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

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STATE OF GEORGIA



DEPARTMENT OF AUDITS AND ACCOUNTS



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ELBERT COUNTY BOARD OF EDUCATION
ELBERTON, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor



ELBERT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

K

FIDUCIARY FUND TYPE

COMBINING BALANCE SHEET

Page
2 4 7 8 9 11
24
26
28
29 30

ELBERT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULf '-'.

1 SCl-iEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

AN,0 ,LYSIS OF M iu EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

'

Page
31 33 34 35
36

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

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

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Elbert County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Elbert CountyBoard
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 responsibility ofthe Elbert 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perfo11n the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1 n1 on.
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:

2000ARL-13A

* The general purpose financial statements of the Board did not contain a General Fixed
Assets Account Group to account for property a1i1 equipment owned by the Board
which should be included to confo11n to general}) .,,,.:,cepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To conforrn to generally accepted accounting principles, these accounts should be included in the general purpose financia: 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 Departn1ent of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 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 dete1mined, 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 Elbert County Board ofEducation as of June 30, 2000, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in confo11nity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated July 19, 2001, on our consideration ofthe Elbert 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 perfo1n1ed 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 perforn1ed for the purpose of fo11ning an opinion on the general purpose financial statements ofthe Elbert County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits G through K) 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 info11nation has been subjected to the auditing procedures applied in the
2000ARL-13A


audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the tl1ird paragraph, such info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, a:, provided for by Official Code ofGeorgia Annotated Section 50-
6-24.
Respectfully submitted,


RWH:gp 2000ARL-13A

Ru sell W. Hinton State Auditor



ELBERT COUNTY BOARD OF EDUCATION

ELBERT 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

$

450,292.60 $ 487,242.97 $

251,437.15

139,190.37

211,326.94

2,078,081.04

36,386.96 11,735.04

Total Assets

$

589,482.97 $ 746,691.91 $ =-2-,3=2_9,i;;,5..,1=8.=19=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

442,436.42 $

103,785.81 $

232,472.20

43.01

18,049.60

$

442,436.42 $ 336,301.02 $ _ _....;1'-"8..;;,0...:.49::..:.;;.;60"-

$

80,116.33

$

36,386.96

11,735.04

$ 1,848,030.59

463,438.00

66,930.22

362,268.89

0.00

$

147,046.55 $ 410,390.89 $ _..:2~,3::.;1:...:.1...::,4~68:::.:.:::59~

Total Liabilities and Fund Equity

$

589,482.97 $

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

746,691.91 s........2.1=32_9_,s_1_8._1_9_

-2-

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

22,656.88 $

1,888.77

$ 1,213,518.37 $ 1,178,313.99

1,006,513.27

27,839.96

3,112,434.27

4,043,024.03

320,567.11

1,375.04

672,459.46

979,864.79

$

1,349,737.26

36,386.96 11,735.04
1,349,737.26

22,701.92 15,016.02
1,288,902.80

3,790,262.74 258,603.94

3,790,262.74 258,603.94

5,416,097.20 349,006.98

$ 1,349,737.26 $

31 103.77 $

5,398,603.94 $ 10,445,138.04 $ 13,292,927.73

$

157.14

$

564,271.83

48,117.13

232,472.20

216,918.66

43.01

2,518.84

172,795.74

$

258,603.94

258,603.94

349,006.98

5,140,000.00

5,140,000.00

6,705,000.00

$

5,398,603.94 $ 6,195,390.98 $ 7,494,514.49

$ 1,349,737.26 $

25,400.00

0.00

5 703.77

$ 1,349,737.26 $ _ _ _3'--'1_._1,__0__3__._7__7

$

80,116.33 $

27,229.05

1,349,737.26

1,288,902.80

25,400.00

25,400.00



36,386.96

22,701.92

11,735.04

15,016.02

1,848,030.59

3,255,929.58

463,438.00

434,902.88

1,163,233.87

$ 4,249,747.06 $ 5,798,413.24

$ 1,349,737.26 $

31 103.77 $

5,398,603.94 $ 10,445,138.04 $ 13,292,927.73

-3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant
. Student Transportation Services Central Support Services Other Support Services
Food Services Operation Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases 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
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 15,483,429.76 $ 47,397.98
4,802,853.39 110,680.05

792,100.61 2,272,343.12
528,965.47

$ 20,444,361.18 $ __3~,---59---'3..,_,4__0__9._20_

$ 13,681,188.00 $
959,698.96 648,458.13 582,427.87 298,145.57 1,623,682.61 113,420.67 1,551,340.91 1,012,951.42 40,260.58
59,713.73

1,615,173.64
71,585.37 37,339.47 15,611.31 59,058.65 26,600.72
3,000.00 25,946.59
42,283.89 1,675,364.57

89,028.13 17791.60

1,374.91 197.28

$ 20,678,108.18 $ __3..._,5.;.a7..,3-'-",5'-"-3---'6._4_0~

$ -233,747.00 $ _ _ _1.:.=9c,.::,8;.:.7.;::.2-;.;:;80"'-

$
$ _ _-4..:.:..7.:.z1,.::.38:,.4.:.:.4.:.:5::_

7,946.45

$ -471,384.45 $ _ ____;.7=9c..:.4.=.:6c...;..45~

$ -705,131.45 $ 852,178.00

27,819.25 372,167.58

13,685.04 -3,280.98

FUND BALANCE JUNE 30

$

147,046.55 $ _ _4_1_0_,3_90_.8_9_

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

-4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND


DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

322,390.58

183 794.74

$
1,891,715.62 46 458.84

16,597,920.95 $ 2,319,741.10 6,694,569.01
869,899.10

17,917,490.00 2,224,670.87 6,216,586.84 910,823.22

$

506,185.32 $ 1,938,174.46 $ 26,482,130.16 $ 27,269,570.93

$

1,608.00

1,912,476.31
$
$ 1,914,084.31 $ $ -1,407,898.99 $

$ . 15,296,361.64 $ 14,802,878.93

1,031,284.33 685,797.60 598,039.18 357,204.22
1,650,283.33 115,028.67
1,554,340.91 1,038,898.01
. 40,260.58 101,997.62 1,675,364.57 1,912,476.31

972,346.26 712,871.58 541,953.21 356,204.07 1,430,801.86 114,735.74 1,429,910.90 1,071,172.98
39,188.05 105,444.36 1,651,882.82 4,707,537.70

1,565,000.00 312,340.00

1,655,403.04 330,328.88

1,575,916.63 388,404.16

1,877,340.00 $ 28,043,068.89 $ 29,901,249.25

60,834.46 $ -1,560,938.73 $ -2,631,678.32

$

463,438.00

$ _ _4.;..;:6;,;;.3L.,;,,4=38;;.;..o~o"""

$

$

471,384.45

-471,384.45

$

0.00 $

250,158.00 312.95 -312.95
250,158.00

$

-944,460.99 $

60,834.46 $ -1,560,938.73 $ -2,381,520.32

3,255,929.58

1,288,902.80

5,769,177.96

8,151,529.04

13,685.04 -3,280.98

-570.14 -260.62

$ 2,311,468.59 $ 1,349,737.26 $ 4,218,643.29 $ 5,769,177.96

-5-

ELBERT 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"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 15,094,206.29 $ 15,483,429.76

44,000.00

47,397.98

4,813,357.00

4,802,853.39

30,600.00

110,680.05

$ 19,982,163.29 $ 20,444,361.18

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Debt Service

$ 13,250,217.60 $ 13,681,188.00

891,105.90 654,538.64 613,431.68 303,945.65. 1,696,426.60 122,611.40 1,634,489.74 1,120,330.11
39,893.00 70,262.12

959,698.96 648,458.13 582,427.87 298,145.57 1,623,682.61 113,420.67 1,551,340.91 1,012,951.42
40,260.58 59,713.73

106,819.73

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

$ 20,397,252.44 $ 20,678,108.18 $ -415,089.15 $ -233,747.00

Other Sources Other Uses
Total Other Financing Sources (Uses)

$ -471 384.45 $ -471 384.45

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-415,089.15 $

FUND BALANCE JULY 1. 1999

702,965.07

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

-18.20

-705, 131.45 852,178.00

SPECIAL - ' BUDGET

... '::NUE FUND ACTUAL (BUDG~'-,
BASIS

$ 734,296.50 $ 792,100.61

2,285,544.64

2,272,343.12

521,259.00

528,965.47

$ 3,541,100.14 $ 3,593,409.20

$ 1,682,204.83 $ 1,615,173.64

81,080.00 73,803.42 26,622.00 65,846.32 26,255.47

71,585.37 37,339.47 15,611.31 59,058.65 26,600.72

7,796.00 8,289.00
700.00 44,209.97 1,526,577.00

3,000.00 25,946.59
42,283.89 1,675,364.57
1,572.19

$ 3,543,384.01 $ 3,573,536.40

$ -21283.87 $ _ _1~9'1.:,8:.:..72::.:.:.;8oc....

$

7,946.45

$ ---'7-"9"-'4-""6c.:;45::..

$ -2,283.87 $ 27,819.25

374,019.73

372,167.58

-39,890.72

13,685.04 -3,280.98

FUND BALANCE JUNE 30, 2000

$ 287,857.72 $ ___14_7_.o_46_._55..,

$ 331,845.14 $ 410,390.89

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

ELBERT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT "D"

ENDOWMENT FUNDS

JOHN OLIN

JULIA COHEN

VICKERY

WOLFE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

OPERATING REVENUES

Donations

$

0.00 $

100.00 $

1 QQ ,QQ $ _ _.;_.;1QC.I.IQ=.:Q:..:Q;.:..;,Q:..:Q;_

OPERATING EXPENSES

Current Support Services Pupil Services

$

0.00 $

300.00 $

s_ _ _ 300.oo

...;o:;.;..o;;..:o;_

Operating Income

$

0.00 $

-200.00 $

-200.00 $

10,000.00

NONOPERATING REVENUES

Interest Earned

555.01

1,513.48

2,068.49

746.10

Net Income

$

555.01 $

1,313.48 $

1,868.49 $

10,746.10

FUND BALANCE JULY 1

13,759.99

15,475.29

29,235.28

18,489.18

FUND BALANCE JUNE 30

$

14,315.00 $

16,788.77 $

31,103.77 $...,.,.,.;;2~9.i;;;,2,;;;;35=.2=8=

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

ELBERT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2000


EXHIBIT "E"

ENDOWMENT FUNDS

JOHN OLIN

JULIA COHEN

VICKERY

WOLFE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

Cash Flows from Operating Activities:

Cash Received from Donations

$

Cash Paid for Scholarships

0.00 $

100.00 $ -300.00

100.00 $ -300.00

10,000.00 -500.00

Net Cash Provided (Used) by Operating

Activities

$

0.00 $

-200.00 $

-200.00 $ _ _..:9ci.:,5c.::O.:.;Oc::.OO=-

Cash Flows from Investing Activities: Proceeds From Maturity of Investments $ Interest Received on Investments Cash Paid for Investments

3,996.91 967.91 $
-4,232.39

1,513.48

3,996.91 2,481.39 -4,232.39 $ _ _-1:.::0ci.:,Oc.:::O.::.;Oc:::.OO=-

Net Cash Provided by Investment

Activities

$

732.43 $

1 513.48 $

2,245.91 $ _ _-1.;.;:o;.i.;o,;;.;;;o=o=o;c...o

Net Increase (Decrease) in Cash

$

732.43 $

1,313.48 $

2,045.91 $

-500.00

Cash and Cash Equivalents - July 1

-232.43

75.29

-157.14

342.86

Cash and Cash Equivalents - June 30

$



Reconciliation of Operating Income to Net

Cash Provided (Used) by Operating

Activities:

Operating Income (Loss)

$

Decrease in Accounts Payable

500.00 $

1 388.77 $

1,888.77 $ _ _ _-1_5_1.1..4_

0.00 $

-200.00 $

-200.00 $

10,000.00 -500.00

Net Cash Provided (Used) by Operating

Activities

$

0.00 $

-200.00 $

-200.00 $ _ _ _9_,5_oo_._oo_

The notes to the general purpose financial statements are an integral part of this statement. -9-

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPt!RTING ENTITY
The Elbert County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo11n to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these
accounts are reflected in these financial statements. To confo1111 to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 11 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

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-te11n 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:
NONEXPENDABLETRUSTFUNDS
John Olin Vickery Scholarship and the Julia Cohen Wolfe Scholarship Funds - the funds
used to account for endowments ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide awards to high school students for future education.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A fmancial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is dete11nined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. .With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements 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-Te11n Debt Account Group.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.

- 12 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable'' means the amount of the transaction can be determined and ''available'' means collectible within the current period or soon enough thereafter to be 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.

Expenditures are generally recognized when the related fund liability is incurred.

A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 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 June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 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 same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 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 June 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.

The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

BUDGET

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

- 13 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(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:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and

- 14 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Elbert County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on December 3, 1999 (levy date). Taxes were due on March 10, 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 Elbert County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the Elbert County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations
SALES TAXES

15.50 mills

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,891,715.62 and was recorded in the Debt Service Fund. The State will te11ni11ate collection of this tax once an additional $7,639,738.74 has been collected or on June 30, 2002, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories 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 indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.

- 15 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000



Note 1: 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/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses 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, results ofoperations or cash flows in confo1111ity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS
Official Code 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 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 45-8-13.1) 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. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

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

- 16 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000



Note 2: DEPOSITS AND INVESTMENTS

( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

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

(3) Bonds, bills, notes, certificates of indebtedness or other 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,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. .

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $1,811,829.04. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 2000, as follows:

- 17 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000



Note 2: DEPOSITS AND INVESTMENTS

Risk Category
1
2 3
Total

Bank Balance .
$ 400,000.00 1,411,829.04 0.00
$ 1,811,829.04

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $3,084,594.31. The investments are as follows:

Type of Investment
Investments not Subject to Categorization: Local Government Investment Pools Mutual Funds
Total Investments

Carrying Amount

Fair Value

$ 2,078,081.04 $ 2,078,081.04 1,006,513.27 1,006,513.27
$ 3,084,594.31 $ 3,084,594.31

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not
registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

- 18 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS

Investments in Georgia Fund 1 and Fund 6 are dire:ted toward short-term instruments such as U.S. Treasury obligations, securities issued or guara11teed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The
weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average
investment duration for Fund 6 on June 30, 2000, was .80 year.

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. 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 losses related to natural disaster. The Board has not

experienced any losses related to this risk in the past three years.



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

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

1999 2000

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

$

5,700.00 $

$

0.00 $

0.00 $ 0.00 $

5,700.00 $._ ____.:O=.O=O 0.00 $_ _ _,_::O=.O=O

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

- 19 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000




Note 4: RISK MANAGEMENT

Position Covered All Employees Note 5: GENERAL LONG-TERM DEBT

Amount
$ 100,000.00

CAPITAL LEASES
The Elbert County Board ofEducation has entered into various lease agreements as lessee for buses and copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1997

3.9% - 5.0%

$ 5,140,000.00

The changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as
follows:

Balance July 1, 1999

Capital Leases

General Obligation
Bonds

Total

$ 349,006.98 $6,705,000.00 $ 7,054,006.98

Deductions Payments

90,403.04 1,565,000.00 1,655,403.04

Balance June 30, 2000

$ 258,603.94 $ 5,140,000.00 $ 5,398,603.94

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

-20-

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 5: GENERAL LONG-TERM DEBT

.
Fiscal , .. ,, .. Endec, .. ,ie 30

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002 2003 2004

$ 106,449.91 $ 1,999,090.00 $2,105,539.91

103,731.11 2,134,665.00 2,238,396.11

71,768.71 1,460,565.00 1,532,333.71

758.40

758.40

Total Principal and Interest $ 282,708.13 $ 5,594,320.00 $ 5,877,028.13

Deduct: Imputed Interest

24,104.19

Net Present Value of Future Minimum Lease Payments $ 258,603.94

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $391,809.80 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Departinent of Community Health For Health Insurance of Non-Certified Personnel In the amount of $317,048.04

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $22,141.76

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 $52,620.00

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terrns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

- 21 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000



Note 7: CONTINGENT LIABILITIES

The Board is a defendant in various legal proceedings pertaining to matters incidental to the perfotmance of routine Board operations. The ultimate disposition of these proceedings is not presently dete1minable, but is not believed to be material to the general purpose financial statements.
Note 8: SUBSEQUENT EVENTS

On September 19, 2000, the voters of Elbert County voted in favor of a Special Purpose Local
Option Sales Tax referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Elbert County, is as follows:

''Shall a special one percent sales and use tax be imposed in the Elbert County School District
for a period of time not to exceed twenty calendar quarters and for the purpose ofraising not
more than $11,580,000.00 to:

(1) Acquire, construct, install, furnish and equip a new middle school in the Elbert County School District and acquire property, both real and personal, necessary therefor; and to, the extent funds are available therefor from the sales tax, and together with other funds of the School District.

(2) Renovate, expand and equip the Elbert County Comprehensive High School, five elementary schools, central office and bus shop and acquire property, both real and personal, necessary therefor, and pay expensed incident thereto.

If the imposition of such tax is approved by the voters, such votes shall also constitute approval ofthe issuance ofgeneral obligation debt ofthe Elbert County School District in the
principal amount of $8,395,000.00 for the purpose (1) above, paying approximately 18
months' capitalized interest on such general obligation debt and paying all expenses incident thereto."

Note 9: 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 ofGeorgia (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.

-22-

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000



Note 9: RETIREMENT PLANS

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%

$ 1,610,838.66 $ 1,619,674.55 $ 1,491,857.44

- 23 -

ELBERT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30. 2000

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

Total Assets

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

Salaries Payable

.

Expired Grant Balances Payable

Total Liabilities

FUND EQUITY

Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated

Total Fund Equity

Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

443,449.82 $

70,353.11

15,633.52

9,219.18

36,386.96 11 735.04

$

507,205.34 $ -====7=9-,5..,.72=.2=9=

$

23,623.57 $

28,354.23

73,190.88

51,218.06

$

96,814.45 $ _ _...,:7..:9.t.::,5;.:_7:,:2-=29=-

$

36,386.96

11,735.04

362,268.89 $ _ _ _ _.:::,.:0-~00=-

$

410,390.89 $ _ _ _ _.:::,.:0-~00:::_

$

507,205.34 $

79,572.29

See notes to the general purpose financial statements.
-24 -

EXHIBIT "G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

3,381.95 $

517,184.88 $

445,776.03

$

186,474.24

211,326.94

329,844.44

36,386.96 11 735.04

22,701.92 15,016.02

$

186 474.24 $

3,381.95 $

776,633.82 $ =====8=1=3.,.3.=38==41=

$

29,941.91

48,426.06 $

108,063.26

43.01

$

186 474.24 $

$
3,381.95
3 381.95 $

29,941.91 $ 103,785.81 232,472.20
43.01

173,634.23 48,117.13 216,918.66
2,500.81

366,242.93 $ _ _4.:.;4:.:.1.1.1:..,.:,.70~=..:83~

$

36,386.96 $

22,701.92

11,735.04

15,016.02

$

o.oo $ _ _ _ _.;;.;o.;;;..oo;;;...

362,268.89

334,/449.64

$

0.00 $

0.00 $

410,390.89 $ _ _3"-'7.;;::;2,-1:;-,=-67.:.;.;;.;58;;;..

$

186 474.24 $

3,381.95 $

776,633.82 $==8...1...,3.,.3.=3.8....4..1.....

- 25-

ELBERT 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 Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Capital Leases Operating Transfers In
Total Other Financing Sources
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food


SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

117,588.00 $

1,057,235.35

528,965.47

575,980.61

$ 1,703,788.82 $ _---=-57c..:5:.,.:9,:.:8c.::.O:.;:;6..:...1

$

482,985.67

37,627.06 3,034.70

$ 1,675,364.57

22,294.73 3,000.00
25,946.59 308.81

605.00

769.91 197.28

$ 1,675,969.57 $ _ _5;;.;7'--=6"-1',.;:;.64_;_;.;.;75a..

$

27,819.25 $ _ _ _ _-1:.::8:.:..4;..;..1..;_4

$ _ _ _--'1~8..:.;4-:.:..14..:... $ _ _ _--'1~84;;:_;,:.:,.14..:...

$

27,819.25 $

0.00

372,167.58

0.00

13,685.04 -3,280.98

FUND BALANCE JUNE 30

$

410,390.89 $ _____o_.o_o

See notes to the general purpose financial statements.

-26-

EXHIBIT "H"

,.

. FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$
$ 1,215,107.77
$ 1,215,107.77 $

98,532.00 $ 98,532.00 $

792,100.61 $ 2,272,343.12
528,965.47
3,593,409.20 $

685,560.43 2,175,493.38
522,214.22
3,383,268.03

$ 1,033,655.97 $
33,958.31 34,304.77 15,611.31 59,058.65 4,305.99
41,975.08

$ 1,222,870.08 $

$

-7 762.31 $

$ _ ___,_7.i.:..7-=.:62;;.:..3;;..1..... $ _ ___,_7...,_7-=.:62;;.:..3;;.1.....

$

0.00 $

0.00

98,532.00 $ 1,615,173.64 $ 1,520,365.41

98,532.00 $ 0.00 $

71,585.37 37,339.47 15,611.31 59,058.65 26,600.72 3,000.00 25,946.59 42,283.89 1,675,364.57

64,969.20 27,221.34
56,724.88 25,043.08
7,480.36 15,000.00 42,587.15 1,646,634.82

1,374.91 197.28

440.00

3,573,536.40 $ 3,406,466.24

19,872.80 $ ---=-2::.::::3.1..:1,c::.9::::.8.:.21.:...



$
$ _ __.,:.7..::9;..:.46:::;a..:.:45::;_

3,245.00 312.95

$

7,946.45 $ ----=3ci.:,5,::5..:..:7a:,:;95"'-

0.00 '$ 0.00

27,819.25 $ 372,167.58

-19,640.26 392,638.60

13,685.04 -3,280.98

-570.14 -260.62

$

0.00 $

0.00 $

410,390.89 $ ___37_2_1. _6_7._5_8

-27 -

ELBERT COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30. 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS
JUNE 30, 2000 JUNE 30, 1999

$

464,250.91 $. 464,250.91 $ 206,843.28

$ 2,078,081.04

2,078,081.04

3,049,086.30

172,795.74

Total Assets

$ 2,078,081.04 $

464,250.91 $ 2,542,331.95 $ 3,428,725.32

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Retainages Payable
Total Liabilities
FUND EQUITY

$ 212,813.76 17,236.69 $
$ 230,050.45 $

$ 212,813.76

812.91

18,049.60

- - - - - $ __1.:.:7-=2"-7'--,=.9;:;.;5.;.74.:....

812.91 $ 230,863.36 $ _ _,;_;17-=2"-'7-,""'95::.:..7.:..4.:..

Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 1,848,030.59
$

$ 1,848,030.59 $ 3,255,929.58

463,438.00

463,438.00

0.00 -----------0-.0-0-

0.00

0.00

$ 1,848,030.59 $

463,438.00 $ 2,311,468.59 $ 3,255,929.58

Total Liabilities and Fund Equity

$ 2,078,081.04 $

464,250.91 $ 2,542,331.95 $ 3,428,725.32

See notes to the general purpose financial statements.

- 28-

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

EXHIBIT "J"

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES
State Funds Other Funds
Total Revenues EXPENDITURES

$
$ 183 794.74
$ 183,794.74 $

322,390.58 $ 322,390.58 $

322,390.58 $ 2,105,179.42

183,794.74

215 163.47

506,185.32 $ 2,320,342.89

Current

Support Services Business Administration

$

1,608.00

$

1,608.00 $

6,456.46

Capital Outlay

Salaries

66,764.21 $

57,456.12

124,220.33

116,453.07

Employee Benefits Land and Land Improvements

11,872.34

11,902.27

23,774.61

23,049.48



9,382.90

26,140.74

35,523.64

50,918.74

Building and Building Improvements

870,791.36

632,421.41

1,503,212.77

4,509,850.25

Equipment

7,500.00

218,244.96

225,744.96

7 266.16

Total Expenditures

$ 967,918.81 $

946,165.50 $ 1,914,084.31 $ 4,713,994.16

Excess of Revenues over (under) Expenditures

$ -784, 124.07 $

-623,774.92 $ -1,407,898.99 $ -2,393,651.27

OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out

$ $ -623,774.92

1,087,212.92 $ 1,087,212.92 $ 1,701,286.14

-623,774.92

-1,701,286.14

Total Other Financing Sources (Uses)

$ -623,774.92 $

1,087,212.92 $ 463,438.00 $ _ _ _...;0~-:::,00::..,.

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ -1,407,898.99 $

463,438.00 $ -944,460.99 $ -2,393,651.27

FUND BALANCE JULY 1

3,255,929.58

0.00

3,255,929.58

5,649,580.85

FUND BALANCE JUNE 30

$ 1,848,030.59 $

463,438.00 $ 2,311,468.59 $ 3,255,929.58

See notes to the general purpose financial statements.

29-

.,
ASSETS
Cash and Cash Equivalents Investments Accounts Receivable

ELBERT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPE JUNE 30, 2000

EXHIBIT "K"

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

JOHN OLIN

JULIA COHEN

VICKERY

WOLFE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

TOTALS JUNE 30, 2000 JUNE 30, 1999



$

500.00 $

1,388.77 $

1,888.77 $

75.29

12,439.96

15,400.00

27,839.96

27,604.48

1 375.04

1 375.04

1 787.94

Total Assets

$

14,315,00 $

16 788.77 $

31 103.77 $ =====2=9=4=67==71=

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

10,000.00 $
4,315.00 14,315.00 $

$ ----=2=32=.4.;..:3:,..

15,400.00 $

1 388.77
16,788.77 $

25,400.00 $

25,400.00

5,703.77

3,835.28

31,103.77 $ ---=2==9'-'=,2=3=-=5-=28=--

Total Liabilities and Fund Equity $

14,315.00 $

16,788.77 $

31,103.77 $ =-====2=9=,4-67_.1_1...,

See notes to the general purpose financial statements.

- 30-

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF E>:<~ENDITURES OF FEDERAL AWARDS
YEA' ENDED JUNE 30. 2000

SCHEDULE "1"

,.,,

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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

10.553 10.555
* 10.559

Total Child Nutrition Cluster

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

10.550

Total U. S. Department of Agriculture

Appalachian Regional Commission Direct Youth Apprenticeship Project

23.001

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement Grant

84.027 84.173 84.173

Total Special Education Cluster

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title Ill Technology Literacy Challenge Fund Grants TiUe VI Innovative Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant

84.010 84.318
84.298
84.340 84.186
84.048

Total U.S. Department of Education

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A

$ 224,502.85

(2)

N/A

667,520.71 $ 1,585,476.30 (3)

N/A

74,718.52

(2)

$ 966,742.08 $ 1,585,476.30

N/A

90,493.27

90,493.27

$ 1,057,235.35 $ 1,675,969.57

$ 47,542.76 $ ----'-4'7..,5.4;2.._76-

N/A $ 226,606.95 $

NIA

34,341.27

N/A

1,526.68

$ 262,474.90 $

226,606.95 34,341.27 1,526.68
262,474.90

N/A

628,217.51

628,217.51

NIA

107,977.64

107,977.64

N/A

15,654.89

15,654.89

NIA

93,046.00

100,808.31 (3)

NIA

4,755.73

4,755.73

NIA

45,685.00

45,685.00

$ 1,157,811.67 $ 1,165,573.98



- 31 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Labor, U. S. Department of Pass-Through From Northeast Georgia Regional Development Center Job Training Partnership Act Summer Program - Classroom Training
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250

N/A

$

9,753.34 $ -----'9"'-',7-"5-"-3'-".3-'-4

$ 47,397.98

(4)

Total Federal Financial Assistance

$ 2,319,741.10 $ 2,898,839.65

NIA= Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Summer Food Service Program and 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.
(4) Expenditures on this program were not maintained by fund source.

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

The Board did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Elbert County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

-32-

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"


AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia DeP,artment of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Migrant Education Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom

$ 8,788,092.00 1,657,963.00 295,565.00 371,740.00 100,125.00 2,336,374.00

530,191.00 165,062.00 312,834.00 336,103.00
69,794.00 512.00
37,476.00 57,685.00 -1,515,436.00 1,236,891.00
4,857.00

$ 117,588.00

98,905.00 35,000.00 16,848.31 317,048.04
7,900.00 6,318.00 46,407.00 4,413.65 22,141.76

17,429.50 83,190.29

$ 8,788,092.00 1,657,963.00 295,565.00 371,740.00 100,125.00 2,336,374.00
530,191.00 165,062.00 312,834.00 336,103.00 69,794.00
512.00 37,476.00 57,685.00 -1,515,436.00 1,236,891.00 117,588.00
4,857.00
98,905.00 35,000.00 16,848.31 317,048.04
7,900.00 6,318.00 46,407.00 4,413.65 22,141.76
17,429.50 83,190.29

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 322,390.58

322,390.58

Office of School Readiness Pre-Kindergarten Program

475,360.82

475,360.82

Office of Treasury and Fiscal Services Public School Employees Retirement

52,620.00

52,620.00

CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

90,000.00

98,532.00

90,000.00 98,532.00

$ 15,483,429.76 $ 792,100.61 $ 322,390.58 $ 16,597,920.95

See notes to the general purpose financial statements.

- 33

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

SCHEDULE "3"

PROJECT
Renovating, repairing, modifying, expanding and equipping High School
Renovating, repairing, modifying, expanding and equipping four elementary schools and constructing physical education, art and music facilities at three of said schools
Local share for constructing and equipping of new elementary school and acquiring land therefor
Renovating, repairing, modifying, expanding and equipping facilities at the Middle School Complex
Renovating, repairing, modifying, expanding and equipping bus garage, and acquiring land therefor

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 2,220,000.00 $ 2,220,000.00 $ 270,559.83 $ 1,063,437.30

4,970,000.00

4,970,000.00

618,198.58 1,663,867.48

4,200,000.00

6,627,570.00

946,165.50 4,219,769.73

1,300,000.00

1,300,000.00

79,160.40

490,689.48

175,000.00

175,000.00

1,701.00

$ 12,865,000.00 $ 15,292,570.00 $ 1,914,084.31 $ 7,439,464.99

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion.

(3) The voters of Elbert County approved the imposition of a 1% sales tax to fund the above projects.
Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board has incurred interest expense to provide advance funding for the above projects as follows:

Prior Years

$ 621,936.67

Current Year

312,340.00

Total

$ 934,276.67

See notes to the general purpose financial statements.

- 34-

ELBERT 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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

1OOo/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTEiJ
PROGRAMS

$

11,113,360.00 $ _ _......;...33;;_4_,_,5...;.8..;;_5._0-'--0

$

12,222,673.82

478,510.92 $ _ _ _4_0...;.5_,_,3...;.5.;;;.2._92_

$

12,701,184.74

-200, 108.54 $ _ _.;.;12;.:.,5;.;0;.;.1.1,.0;.,;_7.;.6=2.;;;..0

Amount of Underexpenditure for Total Allotment

$

0.00 $ =======0.=00=

See notes to the general purpose financial statements. - 35 -

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



GENERAL AND CAREER EDUCATION PROGRAMS

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

Kindergarten (*)

$

838,826.00

$

754,943.40 $

0.00

Grades 1 - 3 (*)

2,507,715.00

2,256,943.50

Sub-Total - K-3

$ 3,346,541.00 90 $ 3,011,886.90 $

0.00

Grades 4 5 (*)

Grades 6 8 (*)

1,117,690.00 90 1,889,440.00 90

1,005,921.00 1,700,496.00

Grades 9 12 (*)

1,163,008.00 90

1,046,707.20

High School Laboratories (*)

572,569.00 90

515,312.10

Vocational Education Laboratories (*)

698,844.00 90

628,959.60

Total General and Career Education Programs

$ 8,788,092.00

$ 7,909,282.80 $ _ _ ___:0:..:.:.0:..:..0

SPECIAL EDUCATION PROGRAMS

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

$ 1,519,168.00

$ 1,367,251.20 $

0.00

Sub-Total - Regular Category VI (Gifted) ()
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM rl
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS

$ 1,519,168.00 90 $

138,795.00 90

. $ 1,657,963.00

$

$

295,565.00 90 $

$ 10,741,620.00

$

1,367,251.20 $

0.00

124,915.50

1,492,166.70 $ _ _ _--=o.:.;;.o.::.o

266,oos.so $ _ _ _--=o.:.;;.o.::.o

9,667,458.oo $ _ _ ___.;o~.o_o_

Salaries Operations
Total Media Center Programs

$

298,582.00 90 $

268,723.80 $

0.00

73,158.00 100

73,158.00

$

371,740.00

$

341,881.so $ _ _ _--=o.:.;;.o.::.o

Total Fourteen Weighted and Media Center Programs $ 11,113,360.00

$ 10,009,339.80 $

0.00

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

32,505.00

$

32,505.00 $

0.00

67,620.00

67,620.00

0.00

Total Staff Development Programs
c> Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

100,125.00

~--------- ---

100 $ - -- 10-0--,1- 2-5--.-00-- $

---- - - - -0-.00

- 36 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED



ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

754,943.40 $

2,256,943.50

$ 3,011,886.90 $

1,005,921.00

1,700,496.00

1,046,707.20

515,312.10

628,959.60

$ 7,909,282.80 $

1,035,267.08 $ 2,240,640.61 3,275,907.69 $ 1,289,549.55 2,031,240.85 1,255,293.47
924,581.40 586,488.42 9,363,061.38 $

19,973.88 $ 63,733.06 83,706.94 $ 39,527.17 72,587.55 45,973.72 25,062.73 87,437.71 354,295.82 $

1,055,240.96 2,304,373.67 3,359,614.63 $ 1,329,076.72 2. 103,828.40 1,301,267.19
949,644.13 673,926.13 9,717,357.20

0.00 0.00 0.00 0.00 0.00 0.00

$ 1,367,251.20 $

670,736.77 $ 808,908.TT
56,886.16 36,059.16

14,253.58 $ 19,114.79
1,009.80 11,215.66

684,990.35 828,023.56
57,895.96 47,274.82

$ 1,367,251.20 $

1,572,590.86 $

45,593.83 $ 1,618,184.69

0.00

124,915.50

208,893.14

2,783.00

211,676.14

0.00

$ 1,492,166.70 $

1,781,484.00 $

48,376.83 $ 1,829,860.83

$

266,008.50 $

579,437.90 $

------- 2,680.27 $

582,118.17

0.00

$ 9,667,458.00 $ 11,723,983.28 $

405,352.92 $ 12,129,336.20

$

268,723.80 $

498,690.54

$

498,690.54

0.00

73,158.oo _ _ _ _ _ _ $ _ _..;.7.=.,3,c.:.15;;.;;a;.;.;;.o~o

73,158.00

0.00

$

341,881.80 $

498,690.54 $

__ ___ 73,158.00 $

5;.7...1_,848'".5"-4-

$ 10,009,339.80 $ 12,222,673.82 $

478,510.92 $ 12,701,184.74 $ ---------.

0.00

$

32,505.00

67,620.00

$

-1-0-0,-1-25.00

$

61,686.19 $

61,686.19

38,438.81

38,438.81

$

100,125.00 $

100,125.00 $

0.00

37

,,
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

W. RussELL

HtNTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Elbert 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 ofElbert County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated July 19, 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Elbert County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the deterrnination offinancial 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and perfo1n1ing our audit, we considered Elbert County Board of Education's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40A

control over financial reporting. However, we noted a certain matter involving the internal control 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 ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Elbert 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 ofFindings and Questioned Costs as item FS-6521-00-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the norrnal 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 Elbert 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-40A

Russell W. Hinton State Auditor

o': ...c

.~.
~=

'O-

W. RussELI,

H1NTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 19, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

-

Members of the State Board of Education

:1r1d

Superintendent and Members of the

Elbert 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 ofElbert County Board ofEducation 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. Elbert County Board of Education's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofElbert County Board ofEducation's management. Our responsibility is to express an opinion on Elbert County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe 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 perfu1n1 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance 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 Elbert County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete11ni11ation on Elbert County Board of Education's compliance with those requirements.

2000SA-10A

In our opinion, the Elbert County Board of Education complied, in all material respects, with the requirements referredto above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.

Internal Control Over Compliance

The management of Elbert County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and perfo1ming our audit, we considered Elbert 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 dete1mine 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 ofthe 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 ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the nor1nal course ofperfo1ming 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 info11nation and use of management, members of the Elbert 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.

RWH:gp 2000SA-IOA

Respectfully submitted,

~-'""'-Rus ell W. Hinton State Auditor

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

ELBERT 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-6521-98-02 FS-6521-99-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6521-99-01

At this time we do not have the funds or people to correct this problem.


SECTION IV FINDINGS AND QUESTIONED COSTS

ELBERT COUNTY BOARD OF EDUCATION SCHEDUI,_~. 1F FINDINGS AND QUESTIONED COSTS
.:'EAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Elbert County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Elbert 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 Elbert 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 Elbert 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 Elbert County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Elbert County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Summer Food Service Program
8. Type "A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00.
9. Low Risk Auditee The Elbert 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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ELBERT 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-6521-00-01 The Elbert County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: We concur with this finding and at this time do not have the staffor finances to correct it, but hope to correct it in the near future. ID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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