Audit report, Dodge County Board of Education, Eastman, Georgia, year ended June 30, 1999

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

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

ADDIDONAL 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 EXPENDITURES OF FEDERAL AWARDS

18

2 SCHEDULE OF STATE REVENUE

20

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

21

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

23

5

BYPROGRAM

24

DODGE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-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. HtNTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 10, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dodge County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Dodge County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the 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 Auditin~ 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 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.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

99ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were improperly recorded in the year ended June 30, 1999. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Dodge County Board of Education as of June 30, 1999, 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 April 10, 2000, on our consideration ofthe Dodge County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants.
Our audit was performed for the purpose 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 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
99ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~ mUl.~
~inton State Auditor
RWH:jb 99ARL-13

DODGECOUNTYBOARDOFEDUCATION

DODGE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1999

EXHIBIT"A"

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS {Memorandum Onl~} JUNE 30, 1999 JUNE 301 1998

$ 1,759,545.38 $ 349,662.80 $ 423,622.60 $ 2,532,830.78 $ 1,170,163.49

1,200,000.00

1,200,000.00

750,000.00

177,900.61

380,061.42

557,962.03

846,466.97

28,563.09 12,892.50

28,563.09 12,892.50

16,593.54 12,986.35

$ 3,137,445.99 $ 711i179.81 $ 423,622.60 $ 4,332,248.40 $ 2?96,210.35

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$ 753,012.63 $ 151,480.32 235,911.50
$ 753,012.63 $ 387,391.82

$ 38,852.44

28,563.09 12,892.50

$ 2,384,433.36

303,479.96 $

$ 2,384,433.36 $ 383l87.99 $

$ $ 904,492.95
235,911.50
$ 1,140,404.45 $

69,033.01 115,341.35 246,960.97
431,335.33

$

18,765.48

$

38,852.44

35,059.90

28,563.09 12,892.50

16,593.54 12,986.35

423,622.60

3, 111,535.92

2,281,469.75

423,622.60 $ 3,191,843.95 $ 2,364,875.02

Total Liabilities and Fund Equity

$ 3,137,445.99 $ 771,179.81 $ 423,622.60 $ 4,332,248.40 $ 2?96,210.35

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

DODGE QO!,!NTY BQARD QF EDUQATIQN COMBINED STATl:;MENT QF REVEN!.!ES, EXPENDITURES AND QHAN~ES IN F!,!ND BALANQES
ALL ~OVERNMENTAL F!,!ND TYPES YEAR ENDED JUNE 30, 1999

EXHIBIT"B"

REVENUES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS {Memorandum Onl:tl
YEAR ENDED JUNE 301 1999 JUNE 301 1998

State Funds Federal Funds Taxes Other Funds

$ 14,624,674.18 $ 743,169.26 $

78,478.65

2,469,891.97

2,749,518.27

167,806.54

361,275.08

0.00 $ 15,367,843.44 $ 14,346,564.40

2,548,370.62

2,511,555.39

2,749,518.27

2,531,806.00

529,081.62

529,284.85

Total Revenues

$ 17,620,477.64 $ 3,574,336.31 $

0.00 $ 21,194,813.95 $ 19,919,210.64

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 Outlay

$ 11,849,024.53 $ 1,413,308.67 $

729,006.35 476,806.74 419,245.14 234,924.61 952,332.74
84,282.25 1,025,337.47 1,075,976.42
21,692.00

188,824.74 190,287.46 24,994.01 107,412.87 23,231.48
47,623.41 21,061.30 10,730.99 1,483,617.54

0.00 $ 13,262,333.20 $ 12,613,266.24

917,831.09 667,094.20 444,239.15 342,337.48 975,564.22
84,282.25 1,072,960.88 1,097,037.72
32,422.99 1,483,617.54

791,079.64 547,857.79 402,321.12 288,818.18 885,914.77 110,591.89 1,154,167.06 1,098,162.49
32,198.85 1,358,3~3.43
109,555.44

Total Expenditures

$ 16,868,628.25 $ 3,511,092.47 $

0.00 $ 20,379,720.72 $ 19,392,286.90

Excess of Revenues over (under) Expenditures

$ 751,849.39 $ 63,243.84 $

0.00 $ 815,093.23 $ 526,923.74

QTHER FINANCING O!JRQE (!.!ES}

Operating Transfers In Operating Transfers Out

$ -100,000.00

$ 100,000.00 $ 100,000.00 $ 110,049.07

-100,000.00

-110,049.07

Total Other Financing Sources (Uses)

$ -100,000.00

$ 100,000.00 $

0.00 $

0.00

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

651,849.39 $

63,243.84 $ 100,000.00 $ 815,093.23 $ 526,923.74

F!.!ND BALANQE JULY 1

1,732,583.97

308,668.45

323,622.60

2,364,875.02

1,842,649.69

Food Inventory - Net Change in Period Donated Commodities Purchased Food

11,969.55 -93.85

11,969.55 -93.85

-6,870.00 2,171.59

F!JND BALANCE JUNE 30

$ 213841433.36 $ 383a787.99 $ 4231622.60 $ 311911843.95 $ 213641875.02

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 - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1999

EXHIBIT"C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1998
FUND BALANCE JUNE 30, 1999

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 14,109,202.91 $ 14,624,674.18

98,000.00

78,478.65

2,375,800.00 2,749,518.27

94,796.00

167,806.54

$ 16,677,798.91 $ 17,620,477.64

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 766,027.12 $ 743,169.26

2,294,090.91

2,469,891.97

395,600.00

361,275.08

$ 3,455,718.03 $ 3,574,336.31

$ 11,884,112.38 $ 11,849,024.53

732,851.71 476,516.60 412,294.45 271,941.18 944,606.43 102,179.19 1,153,013.02 1, 167,899.23
21,692.00

729,006.35 476,806.74 419,245.14 234,924.61 952,332.74
84,282.25 1,025,337.47 1,075,976.42
21,692.00

1,000.00

$ 17,168,106.19 $ 16,868,628.25

$ -490,307.28 $ 751,849.39

-100,000.00

-100,000.00

$ -590,307.28 $ 651,849.39
1,574,070.07 1,732,583.97

$ 983,762.79 $ 2,384,433.36

$ 1,419,231.48 $ 1,413,308.67

203,036.57 195,040.90 20,500.00 107,710.28
20,160.91

188,824.74 190,287.46 24,994.01 107,412.87 23,231.48

39,100.45 24,296.76 11,885.35 1,452,745.83

47,623.41 21,061.30 10,730.99 1,483,617.54

$ 3,493,708.53 $ 3,511,092.47

$

-37,990.50 $

63,243.84

$

-37,990.50 $

63,243.84

300,014.81

279,088.56

$ 262,024.31 $ 342,332.40

The notes to the general purpose financial statements are an integral part of this statement -5-

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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

-6-

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 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 ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

-7-

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: 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 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 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 1, 1998

$ 308,668.45

Adjustments Inventories - July 1, 1998 Food Donated Commodities Purchased Foods

-16,593.54 -12.986.35

Fund Balance July 1, 1998 (Budget Basis)

$ 279,088.56

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

63,243.84

FUND BALANCE JUNE 30, 1999 (Budget Basis)

$ 342.332.40

-8-

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
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 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 of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose
-9-

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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 1998 tax year (calendar year) on September 17, 1998 (levy date). Taxes were due on December 20, 1998. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Dodge County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1998 tax year (calendar year) for the Dodge County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

13.0 mills

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 of interfund transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

-10-

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position 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 (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent 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 of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates 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 ofthe State ofGeorgia,
(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 ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home

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DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS

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 $4,315,001.93. 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, 1999, as follows:

Risk Category

Bank Balance

1

$ 300,000.00

2

3,767,625.93

3

247,376.00

Total

$ 4.315.001.93

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.

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 ofthe past three years.

- 12 -

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 4: RISK MANAGEMENT

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

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

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

1998 1999

Beginning ofYear Liability

Claims and Changes in Estimates

$

0.00 $

l,18Q.Q0 $

$

Q.0Q $

Q,00 $

Claims Paid

End ofYear Liability

1,180.00 $

0.00

0.00 $

0.Q0

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 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:

Position Covered

Amount

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$313,153.29 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance of Non-Certified Personnel In the amount of$240,452.59

- 13 -

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 5: ON-BEHALF PAYMENTS
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$13,822.70
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 $58,878.00
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.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 7: 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 of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 14-

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 7: RETIREMENT PLANS
Fiscal Year
1999 1998 1997

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,400,736.38 $ 1,285,524.30 $ 1,199,062.69

- 15 -

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

EXHIBIT"E"

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1999 JUNE 30, 1998

$ 373,225.07 $ 119,120.51

$ 492,345.58 $ 379,521.10

15,246.01

$ 364,815.41

380,061.42

662,102.63

28,563.09 12,892.50

28,563.09 12,892.50

16,593.54 12,986.35

$ 429,926.67 $ 119,120.51 $ 364,815.41 $ 913,862.59 $ 1,071,203.62

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

$ 142,682.78 $

$ 25,758.90 $ 50,770.37

74,951.05

72,584.96

68,350.14

94,976.40

$ 98,343.86 $ 119,120.51 $ 312,610.23 $

$ 28,563.09 12,892.50
290,127.22 $
$ 331,582.81 $

$ 38,852.44 $

0.00 0.00 $

13,352.74 52,205.18 $

142,682.78 $ 151,480.32 235,911.50 530,074.60 $
38,852.44 $
28,563.09 12,892.50 303,479.96 383,787.99 $

448,554.11 67,020.09
246,960.97 762,535.17
35,059.90
16,593.54 12,986.35 244,028.66 308,668.45

Total Liabilities and Fund Equity

$ 429,926.67 $ 119,120.51 $ 364,815.41 $ 913,862.59 $ 1,071,203.62

See notes to the general purpose financial statements.

-16-

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

EXHIBIT "F"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services 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 Financing Sources over (under} Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ 105,110.00 $ 1,079,928.84 360,585.08

638,059.26

$ 743,169.26 $ 871,856.29

$ 1,389,963.13 2,469,891.97 2,473, 121.06

690.00

361,275.08

384,056.70

$ 1,545,623.92 $ 638,059.26 $ 1,390,653.13 $ 3,574,336.31 $ 3,729,034.05

$ 503,658.52 $ 909,650.15 $ 1,413,308.67 $ 1,760,980.26

$ 1,483,617.54

89,519.78
20.25 23,231.48 14,158.45
7,470.78

99,304.96 190,287.46 24,994.01 107,392.62
33,464.96 13,590.52 10,730.99

188,824.74 190,287.46 24,994.01 107,412.87 23,231.48
47,623.41 21,061.30 10,730.99 1,483,617.54

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

$ 1,483,617.54 $ 638,059.26 $ 1,389,415.67 $ 3,511,092.47 $ 3,598,977.13

$ 62,006.38 $

0.00 $

1,237.46 $ 63,243.84 $ 130,056.92

$ 62,006.38 $ 257,700.73
11,969.55 -93.85

10,049.07

0.00 $ 0.00

1,237.46 $ 50,967.72

63,243.84 $ 308,668.45

140,105.99 173,260.87

11,969.55 -93.85

-6,870.00 2,171.59

FUf::lD BALANCE JUNE 30

$ 331,582.81 $

0.00 $ 52,205.18 $ 383,787.99 $ 308,668.45

See notes to the general purpose financial statements.

-17-

DODGE COUNlY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Schoof Breakfast Program 1999 Grant National School Lunch Program 1999 Grant
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From U.S. Department of Defense Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture
Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs 1999 Grant
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1998 Grant 1999 Grant Preschool 1999 Grant Capacity Building Improvement Grant 1999 Grant
Total Special Education Cluster
~er Programs Direct Impact Aid 1999 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Even Start 1999 Grant Grants to Local Educational Agencies 1999 Grant Trtfeff Eisenhower Professional Development 1998 Grant 1999Grant Trtfeflf Technology Literacy Challenge Fund Grants 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 .
10.555

NIA

$

NIA

$

271,534.21
693,448.56 $ 964,982.77 $

(2) 1,368,671.47 (3) 1,368,671.47

10.550 10.550

NIA

82,009.07

82,009.07

NIA

32,937.00

32,937.00

$

1,079,928.84 $

1,483,617.54

94.004

NIA

$

20,000.00 $

15,245.11

84.027 84.027
84.173
84.173

NIA

$

NIA

NIA

NIA

$

-211.40
177,317.93 $
22,680.00
9,785.00
209,571.53 $

175,723.75 24,327.38 9,785.00
209,836.13

84.041

3,613.82

(5)

84.213

NIA

.

84.010

NIA

84.281

NIA

84.281

NIA

84.318

NIA

84.298

NIA

-18-

264,297.74 660,186.65
19,539.00
23,400.00

264,297.74 660,206.36
7,228.30
2,861.08 23,400.06

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

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Education, U.S. Department of Other Programs Pass-Through From Georgia Department of Education Goals 2000 State and Local Education Systemic Improvement Grants 1998 Grant 1999 Grant Vocational Education Basic Grants to States High School Program Basic Grant 1998 Grant 1999 Grant Tech-Prep Education 1999 Grant Pass-Through From Dodge County Housing Authority Adult Education 1999 Grant
Total U. S. Department of Education
Health and Human Services, U.S. Department of Pass-Through From Children and Youth Coordinating Council Abstinence Education Block Grant Pass-Through From Georgia Department of Human Resources Medical Assistance Program Family Connection Grant
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.276 84.276

N/A $ N/A

10,000.00 $ 150,000.00

15,826.80 148,704.54

84.048 84.048 84.243
84.002

NIA

1,052.77

NIA

33,577.00

33,577.00

N/A

5,000.00

5,000.00

NIA

14,179.81

17,424.89 (3)

$

1,393,365.55 $

1,389,415.67

93.235 93.778

NIA

$

NIA
$

5,264.81 $
12,500.00
17,764.81 $

11,315.19 (3)
27,583.21 (3) 38,898.40

$ _ _ _3;;;.;7..:.;,3:;..;1..;.1.;..;.4;;:;.2

Total Federal Financial Assistance

$

2,548,370.62 $

NIA = 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 current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1999 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were 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 Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dodge 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.

2,927,176.72

See notes to the general purpose financial statements.

-19-

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of 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 Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Records Teachers' Retirement Year 2000 Funding Lottery Programs Assistive Technology Computers in the Classroom
t;:tuman Resources, Georgia Department of Family Connection
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program Pass-Through Communities in Schools of Georgia, Inc. Communities in School Grants
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

10,000.00

$

10,000.00

7,701,923.00 1,559,802.00
375,589.00 332,568.00
89,661.00 2,094,330.00
550,858.00 177,517.00
7,284.00 259,606.00 417,204.00
91,981.00 114,056.00 30,223.00 28,842.00 -1,028,311.00 1,142,373.00
$ 7,516.00
75,000.00 7,785.40
240,452.59 5,000.00 6,900.00 486.00
41,340.00 5,426.51 2,531.25 13,822.70 15,348.00

105,110.00
6,524.12 67,596.00

17,306.73

563,939.14

58,878.00

7,701,923.00 1,559,802.00
375,589.00 332,568.00
89,661.00 2,094,330.00
550,858.00 177,517.00
7,284.00 259,606.00 417,204.00
91,981.00 114,056.00 30,223.00 28,842.00 -1,028,311.00 1,142,373.00 105,110.00
7,516.00
75,000.00 7,785.40
240,452.59 5,000.00 6,900.00 486.00
41,340.00 5,426.51 2,531.25
13,822.70 15,348.00
6,524.12 67,596.00
17,306.73
563,939.14
58,878.00

93,600.00 55,275.00
22,500.00

93,600.00 55,275.00
22,500.00

$ 14,624,674.18 $

743,169.26 $ 15,367,843.44

-20-

DODGE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS
YEAR ENDED JUNE 30. 1999

SCHEDULE "3"

EXPENDITURES

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

Current

Instruction

$

Support Services

Pupil Services

General Administration

School Administration

Maintenance and Operation of Plant

Student Transportation Services

6,524.12 $

67,596.00 $

429,538.40 $
89,519.78 20.25
23,231.48 14,158.45 7,470.78

TOTAL
503,658.52
89,519.78 20.25
23,231.48 14,158.45 7,470.78

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

$

6,524.12 $

67,596.00 $

563,939.14 $ ====6,,.38=,0==5=9==.2=6

$ 541,335.55
6,524.12 67,596.00 22,603.59

$ ====6=38=,0==5=9==.2=6

See notes to the general purpose financial statements.

-21 -

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

SCHEDULE "4"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

10,083,938.00 $

290,367.00

$

10,415,675.55

547,119.50 $ _ _ _4:.:.,7.=.,:0,.:.44.;.;:0.:.;.4.;.0

$

10,962,795.05

-51,469.96 $ _ ___;1c.;:;.o:.::.,9..:..11;.:,;,3=-=2:.;:;.5:.;:;.09~

$

o.oo $=====o=.o=o

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

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs category I (*) category 11 (*) Category Ill (*) Category IV (*)
category v (*)
Sub-Total - Regular Category VI (Gifted) (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM(*}
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 ....!2_

ORIGINAL

MID-TERM

$

896,896.00

$

807,206.40 $

2,314,302.00

2,082,871.80

$ 3,211,198.00 90 $ 2,890,078.20 $

900,298.00 90

810,268.20

1,560,567.00 90

1,404,510.30

1,029,752.00 90

926,TTS.80

562,839.00 90

506,555.10

437,269.00 90

393,542.10

$ 7,701,923.00

$ 6,931,730.70 $

14,056.00 14,056.00
14,056.00

$ 1,352,297.00

$ 1,217,067.30 $

100,000.00

$ 1,352,297.00 90 $ 1,217,067.30 $

207,505.00 90

186,754.50

$ 1,559,802.00

$ 1,403,821.80 $

$

375,589.00 90 $

338,030.10 $

$ 9,637,314.00

$ 8,673,582.60 $

100,000.00
100,000.00 0.00
114,056.00

$

266,947.00 90 $

240,252.30 $

0.00

65,621.00 100

65,621.00

$

332,568.00

$

305,873.30 $

0.00

$ 9,969,882.00

$ 8,979,455.90 $

114,056.00

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

$

28,2TT.OO

$

2s,2n.oo $

0.00

61,384.00

61,384.00

0.00

$

89,661.00 100 $

--==-- 89,661.00 $

0.00

24

SCHEDULE"5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

821,262.40 $

949,804.75 $

11,830.52 $

961,635.27

2,082,871.80

2,310,946.99

78,547.21

2,389,494.20

$ 2,904,134.20 $ 3,260,751.74 $

90,377.73 $ 3,351,129.47 $

0.00

810,268.20

926,623.55

20,738.52

947,362.07

0.00

1,404,510.30

1,707,541.98

58,669.71

1,766,211.69

0.00

926,776.80

1,050,764.52

112,432.79

1,163,197.31

0.00

506,555.10

637,567.59

71,330.02

708,897.61

0.00

393,542.10

522,054.69

70,573.98

592,628.67

0.00

$ 6,945,786.70 $ 8,105,304.07 $

424,122.75 $ 8,529,426.82

$ 1,317,067.30 $

101,012.85 $ 464,173.29 731,330.07
66,893.64 8,754.88

3,432.26 $ 16,671.09 18,126.11
394.62

104,445.11 480,844.38 749,456.18
67,288.26 8,754.88

$ 1,317,067.30 $ 1,372,164.73 $

38,624.08 $ 1,410,788.81

0.00

186,754.50

257,311.84

5,608.48

262,920.32

0.00

$ 1,503,821.80 $ 1,629,476.57 $

44,232.56 $ 1,673,709.13

$

338,030.10 $

373,536.05 $

2,085.09 $

375,621.14

0.00

$ 8,787,638.60 $ 10,108,316.69 $

470,440.40 $ 10,578,757.09

$

240,252.30 $

307,358.86

$

307,358.86

0.00

65,621.00

$

76,679.10

76,679.10

0.00

$

305,873.30 $

307,358.86 $

76,679.10 $

384,037.96

$ 9,093,511.90 $ 10,415,675.55 $

547,119.50 $ 10,962,795.05 $

0.00

$

28,277.00

61,384.00

$-======s.s...6=6=1=.00=

$

32,589.01 $

32,589.01

58,903.61

58,903.61

$

91,492.62 $

91,492.62 s_ _ _ _ _ _ _o_.oo===

- 25 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 10,2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dodge County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Dodge County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated April 10, 2000. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Dodge County Board of Education's financial I
statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Dodge County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation
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that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Dodge County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6451-99-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, 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,

RWH:jb 99YB-40

~W.~
Russell W. Hinton State Auditor

RussELL W. H1NTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 10, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dodge County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-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 (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 1999. 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 of Dodge County Board of Education's management. Our responsibility is to express an opinion on Dodge County Board ofEducation'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 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the 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.

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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, 1999.
Internal Control Over 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 0MB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the 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,
~t-J.4:h. Russell W. Hinton State Auditor
RWH:jb 99SA-10

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

DODGE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6451-97-01 FS-6451-98-01 FS-6451-98-02

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

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Account Group Finding Control Number: FS-6451-98-02

Due to system size and limited funds, our Board chooses not to have a fixed asset accounting system.

SECTION IV FINDINGS AND QUESTIONED COSTS

DODGE COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dodge County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dodge County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements
The audit of the Dodge County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Mruor Pro~s The audit report for the Dodge County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type ofRea,ort Issued on Compliance for Mruor Proiuams The auditor's opinion on the Dodge County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section ,510(a) ofOMB Circular A-133
The Dodge County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.01 O Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Dodge County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
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DODGE COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6451-99-01 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. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: The Dodge County Board of Education chooses not to maintain General Fixed Assets at the present time due to lack of staff sufficient to cover the task and also not enough funds to hire additional personnel. With all the changes with the new administration and HB 1187, plus a change in financial accounting software, we have just as much as we can handle at the present time. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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