-~r:;'.\ ... ; '~: ~. 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 -.:,l -....,o :~_.: ~' ',.J-;; ;-rr~ 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 i 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. -I- 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 -, . Repeated From Prior Year Finding Control Number: FS-6491-00-01 ___ _ 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. . T . ' . 1J ' , ~- . - . . 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.,, '};. m FEDERAL AwARD FINDINGS AND QUESTIONED cosTs No matters were reported. -2-