDITURES OF FEDERAL AWARDS 
 
24 
 
2 SCHEDULE OF STATE REVENUE 
 
26 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
27 
 
4 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
28 
 
 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 
 
5 
 
OVERALL 
 
29 
 
6 
 
BY PROGRAM 
 
30 
 
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 
GQYERNMENT 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 5, 2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Crisp County Board ofEducation 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE 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, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Crisp County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Goyemment Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
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: 
 
99ARL-13 
 
 * 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 confonn to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general purpose 
financial statements. To confonn 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 ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were n<?t 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 confonn to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been detennined, but are believed to be material. 
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been detennined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Crisp County Board of Education as ofJune 30, 1999, and the results ofits operations for the year then ended, in confonnity with generally accepted accounting principles. 
In accordance with Government Auditin~ Standards, we have also issued our report dated May 5,2000, on our consideration ofthe Crisp County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants. 
Our audit was perfonned for the purpose of fonning an opinion on the general purpose financial statements . ofthe Crisp County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits 
E through H) 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 ofadditional analysis and are not a required part of the general purpose financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been detennined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such infonnation is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
99ARL-13 
 
 A copy ofthis 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:jb 99ARL-13 
 
R sell W. Hinton State Auditor 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
 CRISP COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30.1999 
 
ASSETS 
Cash and cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount to be Provided in Future Years For Payment of: Contract - Cordele Office Building Authority capital Lease Agreements 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 
 
241,600.46 $ 525,656.78 $ 
 
909,896.27 
 
1,735,013.69 
 
265,340.86 
 
310,065.41 
 
171,505.70 
 
288,003.60 
 
529,389.68 
 
64,776.07 28,101.52 
 
Total Assets 
 
$ 2,148,119.85 $ 1,171,878.83 $ 1,749,351.36 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Retainages Payable capital Lease Agreements Contract - Cordele Office Building Authority 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Designated for Self-Insurance Undesignated 
Total Fund Equity 
 
$ 1,072,947.63 $ 30,000.00 
 
210,035.35 $ 339,749.04 
 
221,230.43 
 
$ 1,102,947.63 $ 549,784.39 $ 
 
221,230.43 
 
$ 
 
29,705.51 
 
$ 
 
58,350.66 
 
64,n6.07 28,101.52 
$ 
 
1,485,716.36 
 
226,865.74 788,600.97 
 
470,866.19 
 
42,404.57 
 
$ 1,045,172.22 $ 622,094.44 $ 1,528,120.93 
 
Total Liabilities and Fund Equity 
 
$ 2,148,119.85 $ 
 
The notes to the general purpose financial statements are an integral part of this statement -2- 
 
1,171,878.83 $ 
 
1?49,351.36 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND 
 
$ 
 
0.00 $ 
 
986.94 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS (Memorandum Only) JUNE 30, 1999 JUNE 30, 1998 
 
$ 1,678,140.45 $ 1,909,072.62 
 
2,310,419.96 
 
1-,387,365.08 
 
988,898.98 
 
930,193.04 
 
64,776.07 28,101.52 
 
.51,272.55 21,405.71 
 
$ 4,450,000.00 350,109.91 
 
4,450,000.00 350,109.91 
 
4,670,000.00 445,504.15 
 
$ 
 
0.00 $ 
 
986.94 $ 4,800,109.91 $ 9,870,446.89 $ 9,414,813.15 
 
$ 1,504,213.41 $ 1,592;193.45 
 
339,749.04 
 
326,299.05 
 
30,000.00 
 
60,000.00 
 
22,102.24 
 
2,749.55 
 
$ 
 
350,109.91 
 
350,109.91 
 
445,504.15 
 
4,450,000.00 
 
4,450,000.00 
 
4,670,000.00 
 
$ 4,800,109.91 $ 6,674,072.36 $ 7,118,848.44 
 
$ 
 
0.00 $ 
 
986.94 
 
$ 
 
0.00 $ 
 
986.94 
 
$ 
 
29,705.51 $ 
 
39,073.19 
 
58,350.66 
 
93,279.95 
 
64,776.07 28,101.52 1,485,716.36 
 
51,272.55 21,405.71 573,364.17 
 
226,865.74 1,302,858.67 
 
303,998.20 1,213,570.94 
 
$ 3,196,374.53 $ 2,295,964.71 
 
$ 
 
0.00 $ 
 
986.94 $ 4,800,109.91 $ 9,870,446.89 $ 9,414,813.15 
 
-3- 
 
 CRISP COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1999 
 
FUND BALANCE JUNE 30 
 
$ 1.045,172.22 $ 
 
The notes to the general purpose financial statements are an integral part of this statement. 
-4 - 
 
622.094.44 $ 
 
1,528,120.93 
 
 EXHIBIT"B" 
 
TYPES DEBT 
SERVICE FUND 
 
TOTAL 
 
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND 
 
TOTALS (Memorandum Only) 
YEAR ENDED JUNE 30,1999 JUNE 30,1998 
 
$ 19,761,512.76 
 
3,635,727.38 
 
$ 
 
652,594.45 
 
7,861,782.37 
 
679,379.97 $ 
 
$ 
 
652,594.45 $ 31,938,402.48 $ 
 
$ 3,714.27 
 
19,761,512.76 $ 3,635,727.38 7,861,782.37 
683,094.24 
 
18,205,727.57 3,516,996.64 6,484,285.41 552,685.59 
 
3,714.27 $ 31,942,116.75 $ 28,759,695.21 
 
$ 18,432,074.31 
 
1,769,805.90 969,720.21 547,413.21 495,388.78 
1,793,981.05 160,124.64 
1,919,346.12 981,769.10 15,705.00 367,251.23 $ 
1,805,745.71 1,146,712.39 
 
$ 
 
315,394.24 
 
336,436.46 
 
763.75 
 
315,394.24 336,436.46 
763.75 
 
$ 
 
652,594.45 $ 31,057,632.10 $ 
 
$ 
 
0.00 $ 
 
880,770.38 $ 
 
$ 18,432,074.31 $ 16,622,287.57 
 
4,274.16 
 
1,769,805.90 969,720.21 547,41321 495,388.78 
1,793,981.05 160,124.64 
1,919,346.12 981,769.10 15,705.00 371,525.39 
1,805,745.71 1,146,712.39 
 
1,971,699.32 906,920.55 496,867.86 479,560.89 
1,730,712.15 126,466.73 
1,888,707.65 883,957.06 16,267.44 432,243.88 
1,694,807.80 814,284.26 
 
315,394.24 336,436.46 
763.75 
 
295,149.59 353,981.11 
415.35 
 
4.274.16 $ 31,061,90626 $ 28.714,329.21 
 
-559.89 $ 
 
880,210.49 $ 
 
45,366.00 
 
$ 
 
5,332.64 
 
-5,332.64 
 
$ 
 
0.00 
 
$ 
 
5,332.64 $ 
 
15,455.71 
 
-5,332.64 
 
-15,455.71 
 
$ 
 
0.00 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
880,770.38 $ 
 
-559.89 $ 
 
880,210.49 $' 
 
45,366.00 
 
0.00 
 
2,294,417.88 
 
1,546.83 
 
2,295,964.71 
 
2,223,547.39 
 
6,695.81 13,503.52 
 
6,695.81 13,503.52 
 
21,523.17 5,528.15 
 
$ 
 
0.00 $ 3,195,387.59 $ _ _....9;;,;;8.6..9..4.... $ 3,196,374.53 $ 2,295,964.71 
 
-5- 
 
 CRISP COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL INON-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 
 
$ 16,912,036.00 $ 
5,200,304.00 91,000.00 
 
17,586,294.17 65,723.84 
4,956,080.19 323,057.18 
 
Total Revenues 
 
$ 22,203,340.00 $ 22,931,155.38 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services central Support Services Other Support Services Food Services Operation 
Capital Outlay Debt Service 
 
$ 14,739,040.65 $ 
1,076,769,00 692,431.25 546,631.00 354,535.00 
1,834,303,00 166,746.00 
1,931,403.00 959,011.00 16,267.00 149,868.00 
54,000.00 30,000.00 
 
15,070,184.50 
1,168,493.88 642,951.40 547,413.21 373,317.04 
1,m,887.13 160,124.64 
1,850,114.37 945,865.60 15,705.00 320,685.74 
51,133,59 
 
Total Expenditures 
 
$ 22,551,004.90 $ 22,923,876.10 
 
Excess of Revenues over (under) Expenditures 
 
$ -347,664.90 $ 
 
7,279.28 
 
OTHER FINANCING SOURCES IUSES) 
 
Other Sources Other Uses 
 
$ -81,895.00 $ 
 
-5,332.64 
 
Total Other Financing Sources (Uses) 
 
$ -81,895.00 $ 
 
-5,332.64 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -429,559.90 $ 
 
1,946.64 
 
FUND BALANCE JULY 1. 1998 
 
749,041.52 
 
1,043,225.58 
 
Adjustments Food Inventory - Net Change in Period 
Donated Commodities Purchased Food 
 
-46,536.16 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS} 
 
$ 1,549,636.59 $ 2,175,218.59 
 
3,641,353.39 
 
3,570,003.54 
 
282,067.54 
 
356,322,79 
 
$ 5,473,057.52 $ 6,101,544.92 
 
$ 2,842,160.94 $ 3,105,728.26 
 
591,346,01 221,126.23 
72,938.00 121,667.41 
1,500.00 20,235.00 23,842.00 
 
601,312.02 326,768.81 
122,071.74 16,093.92 
67,641.11 35,903.50 
 
100,125.00 1,700,011.93 
 
46,565.49 1,805,745.71 
 
$ 5,694,952.52 $ 6,127,830.56 $ -221,895,00 $ -26,285.64 
 
$ 161,895.00 $ 
 
5,332.64 
 
$ 161,895.00 $ 
 
5,332.64 
 
$ 
 
~0,000.00 $ 
 
-20,953.00 
 
410,301.58 
 
622,848.11 
 
37,464.32 
 
6,695.81 13,503.52 
 
FUND BALANCE JUNE 30. 1999 
 
$ 272,945.46 $ 1,045,172.22 
 
$ 387,765.90 $ 622,094.44 
 
The notes to the general purpose financial statements are an integral part of this statement -6- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENEaAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1999 
 
Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Crisp County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity 
with a self-balancing set of accounts. An account group is a financial reporting device designed to provide 
accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" ate 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 ofa Board's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 ofEducation and from the Federal government to accomplish specific educational objectives. 
-7- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 3D. 1999 
 
Note 1: SUMMARY OF SIGNIDCANI 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 ofrefreshments 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 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 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 ofavailable spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental 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. 
-8- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 3D. 1999 
 
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 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 ofthe 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. 
BUDGET 
The Crisp County Board ofEducation'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 ofthe budget at any level: The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally acoepted 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 ofgeneral 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 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. 
-9- 
 
 CRISP COUNTY BOARD OFEDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1999 
 
Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES 
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, 
(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 ofthe 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 ofgrant 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 Crisp County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on August 28, 1998 (levy date). Taxes were due on December 20, 1998. The lien date for property taxes was 
- 10- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES 
 
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 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 oftaxes collected to the Board. 
 
The tax millage rate levied for the 1998 tax year (calendar year) for the Crisp County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
16.205 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 $2,905,702.18 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $11,673,834.81 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 ar~ 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 of fund 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. 
 
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-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. 
 
-11- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES 
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 ofmajor 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 transfen are recorded for all interfund transactions other than reimbursements. 
MEMORANDUMONLY - TOTAL COLUMNS 
Total columns on the general pwpose financial statements are captioned "Memorandum On!y" to indicate that 
they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code 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 ofsuch surety bond 
and the market value ofsecurities pledged shall be equal to not less than 11 percent ofthe 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 ofoperating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of anyone ofor any combination ofthe 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, 
 
- 12- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(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 of indebtedness or other obligations ofthe counties or municipalities of the State of Georgia, 
 
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development au;thorities created by the laws of the State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Fann 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 $2,591,778.36. The amounts of the total bank balances are classified into three categories of Cfedit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board Of by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with sec~ties held by the pledging financial institution's trust department Of 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, Of 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 
 
$ 500,000.00 
 
2 
 
2,091,778.36 
 
3 
 
0,00 
 
Total 
 
$ 2.591,778.36 
 
- 13 - 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 2: DEPOSITS AND INVESTMENTS 
CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value ofthe Board's total investments was $2,045,079.10 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 required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (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 ofthe 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 ofcapital, 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 detennines 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 offunds 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 ofits agencies or instrumentalities, banker's acceptances and repmchase agreements. The weighted average maturity ofGeorgia Fund 1 may not exceed 60 days. Fund 6 maintainsa duration ofapproximately 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. 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. 
-14 - 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 4: RISK MANAGEMENT 
 
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 Boar~ 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. 
 
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$200,000.00 loss per occurrence, up to the statutory limit. 
 
Changes in the workers' compensation claims liability during the last two fiscal years are as follows: 
 
1998 1999 
 
Beginning ofYear Liability 
 
Claims and Changes in Estimates 
 
$ 
 
OrOO $ 41.534,84 $ 
 
$ 
 
0.00 $ 
 
34.924.52 $ 
 
Claims Paid 
 
End ofYear Liability 
 
41.534.84 $ 
 
OrOO 
 
34.994,52 $ 
 
OrOO 
 
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 ofthat loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
- 15- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note 4: RISK MANAGEMENT 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
1998 
 
$ 
 
0,00 $ 
 
7,116,00 $ 
 
1999 
 
$ 
 
0,00 $ 10.510.16 $ 
 
Claims Paid 
 
End ofYear Liability 
 
7,116,00 $ 
 
0,00 
 
10,510,16 $ 
 
0,00 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent All Employees 
 
$ '100,000.00 $ 100,000.00 
 
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 capita1leases for accounting purposes and therefore have been reported at the present value ofthe future minimum lease payments as ofthe date of their inception. 
 
CONTRACT - 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-Tenn Debt duriDg the fiscal year ended June 30, 1999, were as follows: 
 
- 16- 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
.NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Capital Leases 
 
Contract Cordele Office Building Authority 
 
Total 
 
Balance July 1, 1998 
 
$ 445,504.15 $ 4,670,000.00 $ 5,115,504.15 
 
Deductions Payments 
Balance June 30, 1999 
 
- 95.394.24 
$ 350,109.91 
 
220.000.00 $ 4.450,000.00 
 
315.394.24 $=4,800,109.91, 
 
At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
Capital Leases 
 
Contract Cordele Office Building Authority 
 
Total pebt 
 
2000 2001 2002 2003 2004 2005 - 2009 2010 - 2014 
Total Principal and Interest 
 
$ 118,228.20 118,228.20 118,228,20 29,557,05 
 
$ 545,182.50 554,992.50 552,982.50 554,742.50 554,917.50 
2,791,492.50 1,128,500.00 
 
$ 663,410.70 673,220.70 671,210.70 584,299.55 554,917.50 
2,791,492.50 1,128,500.00 
 
$ 384,241.65 $ 6,682,810.00 $ 7,067,051.65 
 
Deduct: Imputed Interest 
 
34,131.74 
 
Net Present Value ofFuture Minimum Lease Payments 
 
$ 350,109.91 
 
Note 6: LOANS PAYABLE 
 
At June 30, 1999, short-term debt (temporary loans) amount to $30,000.00. The aggregate amount of temporary loans is limited to 75 percent ofthe total gross income from taxes collected in the preceding year and all temporary loans must be repaid no later than December 31 ofthe calender year in which the loan was made. 
 
-17 - 
 
 CRISP COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 7: ON-BEHALF PAYMENTS 
The Board has recognized revenues and expenditures in the amount of $432,282.53 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 ofPersonnel Administration For Health Insurance of Non-Certified Personnel In the amount of$330,221.56 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (IRS) Employer's Cost In the amount of$21,668.97 
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 $80,392.00 
Note 8: CONTINGENT LIABILITIES 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. 
Note 9: ACCUMULATED EMPLoYEES' LEAVE 
The Board's administrative staffand certain other full-time employees earn ten days of annual leave each year. Annual leave may be accumulated to a maximum often days. Whilethe 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 
 
-18 - 
 
 CRISP COUNTy BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note 10: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System 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 ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir 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 11,95% 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% 
 
$ 2,025,629,82 $ 1,867,349.36 $ 1,714,427.78 
 
-19 - 
 
 CRISP COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET SPECIAL REVENUE FUND JUNE 30,1999 
 
EXHIBIT "E" 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTIERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS JUNE 30, 1999 JUNE 30,1998 
 
$ 311,237.81 $ 117,019,25 $ 
 
97,399.72 $ 525,656,78 $ 563,074.04 
 
265,340,86 
 
265,340,86 
 
250,000,00 
 
14,865,60 
 
273,138.00 
 
288,003,60 
 
301,23927 
 
64,776.07 28,101.52 
 
64,776,07 28,101,52 
 
51,272,55 21,405.71 
 
Total Assets 
 
$ 684,321.86 $ 117,019,25 $ 370,537,72 $ 1,171,878.83 $ 1,186,991.57 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Accounts Payable 
 
$ 
 
Salaries Payable 
 
Expired Grant Balances Payable 
 
Total Uabilities 
 
$ 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For Continuation of Federal Programs 
 
For Inventories 
 
Food 
 
Donated Commodities 
 
$ 
 
Purchased Food 
 
Unreserved 
 
Undesignated 
 
Total Fund Equity 
 
$ 
 
53,034,67 $ 67,543,41 120,578,08 $ 
64,776,07 28,101.52 470,866,19 $ 563,743.78 $ 
 
39,857,37 $ 77,161,88 117,019,25 $ 
$ 
0.00 0.00 $ 
 
117,143,31 $ 195,043,75 312,187.06 $ 
58,350,66 $ 
0,00 58,350.66 $ 
 
210,035.35 $ 339,749.04 
549,784,39 $ 
58,350,66 $ 64,776,07 28,101,52 470,866,19 622,094,44 $ 
 
225,934,97 316,106,25 22,102,24 564,143,46 
93,279,95 
51,272.55 21,405,71 456,889.90 622,848.11 
 
Total Uabilities and Fund Equity $ 684,321,86 $ 117,019.25 $ 370,537.72 $ 1,171,878,83 $ 1,186,991,57 
 
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 FUND YEAR ENDED JUNE 30.1999 
 
EXHIBIT"P 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTIERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS YEAR ENDED JUNE 30,1999 JUNE 30,1998 
 
REVENUES 
 
State Funds Federal Funds Other Funds 
 
$ 126,728.00 $ 1,336,671.21 356,322.79 
 
787,914.59 $ 1,260,576.00 $ 2,175,218.59 $ 2,062,610.51 
 
2,233,332.33 3,570,003.54 3,433,690.05 
 
356,322.79 
 
355,884.68 
 
Total Revenues 
 
$ 1,819,722.00 $ 787,914.59 $ 3,493,908.33 $ 6,101,544.92 $ 5,852,185.24 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
 
$ 617,454.92 $ 2,488,273.34 $ 3,105,72826 $ 2,833,509.83 
 
$ 1,805,745.71 
 
89,119.83 
16,093.92 50,127.80 15,541.55 
 
512,192.19 326,768.81 122,071.74 
17,513.31 20,361.95 46,565.49 
 
601,312.02 326,768.81 122,071.74 
16,093.92 67,641.11 35,903.50 46,565.49 1,805,745.71 
 
626,029.19 366,816.64 112,634.59 
15,345.09 63,652.70 28,208.88 66,799.96 1,694,425.93 
 
Total Expenditures 
 
$ 1,805,745.71 $ 788,338.02 $ 3,533,746.83 $ 6,127,830.56 $ 5,807,422.81 
 
Excess of Revenues over (under) Expenditures 
 
$ 13,97629 $ 
 
-423.43 $ -39,838.SO $ -26,285.64 $ 44,762.43 
 
OTHER FINANCING SOURCES 
 
Operating Transfers In 
 
423.43 
 
4,909.21 
 
5,332.64 
 
15,455.71 
 
Excess of Revenues and Other Financing Sources 
 
over (under) expenditures 
 
$ 
 
13,976.29 $ 
 
0.00 $ -34,929.29 $ -20,953.00 $ 60,218.14 
 
FUND BALANCE JULY 1 
 
529,568.16 
 
0.00 
 
93,279.95 
 
622,848.11 
 
535,578.65 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
6,695.81 13,503.52 
 
6,695.81 13,503.52 
 
21,523.17 5,528.15 
 
FUND BALANCE JUNE 30 
 
$ 563,743.78 $ 
 
0.00 $ 58.350.66 $ 622,094.44 $ 622,848.11 
 
See notes to the general purpose financial statements. 
 
-21 - 
 
 CRISP COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1999 
 
EXHIBIT"G" 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
 
REGULAR 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
SPECIAL PURPOSE LOCAL OPTION 
SALES TAX 
 
TOTALS JUNE 30,1999 JUNE 30,1998 
 
$ 42,404.57 
 
$ 912,120.53 $ 954.525.10 $ 513,001.77 
 
310.065,41 
 
310,065.41 
 
$ 
 
44,628.83 
 
484.760.85 
 
529,389.68 
 
483,504.97 
 
Total Assets 
 
$ 42,404.57 $ 
 
44,628.83 $ 1,706,946.79 $ 1,793.980.19 $ 996.506.74 
 
LIABILITIES AND FUND EqUITY 
 
LIABILITIES 
 
Cash Overdraft Accounts Payable Retainages Payable 
 
Total Liabilities 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For SPLOST Projects 
 
Unreserved 
 
Undesignated 
 
$ 
 
Total Fund Equity 
 
$ 
 
$ $ 
42.404.57 $ 42,404.57 $ 
 
44,628.83 $ 
44,628.83 $ 
 
$ 221,230,43 
221,230.43 $ 
 
44.628.83 $ 221,230.43 
265,859.26 $ 
 
41,879,28 323.533.72 
2,749.55 
368,162.55 
 
$ 1,485,716.36 $ 1,485,716,36 $ 
 
0.00 
 
0.00 
 
42,404.57 
 
0.00 $ 1,485,716.36 $ 1,528,120.93 $ 
 
573,364.17 54,980.02 
628,344.19 
 
Total Liabilities and Fund Equity $ 42.404.57 $ 
 
44,628.83 $ 1.706,946.79 $ 1.793,980.19 $ 996.506.74 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 see notes to the general purpose financial statements. 
-23- 
 
 CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 1999 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
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 
 
* 10.553 * 10.555 
 
Total Child Nutrition Cluster 
 
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 
 
10.550 
 
Total U. S. Department of Agriculture 
 
Education, U. S, Department of Spedal Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Ad. Part B - Spedal Education Flow Through 1999 Grant Preschool 1999 Grant Capacity Building Improvement Grant 1999 Grant severely Emotionally Disturbed 1999 Grant 
 
84.027 84.173 84.173 84.027 
 
Total Spedal Education Cluster 
 
Other Programs 
 
Direct 
 
Impact Aid 
 
1999 Grant 
 
84.041 
 
Pass-Through From Georgia Department of Education 
 
Elementary and secondary Education Ad. 
 
Titie I 
 
Grants to Local Educational Agendes 
 
1999 Grant 
 
* 84.010 
 
Title II 
 
Eisenhower Professional Development 
 
1998 Grant 
 
84.281 
 
1999 Grant 
 
84.281 
 
TitieVI 
 
Innovative Education Program Strategies 
 
1999 Grant 
 
84.298 
 
Goals 2000 
 
State and Local Education Systemic Improvement Grants 
 
1998 Grant 
 
84.276 
 
1999 Grant 
 
84.276 
 
Safe and Drug-Free Schools 
 
1999 Grant 
 
84.186 
 
-24- 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
NlA $ NlA 
$ 
NlA $ 
NlA $ N1A NlA N1A 
$ 
NlA NlA N1A NlA NlA NlA NlA 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
275,552.07 971,441.86 $ 1,246,993.93 $ 
 
(2) 1,716,068.43 (3) 1,716,068.43 
 
89,6n.28 1,336,671.21 $ 
 
89,677.28 1,805,745.71 
 
264,021.00 $ 165,937.28 
12,684.00 132,016.00 574,658.28 $ 
 
248,992.81 165,937.28 (6) 
8,043.66 132,016.00 554,989.75 
 
18,769.04 
 
(5) 
 
1,323,032.00 
25,393.00 39,226.00 30,000.00 150,000.00 26,576.00 
 
1,308,618.80 
6,517.22 25,346.91 
39,226.00 
115,998.16 149,826.58 
25,335.15 
 
 CRISP 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 Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant 
Total U. S. Department of Education 
Labor, U. S. Department of Pass-Through From Flint River Regional Development Center Job Training Partnership Act 
Defense, U. S. Department of Direct Department of the Anny R.O.T.C. Program 
 
CFDA NUMBER 
 
PASS THROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
84.048 
 
N1A $ $ 
 
58,736.00 $ 2,246.390.32 $ 
 
61,077.16 (3) 2,286,935.73 
 
17.250 
 
N1A $ 
 
5.711.05 $ 
 
5.711.05 
 
$ 
 
46,954.80 
 
(4) 
 
Total Federal Financial Assistance 
 
$ 3,635.727.38 $ 
 
N1A = Not Available 
 
Notes to the Schedule of Expenditures of Federal Awards 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the QJrrent fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are induded in the 1999 National School Lunch Program. 
(3) .Expenditures for this program indude State. and/or Other Funds. Expenditures are not maintained by fund source. 
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures. 
(6) Indudes Federal Assistance of $165.937.28 provided to subrecipients. 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
The accompanying schedule of expenditures of Federal awards indudes the Federal grant activity of the Crisp County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used In the presentation of the general purpose financial statements. 
 
4,098,392.49 
 
See notes to the general purpose financial statements. 
 
-25- 
 
  CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 1999 
 
SCHEDULE w3w 
 
PROJECT 
The repayment of all principal and interest coming due April 1, 1998, and thereafter the general obligation debt evidenced by the intergovemmental Contract, dated as of July 1, 1991, between the Crisp County School District and the Cordele Office Building Authority in the sum of $6,454,454.00 
The exercise of purchase options under existing lease contracts for middle school E-Wing heating/cooling system, lights, ceiling, and softball fieldltennis courts at the high school in the sum of $615,247.00 
Funding of additional projects in the sum of $9,430,299.00, the remaining balance of the projected revenues, to indude renovations and modemization's of the auditorium and gymnasium buildings at Crisp County Middle School and A. S. Clark Elementary School; improvement of driveways, parking areas, .and drainage at auditoriums, schools, bus shop, and warehouses; replacement of wom out and inefficient heating/cooling units, re-roofing, renovations, improvements, minor additions and equipping of existing schools of the Crisp County School System, bus shop, bus ramps and canopies; expand security and electronic surveillance systems for the high school and middle school; provide metal storage bam for agriculture program; provide minimum of 3 networked computers for each dassroom in the school system to indude all wiring, fixtures, other 
technology; replace woni out desks and 
. chairs; purchase of maintenance and supply warehouse and acquisition of all property; modemize or replace underground fuel storage tanks at bus shop, replacement of press box, lights, poles, and replacement and expansion of bleachers at the present football field; improve existing baseball, track and bank practice fields and facilities 
 
ORIGINAL ESTIMATED 
COST (1) 
 
$ 
 
6,454,454.00 $ 
 
CURRENT ESTIMATED COSTS (2) 
6,454,454,00 $ 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) 
 
AMOUNT EXPENDED IN PRIOR 
YEARS 
 
534,366.25 $ 368,366,60 
 
615,247.00 
 
615,247.00 
 
118,228.20 
 
118,228.20 
 
9,430,299.00 
 
9,430,299.00 
 
1,340,755.54 
 
862,920.09 
 
$ 
 
16,500,000.00 $ 
 
16,500,000.00 $ 
 
1,993,349.99 $ 1,349,514.89 
 
(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 projects. Indudes all cost from project inception to completion. 
(3) The voters of Crisp County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may indude sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. 
 
See notes to the general purpose financial statements. 
 
-27 - 
 
 CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30,1999 
 
SCHEDULE "4" 
 
EXPENDITURES 
 
ASSISTIVE TECHNOLOGY 
 
COMPUTERS IN THE 
CLASSROOMS 
 
PRE-KINDERGARTEN PROGRAM 
 
Current 
 
Instruction 
 
$ 
 
Support Services 
 
Pupil Services 
 
School Administration 
 
Maintenance and Operation of Plant 
 
Student Transportation Services 
 
7.967,59 $ 
 
88.399,00 $ 
 
521.088.33 $ 
89,119,83 16,093,92 50,127,80 15.541.55 
 
TOTAL 
617,454.92 
89.119,83 16,093.92 50,127,80 15,541.55 
 
Total Expenditures 
 
$ 
 
7,967,59 $ 
 
88,399.00 $ 
 
691,971.43 $ _ .....7._88~.3_3_8_.0_2 
 
RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classrooms Pre-Kindergarten Program 
 
$ 
 
635,582,95 
 
7,967,59 88.399,00 56,388.48 
 
$ 
 
788.338,02 
 
See notes to the general purpose financial statements, 
 
-28- 
 
 CRISP 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 
 
$ 
 
12,576,423.00 $ 
 
4.;..;;.0-,-,1,,,-73~3..;.;;;'0...;..0 
 
$ 
 
13,188,798.88 
 
601,529.50 $ _ _....;;..51.;..;5;.:.,4.;..;6;.;;.9..;.;..7.;;..9 
 
$ 
 
13,790,328.38 
 
-117,664.45 $ _---=1~3!=:,6.:.:72::.z.;,6~6~3.:.:.93=_ 
 
$ 
 
0.00 $======0=,0=0 
 
See notes to the general purpose financial statements, - 29 - 
 
 CRISP 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 r) Grades 1 - 3 r) 
Sub-Total - K-3 Grades 4  5 (*) Grades 6  8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) 
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS 
Regular Programs ~tegoryll r) Category III r) Category IV r) Sub-Total- Regular Category VI (Gifted) r) 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 
 
$ 1,064,612.00 
 
$ 
 
958,150.80 $ 
 
0.00 
 
2,812,720.00 
 
2,531,448.00 
 
$ 3,877,332.00 90 $ 3,489,598.80 $ 
 
0.00 
 
1,133,749.00 90 
 
1,020,374.10 
 
2,196,955.00 90 
 
1,977,259.50 
 
1,250,751.00 90 
 
1,125,675.90 
 
651,608.00 90 
 
586,447.20 
 
851,885.00 90 
 
766,696.50 
 
$ 9,962,280.00 
 
$ 8,966,052.00 $ 
 
0.00 
 
$ 1,748,454.00 
 
$ 1,573,608.60 $ 
 
0,00 
 
$ 1,748,454,00 90 $ 1,573,608.60 $ 
 
0.00 
 
121,260.00 90 
 
109,134.00 
 
$ 1,869,714.00 
 
$ 1,682,742.60 $ 
 
0.00 
 
$ 
 
324,371.00 90 $ 
 
291,933.90 $ 
 
0.00 
 
$ 12,156,365,00 
 
$ 10,940,728.50 $ 
 
0.00 
 
$ 
 
334,242,00 90 $ 
 
300,817,80 $ 
 
0,00 
 
85,816.00 100 
 
85,816.00 
 
$ 
 
420,058.00 
 
$ 
 
386,633.80 $ 
 
0.00 
 
$ 12,576,423.00 
 
$ 11,327,362,30 $ 
 
0.00 
 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development Programs 
r) Identifies Fourteen Weighted Programs, 
See notes to the general purpose financial statements. 
 
$ 
 
36,771.00 
 
79,809.00 
 
$ 
 
36,771.00 $ 
 
79,809.00 
 
$ 
 
116,580.00 100 $ 
 
116,580.00 $ 
 
0.00 0.00 
0;,;,;,0.0. 
 
 30 - 
 
 SCHEDULE "6" 
 
EDUCATION TOTAL 
REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
958.150.80 $ 1.053.091.71 $ 
 
22,592.28 $ 1.075,683.99 
 
2.531.448.00 
 
2,855,794.16 
 
92.565.86 
 
2.948.360.02 
 
$ 3,489.598.80 $ 3.908,885.87 $ 
 
115.158.14 $ 4.024.044.01 $ 
 
0.00 
 
1,020.374.10 
 
1.565.393.43 
 
39,761.60 
 
1.605,155.03 
 
0.00 
 
1.977.259.50 
 
2.158.788.24 
 
67.686.84 
 
2,226,475.08 
 
0.00 
 
1.125.675.90 
 
1,687,929.25 
 
146.188.61 
 
1.834.117.86 
 
0.00 
 
586,447.20 
 
568,950.49 
 
27,697.97 
 
596,648.46 
 
0.00 
 
766.696.50 
 
713.304.93 
 
69,558.91 
 
782.863.84 
 
0.00 
 
$ 8.966.052.00 $ 10.603.252.21 $ 
 
466.052.07 $ 11.069.304.28 
 
$ 1.573.608.60 $ 
 
575,119.47 $ 893.060.34 248,892.52 
 
12.801.46 $ 19,211.32 3,787.51 
 
587,920.93 912,271.66 252.680.03 
 
$ 1.573.608.60 $ 1,717,072.33 $ 
 
35.800.29 $ 1,752.872.62 
 
0.00 
 
109.134.00 
 
125,063.37 
 
4,550.96 
 
129,614.33 
 
0.00 
 
$ 1,682,742.60 $ 1,842,135.70 $ 
 
40,351.25 $ 1,882.486.95 
 
$ 
 
291,933.90 $ 
 
291,748.23 $ 
 
9.066.47 $ 
 
300,814.70 
 
0.00 
 
$ 10,940,728.50 $ 12,737.136.14 $ 
 
515,469.79 $ 13,252,605.93 
 
$ 
 
300,817.80 $ 
 
85.816.00 
 
$ 
 
386.633.80 $ 
 
451,662.74 
 
$ 
 
$ _ _.;;.86~,O~5;.;:;9.;.;..7~1 
 
451,662.74 86,059.71 
 
451,662.74 $ 
 
86,059.71 $_--.;;5;.;:;,37,,",.7~22;;;;;..;.4~5 
 
$ 11,327.362.30 $ 13.188,798.88 $ 
 
601.529.50 $ 13,790,328.38 $ 
 
0.00 0.00 
0.0..0. 
 
$ 
 
36,771.00 
 
79.809.00 
 
$ _....1..1.65..8.0...0..0. 
 
$ 
 
50.270.00 $ 
 
50,270.00 
 
70.396.22 
 
70.396.22 
 
$ 
 
120.666.22 $ 
 
120.666.22 $ 
 
 31  
 
0.0..0. 
 
 SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
May 5,2000 
 
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 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 Crisp County Board ofEducation as of and for the year ended June 30, 1999, and have issued our report thereon dated May 5, 2000. This report was qualified for a scope limitation and for various ~epartures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditin~ Standards. issued by the Comptroller General of the United States. 
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
Compliance 
As part of obtaining reasonable assurance about whether Crisp County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits 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 ofour 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 Auditin~ Standards. 
 
99YB-40 
 
 Internal Control Over Financial RtWorting 
In planning and performing our audit, we considered Crisp County Board ofEducation's internal control over . financial reporting in order to detennine 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 that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgement, could adversely affect Crisp County Board of Education'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-6401-99-01 and FS-6401-99-03. 
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 nonnal course ofperforming 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, ofthe reportable conditions described above, item FS-6401-99-03 is also considered to be a material weakness. 
This report is intended solely for the infonnation and use ofmanagement, members ofthe Crisp County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
 
RWH:jb 99YB-40 
 
R sell W. Hinton State Auditor 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
MayS, 2000 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members of the 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-I 33 
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-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. (::risp 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-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 hav:e 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 ofEducation'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 Crisp County Board ofEducation's compliance with those requirements. 
 
99SA-30 
 
 In our opinion, the Crisp County Board ofEducation 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 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-133. 
We noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgement, could adversely affect the Crisp County Board ofEducation's ability to administer a major Federal program in accordance with applicable requirements of laws, regulations, contracts and grants. A reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FA-6401-9901. 
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 oflaws, 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. Our consideration of the internal control over compliance 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 do not believe the reportable condition described above is a material weakness. 
This report is intended solely for the information and use ofmanagement, members ofthe Crisp County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. . 
Respectfully submitted, 
 
RWH:jb 99SA-30 
 
Russell W. Hinton State Auditor 
 
 SECTION ill 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 QUESTIONED CoSTS YEAR ENDED ruNE 30. 1999 
 
PRIOR YEAR FINANCIAL STATEMENTFINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-6401-97-01 FS-6401-97-03 FS-6401-98-01 FS-6401-98-02 FS-6401-98-03 
 
Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTIONIRESPONSES 
 
CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Separation ofDuties Finding Control Number: FS-6401-98-01 
 
We concurwith this finding; however, due to current budgetary constraints, the Board is unable to hire the additional staffrequired to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number ofpersonnel available to perfonn the accounting functions. With staff limitations this finding cannot be totally resolved. 
 
GENERAL LEDGER Outstanding Loan Finding Control Number: FS-6401-98-02 
 
This condition occurred due to an oversight on our part. We are aware ofthe requirement that loans are payable on or before December 31 ofthe calendar year in which such loan is made. In the future loans will be made in conformity with constitutional limitations. 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-640l-98-03 
 
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 FlNDINGS AND QUESTIONED COSTS 
 
 CRISP COUNTy BOARD OF EDUCATION 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1999 
 
I SUMMARy OF AUDITOR'S RESULTS 
 
1. Type ofRe.port Issued on the Financial Statements The auditor's opinion on the Crisp County Board of Education's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles. 
 
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Crisp County Board of Education disclosed financial statement reportable conditions related to the following control categories. 
 
Cash and Cash Equivalents General Fixed Assets 
 
General Ledger 
 
Of the reportable conditions described above, general fixed assets is considered to be a material weakness. 
 
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. Re.portable Conditions in Internal Control Over Major Programs The audit report for the Crisp County Board ofEducation disclosed a reportable condition in internal control over major'programs for the following compliance requirement. 
 
Cash Management 
 
The reportable condition described above is not considered to be a material weakness. 
 
5. 1J!pe ofRswort Issued on Compliance for MWor 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 Req.uired to be IWported by Section .510(a) ofOMB Circular A-133 The Crisp County Board ofEducation's audit disclosed an audit finding required to be reported by section .5lO(a) ofOMB Circular A-133. This audit finding is included in section IV ofthis report. 
 
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program . 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 
 
8. !)!pe "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
 
- 1- 
 
 CRISP COUNTY BOARD OF EDUCATION 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999 
 
I SUMMARy OF AUDITOR'S RESULTS 
 
9. Low Risk Auditee The Crisp COWlty Board ofEducation did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. 
 
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Separation of Duties Report....ble Condition Repeated From Prior Year Finding Control Number: FS-6401-99-01 
 
The Crisp County Board of Education did not provide for adequate separation of duties in the perfonnance of accoWlting functions and related procedures. The following deficiencies were noted: 
 
(1) Bank reconcjliations are reconciled by someone 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 ofmanagement's decision to limit the number of administrative staffmade responsible for accounting functionS. Management should periodically review this decision to determine if employees can be reassigned to achieve a higher degree ofinternal controls with existing staff, 
 
Management's Response: 
 
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 ofpersonnel available to perfonn the accounting functions. With staff limitations this finding cannot be totally resolved. 
 
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6401-99-02 
 
On December 31, 1998, the General Fund had an unpaid loan outstanding in the amount of $30,000.00. Article IX, Section V, Paragraph V ofthe Constitution of the State of Georgia provides, in part, as follows: 
 
-2- 
 
 CRISP COUNTy BOARD OF EDUCATION 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1999 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6401-99-02 
 
"The governing authority of any county, municipality, or other political subdivision ofthis 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 constitutional limitations. 
 
. 
 
Management's Response: 
 
This condition occurred due to an oversight on our part. We are aware of the requirement that loans are payable on or before December 31 of the calendar year in which such loan is made. In the future loans will be made in conformity with constitutional limitations. 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6401-99-03 
 
The Crisp County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. The 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 of all additions and deletions to the General Fixed Assets Account Group. 
 
Management's Response: 
 
We concur with this finding. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not pursue the recording ofgeneral fixed assets on the financial statements. 
 
-3- 
 
 CRISP COUNTy BOARD OF EDUCATION 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
CASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-~401-99-01 A review of cash management procedures for the Elementary and Secondary Education Act - Title I, Grants to Local Educational Agencies (CFDA 84.010) program disclosed the cash draws utilizing the computerized DE Form 0147, "Monthly Report ofExpenditures and Estimated Requirements for Grant Funds/Lotus Notes", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. The Title I program maintained excessive ending monthly cash balances in nine months and had an excessive average monthly cash balance. Internal controls should be implemented to ensure that the Board minimizes the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Board. Management's Response: We concur with this finding. Procedures have been put into place to monitor cash needs prior to completing the DE Form 0147 "Monthly Report of Expenditures and Estimated Requirements for Grant Funds/Lotus Notes". 
-4-