Early County Board of Education, Blakely, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

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EARLY COUNTY BOARD OF EDUCATION
- 'rABLE 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 FINANCIALSTATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDffiONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

EXPENDABLE TRUST FUNDS

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

Page
2
4 7 8
20 22 24 25 26
27
28 29

EARLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

Page
30
32
33 35 36

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133

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

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

SECTION I
FINANCIAL

RussELL W. HtNTON
STATE AUDITOR (404) 656-2174

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

April 11, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Early County Board ofEducatimi
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 Early County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsi):,ility ofthe Early County Board ofEducation's management. . Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed
Assets Account Group to account for property- and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
2000ARL-!3

* 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, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, 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 1mder review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. 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 ofthe Early County Board ofEducation as of June 30, 2000, 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 11, 2001, on our consideration ofthe Early County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements ofthe Early County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through L} and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements tak\ln as a whole.
2000ARL-13

A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50. 6-24.
Respectfully submitted,

RWH:gp 2000ARL-13

~1.,lQ.tJ.~
ell W. Hinton State Auditor

EARLY COUNTY BOARD OF EDUCATION

EARLY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories
Food
Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

38,073.81 $

276,770.85 $

12,601.46

107,148.92

48,430.94

5,892.62 14,503.07

Total Assets

$

145 222.73 $

345 597.48 $

'12601.46

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Loan Payable Expired Grant Balances Payable Capital Lease Agreements. General Obligation Bonds Payable .
Total Liabilities
FUND EQUITY
Fund Balances Reserv:ed For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food Unreserved Deficit Designated for Self-Insurance Undesignated
Total Fund Eq~ity

$

24,307.79 $

54,556.62

191,399.77

500,000.00

$

524 307.79 $

245,956.39

$

101,708.00

$

-498,970.78 18,177.72 0.00

$

-379 085.06 $

5,892.62 14,503.07
79 245.40 $ 99 641.09 $

12 601.46 12 601.46

Total Liabilities and Fund Equity

$

145 222.73 $

345 597.48 $

The notes to the general purpose financial statements are 8n integral part of this statement. -2 -

12 601.46

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

$

208,518.31 $

6,224.59

1,222,260.06

5,379.45

221,142.69

302.86

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

{Memorandum Onli'.}

JUNE 30, 2000

JUNE 30, 1999

$

542,189.02 $

618,950.92

1,227,639.51

1,308,427.57

377,025.41

372,313.78

$

1,651,921.06

5,892.62 14,503.07
1,651,921.06

11,778.77 15,126.06
1,682,909.27

3,808,078.94 254 571.66

3,808,078.94 254 571.66

5,012,090.73 417 647.69

$ 1 651 921.06 $

11 906.90 $

5 714 571.66 $ 7,881,821.29 $ 9439 244.79

$

177,375.08

$

78,864.41

137,873.53

191,399.77

177,069.96

500,000.00

296,148.83

47,322.74

$

254,571.66

254,571.66

417,647.69

5;460,000.00

5,460,000.00

6,695,000.00

$

5 714 571.66 $ 6,484,835.84 $ 7 948 437.83

$ 1,651,921.06

0.00 $ $ 1,651,921.06 $

11 906.90 11 906.90

$

101,708.00

$

0.09

1,651,921.06

1,682,909.27

5,892.62 14,503.07

11,778.77 15,126.06

-498,970.78 18,177.72
103 753.76

-415,262.92 19,633.72
176 621,97

$ 1;396,985.45 $ 1,490,806.96

$ 1,651,921.06 $

11 906.90 $

5 714 571.66 $ 7!8811821.29 $ 9 439 244.79

-3-

EARLY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 2000

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues~ ~

EXPENDITURES

Current

Instruction

Support Services Pupil Services

~- :, ,c1.Gs' (" . .

Improvement of lnstructionalServices- ~-.

Educational Media Services

'General Administration

School Administration:

Business Adrtlinistration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Food Services Operation

Community Services Operations

Capital Outlay

.

Debt Service

Principal

Interest

Paying Agent Fees

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES /USES)

Operating Transfers In Operating Transfers Out
' Total Other Fina'ncing Sources (Us'es)

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

FUND BALANCE JULY 1 '~'

Food Inventory. Net Change.in Period

Donated Commodities

Purchased Food

.t

., GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND.

FUND

$ 10.607.859.29 $ .c 666,648.56 C

1

,: , r -2,064,907.01

3,311,113.39

335 643.68

140275.43 $ _ _ _~54=8~.5~7

$ 14,254,616.36 $

$ 9,438,279.31 $ 1,420,159.36

'\I, ., : I"
. 824,776.90 187.622.95 292,643.89 456,383.89
= . "''. ,.,.911,484.13 132,163.42 1,126,700.55 618,244.01 11,750.00 5,997.58
660.00

81,327.48 -- 170;753.33
75,732.97 9,087.01
8,836.96 12,263.00
52,675.23 1,155,431.41
$

163,076.03 26,035.88

306.68

$ 14 195 s1if54 s

I

$

58 797.82 $

2,986,266.75 $ ----"3"'06"'.6"'8'-114 435.75 $ ----~-=2"-41""'.8"'9'-

$ $ _....:,3,e2,,,.6,.e:34"'9"'.6"-2

29,894.11 $

296,455.51

$ _ __;-,.32s,6"",3"'4"'9"'.6"'--2 $ _ _ _2~9~8"'94'-"-'.1"-1 $ , ' '296,455.51

$

-267,551,80 $

-111,533.26

-84,541,64 $ 190,691.87

296,697.40 -284,095.94

-622.99 ' -5 886.15

FUND BALANCE JUNE 30

-379,085.06 $

---==--. . . ''("'
9964{09 $

'.
12601.46

The notes to the general purpose financial statements are an integral part of this statement.
.4.

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY
FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 11,274,507.85

2,064,907.01

$ 1,437,216.34

4,748,329.73

81 613.45

558081.13 $

$ 1518829.79 $ 18,645,825.72 $

$ 1 953.13

11,274,507.85 $ 2,064,907.01 4,748,329.73
560 034.26

9,806,769.78 2,268,817.73 4,298,427.40
536 841.32

1 953.13 $ 18 647 778.85 $ 16,910,856.23

$ 10,858,438.67

906,104.38 358,376.28 $. 292,643.89 532,116.86 920,571.14 132,163.42 1,135,537.51 630,507.01
11,750.00 58,672.81 1,155,431.41
660.00 306.68

$ 1,235,000.00 314,800.00 18.00

1,398,076.03 340,835.88 18.00

$ 1 549 818.00 $ 18,732.209.97 $

$

-30 988.21 $

-86,384.25 $

$ 10,858,438.67 $ 9,593,593.43

2,381.25 500.00

906,104.38 360,757.53 292,643.89 532,616.86 920,571.14 132,163.42 1,135,537.51 630,507.01
11,750.00 58,672.81 1,155,431.41
660.00 306.68

656,696.28 334,969.58 263,514.41 417,128.89 872,871.16 170,735.92 1,235,489.45 667,307.44
11,750.00 45,744.93 1,111,043.73 74,823.20 2,708,140.33

1,398,076.03 340,835.88 18.00

308,370.18 412,132.57
435.60

2 881.25 $ 18,735,091.22 $ 18 884 747.10

-928.12 $

-87 312.37 $ -1,973,890.87

$

326,349.62

-326,349.62

$

0.00

$

-30,988.21 $

-86,384.25 $

1,682,909.27

1,477,971.94

-622.99 -5886.15

$

326,349.62 $

-326.349.62

$

0.00 $

18,692.02 -18 692.02
0.00

-928.12 $ 12,835.02

-87,312.37 $ 1,490,806.96

-1,973,890.87 3,459,174.90

-622.99 -5 886.15

-1,460.48 6 983.41

$ 1,651,921.06 $ 1,385,078.55 $

. 11 906.90 $ 1,396,985.45 $ 1,490,806.96

-5-

EARLY 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 2000

EXHIBIT"C"

REVENUES

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

State Funds Federal Funds
Taxes
Other Funds
Total Revenues

$ 10,369,573.17 $ 10,607,859.29

3,263,643.00 144 560.00

3,311,113.39 335,643.68

$ 13 777 776.17 $ 14,254,616.36

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 ServiC8s Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital OuUay Debt Service
Total Expenditures
Excess of Revenues.over (under) Expenditures
OTHER FINANCING O!JRCES (USES)

$ 9,524,769.74 $ 9,438,279.31

688,281.00 187,643.86 280,824.00 278,645.93 960,803.00 118,095.00 1,074,557.00 617,949.32
11,750.00 6,010.00

824,776.90 187,622.95 292,643.89 456,383.89 911,484.13 132,163.42 1,126,700.55 618,244.01 .
11,750.00 5,997.58

5,500.00

660.00 189 111.91

$ 13,754,828.85 $ 14,195,818.54

$

22,947.32 $

58 797.82

Operating Transfers In Operating Transfers Out
' Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and.Other Financing
Uses

$ -420,387.00 $ $ -420 387.00 $
$ -397,439.68 $

-326,349.62 326,349.62
-267,551.80

FUND BALANCE JULY 1 1999
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

1, 152,896.85 -36,161.07

-111,533.26

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 659,846.56 $ 666,648.56

2,384,795.24

2,064,907.01

153.213.33

140 275.43

$ 3,197,855.13 $ 2,871,831.00

$ 1,524,611.94 $ 1,420,159.36

151,292.75 206,159.44
45,652.00

81,327.48 170,753.33
75,732.97 9,087.01

1,177.00 11,636.38

8,836.96 12,263.00

54,270.00 1,072,613.66

52,675.23 1,155,431.41

$ 3,067,413.17 $ 2,986,266.75 $ 130441.96 $ -114 435.75

$ 29,894.11

$

29894.11

$ 130,441.96 $ -84,541.64

230,230.49 -61,475.88

190,691.87

-622.99 -5 886.15

FUND BALANCE JUNE 30 2000

$ 719 296.10 $ .379 085.06

$ 299196.57 $

99641.09

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

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000.

Note 1: Sl:JMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

' '

The Early 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 Bqarcl. The Board is organized as a separate legai entity and has
the power tq levy taxes and issue bonds. Its ~udget ~ _not subject to approval by any other entity.

Acconlingly, tlie Board is a primary government and Cionsists of all the organizations that compose

its legal entity.' ..: :_:

:, ' - --- .

.

FUND ACCOUNTING

-. l,"<..'~- ~- . r- r

~ ;.,1

The Board uses funds and an account group to report on its financial position and the results of its
''operations.. Furia' accounting,is de~igned to demonstrate lega\ compliance and !o aid financial

management by segregating transactions related to certain governmental functions or,activities. A
An fupd is a separate accounting entity with a self0balancing set of accounts. account group is a

fi'iiancial reporting device designed !~provide accountability for certain assets and liabilities that are

not-recorded in the funds because 'they do not directly affect expendable availabl!f" financial

0 resou1 rces. ,.

I ,

,

,

,

.

,

... .. '

(.

' General Fixed Assets are recorded as expenditures in the various funds at tlie time of.purchase. A 0 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 shouid be

.
_

. ma. ir1taine,_d

for, reporting

the

cost

of-a-s-s--e-t-s

acquired
-

by governmental .

fund

types ..

-,

'.Although "schcioFactivity accounts" are maintained-at the individual schools, n'either 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

'

,.

,

'

j

p~~c_i12_les, these accounts shoul~_be recorqed in the g~neral purpose financial statements.-

Tlie general purpose financial statements accourit for all State; Federa1;Taxes and Other funds under
control of the Board, in compliance with generally accepted.accounting principles applicable to governmental units, unless otherwise dis.closed. in these notes. Funds and the account group 'presented in this report are as follows: . . .

GOVERNMENTAL FUND TYPES - are used to.account for all or most ofa Board's educational

activities. Gov~rnmental Fund Types include~ .

,.

. .

.

)_ -

.

' GENERAI; FUND - the fundused 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._



,.
- 8-

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major' capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund_ used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
EXPENDABLE TRUST FUNDS Robert L. Steele, M.D., DCT Scholarship Fund.~ the fund used to account for the principal and earnings which may be expended to provide scholarship aid to the graduating seniors ofthe Early County School System.
Early County Learning Center Endowment Fund - the fund used to account for the principal and earnings which may be expended to provide -financial assistance to Adults Learning Center graduates in their pursuit toward long-term employment and financial independence.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP -A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reportingtreatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as . liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
-9-

. , EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSEFINA.NCIAL STATEMENTS

_JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

"Govemmentai'and expendable trust fundsare accounted :for using.the modified acdtial basis of

" accounting under:which: :,. -

.; -l'

-. -- :. .

!,,

)

-'-~L

.!

. ,-; , .r ,,,.

,..

;.;,:

' U

.,.?t;/

, 1

Revenues are recognized when susceptible to accrual (i.e., when the)'become bothmeasurable and

available). "Measurable" means the amount of the transaction can be determined and "available"

-' :means collectible within the current period-or soon-enough thereafter tolie used to pay liabilities of

the current period. Those revenues considered susceptible to accrual are property taxes;:local option

sales taxes, intergovernmental grants and investment income;

-:

~-d.: 1;."'IJ_"lf1)'

! l , ;, - '

_'}

Expenditures are generally recognized whenthe related fund liability is incurred.

, .. A departure from theabove'definitioris is the accounting treatment afforded the.finaftwo payments

on General Fund teachers' andbus drivers' contracts; and the resources available from the Georgia

Department of Education for the State's share of these contracts. ,During fiscal year 2000, a

substantial number of personnel of the Board were employed for a one hundred and ninety day

period beginning in late August 1999 and ending in early June2000, Personnel contracts for this

employment period specify that compensation be paid in twelve equal monthly payments beginning

in September-I 999 and -ending in August 2000! :state grants to fund the State's share of these

contracts were disbursed from the Georgia Department ofEducation to the Board in the sametwelve

months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but

two of thetwelve monthly payments, due for JulyandAugust 2000, had not been made: Payments

Jor these two nionths were made and recorded as expenditures by tlie Board subsequent-to June 30,

2000. Also; the State's portion ofthe compensation paid in July and August2000 was received and

recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar

expenditures and related revenues for contractual services completed prior to'Jmi.e 30, 1999, were

recorded in the year ended June 30, 2000. Generally accepted accounting principles require that

revenues be recorded when available and' measurable and' that expenditures be recorded when

incurred, rather than when funds' are received or disbursed. ..:.

' ,,

BUDGET

The Early County Board of Education's budget is a' complete financial plan for the Board's fiscal

,.year, and is based upon-estimates ofexpenditures together with probable funding sources. There is

.:,. no statutory prohibition regarding overexpenditure of the budget at any:Jevel.. The budget for all

i - . governmental-funds is prepared by fund, function and object:>The legal level ofbudget controlwas

established by the Board at the aggregate level. The budget for governmental funds was prepared on

.1 a basis other than generally accepted accounting principles.

r, ;r- , -

The budget process begins when the Board's administration prepares a tentative budget for the -Board's approval. After approval ofiliis tentative'budget by the Board, such budget is advertised at f!' leastonce in a newspaper of. general circulation in the locality).At the next regularmeeting of the Board after advertisement, theBoard'receives comments on thetentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 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 ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(I) 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.

- 11 -

EARLYCOUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANGIAL STATEMENTS

,,,, JUNE 30,'2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES C,_: t

. _,

RECEIVABI.;ES . \ .

r .- . . . f ., ' '

r

Receivables consist of grant reimbursements due on Federal, State or'other grantsfor expenditures

made but not reimbursed and other receivables disclosed from information available. Receivables

are recorded when either the asset or revenue recognition criteria .has been met. Receivables

recorded on the general purpose financial statements do not include any amounts which would

necessitate the need for an allowance for uncollectible receivables. >~~ ~

;__:

}'.ROPERTY,TAXES

;he Ea~;y County Board of Commis~i;~e~s fixed ~h~L p~operty tax levy for the 1999 tax year

(calendar year) on October 12, 1999 (levy date). Taxes were due on January 7, 2000. The lien date

for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60

days after year-end are reported as revenue in fiscal year, 2000: The Early County Tax

Commissioner bills and collects the property taxes for the Board of Education,. withholds-2.5% of

taxc;:s collected as a fee for tax collection and remits the balance of taxes collected to.the.Board.

.,1

, __ !,.'

,_:)

...1-1,: ....,,

!L. . r;_i_

, The.tax millage rate levied for the 1999 tax year (calendar year).for th~.Early'County Board of

' Educ.iti_on was as follows (a mill:equals $1 per, thousand:dollars of assessed value):

., .

-r>S- ,;:

., Scho,ol Operations

ll..Q.Q mills .

,I'_ r I, ,,

SALES TAXES

:.i

:.: ' 1,_-. . ,"..,0 :-:. . , ~: -.. l,'(f .'..

f'

Special Purpose Local Option Sales Tax is to be usedfor capital outlay for educational purposes and

debt service. Special Purpose Lpcal Option _Sales ,Tax reventie during the fiscal. year amounted to

$1,435,937.85 and was recorded in the Debt Service Fund. The State will terminate collection of

this.tax once an additional $5,615,169.84 has.been collected or on December 3l ,"2002, whichever

occurs first.

INVENTORIES

FOOD INVENTORIES

.r . i

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 ofpurchase. The inventories reported on the balance sheet

for donated food commodities and for purchased foods are equally offset by reservations of fund

balance which indicates1that these amounts do not constitute "available spendable resources" even

though they are a component of net current assets.

- .-;12 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS .

The Board has the following types of interfund transactions:

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

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

MEMORANDUM ONLY - TOTAL COLUMNS

Total 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 ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

DEFICIT FUND BALANCE

The fund reporting a deficit fund balance position at June 30, 2000, is as follows:

Fund Type/Fund Name
Governmental Fund Type General Fund

Deficit Balances $ 498,970.78

In the subsequent period the Board was considering a hiring freeze, the elimination of certain positions, imposition of spending controls and a possible increase in the school operations millage
rate of 1.5 mills in an effort to generate sufficient revenues to fund the deficit noted above.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not

- 13 -

>EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

.. NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

. '

been secured by surety bond, by guarantee ofinsurance, or by.collateral. The aggregate ofthe face

value of such surety bond and the market value of securities pledged shall be equal to not less than

110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

If a depository elects the pooled method (OCGA 45-8c 13.1) the aggregate ofthe market value ofthe

, - securities'pledged to secure a pool'ofpublic funds shall be not less than 110 percent ofthe daily pool

balance; OCGASection '45-8-11 (b) provides an officer holding public-funds may, in his discretion,

waive the requirement for security in the case ofoperating funds placed in demand deposit checking

accounts.

. . -'

Acceptable security for deposits consists of any one of or any combination of the following:

'

~

.

1'

(1) Surety bond signed by a surety company duly qualified and authorized to transact business

, :

within the .State of Georgia, !





. .-,i

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

(3} Bonds, bills, .notes, certificatesof indebtedness or oiher direct obligations of the United States or of the State of Georgia,

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

municipalities of the State of Georgia; ,.

,.- ,

, .



,1, _ (5) Bonds of any public authority created by the laws of the Stateof Georgia, providing that

,, , the:statuie that created the authority authorized the use of the bonds for this purpose, ,

-

"!1 J'.l

-~_\t_'T; ;.,\

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe

State of Georgia, and

,I

(7) Bonds,' bills, notes, certificates of. indebtedness; or other obligations of a suosidiary

corporation of the United States government, which are fully guaranteed by the United

States government both as to principal and interest or debt obligations issued by the Federal

Land

Bank,

the

Federal

Home

Loan

Bank,

the

Federal ,

I

n
.

t.e

r

m

e

d

i

a

t

e'.

C
'

re

dit.

)'B" .a

n

k

,

the

.Central Bank for Cooperatives, the Farm Credit Banks, the Feiieral HoIJle Loan Mortgage

Association, and the Federal National Mortgage Association.

" ,. '.

'_J

-,.: _1

:-, :

CATEGORIZATION OF DEPOSITS , .

. _ , . . . . .

. ..

, -

_J





, '





'

:



~

,



. I

of At June 30, 2000, the bank balances were $1,460,515. 74., The amounts ofthe total bank balances are

classified'into three ~ategoi:ies credit risk:

. . . . ,,_ , . . ... . ., .

Category 1 - Cash that is insured (e.g., Federal depository instirance) or collateralized with

securities held by the Board or by the Board's agent in the Board's name. :

. " <;ategory 2 - ._Cash collatera,lized with.securities held by ,he pledging financial instit1,1t/on's

. "'

. . . _- trust department or agent in the Board's name.



- . ' ' ''

' ~

~

'

'

' . ' ' ,



- ! _,.

. , . .. . . . ,. .

'

' '

. /

'

- 14 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS

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, 2000, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

1,360,515.74

3

0.00

Total

$1,460,515.74

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the fair value of the Board's total investments was $1,227,639.51 and this entire amount consisted of U. S. Government Securities which were uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

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 I - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Board has obtained commercial insurance for risk of loss associated with torts, assets, job
related illness or injuries to employees and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all risks related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on

- 15 -

. EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 4: RISK MANAGEMENT

'imown claims and pri~r experience. The B,oard accounts for claims ~ithe~pe~diture and liability

being reported when it is probable that a loss has occurred, ancl the amount of that loss can be

reasonably estimated.

'



Changes in the unemployment compensation claims liabilitycluring the last two fiscal years are as follows:
,,

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1999

$

0.00 $

0.00 $

0.00 $

0.00

2000 "

$

0.00 $

I 465.00 $

I 465.00 $

0.00

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk , pool organized on December l, 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 o.f $250,0. 00. ..00 loss per occurrence, up to $2,000,000.00.
. l
The Bo_ard has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent
Each Principal :
..
Note 5: OPERATING LEASES

$ 20,000.00 $_ 1,009.00

Early County Board of Education has entered into various leases as lessee for copy machines. These . leases are consideredfor accounting purposes to be operating leases. ,Lease expenditures for the year ended June 30,2000, amounted to $14,249.16. Future minimum lease payments for these leases are as follows:

., Year Ending,.. .-

2001

2002

. ..

2003. I , -,

' .

2004 '--;,. .?,"

Total

,I

., " '

J"

1 . . . :11T'

. !

". ''

'

Amount
$: 34,731.96 34,731.96 20,482.80 532.70.:
,:.
$ 90,479.42

~ 16 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 6: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Early County Board ofEducation has entered into various lease agreements as lessee for energy retrofit and other equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Pumose

Interest Rates

Amount

General Government - Series 1995 General Government - Series 1997

4.2%- 5.8% 3.95%-4.2%

$ 2.730,000.00 2,730,000.00

$ 5,460 000 00
The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1. 1999

$ 417,647.69 $ 6.695.000.00 $ 7.112,647.69

Deductions Debt Retired

163,076.03 ' 1,235,000.00 1,398,076.03

Balance June 30, 2000

$ 25~,511.66 $ 5,460 000 00 $ 5,Zl~,511.66

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

- 17 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

. Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June30

2001 2002 2003 2004 2005 2006 - 2010 2011-2015

"

U,

e

,Total Principal and.Int~rest

General

Capital

Obligation

Total

Leases

Bonds

Debt

..

$ 189,111.91 $ 1,659,360.00 $1,848,471.91

54,737.40 1,696,012.50 1,750,749.90

31,930.15 . 237,837.50

-,. '

., 243,087.50

269,767.65 243,087.50 .

252,785.00

252,785.00

1,392,440.00 _l ,~92,440.00

1,675,095.00 1,675,095.00

. r


...

$ 275,779:46 $ 7. J:56.617.50 $ 7,432 396 96

Deduct: Imputed Interest

21,207.80

- _,-,. Net Present Value of Future ..

l .

Minimum Lease Payments $ 254,571.66

I,, ., .

Note 7: LOANS PAYABLE
..

At June-30, 2000, short-term debt (temporary loans) amount to $500,000.00 with interest accruing at

.7.5 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the

aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in

the preceding year and requires all temporary loans to be repaid no later than December 3 I of the

calendar year in which the Joan;w.as made.



L

Note 8: ON-BEHALF PAYMENTS

~

~ -

The Board has recognized revenues and expenditures in the amount of $206,598.12 for health

- insurance and retirement contributions paicl on the Board's_ behalf by the following State Ag~ncies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$ I59,304.93

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$5,087.19

:r-18-

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 8: ON-BEHALF PAYMENTS

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$42.206.00

Note 9: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit' and
review by grantor agencies. This could result in reques.ts 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.

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE
Employees of the Board who are covered by TRS are required by State statute to contribute 5% of
their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 1,079,482.99 $ 1,098,744.37 $ 989,381.22

- 19 -

EARLY COUNTY BOARD. OF EDUCATION

1 ; COMBINING BALANCE SHEET_

., ,

SPECIAL REVENUE FUND

JUNE 30, 2000

ASSETS
' ~ ; ,.., '
Cash and Cash Equivalents

Accounts Receivable

Inventories Food, 1

Donated Commodities..

. ...Pur'cha' sed .Food' .......

r

Total Assets

'. l
'"SCHOOL
FOOD
SERVICES
"FUND ''

0 -~

LOTTERY

PROGRAMS

:$. '", ,93,977,7]; ,.$

67.378.32

I

17,428.00 ,0 - ',

:,-;;'r~1 .. ,

5.892.62)'. .. ... ,

14 503.07,,

,. :

. "

'>

r==~=~ ~ $ . . E1 801.46

67 378.32

LIABILITIES AND FUND EQUITY

r ;-

' , 1 : 1,

LIABILITIES. .

.,

I ,

-.' I : ' :.

1

l . ' :Accou~is Payable'".
r. Salaries Payable~
:Expired Grant Balances Payable

'

., ,.-;.,

',

':

I ,l
/: ;. ' , .

Total Liabilities

FUND EQUITY
' ' '_,r..; ''.
' Funcf Balances

,,.-, . ,h; . - For-Continuation of F.ederal Programs,, . 'L

For Inventories.:::, Food

- - .1

Donated Commodities

. Purchased Food

Unreserved .

Undesignated
(,: ri

,; \, :} 1

T~tal Fund Equity

_ r;.

$

5,9sf1s, $

16.463.36

26,173.21 1

,-"50,914.96

1 '

' \,,,

\ ,l' ,'. : . ,

,t ." I '.

$

32 160,37 $ _ _..,6a,:.7,_,,3c:.c78::,,3::,2~

, I

'l

'' '

$

. 5,892.62
14,503.07 ,

79 245.40 $

0,00

('

$----""9'9-6"4=1".0"9'- $

0.00

Total Liabilities and Fund Equity

$

131 801.46 $===6=7'=3=78~-~32.,.

See notes to the general purpose financial statements. -l.~,-20-

EXHIBIT "E"

FEDERAL
PROGRAMS

TOTALS

JUNE 30. 2000

JUNE 30. 1999

$

115,414.76 $

276,770.85 $

399,762.41

31,002.94

48,430.94

60,702.50

5,892.62 14 503.07

11,778.77 15 126.06

$

146 417.70 $

345 597.48 $==4=8=7..3._6.9..7..4.,,

$

32,106.10 $

54,556.62 $

72,285.17

114,311.60

191,399.77'

177,069.96

47 322.74

$

146 417.70 $

245 956.39 $ _ _"'29a,6.6~7~7~.8~7

$

$ _ _ _ _"'0."-00::..

$

0.00 $

$

0.09

5,892.62 14,503.07

11,778.77 15,126.06

79 245.40

163 786.95

99 641.09 $ _ _.:.,:19"'0"'6"'9c.:.1,::,8c:....7

$

146 417.70 $

345 597.48 $_=4=8=7"'3_6_.9..7..4..

- 21 -

EARLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2000

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 r.

over (under) Expenditures

1

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
_ERVICES FUND

LOTTERY PROGRAMS

" $
$

88.880.00 $ . I 844,122.07 140 275.43

577.768.56

1,073,277.50 $

577 768.56

$

- '$ ..

3,346.96
. '

1 154 472.09

$ 1 157 819.05 $

$

-84,541.55 $

_ 470,861.12
55,043.88 527.23
31,324.11 8,588.82.
5,490.00 12,263.00
959.32
585 057.48
-7,288.92

0
' .$ .o

-84,541.55 $ 190,691.78

-622.99 -5886.15

7 288.92
0.00 0.00

FUND BALANCE JUNE 30
See notes to the general purpose financial statements. . ,c:-22-

$

99 641.09 $ ======O=.O=O=

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ f,220,784.94

666,648.56 $ 2,064,907.01
140 275.43

608,526.39 2,268,817.73
132 759.16

$ 1,220,784.94 $ 2,871,831.00 $ 3,010,103.28

$

949,298.24 $

26,283.60 170,226.10

44,408.86 498.19

52,675.23

$. 1,243,390.22 $

$

-22,605.28 $

1,420,159.36 $
. 81,327.48 170,753.33
75,732.97 9,087.01
8,836.96 12,263.00 52,675.23 1155 431.41
2,986,266.75 $
-114,435.75 $

1,562,197.95
72,451.25 131,769.84
1,575.90 93,055.55 28,429.85 2,722.03 7,267.03 13,945.31 45,744.93 1 111 043.73
3,070,203.37
-60,100.09

22605.19

29894.11

18,692.02

$

-0.09 $

-84,541.64 $

-41,408.07

0.09

190,691.87

226,577.01

-622.99 -5886.15

-1,460.48 6 983.41

$

0.00 $

99641.09 $

190691.87



EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "G"

COMBINING BALANCE SHEET

CAPITAL PROJECTS FUND

JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments

REGULAR

BOND PROCEEDS

TOTALS JUNE 30, 2000 JUNE 30, 1999

$ 7,782.15 "$ 4,819.31 _$

12,601.46 $.
- - . ~

. 7,332.08 7 052.25

Total Assets

$ 7,782.15 $ 4,819.31 $

12,601.46 $

14,384.33

LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Loan Payable
Total Liabilities FUND EQUITY
Fund Balances Unreserved Deficit Undesignated Total Fund Equity
Total Liabilities and Fund Equity

~ ... :" .

;

. '

l ' ~~, I'
r1
. ,

\ _ ( . 1,-.'.
. '

$ , 7,782.15 $ $ 7782.15 $

4 819.31 $
.. 1
4 819.31 $

$

2,331.44

296148.83

$' 298,480.27

$
12 601.46

-291,428.02
7 332.08

12 601.46 $ -284,095.94

C
$ 7,782.15 $ .. 4,819.31 $., .

-
12 601.46 $

14 384.33

See notes to the general purpose financial statements.

EARLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 2000

EXHIBIT "H"

REVENUES Other Funds
EXPENDITURES Capital Outlay ,Building and Building Improvements
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

REGULAR

BOND PROCEEDS

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$ 450.07 $

98.50 $

548.57 $

92 666.71

$

0.00 $

$ 450.07 $

306.68 $ -208.18 $

306.68 $ 2,708,140.33 241.89 $ -2,615,473.62

296,455.51

296,455.51

$

450.07 $ 296,247.33 $ 296,697.40 $ -2,615,473.62

7,332.08

-291,428.02

-284,095.94

2,331,377.68

FUND BALANCE JUNE 30

$ 7 782.15 $ 4 819.31 $

12 601.46 $ -284,095.94

See notes to the general purpose financial statements.

-25-

' EAR[Y COUNTY BOARD OF EDUCATION

: COMBINING BALANCE SHEET.

,

DEBT, SERVICE FUND

JUNE 30, 2000

EXHIBIT"!"

,, ' ' -
ASSETS
.\
Cash andCash Equivalents

SPECIAL

....... '
-

PROPERD':

_.,

. PURPOSE

TAXES FOR

LOCAL OPTION

BOND DEBT

SALES TAX

TOTALS JUNE 30, 2000 JUNE 30, 1999

- C $

'202,378:82 . $ -

6,139.49 $

208,518.31 $

213,168.83

Investments

10,590.39

1,211,669.67

J
1,222,260.06

1,290,031.62

Accounts Receivable

813:28

7 220,329.41

221 142.69,c . 179,708.82

--. i ,

.; ~

:1 , : ~ r

Total Assets
"1/ FUND EQUITY
- -- F~nd Balances Reserved For Debt Service Unreserved Undesignated

$ 213 782.49 $
i<

1438138.57 $

; '. r-~

'l'

-- - -

1 651 921.06 $' 1,682,909.27

'''

.. - ~ J;

' ,,._,.

$ 213,782.49 $ 0.00

1,438,138.57 $ 0.00

1,651,921.06 $ '. :"..
0.00

1,682,909.27
~ l. ' ' '
0.00

Total Fund Equity $ 213,782.49 $ 1 438 138.57 $ 1,651,921.06 $ 1,682,909.27

See notes to the general purpose financial statements. - ! 26

EARLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30 2000

EXHIBIT "J"'

. REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying AgentFees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30 1999

$ 1,278.49 $ 1,435,937.85 $ 1,437,216.34 $ 1,395,584.04

4 135.58

77 477.87

81 613.45

41 359.55

$ 5414.07 $ 1 513415.72 $ 1,518,829.79 $ 1,436,943.59

$ 1,235,000.00 $ 1,235,000.00 $

314,800.00

314,800.00

$

18.00

18.00

$

18.00 $ 1,549,800.00 $ 1,549,818.00 $

$ 5,396.07 $

-36,384.28 $

-30,988.21 $

208,386.42

1,474,522.85

1,682,909.27

155,000.00 376,390.84
435.60
531 826.44
905,117.15
777 792.12

FUND BALANCE JUNE 30

$ 213,782.49 $ 1438138.57 $ 1,651,921.06 $ 1,682,909.27

See notes to the general purpose financial statements.

-27-

EARLY COUNTY BOARD OF EDUCATION . , COMBINING BALANCE SHEET _ ,.; FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
JUNE 30 2000

EXHIBIT "K"

.. ,.,....
-- "":;_.?.-.

ASSETS -

Cash and Cash Equivalents

L,
- . In.ve.stme.nts

'l:.'"_\t''
-:.:.E.

Accou_nts ~:~iv~bl~J; --

. ,

EARLY COUNTY

ROBERT L.

'1
,-

LEARNING 1 CENTER

STEELE, M.D. DCT

ENDOWMENT SCHOLARSHIP

TOTALS

FUND

FUND

JUNE 30, 2000 JUNE 30, 1999

$
'.v

6,224.59
.-,._:'
$

$ 5,379.45

6,224.59 $ 5,379.45

1,979.91 11,343.70

e

302.86

302.86

472.28

;

Total Assets

:i -

... .. .. '

.. l

$ ,, .

LIABILITIES AND.FUND EQUITY - -
-' '" ..
LIABILITIES

C. I cash Overdraft . (':/

' FUND EQUITY

6 224.59 $
) -1
,

5 682.31 $

11 906.90 $

13 795.89

n'
....... -.
$
L:"

" 960.87

Fund Balances

~ ,., .~nreserved ...

. ;

Undesignated

C ~ ,.'":.O -
$

6 224.59 $

5 682.31 $

r ...-.
11 906.90

12,835.02

Total Liabilities and Fund Equity

$

6 224.59 $

5 682.31 $

s_ _ 11 906.90

1.3.._7.9.,.5.,.89=

See notes to the gen_eral purpose financial statements.

-28-



EARLY COUNTY BOARO OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 2000

EXHIBIT "L"

REVENUES

EARLY COUNTY LEARNING CENTER
ENDOWMENT FUND

ROBERTL. STEELE. M.D.
DCT SCHOLARSHIP
FUND

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

Other Funds EXPENDITURES

$

91.44 $

1 861.69 $

1953.13 $

692.60

Current

Support Services

Improvement of Instructional Services

$

General Administration

Total Expenditures

$

Excess of Revenues over (under) Expenditures $

FUND BALANCE JULY 1

2.381.25 $
2 381.25 $
-2.289.81 $ 8 514.40

$ 500.00
500.00 $
1.361.69 $ 4,320.62

2.381.25 $ 500.00
2 881.25 $
-928.12 $ 12,835.02

580.00
580.00 112.60 12 722.42

FUND BALANCE JUNE 30

$

6 224.59 $

5 682.31 $

11 906.90 S _..,.;1.a2.a,8,aa35a..0aa2a.

See notes to the general purpose financial statements.

-29-


EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2000

SCHEDULE "1"

FUNDING AGENCY -PROGRAM/GRANT

,
- , CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U.S. Department of Child Nutritiori Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

10.553 10.555

NIA

$ 196,517.23

(2) ..

NIA

613,204.88 $ 1,123,419.09 (3)

Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)

r
10.550

Total U. S. Department of Agriculture

Education, U.. S. Oepartm8nt of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - special Education Flow Through Preschool

---- _,
84.027 84.173

NIA

NIA NIA

$ 809,722.11 $"'. 1,123,419.09

-

'

>

34,399.96 $ 844,122.07 $

34,399.96
,
1,157,819.'05
, r.

$ 138,635.00 $ 25.290.00

143,508.22 (3) 25,290.00

Total Special Education Cluster

$ 163.925.00 $

168,798.22

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education.Act

TiUe I

Grants to Local Educational Agencies

84.010

NIA

Title II

Eisenhower Professional Development

84.281

NIA

Title VI

Innovative Education Program Strategies

84.298

NIA

Class Size Reduction

84.340

NIA

Goals 2000

State and Local Education Systemic Improvement

Grants

84.276

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.048

NIA

713,425.94 19,637.00 25,454.00
104,688.00
148,455.00
51,260.00

715,790.15 (3) 19,670.91 (3) 25,454.00
105,756.88 (3)
148,455.00
55,853.12 (3)

Total U. S. Department of Education

$ 1,226,844.94 $

1,239,778.28

Labor, U. S. Department or Pass-Through From Georgia Department of Education Job Training Partnership Act 96-B-88

17.250

NIA

$ -6,060.00 $

3,611.94 (3)

Total Federal Financial Assistance N/A = Not Available

:30.

s s_ 2,064,901.01

__,2.;,4;::0~1.:,2;::09;:;-,:;27:.

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2000

SCHEDULE "1"

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 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFOA 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 Early 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 Qeneral purpose financial statements.

See notes to the general purpose financial statements.

- 31 -

,.J\tr--;;

EARLY,COUNTY BOARD OF EDUCATION .O:,: .... SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30" 2000

SCHEDULE "2"

AGENCY/FUNDINC( ' \ ' ,.

. GOVERNMENTAL FUND TYPES

.. , ... ,er
m,. . GENERAL.
,,.,_c,,r. I ' F.UND . I'

,, SPECIAL ., , REVENUE-,
FUND.',.

TOTAL

GRANTS

Education, Georgia Department of

;__'I.

Quality Basic Education

.,, ~ .... - "\ ,

General and Career Education Programs " $ ''6,213,088.00

Special Education Programs Remedial Education Program

1,218,994.00 . ;,. ' 397,648:oo

Media Center Programs Staff Development Programs,

, . " .. ", 268,251.00 .
.,,,r 72,788.00 1

Indirect Cost

l .

t;i.11;133.00, :c

Pupil Transportation

Regular

323,482.00

Bus Replacement

101,708.00

Middle School Incentive Program

234,147,00

Special Instructional Assistance

122,543.00

In-School Suspension

70,055.00

Counselors Grades 4 and 5

24,581.00

Technology Specialist

28,842.00

Local Five Mill Share

-1,280,313.00

Educational Equalization Funding Grant

670,069.00

Food Services

$

Vocational Education

77,669.00

Other State Programs

Alternative Program

54,570.00

At-Risk Summer School Program

11,872.58

Health Insurance

159,304.93

Preschool Handicapped Program

37,254.00

Remedial Summer School Program .

7,354.59

Teachers' Retirement

5,087.19

Year 2000 Project Funding

3,837.00

Lottery Programs

Assistive Technology

Computers in the Classroom

Distant Learning

$''n6,213,088.00
1,218,994,00 397,648,00
'' ,: 268,251'00 72,788,00
. -'-'L 1,711,133:00

88,880.00

323,482.00 101,708.00 234,147.00 122,543.00
70,055.00 24,581,00 28,842.00 -1,280,313,00 670,069.00 88,880.00 77,669.00

54,570.00 11,872.58 159,304.93 37,254.00 7,354.59 5,087.19 3,837:oo

13,577.66 62,624.00
6,420.00

13",577.66 62,624.00
6,420.00

Office of School Readiness Pre-Kindergarten Program

495,146.90

495,146.90

Office of Treasury and Fiscal Services Public School Employees Retirement

42,206.00

42,206.00

CONTRACT Education, Georgia Department of Reading First Program

31,688.00

31,688.00

$ 10,607,859.29 $ 666,648.56 $ 11,274,507.85 See notes to the general purpose financial statements.

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2000

SCHEDULE "3"

PROJECT
The retirement of previously incurred general obligation debts of capital outlay projects of the Early County School District are specifically the Series 1995 Bonds coming due on August 1, 1998 through and including February 1, 2003, and to repay all unpaid Series 1995 Bonds no later than April 1, 2003
Acquisition, construction and equipping of the renovation of Mangum Auditorium, renovations, modifications and improvements to Early County High School, Hammock Gym, construction of a chorus room, restroom facilities for the baseball field, construction and equipping of a bus stop on the Early County Elementary School Campus and other additions, improvements, renovations, modifications and equipping of other school facilities including the acquisition of all necessary property, both real and personal

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 3,645,000.00 $ 3,645,000.00 $ 218,417.50 $ 210,947.50

5,375,000.00 5,375,000.00

161,689.18 4,601,555.57

$ 9,020,000.00 $ 9,020,000.00 $ 380,106.68 $ 4,812,503.07

(1) The Board's original cost estimate as specified In the resolution calling for the imposition of the Local Dption Sales Tax.
(2) The Board's current estimate of total cost for the project. lndudes all cost from project inception to completion.
(3} The voters of Early County approved the imposition of a 1% sales tax to fund the above projects. Amounts exP.ended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projecf.

See notes to the general purpose financial statements.

33

EARLY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000

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

$

8,097.981.00 $

243.069.00

$

8.150.401.31

434,423.33 $

$

8.584.824.64

381,430.72

-14.372.93 $ _ _-'-8"',5""70"",4"'5""1'-7'-.-'-1

$

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

See notes to the general purpose financial statements. - 35

EARLY COUNTY BOARD OF EPUCATJQN . ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
- - GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30 2000

Gl,NBAL AND CAREER EDUC,!IT[O~ PBOGRAMS

Kinderg~rten {*)

Grades 1 - 3 (*)

~

_.Sub-Total - K-3

Grades 4 - 5 (*) ,.

Grades 6 - 8 (*)

Grades 9 - 12 (*)

---- High ~chool Laboratories (*) ... Vocational Education Laboratories (*)

Total General and Career Education Programs

SP!;CIAL l;DUCATIQ~ PBQ~RAMS

Regular Programs Category II (*) Category Ill (*) Category IV (*) Category V (*)

Sub-Total - Regular

Category VI (Gifted)(")

Total Special Education Programs

BEMEDIA~ EDUCATIQN PBQGBAM (*}

Total Fourteen Weighted Programs

MEDIA CENTER PRQGRAMS
Salaries Operations

Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$

679,879.00

$

611,891.10 $

0.00

1,636,855.00

1,473,169.50

s $ 2,316,734.00 90

2,085,060.60 $

0.00

_733,040.00 . 90

659,736.00

.. 1,418,818.00 90

1,276,936.20

712,158.00 90

640,942.20

481,025.00 90

432,922.50

551 313.00 90

496,181.70

$ 6,213,088.00

s 5,591,779.20 $

0.00

~

$ 1,016,009.00

$

914,408.10 $

0.00

s 1,016,009.00 90 $

s 914,408.10

0.00

202,985.00 90 i .: 182,686.50

' '

$ 1,218,994.00

$ 1,097,094.60 $

0.00

$

397,648.00 90 $

357,883.20 $

0.00

$ 7,829,730.00

$ 7,046,757.00 $

0.00

$

215,278.00 90 $

193,750.20 $

0.00

52,973.00 100

52,973.00

$

268,251.00

$

s 246,723.20

0.00

Total Fourteen Weighted and Media Center Programs $ 8,097,981.00

$ 7,293,480.20 $

0.00

l:iIAEF Ql;Yl;L.OeMENT eBQGBAMfi
Cost of Instruction Professional Development

$

23,623.00

$

23,623.00 $

0.00

49,165.00

49,165.00

0.00

Total Staff Development Programs (*) lden1ifies Fourteen Weighted Programs.

$

72,788.00 100 $

72,788.00 $

0.00

'

See notes to the general purpose financial statements.

'
,., 36 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

s

s 611,891.10

668,418.78 $

s 30,675.25

699,094.03

1,473,169.50

1,601,383.76

39,534.05

1,640,917.81

$ 2,085,060.60 $ 2,269,802.54 $

70,209.30 $ 2,340,011.84 $

0.00

659,736.00

786,650.20

20,174.67

806,824.87

0.00

1,276,936.20

1,356,291.13

50,210.20

1,406,501.33

0.00

640,942.20

640,504.50

97,526.10

738,030.60

0.00

432,922.50

637,391.65

31,460.77

668,852.42

0.00

496,181.70

566,226.19

70,559.71

636,785.90

0.00

$ 5,591,779.20 $

s 6,256,866.21

s 340,140.75

6,597,006.96

$

914,408.10

$

s 642,026.07
363,421.42
12,085.49 6,688.91

s 2,832.00
22,706.55
3,130.54
425.00

644,858.07 386,127.97
15,216.03 7,113.91

$

s 914,408.10

s 1,024,221.89

s 29,094.09

1,053,315.98

0.00

182,686.50

192,666.78

4,496.32

197,163.10

0.00

s s 1,097,094.60

s 1,216,888.67

s 33,590.41

1,250,479.08

s

s 357,883.20

s 447,015.11

s 7,699.56

454,714.67

0.00

s s $. 7,046,757.00

7,920,769.99

s 381 430.72

8,302,200.71

$

s 193,750.20

229,631.32

s

229,631.32

0.00

52,973.00

s

52,992.61

52,992.61

0.00

$

246,723.20 $

s 229,631.32

s 52,992.81

282,623.93

s s 7,293,480.20

s 8,150,401.31

s s 434,423.33

8,584,824.64

0.00

s

23,623.00

49,165.00

$ ===7,;;2;,;7,,;;88;;;;.00:;,,

s

46,428.88 $

46,426.88

28,276.91

28,276.91

s

74,703.79 S

74,703.79. $=====-_:;0,;::00~

- 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
April 11,2001

Honorable Roy E. Barnes, Governor Members of the .General Assembly Members of the State Board of Education
and Superintendent and Members of the Early 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 ofEarly County Board ofEducation as of and for the year ended June 30, 2000, and have. issued our report thereon dated April JJ, 2001. 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 ofobtaining reasonable assurance about whether Early County Board ofEducation's financial statements aie free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Early County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in ourjudgment, could adversely affect Early 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-6491-00-0 I.
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 he 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 Early 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:gp 2000YB-40

State Auditor

RusSELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 11, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEdticati_on
and Superintendent and Members of the Early County Board of Education.
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Early County Board of Education with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Early County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofEarly County Board ofEducation's management. Our responsibility is to express an opinion on Ear_ly County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance 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 of States, 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 Early County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Early County Board of Education's compliance with those requirements.
2000SA-10

In our opinion, the Early 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, 2000.
Internal Control Over Compliance
The management ofEarly County Board ofEducation 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 Early 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 of risk that noncompliance with applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 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 Early 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:gp 2000SA-10

~H~.aB.&
State Auditor

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

EARLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6491-98-01 FS-6491-99-01

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6491-99-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, we have decided not to pursue the recording of general fixed assets on the financial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS
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EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's opinion on the Early 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 Early County Board of Education 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 ofthe Early County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Early County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Early County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 O(a) of 0MB Circular A-133 The Early County Board of Education'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: I0.553 Food and Nutrition Program - Food Services - School Breakfast Program I0.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Early County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30.-2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS. ' ,

GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group

) .

Reportable Condition - Material Weakness

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. Repeated From Prior Year



Finding Control Number: FS-6491-00-01

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The Early Co~~ty Boa~d ofEducation did,~ot maintain a system-;ide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of~he Bo~d being inc9mplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting e:ontrols and procedures ~-o P.~oy_ide,for mainte~apeee ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by thC:i ~oard and sh01,1ld include, but may not be limited to, date acquired, acquisition cost, estimated replaceipent cost, locati9n and description._ Detailed records
should be maintained of all additi-ons and deletions to the Gene,r.al. Fix. ed .A. sse.ts- A. ccount Group.

BUDGET PREPARATION/EXECUTION ., , Deficit Fund Balance Nonmateiial Noncompliance ,, . . . ,
Finding Control Number: FS-6491-00-02.

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. At June 30, 2000, the liabilities designated and'resei-ved fund balances_ exceedep assets available for

the General Fund by $498,970,7,8.0.C.G.A. 20-2-67 (b) requi~~s that th_e Superintendent submit to

the Georgia Department of Education both a response to this condition and a corrective action plan

designed to correct the budget .deficit. The Board should establish budgetary procedures to ensure

that funding ~s available prior to t~e Board committing to expenditures.,,





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m FEDERAL AwARD FINDINGS AND QUESTIONED cosTs

No matters were reported.

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