Audit report, Dodge County Board of Education, Eastman, Georgia, year ended June 30, 1998

AUDIT REPORT DODGE COUNTY BOARD OF EDUCATION
EASTMAN, GEORGIA YEAR ENDED JUNE 30, 1998

DODGE COUNTy BOARD OF EDUCATION -TABLE OF CONTENTS -

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

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

17

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

18

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

19

3 SCHEDULE OF STATE REVENUE

21

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

22

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

23

6

BY PROGRAM

24

DODGE cmJNTy BOARD OF ErnICATIQN
- TABLE OF CONTENTS _
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 GQYERNMF.NT AIIDlTING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB ClRCULARA-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 22, 1999

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

98ARL-13B

* School activity accounts maintained at the individual schools are not included in the general p1lIJlose
financial statements. To confono to generally accepted accounting principles, these accounts should be included in the general p1lIJlose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30,1998, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. To confono 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 p1lIJlose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general p1lIJlose financial statements of the matters referred to in the preceding paragraph, the general p1lIJlose financial statements referred to above present fairly, in all material respects, the financial position of the Dodge County Board of Education as of June 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated June 22, 1999, on our consideration of the Dodge County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
The year 2000 supplementary infonoation on Schedule "1" is not a required part of the basic financial statements but is supplementary infonoation required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation ofthe supplementary information. However we did not audit the infonoation and do not express an opinion on it. In addition, we do not provide assurance that Dodge County Board of Education is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Dodge County Board of Education does business are or will become year 2000 compliant.
Our audit was perfonoed for the p1lIJlose of forming an opinion on the general purpose financial statements of the Dodge County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 2 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments. and Non-Profit Organizations. are presented for p1lIJloses of additional analysis and are not a required part of the general p1lIJlose financial statements. Such infonoation has been subjected to the auditing procedures applied in the audit of the general p1lIJlose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such infonoation is fairly presented in all material respects in relation to the general p1lIJlose financial statements taken as a Whole.
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 of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.

RWH:gp 98ARL-13B

Respectfully submitted,
Sf~tJ.~~ State Auditor

DODGE CmJNTY BOARD OF EDUCATION

DODGE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 1998

EXHIBIT "A"

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

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

$ 846,540.89

$ 323,622.60 $ 1,170,163.49 $ 2,133,552.34

750,000.00

750,000.00

164,364.34 $ 662,102.63

646,466,97

145,736.19

16,593.54 12,986.35

16,593.54 12,986.35

23,463.54 10,814.76

Total Assets

$ 1,760,905.23 $ 691,682.52 $ 323.622.60 $ 2,796,210.35 $ 2.313,566.83

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Selaries Payable
Total Liabilities
FUND EQUITY

$ 69,033.01

$ 48,321.26

67,020.09

246,960.97

$ 48,321.26 $ 383,014.07

$

69,033.01

115,341.35 $ 239,764.66

246,960.97

231,132.48

$ 431.335.33 $ 470,917.14

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

$ 18,765.48 $ 35,059.90

$

18,765.48 $

19,680.72

35,059.90

268.31

16,593.54 12,986.35

16,593.54 12,966.35

23,463.54 10,614.76

1,713,818.49 244,028.66 $ 323,622.60

2,281,489.75

1,768.422.36

$ 1,732,583.97 $ 308,668.45 $ 323,622.60 $ 2,364,675.02 $ 1,642,649.69

Total Liabilities and Fund Equity

$ 1,780,905.23 $ 691,682.52 $ 323,622.60

2l96,21 0.35 $ 2,313,566.63

The notes to the general purpose financiel statements are an integral part of this stalement
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couNTY DQDGE

BOARD QF EDUCATIQN

CQMBINER STADEMENT QF REVENUES EXpENPiTURES AND CHANGES IN FUND BALANCES

ALl GQVERNMENTAL FUND lYPES

YEAR ENDED JUNE 30 1998

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PRQJECTS
FUND

TQTALS (Memorandum Only)
YEAR ENDED JUNE 30. 1998 JUNE 30. 1997

REVENUES

State Funds Federal Funds Taxes Other Funds

13.474.708.11 $ 871.856.29 $

38.434.33 2.473.121.08

2.531,806.00

145228.15

384.056.70

0.00 $ 14.346.564.40 $ 13.596.913.79

2.511.555.39

1.931.837.89

2.531.808.00

2.461.590.77

529.284.85

496.715.21

Total Revenues

$ 16.190.176.59 $ 3 729.034.05

0.00 $ 19.919.210.64 18.487.057.66

EXPENDiTURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration SchOOl Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support services Food Services Operation
capital Qutlay

$ 10.852.285.98
634,881.00 422.193.19 381.831.41 193.736.27 877.566.86
99.619.89 1.116.413.22 1.083.534.51
21.692.00

1.760.980.26
156.198.64 125.664.60 20,489.71
95.081.91 8.347.91 10.972.00 37,753.64 14.627.98 10.505.85 1.358.353.43

$ 12.613,266.24 $ 11.677.640.47

109.555.44

791.079.64 547.857.79 402.321.12 288.818.18 885.914.77 110.591.89 1.154,167.05 1.098.162.49 32,198.85 1.358.353.43 109.555.44

731.157.51 497.343.61 377.773.77 241,495.38 857.691.76
86.798.49 1,099,466.58 1.045,275.30
29,694.44 1.429.188.75
128.585.63

Total Expendllures Excess of Revenues OVer (under) expenditures

$ 15.683.754.33 $ 3.598.977.13

$ 505,422.26

130.056.92

109.555.44 $ 19,392.286.90 $ 18.202.311.69

-109.555.44

526.923.74 $ 264 745.97

QTHER FINANCING SOURCES IUSES)

Operating Transfers In Qperating Trans1ers Qut

$ -110.049.07

10.049.07 $ 100.000.00

110.049.07 $ 290.821.07

-110.049.07

-290.821.07

Total Other Financing Soun:es (Uses)

-110.049.07

10.049.07 $ 100.000.00 $

0.00 $

0.00

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

396.373.19 $ 140.105.99 $ -9.555.44

526.923.74 $ 284.745.97

FUND BALANCE JULY 1

1.336.210.78

173.260.87 333.178.04

1.642.649.69

1,556,829.81

Food InvenlOly - Net Change In Period Donated Commodities Purchased Food

-6.870.00 2.171.59

-6.870.00 2.171.59

-1.079.44 2153.35

FUND BALANCE JUNE 30

1.732.583.97

308.668.45 $ 323.622.60 $ 2.364.875.02 $ 1.842.649.69

The notes to the general purpose financial statements are an Integral part of this statement. -3-

DODGE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENPED JUNE 30 1998

EXHIBIT"C"

~

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

Stale Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 13,106,732.73 $ 13,474,706.11

73,000.00

38,434.33

2,190,000.00 2,531,806.00

76,505.00

145,228.15

15,446,237.73 $ 16,190,176.59

Current Instruction Support 8ervices Pupil 8ervices Improvement of Instructional Services Educational Media services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation services Other Support Services Food services Operation

11,046,717.73 $ 10,852,285.98

701,885.00 448,313.00 382,665.00 200,400.00 879,036.00
96,900.00 1,158,500.00 1,072,971.00
21,692.00

634,881.00 422,193.19 381,831.41 193,736.27 877,566.86 99,619.89 1,116,413.22 1,083,534.51
21,692.00

Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)

$ 16,008,879.73 $ 15,683,754.33 $ -562,842.00 $ 506,422.26

Other Souroes OlherUses

$ -100,000.00 $ -110,049.07

Total Other Financing Souroes (Uses)

$ -100,000.00 $ -110,049.07

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

-662,642.00 $

396,373.19

FUND BALANCE JULY 1 1997

1,334,834.39 1,336,210.78

Adjus1ments

321.28

FUNp BALANCE JUNE 30 1998

672,513.67 $ 1,732,583.97

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 938,621.40 $ 871,856.29 2,013,474.00 2,473,121.06

388,891.00

384,056.70

$ 3,320,986.40 $ 3,729,034.05

$ 1,502,806.40 $ 1,760,980.26

210,561.00 62,352.00 16,750.00
120,488.00
15,271.00 9,545.00 7,105.00 1,391,707.00

156,198.64 125,664.60 20,489.71 95,081.91
8,347.91 10,972.00 37,753.84 14,627.98 10,506.85 1,358,353.43

$ 3,336,585.40 $ 3,598,977.13

$ -15,599.00 $ 130,056.92

$

10,049.07

$

10,049.07

$ -15,599.00 $ 140,105.99

148,991.26

138,982.57

-34,278.30

$

99,113.96 $ 279,088.56

The notes 10 !he general purpose financial statements are an Integral part of Ihls statemenl -5-

DODGE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

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

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DODGE CillJNIY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note l' SUMMARY OF SIGNIFICANT ACCOUNTING POLICffiS
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental 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, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 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.

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DODGE CffiJNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note l' SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Dodge County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

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

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

Special Revenue
Fund

FUND BALANCE JULY I, 1997

$ 173,260.87

Adjustments Inventories - July 1, 1997 Food Donated Commodities Purchased Foods

-23,463.54 -10.814 76

Fund Balance July 1, 1997 (Budget Basis)

$ 138,982.57

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

140.105.99

FUND BALANCE JUNE 30, 1998 (Budget Basis)

$ 27908856

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DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

nJNE 30 1998

Note 1; SUMMARY OF SIGNlFlCANI ACCOUNTING POLICIES
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.
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 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 ofreturn 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 ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations ofother political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose
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DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998

Note 1; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Dodge County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on October 1, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Dodge County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

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

School ()perations

,U.2mills

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 of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

INTERFUND TRANSACTIONS

The Board has the following types ofinterfund 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.

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DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FlNANOAL STATEMENTS

JUNE 30 1998

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general pwpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results 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 of this data.
Note 2 DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCaA) 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 sha11 be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount ofdeposit insurance. OCaA 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 ofanyone ofor any combination of the following:
(1) Surety bond signed by a surety company duly qualified and anthorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance COlporation,
(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 ofthe counties or municipalities of the State ofGeorgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this pwpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary cOlporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm
- 11 -

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1998

Note 2' DEPOSITS

Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $3,966,459.12. 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 CateiOrv

Bank Balance

1

$ 300,000.00

2

3,666,459.12

3

000

Total

$ 3 966459.12

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 oftoss 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.

- 12-

DODGE COUNTY BOARD OF EDUCAIION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1998

Note 4' RISK MANAGEMENT

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

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

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

Beginning of Year Liabjlity

Claims and Changes in Estimates

Claims raid

End ofYear Liability

1997

$

000 $

852500 $

852500 $

000

1998

$

000 $

118000 $

118000 $

000

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December I, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Posjtion Covered

Superintendent Each Principal

$ 50,000.00 $ 5,000.00

Note 5' ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$293,835.14 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$231,443.39

-13 -

DODGE COUNTY BOARD OF EDUCATION

EXHlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1998

Note 5: ON-BEHALF PAYMENTS
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (IRS) Employer's Cost In the amount of$11,987.75
Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $50,404.00
Note 6' CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
NPte7' RET~NTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
IRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (IRS), which is a cost-sharing multiple employer defined benefit pension plan. IRS 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.
IRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by IRS are required by State statute to contribute 5% oftheir gross earnings to IRS. The Board makes monthly employer contributions to IRS at rates adopted by the IRS 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:

- 14-

POPGE COUNTy BOARD OF EDUCATION

EXHIBIT "P"

NOTES TO THE GENERAL nJRPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 7' RETIREMENT PLANS
Fiscal Year
1998 1997 1996

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,285,524.30 $ 1,199,062.69 $ 1,128,642.49

- 15-

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

EXHIBIT"E"

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

SCHOOL FOOD
SERVICES FUND

LOTIERY

FEDERAL

PROGRAMS PROGRAMS

TOTALS JUNE 30,1998 JUNE 30, 1997

$ 303,364.82 $ 76,156.28

$ 379,521.10 $ 314,901.91

550.52

29,141.00 $ 832,411.11

662,102.63

145,736.19

16,593.54 12,986.35

16,593.54 12,988.35

23,463.54 10,814.76

$ 333,495.23 $ 105,297.28 $ 632,411.11 $ 1,071,203.62 $ 494,916.40

LiABILITIES AND FUND EQUITY
LIABILITIES
Gash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For COntinuation of Federal Programs For Continuation of State Programs For Inventories Food Donated COmmodities Purchased Food Unreserved Undesignated
Total Fund Equity

$ 448,554.11 $

$ 10,777.49 $ 23,947.82

32,294.78

65,017.01

81,349.46 100,594.50

75,794.50 $ 105,297.28 $ 581,443.39 $

448,554.11 $ 67,020.09 246,950.97
762,535.17 $

$ 16,593.54 12,986.35
228,120.84 $
$ 257,700.73 $

$ 35,059.90 $

35,059.90 $

0.00

15,907.82

0.00 $ 50,967.72 $

16,593.54 12,986.35
244,028.68
308,668.45 $

9,342.51 81,180.54 231,132.48 321,655.53
268.31
23,483.54 10,814.76 138,714.26 173,260.87

Total Liabilities and Fund Equity

$ 333,495.23 $ 105,297.28 $ 632,411.11 $ 1,071,203.62 $ 494,916.40

See notes to the general purpose financial statements.

-16-

DODGE COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30 1998

EXHIBIT"P

REVENUES
Slale Funds Federal Funds Other Funds
Total Revenues
EXPENPITURES
Current Instruction Support Services Pupil Services Improvement of Instructional services Educational Media services General Administration School AdmilistratiOl1 Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support services Food Services Operation
Total Expenditures
Excess of Revenues over (under) expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Flnandng Sources over (under) expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOITERY

FEDERAL

PROGRAMS PROGRAMS

TOTALS YEAR ENDED JUNE 30,1998 JUNE 30, 1997

$ 101,294.00 $ 770,562.29

$

1,015,075.93

$ 1,458,045.13

339,746.45

348.00

43,962.25

871,856.29 $ 2,473,121.06
384,056.70

783,613.10 1,841,771.47
366,642.92

$ 1,456,116.38 $ 770,910.29 $ 1,502,007.38 $ 3,729,034.05 $ 2,992,027.49

648,381.70 $ 1,112,598.56 $ 1,760,980.28 $ 1,287,915.38

62,754.81

$ 1,358,353.43

5,232.56 8,347.91 10,972.00 18,253.84 7,284.85

73,443.83 125,664.60 20,489.71 89,849.35
19,500.00 7,343.13 10,506.85

156,198.64 125,664.60 20,489.71 95,081.91
8,347.91 10,972.00 37,753.84 14,627.98 10,506.85 1,356,353.43

128,917.49 69,862.48 16,914.34 72,720.18
27,563.97 20,118.65
8,752.44 1,429,188.75

$ 1,358,353.43 $ 781,227.67 $ 1,459,396.03 $ 3,598,977.13

3,061,753.68

97,762.95 $ -10,317.38 $ 42,811.35 $ 130,056.92 $ -69,726.19

10,049.07

$ 97,762.95 $ 164,636.19

-268.31 268.31

-6,870.00 2,171.59

10,049.07

42,611.35 $ 8,356.37

140,105.99 $ 173,260.87

-69,726.19 241,913.15

-6,870.00 2,171.59

-1,079.44 2,153.35

FUND BAlANCE JUNE 30

$ 257.700.73 $

0.00 $ 50,967.72 $ 308,668.45 $ 173,260.87

See notes to the general purpose financial statements.

-17-

DODGE COUNTY BOARD OF EDUCATION

SCHEDULE "1"

SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30 1998

At June 30, 1998, the Dodge County Board of Education had no outstanding contractual commitments for the pUIpose ofmaking 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.
ValidationfTesting 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 electrouic 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 ValidationfTesting Stage and the student record system was determined to be at the Assessment Stage.

See notes to the general pUIpose financial statements. - 18-

DODGE COUNTX BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED 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 National School Lunch Program 1998 Grant Food Disbibution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Direct ImpadAid Pass-Throu9h From Georgia Department of Education Elementary and Secondary Education Ad Tide I
Grants to Local Educational Agencies
1998 Grant Even Start
1998 Grant Tide II
Eisenhower Professional Development 1998 Grant
Tide VI Innovative Education Program Strategies 1998 Grant
Goals 2000 State and Local Systemic Improvement Grants 1998 Grant Technology Literacy Challenge Fund Grant 1998 Grant
Individuals with DisabDides Education Ad Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grant
Vocational Education - Basic Grants to Stales High School Program Basic Grant 1998 Grant
Pass-Through From Heart of Georgia Technicallnstitule Adult Education 1998 Grant
Tetal U. S. Department of Education

CFDA ~

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 10.555 10.550

NlA

$

270,447.39

(2)

N/A

666,369.65 $

1,260,094.54 (3)

N/A

78,258.89

78,258.89

$

1,015,075.93 $

1,358,353.43

64.041

$

1,264.91

(5)

64.010

N/A

64.213

NlA

64.281

N/A

64.298

NlA

64.276

N/A

64.318

N/A

661,362.80 $ 175,460.29

661,276.22 176,210.29 (3)

31,040.09

15,826.66

21,550.00

21,435.29

131,500.00 199,878.00

125,673.20 197,016.92

64.027

NlA

64.173

N/A

142,389.00 20,420.00

142,177.60 20,420.00

64.048 64.002

NlA

38,393.00

27,647.10

NlA

36,051.95

71,712.75 (3)

$

1,459,330.04 $

1,459,396.03

-19-

DODGE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1998

SCHEDULE 2

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ _ _..::3""7,,,,14,,,,9,,,,.42c:.

(4)

Total Federal Financial Assistance

$ 2,511,555.39 $

N/A = Not Available

Notes to the SChedule of Exoendjtures 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 current fiscal year.
(2) Expenditures for the School Breakfast Program --.. not maintained separately and are included in the 1998 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 --.. not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

Major Programs are identified by an asterisk (.) in front of the CFDA number.

The Board did not provide Federal Assistance to any Subredpienl.

The accompanying scheduie of expenditures of Federal awards indudes the Federal grant aclivily of the Dodge County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements.

2,817,749.46

see notes to the general purpose financial statements.

-20-

DODGE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1998

SCHEDULE "3"

AGENCYIFUNDING
GRANTS Community Affairs, Georgia Department of Govemo(s Emergency Funds (1) Local Assistance Grants
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Speciallnslructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other Slate Programs Ad Valorem Tax Adjustment Apprenticeship Program At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Program Student Records Teachers' Retirement Lottery Programs Instructional Technology Assistive Technology Classroom Technology Financial and Management Equipment
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

3,000.00

30,000.00

$

3,000.00

30,000.00

7,141,663.00 1,394,529.00
310,744.00 299,967.00 92,207.00 2,010,320.00
543,545.00 175,164.00
8,308.00 240,027.00 455,265.00
64,429.00 25,978.00 28,642.00 -867,395.00 991,415.00
$ 8,081.96
77,776.00 70,000.00 10,732.01 231,443.39 34,464.00 6,249.00 5,562.00 11,987.75

101,294.00

6,352.00 92,789.00 10,972.00

660,449.29

50,404.00

7,141,663.00 1,394,529.00
310,744.00 299,967.00
92,207.00 2,010,320.00
543,545.00 175,164.00
8,308.00 240,027.00 455,265.00
64,429.00 25,978.00 28,642.00 -867,395.00 991,415.00 101,294.00 8,081.96
77,776.00 70,000.00 10,732.01 231,443.39 34,464.00
6,249.00 5,562.00 11,987.75
6,352.00 92,789.00 10,972.00
660,449.29
50,404.00

$ 13;474,708.11 $

871,856.29 $ 14,346,564.40

(1) The purpose of the funds is to purchase books for North and South Dodge Elementary Schools.

See notes to the general purpose financial statements.

-21-

PODGE CQUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30 1998

SCHEDULE "4"

EXPENDITURES
Current Instrudion Support Services Pupil Services General Administration Sdlool Administration Business AdminIstration Maintenance and Operalion of P1anl Student Transportallon Services

FINANCIAL AND
MANAGEMENT EQUIPMENT

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PRE-KINDERGARTEN

PROGRAM

~

10,972.00

6,352.00 $

94,551.58 $

547,478.14
82,754.81 5,232.58 8,347.91
18,253.84 7,284.85

648,381.70
82,754.81 5,232.58 8,347.91 10,972.00 18,253.84 7.284.85

Total Expenditures

10,972.00

6,352.00

94,551.58

669.352.11

RECAP: Salaries and Benefits Pre-Kinclergarten Program Other expenditures Financial and Management Equipment Inslructlonal Technotogy Assislive Technology Classroom Technology Pre-Kindergarten Program

634,818.32
10,972.00
6,352.00 94,551.58 34,533.79

781,227.67

See notes to Ihe general purpose financial slalerTlents.

22

DODGE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS _ OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1998

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

$

9,146,903.00 $

251,490.00

$

9,619,564.62

438,794.62 $

$

10,058,359.24

379,961.36

-47,455.38

$

10,010,903.86

$

0.00 $

0.00

see notes to the general purpose financial statements. - 23 -

DODGE COUNTY BOARD OF EpUCATION ANALysIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS yEAR ENpED JUNE 30 1998

GENERAL ANp CAREER EDUCATION PROGRAMS Kindergarten (0) Grades 1 - 3 (0) Sub-Total K3 Grades4-5rl Grades 6 - 8 (*) Grades 9 - 12 (0) High School laboratories (0) VocaUonal Education Laboratories (*) Total Genem.1 and Career Education Programs
SPECIAL EDUCATION pROGRAMS Regular Programs cate90ry I (0) Category II r) Category III rl Category IV (*) Cate90ry V r> SutrTotal - Regular Category VI (Gifted) r> Total Special Education Programs
REMEDiAl EDUCATION PROGRAM Cl
Total Fourteen Weighted Programs MEOlA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

ORIGINAL ..JL.

REQUIRED ORIGINAL

MID-TERM

909,481.00 2,076,466.00 2,985,947,00 90
774,133.00 90 1,442,685.00 90
946,508.00 90 565,375.00 90 427,015,00 90 7,141,663.00

818,532.90 1,868,819,40 2,687,352.30
696,719.70 1,298,416.50
851,857.20 508,837.50 384,313.50 6,427,496.70

0.00 0.00
0.00

1,182,490.00

1,064,241.00 S

0.00

1,182,490.00 90 212,039.00 90
1,394,529.00 310,744.00 90
8,846,936.00

1,064,241.00 190,835.10
1,255,076,10 279,669.60
7,962,242.40

245,008.00 90 54,961.00 90
299,967.00

220,505.40 49,464.90
269,970.30

9,146.903.00

8,232,212.70 S

0.00
0.00 0.00 0.00
0.00 0.00
0.00

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

26,745.00 65,462.00

26,745.00 65,462.00

92,307.00 100 S

92,207.00 S

0.00 0.00
~O:;:;.O~O

- 24

SCHEDULE "6"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDrrURE
FOR REQUIRED ALLOTMENT

818.532.90

906,114.50

20.918.62

927.033.12

1,868,819.40

1,974,999.85

72,476.78

2.(l47,476.63

2,687,352.30

2,881,114.35

93,395.40

2,974,509,75

0.00

696,719.70

928.772.44

31,262.21

960,034.65

0.00

1,298,416.50

1.659,156.84

48,375.41

1,707,532.25

0.00

851,857.20

1,050,890.58

70.901.99

1,121,792.57

0.00

508,837.50

524,825.03

50,125.50

574,950.53

0.00

384.313.50

442,552.09

43,759.75

486,311.84

0.00

6,427,496.70

7,487,311.33

337,820.26

7,825,131.59

1,084,241.00

91.848.68 424,772.79 646,975.04
97,178.60 10,777.52

3.600.46 6.624.56 18,594.01 1,143.98
500.00

95,449.14 431,397.35 665,569.05
98,322.58 11,277.52

1,064,241.00

1.271,552.63

30,463.01

1,302,015.64

0.00

190,835.10

220,607.53

3,723.30

224.330.63

0.00

1.255,076.10

1,492,160.16

34.166.31

1.526,346.47

279,689.60

351,504.01

7,954.79

359,458.80

0.00

7 ,962,242.40

9,330,975.50

379,961.36

9,710,936.66

220,505.40

288,589.12

288.589.12

0.00

49,464.90

58,833.26

58,833.25

0.00

269,970.30

288.589.12

58.833.26

347,422.38

8.232.212.70 $ 9.619.564.62 $

438,794.62 $ 10,056,359.24 $

0.00

26,745.00 65.462.00
92,207.00

61,557.09 32,737.94
94,295.03

61.557.09 32,737.94
94,295.03 $,

....:i0:;:;.0~0

- 25

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 22, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Dodge 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 Dodge County Board of Education as ofand for the year ended June 30,1998, and have issued our report thereon dated June 22, 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 Dodge 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 offinancial 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 Dodge County Board ofEducation's intemal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fmancial 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 coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Dodge County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6541-98-01 and FS-6541-98-02.
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 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 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, all ofthe reportable conditions noted above are also considered to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members ofthe Dodge 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,
~0.~ Russell W. Hinton State Auditor
RWH:gp 98YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 22,1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Dodge County Board ofEducation
REPORT ON COMPLIANCE WITH REQUIREMENTS APPUCABLE TO EACH MNOR PROGRAM AND INTERNAL CONTROL OVER CQMPUANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Dodge 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 ofits major Federal programs for the year ended June 30, 1998. Dodge 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 ofits major Federal programs is the responsibility ofDodge County Board of Education's management. Our responsibility is to express an opinion on Dodge 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-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 Dodge County Board of Education'S compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dodge County Board of Education's compliance with those requirements.

98SA-IO

In our opinion, the Dodge County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1998.
Intemal Control Oyer Compliance
The management of Dodge 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 Dodge 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 of the intemal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members of the Dodge 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,
~.JRU).#~ Russell W. Hinton State Auditor
RWH:gp 98SA-IO

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

DODGE COlJNIY BOARD OF EDUCATION
AUPITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30 1998

PRIOR YEAR FINANCIAL STATEMENT FlNDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6451-93-03 FS-6451-97-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Account Group Finding Control Number: FS-6451-97-01

Our Board continues to discuss this issue occasionally but due to the size of the system and the limited amount of personnel, we have not done anything at this time.

SECTION IV FINDINGS AND QUESTIONED COSTS

DODGE COUNTY BOARD OF EDUCATION
SCHEPl!I.E OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED nINE 30 1998

SUMMARY OF AUDITOR'S RESULTS

1. Type QfReport Issued on the Financial Statements The auditQr's QpiniQn Qn the Dodge CQunty BQard QfEducatiQn's financial statements was qualified fQr variQUS departures from generally accepted accounting principles.

2. Reportable CQnditiQns in Internal Control Disclosed by the Audit Qethe Financial Statements The audit report fQr the DQdge CQunty BQard QfEducatiQn disclQsed financial statement repQrtable cQnditiQns related tQ the fQllQwing contrQI categQries.

Cash and Cash Equivalents Investments InventQries RevenueslReceivableslReceipts Procurement

ExpenditureslLiabilitieslDisbursements EmplQyee CQmpensatiQn General Ledger General Fixed Assets

All Qfthe repQrtable cQnditiQns described abQve are cQnsidered tQ be material weaknesses.

3. NQncQmpliance Material to the Financial Statements The audit Qf the DQdge CQunty BQard Qf EducatiQn disclQsed nQ instances Qf nQncQmpliance that were deemed tQ be material tQ the financial statements.

4. fumortable CQnditiQns in Internal CQntrQI Over Ml)jQr Programs The audit repQrt fQr the DQdge CQunty BQard QfEducatiQn did nQt disclQse any repQrtable conditiQns in internal cQntrol Qver majQr programs.

5. Type QfRepQrt Issued on Compliance for Major Proi'JIIDS The auditQr's QpiniQn Qn the DQdge CQunty BQard Qf Education's repQrt Qn compliance with requirements applicable tQ majQr prQgrams was unqualified.

6. Audit FjndiniS Required to be Reported by Section 510(a) QfOMB Circular A-B3 The Dodge CQunty BQard QfEducation's audit did nQt disclose audit findings required tQ be repQrted by sectiQn .510(a) QfOMB Circular A-B3.

7. Major ProlUlllllS Federal awards audited as majQr programs are as follQws: 10.553 FQQd and NutritiQn Program - FQQd Services - SchQQI Breakfast PrQgram 10.555 FQQd and NutritiQn Program - FQQd Services - NatiQnal SchQQI Lunch PrQgram

8. Type"A" Proi'JIID DQllar ThreshQld The dQllar threshQld fQr type "AU programs was $300,000.00.

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DODGE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED ruNE 30. 1998
SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee
The Dodge County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Deparnnent of Education.
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUNALENTS INVESTMENTS INVENTORIES REVENUESIRECEIVABLESIRECEIPTS PROCUREMENT EXPEND1IURESlLlABILITIES/DISBURSEMENIS EMPWYEE COMPENSATION GENERAL LEDGER Failure to Maintain Adequate Internal Controls Over the Accounting System Reportable Condition - Material Weakness Finding Control Number: FS-6451-98-01
The Dodge County Board ofEducation was selected as a pilot site for the new REGIS XXI accounting system which the Georgia Deparnnent of Education purchased and customized for board of education use. The Board implemented the new accounting system in January 1998. The REGIS XXI system did not provide for adequate internal controls over the Board's accounting records as follows:
Vendor names can be changed without creating a new Vendor Master Record.
Prior accounting periods can be reopened and accounting data can be changed after period end closing procedures have been performed.
Dodge County Board ofEducation's REGIS XXI system may display and alter information from other School Districts utilizing the same accounting system. Conversely, Dodge County Board ofEducation's accounting records may be displayed and altered from any location having access to the Georgia Deparnnent ofEducation's REGIS XXI network.
These conditions are a result ofthe REGIS XXI system's failure to adequately control the accounting records ofthe Board ofEducation. The Georgia Department ofEducation should review the REGIS XXI system to determine if controls can be implemented to prevent vendor name changes, prevent changes to closed-out accounting periods, and prohibit display and changes to accounting records by unauthorized individuals.
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DODGE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30 1998
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS 6451-98-02 The Dodge County Board ofEducation failed to 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 of a General Fixed Assets Account Group. Subsidiary records should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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