Elbert County Board of Education, Elberton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007

ELBERT COUNTY BOARD OF EDUCATION
ELBERTON, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

ELBERT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

1

B

STATEMENT OF ACTIVITIES

2

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

4

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

5

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

6

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

7

G

STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

8

H

STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

9

I

NOTES TO THE BASIC FINANCIAL STATEMENTS

11

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

25

ELBERT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

SUPPLEMENTARY INFORMATION

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

3 SCHEDULE OF STATE REVENUE

28

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

30

5 ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

BY PROGRAM

31

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS 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 III 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

ELBERT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
August 5, 2008

Honorable Sonny Perdue, 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 BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Elbert County Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Elbert County Board of Education's management. Our responsibility is to express opinions on these 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 perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Elbert County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions.

2007ARL-11

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Elbert County Board of Education, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated August 5, 2008, on our consideration ofthe Elbert County Board ofEducation's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing ofinternal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
Management's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through vii and page 25 respectively, are not a required part ofthe basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States ofAmerica. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Elbert County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
io.<B~
ell W. Hinton, CPA, CGFM State Auditor
RWH:gp 2007ARL-11

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007
INTRODUCTION
Our discussion and analysis of the Elbert County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2007. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for fiscal year 2007 are as follows:
On the District-wide financial statements, the assets of the School District exceeded liabilities by $21.4 million. Of this amount, the School District has a balance of $0.4 million in unrestricted funds.
The School District had $34.2 million in expenses relating to governmental activities; only $23.3 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $12.8 million were adequate to provide for these programs with the result that Net Assets were increased by $2.0 million.
As stated above, general revenues accounted for $12.8 million or 35% of all revenues totaling $36.2 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements.
The District-wide financial statements include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status.
The fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Elbert County

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007
School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
DISTRICT-WIDE STATEMENTS
The District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid.
These two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors.
The Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities.
FUND FINANCIAL STATEMENTS
The School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds.
Governmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements.
11

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007

Fiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations.

FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE

Recall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year.

Table 1 Net Assets

Governmental Activities

Fiscal

Fiscal

Year 2007

Year 2006

Assets Current and Other Assets Capital Assets, Net

$ 7,326,751.29 $ 6,265,770.00 21,382,387.30 21,525,142.00

Total Assets

$28,709,138.59 $27,790,912.00

Liabilities Current and Other Liabilities Long-Term Liabilities

$ 3,871,875.41 $ 3,527,414.00

3,485,705.33

4,911,394.00

Total Liabilities

$ 7,357,580.74 $ 8,438,808.00

Net Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted

$17,896,681.97 3,078,793.52 376,082.36

$16,613,748.00 2,407,851.00 330,505.00

Total Net Assets

$21,351,557.85 $19,352,104.00

Table 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year.

lll

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007

Table 2 Change in Net Assets

Revenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions

Governmental Activities

Fiscal

Fiscal

Year 2007

Year 2006

$ 823,641.44 21,698,412.11 821,289.01

$ 1,423,161.00 19,862,171.00 889,358.00

Total Program Revenues

$23,343,342.56 $22,174,690.00

General Revenues:

Taxes

Property Taxes

For Maintenance and Operations

$ 7,384,690.22

Railroad Cars

42,215.68

Sales Taxes

Special Purpose Local Option Sales Tax

For Debt Service

2,240,138.18

Intangible Recording Tax

138,613.20

Real Estate

56,212.91

Grants and Contributions not Restricted to

Specific Programs

2,573,676.00

Investment Earnings

101,027.59

Miscellaneous

300,059.56

$ 7,623,392.00 18,839.00
2,056,773.00 137,267.00 145,686.00
2,431,736.00 72,899.00 156,633.00

Total General Revenues

$12,836,633.34 $12,643,225.00

Total Revenues

$36.179,975.90 $34,817,915.00

Program Expenses 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt

$21,691,254.10
1,144,725.49 1,106,375.41
881,882.72 409,410.31 2,118,240.36 216,546.23 2,112,715.64 1,665,550.98
47,047.32 110,117.92
320,035.01
2,066,679.28 289,941.28

$20,484,387.00
1,011,327.00 1,215,567.00
718,312.00 365,809.00 1,978,928.00 213,653.00 1,643,013.00 1,301,344.00 114,808.00
588,065.00 14,967.00
1,912,999.00 324,327.00

Total Expenses

$34,180,522.05 $31,887,506.00

Increase in Net Assets

$ 1,999,453.85 $ 2,930A09.oo iv

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007

GOVERNMENTAL ACTIVITIES

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year.

Table3 Governmental Activities

Total Cost of Services

Fiscal

Fiscal

Year 2007

Year 2006

Net Cost of Services

Fiscal

Fiscal

Year2007

Year2006

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 Operations ofNon-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt

$21,691,254.10 $20,484,387.00 $ 5,609,309.10 $5,718,840.00

1,144,725.49 1,106,375.41
881,882.72 409,410.31 2,118,240.36 216,546.23 2,112,715.64 1,665,550.98
47,047.32 110,117.92

1,011,327.00 1,215,567.00
718,312.00 365,809.00 1,978,928.00 213,653.00 1,643,013.00 1,301,344.00
114,808.00

802,432.36 626,220.71 358,021.91 -259,678.66 1,129,726.23 216,546.23 1,170,244.01 704,564.18
47,047.32 85,077.22

568,430.00 578,472.00 375,446.00 -202,989.00 1,057,738.00 213,653.00 696,018.00 559,173.00
73,422.00

320,035.01
2,066,679.28 289,941.28

588,065.00 14,967.00
1,912,999.00 324,327.00

115,921.60
-58,194.00 289,941.28

-217,096.00 14,967.00 -47,585.00
324,327.00

Total Expenses

$34, I 80,522 Q5 $31,887,506 QQ $ IQ,837, 179.49 $9,712 816 QQ

FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS

The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $37.2 million and total expenditures and other financing uses of $36.2 million.

GENERAL FUND BUDGETING HIGHLIGHTS

The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal year 2007, the School District amended its General Fund budget as needed.

For the General Fund, the final actual revenues and other financing sources of $34.3 million exceeded the original budgeted amounts of $29.6 million by $4.7 million. This difference (final actual vs. original budget) was due primarily to Miscellaneous Revenues larger then the original projected amounts and Other Financing Sources that were not budgeted.

V

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007

The actual revenues and other financing sources of $34.3 million exceeded the final budgeted amounts of $32.7 million by $1.6 million.

The final actual expenditures and other financing uses of $33.7 million exceeded the original budgeted amount of $30.0 million by $3.7 million. This difference was primarily due to grants expenditures that were not considered in the budget process.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At fiscal year ended June 30, 2007, the School District had $21.4 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation as compared to the prior fiscal year.

Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal

Fiscal

Year 2007

Year 2006

Land Construction in Progress Buildings and Improvements Equipment Land Improvements

$ 1,060,647.00 3,182.76
17,974,254.97 2,252,303.14
91,999.43

$ 1,036,946.00
18,072,901.00 2,316,597.00
98,698.00

Total

$21,382,387.30 $21,525,142.00

Debt

At fiscal year ended June 30, 2007, the School District had $1.9 million in bonds outstanding, and $1.6 million in other Long-Term Debt. Table 5 summarizes the School District's debt for general obligation bonds and other Long-Term Debt.

VI

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007

Table 5 Debt at June 30

Governmental Activities

Fiscal

Fiscal

Year 2007

Year 2006

Bonds Payable Other Long-Term Debt

$ 1,850,000.00 $ 3,610,000.00

1,635,705.33

1,301,394.00

Total

$ 3,485,705.33 $ 4,911,394.00

Current Issues

Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations.

State Funding Reductions - The State of Georgia has experienced significant reductions in state revenues and has passed a portion of those reductions to school districts by implementing "Austerity" and other cuts. For the fiscal year ended June 30, 2007, the "Austerity" reduction for the School District was $338,706.00. This is in addition to other smaller cuts in funding for media, transportation and staff development.

Contacting the School District's Financial Management

This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. Phil Pitts, MBA CPA, Finance Director at (706) 213-4052 or via mail @ Elbert County School District, 50 Laurel Drive, Elberton, Georgia 30635. You may also email your question to Mr. Pitts at ppitts@elbert.k12.ga.us.

Vll

ELBERT COUNTY BOARD OF EDUCATION

ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007
ASSETS
Cash and Cash Equivalents Investments Accounts Receivables, Net
Taxes State Government Federal Government Other Inventories Capital Assets Land Land Improvements Buildings Construction in Progress Equipment Less: Accumulated Depreciation
Total Assets
LIABILITIES
Salaries and Benefits Payable Long-Term Liabilities
Due With One Year Due in More Than One Year
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted for:
Continuation of Federal Programs Debt Service Capital Projects Unrestricted
Total Net Assets
Total Liabilities and Net Assets
The notes to the basic financial statements are an integral part of this statement. -1-

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

1,742,360.68

2,321,569.36

594,345.30 2,324,951.36
281,880.58 3,946.14
57,697.87

1,060,647.00 2,236,419.00 26,318,550.17
3,182.76 5,288,799.06 -13,525,210.69

$ 28,709,138.59

$

3,871,875.41

2,138,118.82 1,347,586.51

$

7,357,580.74

$ 17,896,681.97
360,927.70 2,542,702.73
175,163.09 376,082.36
$ 21,351,557.85

$ 28,709,138.59

ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2007

GOVERNMENTAL ACTIVITIES
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 Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt
Total Government Activities
General Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax for Debt Services Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues
Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year

EXPENSES

CHARGES FOR SERVICES

$ 21,691,254.10 $ 34,183.76

1,144,725.49 1,106,375.41
881,882.72 409,410.31 2,118,240.36 216,546.23 2,112,715.64 1,665,550.98
47,047.32 110,117.92

320,035.01 2,066,679.28
289,941.28

204,113.41 585,344.27

$ 34,180,522.05 $ 823,641.44

The notes to the basic financial statements are an integral part of this statement. -2-

EXHIBIT"B"

PROGRAM REVENUES

OPERATING

CAPITAL

GRANTS AND

GRANTS AND

CONTRIBUTIONS CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

$ 15,499,591.23 $
342,293.13 480,154.70 523,860.81 669,088.97 988,514.13
942,471.63 687,867.80
25,040.70
1,539,529.01
$ 21,698,412.11 $

548,170.01 $ 273,119.00 821,289.01 $

-5,609,309.10
-802,432.36 -626,220.71 -358,021.91 259,678.66 -1, 129,726.23 -216,546.23 -1,170,244.01 -704,564.18 -47,047.32
-85,077.22
-115,921.60 58,194.00
-289 941.28
-10,837, 179.49

$

7,384,690.22

42,215.68

2,240,138.18 138,613.20 56,212.91
2,573,676.00 101,027.59 300 059.56

$

12,836,633.34

$

1,999,453.85

19,352,104.00

$

21,351,557.85

-3-

ELBERT COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2007

EXHIBIT"C"

ASSETS
Cash and Cash Equivalents Investments Accounts Receivables, Net
Taxes State Government Federal Government Other Inventories

GENERAL FUND

DISTRICTWIDE
CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 1,742,688.68 $ 175,163.09
213,648.89 2,324,951.36
281,880.58 3,946.14
57 697.87

0.00

$ 1,742,688.68

$ 2,146,406.27

2,321,569.36

396,624.46

610,273.35 2,324,951.36
281,880.58 3,946.14
57 697.87

Total Assets

$ 4 799 976.61 =$=======0=.0=0 $ 2,543,030.73 $ 7,343,007.34

LIABILITIES AND FUND BALANCES
LIABILITIES Cash Overdraft Salaries and Benefits Payable
Total Liabilities
FUND BALANCES Reserved for: Continuation of Federal Programs Inventories Debt Service Capital Projects Un reserved: Designated for Student Activities Undesignated Reported in: General Fund
Total Fund Balances

$ 3 871 875.41 $ 3 871 875.41
$ 303,229.83 57,697.87 175,163.09 $
260,714.73 131 295.68 $ 928,101.20 $

$

328.00 $

328.00

3 871 875.41

$

328.00 $ 3,872,203.41

$ 2,542,702.73 0.00

$ 303,229.83 57,697.87
2,542,702.73 175,163.09

260,714.73

131,295.68

0.00 $ 2,542,702.73 $ 3,470,803.93

Total Liabilities and Fund Balances

$ 4,799,976.61 =$======0=00.. $ 2,543,030.73 $ 7,343,007.34

The notes to the basic financial statements are an integral part of this statement. -4-

ELBERT COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30, 2007

EXHIBIT"D"

Total Fund Balances - Governmental Funds (Exhibit "C")
Amounts reported for Governmental Activities in the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Land Land Improvements Buildings Construction in Progress Equipment Accumulated Depreciation
Total Capital Assets
Some of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures.
Long-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of:
Bonds Payable Capital Leases Installment Sales Agreement
Total Long-Term Liabilities
Net Assets of Governmental Activities (Exhibit "A")

$

3,470,803.93

$ 1,060,647.00 2,236,419.00
26,318,550.17 3,182.76
5,288,799.06 -13,525,210.69

21,382,387.30

-15,928.05

$ -1,850,000.00 -1,469,645.67 -166,059.66

-3,485, 705.33

$ ==2=1=,3=5=1=,5=57==85=

The notes to the basic financial statements are an integral part of this statement. -5 -

ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007

EXHIBIT"E"

REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
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 Enterprise Operations Food Services Operation Capital Outlay Debt Service Interest Redemption of Principal
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES Capital Contributions Installment Sales Agreement Capital Leases
Total Other Financing Sources
Net Changes in Fund Balance
Total Fund Balances - Beginning

GENERAL FUND

DISTRICTWIDE
CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

7,693,474.12 $

194,826.11

20,670,650.86

3,874,556.25

823,641.44

12,928.04

848,229.90

$ 34,118,306.72 $

0.00 $
0.00 $

$ 2,240,138.18
88,099.55 2,328,237.73 $

7,693,474.12 2,434,964.29 20,670,650.86 3,874,556.25
823,641.44 101,027.59 848 229.90
36,446,544.45

$ 21,391,812.36

$ 21,391,812.36

1,144,725.49 1,106,375.41
881,882.72 409,410.31 2,009,858.86 216,546.23 2,112,257.74 1,377,853.75 47,047.32 110,117.92 320,035.01 2,049,725.18
26,883.76 $

560,863.68

1,144,725.49 1,106,375.41
881,882.72 409,410.31 2,009,858.86 216,546.23 2,112,257.74 1,377,853.75
47,047.32 110,117.92 320,035.01 2,049,725.18 587,747.44

113,051.28 402,885.18

$

176,890.00

1,760,000.00

289,941.28 2,162,885.18

$ 33,720,468.52 $ 560,863.68 $ 1,936,890.00 $ 36,218,222.20

$

397 838.20 $ -560,863.68 $

391 347.73 $

228,322.25

$

17,569.00

176,333.00

$ 560 863.68

$

17,569.00

176,333.00

560 863.68

$

193,902.00 $ 560,863.68

$

754 765.68

$

591,740.20 $

0.00 $

391,347.73 $

983,087.93

336 361.00

0.00

2,151,355.00

2 487 716.00

Total Fund Balances - Ending

$

928 101.20 $

0.00 $ 2,542,702.73 $ ===3=,4=7=0=,8=03==93=

The notes to the basic financial statements are an integral part of this statement. -6-

ELBERT COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007

EXHIBIT"F"

Total Net Change in Fund Balances - Governmental Funds (Exhibit "E")
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital Outlay Depreciation Expense
Total Capital Assets
Because some property taxes will not be collected for several months after the School District's fiscal year-end, they are not considered "available" revenues.
Some of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability.
Some of the Capital Assets acquired this year were financed with an installment sales agreement. In Governmental Funds, an installment sales agreement is considered a source of financing, but in the Statement of Net Assets, the installment sales agreement is reported as a Long-Term Liability.
Repayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of:
Bond Principal Retirements Capital Lease Payments Installment Sales Agreement
Total Long-Term Debt Repayments

$

983,087.93

$

866,270.51

-1,009,025.21

-142,754.70 -266,567.87

-560,863.68

-176,333.00

$ 1,760,000.00 392,611.86 10,273.31

2,162,885.17

Change in Net Assets of Governmental Activities (Exhibit "B")

$ ==1..,,9=9=9=,4=53==85=

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

ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS JUNE 30, 2007

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments
Certificate of Deposit
Total Assets
LIABILITIES Cash Overdraft Funds Held for Others
Total Liabilities NET ASSETS Held in Trust for Private Purposes
Total Liabilities and Net Assets

PRIVATE PURPOSE TRUSTS

AGENCY FUNDS

$ 38,454.27

$ 24,040.88

$ 38,454.27 $ 24,040.88

$ 1,000.00 $ 1,000.00

$ 24,040.88 $ 24,040.88

$ 37,454.27

$ 38,454.27 $ 24,040.88

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

ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2007

EXHIBIT"H"

ADDITIONS Investment Earnings Interest
DEDUCTIONS Scholarships Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year

PRIVATE PURPOSE TRUSTS

$

763.27

$

1,000.00

$

-236.73

37,691.00

$ 37,454.27

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

(This page left intentionally blank)

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
The Elbert County Board of Education (School District) 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 the approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Elbert County Board of Education.
District-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods and services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented.

- 11 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
General Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund.
District-wide Capital Projects Fund accounts for financial resources to be used for the acquisition, construction or renovation of major capital facilities.
Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees.
The School District reports the following fiduciary fund types:
Private Purpose Trust funds report trust arrangements under which principal and income may be expended to provide scholarships for selected students.
Agency funds account for assets held by the School District as an agent for various principals' accounts that include clubs, awards and other school organizations.
BASIS OF ACCOUNTING
The basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, includes property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from the sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.

- 12 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities, acquisitions under an installment sales agreement and acquisitions under capital leases are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost reimbursement grants, then general revenues.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School district in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District 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,

- 13 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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.

The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks.

RECEIVABLES

Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made, but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic 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 2006 tax digest year (calendar year) on September 7, 2006 (levy date). Taxes were due on November 20, 2006 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2006 tax digest are reported as revenue in the governmental funds for fiscal year 2007. The Elbert County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $7,651,258.44.

The tax millage rate levied for the 2006 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

16.233 mills

- 14 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SALES TAXES

Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,240,138.18 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

FOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance an repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in the circumstances affecting a capital asset that may indicate impairment were known to the School District.

Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide statement are as follows:

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Improvements Equipment

Any Amount $ 5,000.00 $ 5,000.00 $ 5,000.00

NIA 20 years 50 years 5 to 25 years

- 15 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement ofNet Assets.
Note 3: 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 of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business with 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 of the State of Georgia, and

- 16 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 3: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United State 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 Intermediate 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, 2007, the bank balances were $2,184,313.18. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk,

Category 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution,
or Category 3 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent but not in the School District's name.

The School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows:

Custodial Credit Risk Category

Bank Balance

1

$

0.00

2

1,842,449.59

3

0.00

Total

$ 1,842,449.59

CATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2007, are presented below. Investments are presented by investment type.

Investment Type

Fair Value

Other Investments Money Market Mutual Funds

$ 2,321,569.36

$175,163.09 of the U. S. Treasury Money Market funds are in a Treasury Portfolio Fund Managed by Fidelity Investments. The Treasury Portfolio Fund is rated AAAm by Standard and Poor's and Aaa by Moody's. The weighted average maturity of the fund is approximately 13 days.

- 17 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 3: DEPOSITS AND INVESTMENTS

Remaining investment funds in the amount of $2,146,406.27 are invested in U.S. Money Market Mutual Funds (open-end mutual funds). These funds are managed by First American Investments. These funds are rated AAAm by Standard and Poor's and have a average maturity of 60 days or less.

Note 4: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories

Note 5: CAPITAL ASSETS

The following is a summary of changes in the Capital Assets during the fiscal year.

Balances July 1. 2006

Increases

Decreases

Balances June 30, 2007

Governmental Activities Capital Assets, Not Being Depreciated:
Land Construction in Progress

$ 1,036,946.00 $ 23,701.00 $

0.00

3,182.76

0.00 $ 1,060,647.00 3,182.76

Total Capital Assets Not Being Depreciated $ 1,036,946.00 $ 26,883.76 $

0.00 $ 1,063,829.76

Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements

$25,770,381.00 $ 548,169.17

$26,318,550.17

8,305,343.00 291,217.58 $3,307,761.52 5,288,799.06

2,311,219.00

74,800.00 2,236,419.00

Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements

7,697,480.00 5,988,746.00 2,212,521.00

646,815.20 355,511.44
6,698.57

3,307,761.52 74,800.00

8,344,295.20 3,036,495.92 2,144,419.57

Total Capital Assets, Being Depreciated, Net $20,488. 196.00 $ -169,638.46 $

0.00 $20,318,557.54

Governmental Activity Capital Assets - Net $21,525, 142,QQ $ -1~2,154.10 $

O.QQ $21.382,381.30

Capital assets being acquired under capital leases as of June 30, 2007, are as follows:

- 18 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 5: CAPITAL ASSETS

Governmental Funds

Buildings and Improvements Equipment Less: Accumulated Depreciation

$ 1,592,592.77 1,361,137.83 793,062.91

$2,160,667.69

Current year depreciation expense by function is as follows:

Instruction Support Services
School Administration Maintenance and Operation of Plant Student Transportation Services Food Services

$ 747,765.98

$ 85,132.57 317.78
163,964.40

249,414.75 11,844.48

$ 1,009,025.21

Note 6: RESTRICTED ASSETS

Special Purpose Local Option Sales Tax (SPLOST) and installment sales agreement proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2007, were as follows:

General Fund

Debt Service Funds

Restricted Investments: Debt Services Capital Acquisitions

$ 2,146,406.27 $ 175,163.09

Note 7: RISK MANAGEMENT

The School District 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; acts of God and unemployment compensation.

The School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

- 19 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 7: RISK MANAGEMENT

The School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid, with expenses/expenditures 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:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2006 2007

$

0.00 $

3,480.00 $

3,480.00 $

0.00

$

0.00 $

2,529.05 $

2,529.05 $

0.00

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized of December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organization. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust for the Midwest Employers Casualty Company to provided coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Superintendent All Employees

$ 100,000.00 $ 100,000.00

Note 8: SHORT-TERM DEBT

The School District obtains temporary loans in advance of property taxes collections, depositing the proceeds in its General Fund. This short-term debt is to provided cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred.

- 20-

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 8: SHORT-TERM DEBT

Short-term debt activity for the fiscal year is as follows:

Beginning Balance

Issued

Redeemed

Ending Balance

Temporary Loans

$==="0==.0==0 $1,450,000.00 $1,450,000.00 $====0===.0==0

Note 9: LONG-TERM DEBT

CAPITAL LEASES The Elbert County Board of Education has entered into various lease agreements as lessee for capital outlay, energy management, buses and various 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.

INSTALLMENT SALES AGREEMENT The Elbert County Board of Education entered into an agreement dated June 1, 2006, with the Northeast Georgia Regional Educational Service Agency for the construction and subsequent lease of the Rutland Center. Under the terms of the agreement, the School District will make annual payments through July 15, 2020.

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

Purpose

Interest Rate

Amount

General Government - Series 2000

4.9%

$ 1,850,000.00

The changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows:

Balance July I, 2006
Additions Capital Leases
Deductions Debt Retired
Balance June 30, 2007
Portion of Long-Term Debt Due within One Year

Capital Leases

Governmental Funds

Installment

General

Sales

Obligation

Agreement

Bonds

Total

$ 1,301,394.07 $

0.00 $ 3,610,000.00 $ 4,911,394.07

560,863.48

176,332.95

737,196.43

392,611.86

10,273.31 I, 760,000.00 2,162,885.17

$ I 462,645.62 $ 166,052.64 $ I,850,0QQ,QQ $ 3,485 705.33

$ 278,152.17 $ 9,966.65 $ 1,850,000.00 $ 2,138,118.82

- 21 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 9: LONG-TERM DEBT

At June 30, 2007, payments due by fiscal year which included principal and interest for these items are as follows:

Fiscal Year Ended June 30
2008 2009 2010 2011 2012 2013 2017 2018 - 2020
Total Principal and Interest

Ca[!ital Leases

Princi[!al

Interest

Installment Sales Agreement

Princi[!al

Interest

General Obligation Debt

Princi[!al

Interest

$ 278,152.17 $ 293,012.27 274,785.41 183,315.44 193,283.43 247,096.97

72,793.24 $ 57,933.14 42,587.40 29,860.72 19,892.73 12,844.43

9,966.65 $ 10,273.31 10,733.31 11,193.31 11,653.31 65,779.87 46,459.88

6,908.08 $ 1,850,000.00 $ 6,493.47 6,066.10 5,619.59 5,153.95 18,096.24 3 916.49

90,650.00

$ I 462 645 62 $ 235 211 66 $ 166 Q52 64 $ 52 253 22 $ I 85Q QQQ QQ $ 2Q 65Q QQ

Note 10: SIGNIFICANT 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is believed to be material to the basic financial statements.

Note 11: RELATED PARTY TRANSACTION

Mr. Phil Pitts, Chief Financial Officer for the Elbert County School District, also serves on the Board of Directors for the Elberton Federal Savings and Loan. During fiscal year 2007, Elberton Federal Savings and Loan was one of the institutions that were sent a "Request for Proposal" for a line of credit to benefit the Elbert County School District. The Elberton Federal Savings and Loan institution did not loan funds or provide a line of credit to the School District during fiscal year 2007.

Note 12: 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 costsharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The

- 22 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2007

EXHIBIT "I"

Note 12: RETIREMENT PLANS

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 School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District 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 9.28% and employer contributions of the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2007 2006 2005

100% 100% 100%

$ 1,718,998.72 $ 1,607,185.00 $ 1,540,811.00

- 23 -

(This page left intentionally blank)

ELBERT COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2007

SCHEDULE "1"

REVENUES
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
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 Enterprise Operations Food Services Operation
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Other Sources
Net Change in Fund Balances
Total Fund Balances - Beginning

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

$

7,773,959.00 $

7,843,959.00 $

7,693,474.12

70,000.00

194,826.11

19,404,832.00

19,821,994.00

20,670,650.86

1,280,142.00

3,964,100.00

3,874,556.25

595,600.00

595,600.00

823,641.44

11,500.00

11,500.00

12,928.04

455,200.00

455,200.00

848,229.90

$ 29,591,233.00 $ 32,692,353.00 $ 34,118,306.72

$ 19,233,780.75 $ 21,756,300.60 $ 21,391,812.36

779,705.00 1,031,494.00
756,899.00 332,907.00 1,994,325.00 251,070.00 2,195,743.04 1,383,465.00
54,050.00 79,000.00
1,802,080.00
144 887.74

1, 113,402.85 1,196,997.00
864,764.00 432,329.55 2,040,913.56 251,070.00 2,198,133.70 1,622,162.75
54,050.00 106,752.00
1,802,080.00
144 887.74

1,144,725.49 1,106,375.41
881,882.72 409,410.31 2,009,858.86 216,546.23 2,112,257.74 1,377,853.75 47,047.32 110,117.92 320,035.01 2,049,725.18
26,883.76 515,936.46

$ 30,039,406.53 $ 33,583,843.75 $ 33,720,468.52

$

-448, 173.53 $

-891,490.75 $

397,838.20

$

-448, 173.53 $

-891,490.75 $

368,238.59

378,203.86

193,902.00 591,740.20 336,361.00

Total Fund Balances - Ending

$

-79 934.94 $

-513,286.89 $=~=9=28=,l,;,;10=1=.2,;...0

Notes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual

(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts.

The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 25 -

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2007

SCHEDULE "2"

FUNDING AGENCY PROGRAM I GRANT
Agriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food Donation (1)
Total U.S. Department of Agriculture
Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants
Total Special Education Cluster
Pass-Through From Georgia Department of Education English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants Migrant Education Rural Education Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States
Total U.S. Department of Education
Defense, U.S. Department of Direct Department of the Army R.O.T.C. Program
Total Federal Financial Assistance
NIA = Not Available

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555

NIA

(2)

NIA

$ 1,795,479.72

$ 1,795,479.72

10.550

NIA

148 603.46

$ 1,944,083.18

84.027 84.173
84.365 84.318 84.367 84.011 84.358 84.186 84.298 84.010 84.048

NIA

$

752,037.05

NIA

28 858.00

$

780,895.05

NIA

1,750.06

NIA

70,904.13

NIA

262,629.42

NIA

13,864.00

NIA

104,146.81

NIA

7,576.96

NIA

6,436.00

NIA

1,038,818.45

NIA

54 655.35

$ 2,341,676.23

$

79 129.01

$

- 26 -

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2007

SCHEDULE "2"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year.
(2) Expenditures for the funds earned on the School Breakfast Program ($363,160.68) were not maintained separately and are included in the 2007 National School Lunch Program.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The School District 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 fund financial statements.

See notes to the basic financial statements.

- 27 -

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007
AGENCY/ FUNDING
GRANTS Bright From the Start Georgia Department of Early Care and Learning Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instruction Program Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades (1-3) Program - Early Intervention Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Program - Early Intervention Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Students - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Costs Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

628,840.57

919,363.00 504,556.00 2,271,742.00 557,022.00 1,044,763.00 322,569.00 2,133,769.00 1,914,841.00 793,256.00
87,942.00 309,849.00 933,745.00 385,245.00 426,658.00 464,495.00 157,851.00 178,211.00
89,996.00 367,758.00 116,284.00
68,979.00
519,717.00 887,965.00 911,430.00
654,253.00 73,119.00 20,000.00 76,824.00 11,697.00 18,859.00
2,573,676.00 105,642.00 55,497.80 -338,706.00

- 28-

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007
AGENCY/ FUNDING
GRANTS Education, Georgia Department of Other State Programs Graduation Coaches Middle School Summer Remedial Program National Teacher Certification Preschool Handicapped Program Pupil Transportation - State Bonds Statewide K-8 Reading and Math Tuition for Multi-Handicapped Children Virtual Schools Grant

SCHEDULE "3"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

40,075.00

3,502.00

12,855.00

33,424.06

200,000.00

51,012.43

82,024.00

50.00

$ ====2=0e!=,6=7=0,,;;,65=0=.8=6=

See notes to basic financial statements.

- 29 -

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2007

SCHEDULE "4"

PROJECT
Adding to, renovating, repairing, improving, equipping and furnishing existing school buildings and other facilities including, but not limited to, athletic/physical education facilities, transportation and maintenance facilities, additional classrooms and parking areas; purchasing HVAC mechanical systems and roofing; acquiring system-wide technology and safety equipment; purchasing textbooks; acquiring school buses and other school vehicles and the acquiring of any property desirable therefore, both real and personal.

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR

AMOUNT EXPENDED
IN PRIOR YEARS

PROJECT STATUS

$ 15,000,000.00 $ 15,000,000.00 $

0.00 $

0.00 Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion.

See notes to the basic financial statements.

- 30 -

ELBERT COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007

SCHEDULE "5"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

1,023,490.00 $ 1,162,896.46 $

20,375.01 $ 1,183,271.47

568,262.00

400,353.48

5,508.44

405,861.92

2,543,615.00

3,048,339.40

49,429.89

3,097,769.29

619,070.00

638,776.77

6,691.84

645,468.61

1,180,224.00

1,903,187.85

28,534.20

1,931,722.05

354,607.00 2,418,346.00 2,151,342.00
887,575.00 2,371,603.00
530,083.00 153,665.00 201,088.00
99 374.00

465,589.08 2,917,989.27 2,630,943.85
746,857.63
437,715.59 1,368,678.78
479,047.49 202,687.83 613,646.65 175,160.76 159,851.27 197 536.47

2,764.79 35,449.49 141,414.26 94,834.16
92.47
8,804.36
1,583.64 488.47

468,353.87 2,953,438.76 2,772,358.11
841,691.79
437,715.59 1,368,771.25
479,047.49 202,687.83 622,451.01 175,160.76 161,434.91 198,024.94

$

15,102,344.00 $ 17,549,258.63 $ 395,971.02 $ 17,945,229.65

412,692.00 78 170.00

727,190.34

48,339.96

775,530.30 77 230.70

TOTAL QBE FORMULA FUNDS

$

15,593,206.00 $ 18,276,448.97 $ 444,310.98 $ 18,797,990.65

(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment.

See notes to the basic financial statements.

- 31 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
August 5, 2008

Honorable Sonny Perdue, 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 INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Elbert County Board of Education as of and for the year ended June 30, 2007, which collectively comprise Elbert County Board of Education's basic financial statements and have issued our report thereon dated August 5, 2008. 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 of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Elbert County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Elbert County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Elbert County Board of Education's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies.
2007YB-30

A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Elbert County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Elbert County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Elbert County Board of Education's internal control. We consider items FS-6521-07-01 and FS-6521-07-02 in the accompanying Schedule ofFindings and Questioned Costs to be significant deficiencies in internal control over financial reporting.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Elbert County Board of Education's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that none of the significant deficiencies described above are material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Elbert County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we have reported to management ofElbert County Board ofEducation in a separate letter dated August 5, 2008.
Elbert County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Elbert County Board of Education's response and, accordingly, we express no opinion on it.
2007YB-30

This report is intended solely for the information and use ofthe management, members ofthe 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,
::g,A,...JQ 11~. Russell W. Hinton, CPA, CGFM State Auditor
RWH:gp 2007YB-30

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
August 5, 2008

Honorable Sonny Perdue, 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 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 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 of its major Federal programs for the year ended June 30, 2007. Elbert County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of 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 of Elbert County Board of Education'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 of compliance 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 of the United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the 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 determination on Elbert County Board ofEducation's compliance with those requirements.
2007SA-55

As described in item FA-6521-07-01 in the accompanying Schedule of Findings and Questioned Costs, Elbert County Board of Education did not comply with requirements regarding Activities Allowed or Unallowed and Allowable Costs/Cost Principles that are applicable to its Title I Grants to Local Educational Agencies program. Compliance with such requirements is necessary, in our opinion, for Elbert County Board of Education to comply with requirements applicable to that program.
In our opinion, except for the noncompliance described in the preceding paragraph, the Elbert 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, 2007. The results of our auditing procedures also disclosed instances of noncompliance with those requirements, which are described in the accompanying Schedule ofFindings and Questioned Costs as item FA-6521-07-02.
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 performing 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 determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Elbert County Board of Education's internal control over compliance.
Our consideration ofthe internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others we consider to be material weaknesses.
A control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiencies in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6521-07-01 and FA-6521-07-02 to be significant deficiencies.
2007SA-55

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement ofa Federal program will not be prevented or detected by the entity's internal control. Of the significant deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs, we consider item FA-6521-07-01 to be a material weakness.

Elbert County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Elbert County Board of Education's response and, accordingly, we express no opinion on it.

This report is intended solely for the information and use ofthe management, members ofthe 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,

,

l.1~~
sell W. Hinton, CPA, CGFM
State Auditor

RWH:gp 2007SA-55

SECTION III 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, 2007

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER

AUDITEE'S RESPONSE/STATUS

SEE AUDITOR'S COMMENTS

FS-6521-05-02 Further Action Not Warranted

FS-6521-05-03 Previously Reported Corrective Action Implemented

FS-6521-06-01 Further Action Not Warranted

(1)

FS-6521-06-02 Previously Reported Corrective Action Implemented

FS-6521-06-03 Further Action Not Warranted

(1)

FS-6521-06-04 Further Action Not Warranted

(1)

FS-6521-06-05 Unresolved - See Corrective Action/Responses

FS-6521-06-06 Previously Reported Corrective Action Implemented

FS-6521-06-07 Previously Reported Corrective Action Implemented

FS-6521-06-08 Further Action Not Warranted

FS-6521-06-09 Previously Reported Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-6521-06-05

The School District Finance Officer has contacted each school regarding additional training and explanations of School District procedures. He will visit each school individually to make sure the appropriate procedures are in place.

AUDITOR'S COMMENTS

(1) Findings/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter in subsequent periods.

- 1-

ELBERT COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

F A-6521-02-03 FA-6521-03-02 F A-6521-06-01

Partially Resolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Further Action Not Warranted

CORRECTIVE ACTION/RESPONSES

ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized U.S. Department of Education Through Georgia Department of Education CFDA Numbers 84.027 and 84.173 Amount: $6,700 Finding Control Number: FA-6521-02-03

Subsequent to audit fieldwork, the School District was able to compile additional information regarding the time spent by the two employees that received payroll supplements from the Special Education Grant. The employees provided records demonstrating significant time spent on this Federal program. This information is being provided to the State of Georgia Department of Education for a final decision on this finding.

ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized U.S. Department of Education Through Georgia Department of Education CFDA Numbers 84.027 and 84.173 Amount: $6,700 Finding Control Number: FA-6521-03-02

Subsequent to audit fieldwork, the School District was able to compile additional information regarding the time spent by the two employees that received payroll supplements from the Special Education Grant. The employees provided records demonstrating significant time spent on this Federal program. This information is being provided to the State of Georgia Department of Education for a final decision on this finding.

-2-

SECTION IV FINDINGS AND QUESTIONED COSTS

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

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 unqualified.

2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Elbert County Board of Education disclosed financial statement significant deficiencies related to the following control categories.

Revenues/Receivables/Receipts Employee Compensation

Expenditures/Liabilities/Disbursements

None of the significant deficiencies described above are considered to be material weaknesses.

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. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Elbert County Board ofEducation disclosed significant deficiencies in internal control over major programs for the following compliance requirements.

Activities Allowed or Unallowed

Allowable Costs/Cost Principles

Of the significant deficiencies described above, Activities Allowed or Unallowed and Allowable Costs/Cost Principles are considered to be a material weakness.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Elbert County Board of Education's report on compliance with requirements applicable to major programs was unqualified, except for Title I Grants to Local Educational Agencies which was qualified.

6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Elbert County Board of Education's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-133. These audit findings are included in section IV of this report.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies

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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

I SUMMARY OF AUDITOR'S RESULTS

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 did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133.

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-6521-07-01

Condition:

This is a repeat finding (FS-6521-06-05 and FS-6521-05-02) from the years ended June 30, 2006, and June 30, 2005. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts.

Criteria:

The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures.

Questioned Cost: NIA

Information:

Revenues/Receivables/Receipts Auditor was unable to verify appropriateness of receipts in five of eighteen receipts tested due to a lack of documentation.

Expenditures/Liabilities/Disbursements The following deficiencies were noted: o Two of twelve voucher packages lacked original invoices. o Seven of twelve voucher packages did not have proper approval documented. o Nine of twelve voucher packages did not contain purchase orders.

Cause:

These deficiencies were a result of management's failure to ensure that internal controls were established, implemented, and functioning at the school level.

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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-6521-07-01

Effect:

Errors and/or irregularities may not be detected in a timely manner.

Recommendation:

The School District should review the accounting procedures in place and implement additional procedures to ensure that financial transactions are properly recorded, documented and approved.

EMPLOYEE COMPENSATION Insufficient Documentation for Basis of Employee Salaries Significant Deficiency Finding Control Number: FS-6521-07-02

Condition:

The School District does not maintain sufficient documentation, including approved salary schedules and payroll supplements.

Criteria:

Chapter 29, Payroll Administration ofthe Financial Management for Georgia Local Units of Administration (FMGLUA) states in part that "Forms authorizing a payroll action should be checked to determine that the titles and salaries or wages are proper and in conformance with the salary schedule and classification plan" and "Payroll administration is a very important function ofthe business office of an Local Unit of Administration (LUA)...Personnel policies on such matters as leaves of absence, promotions, overtime, and benefits are the basis for payroll actions". Adherence to these policies requires that those responsible for timekeeping and payroll be familiar with the policies and be notified of all changes in an employee's status.

Questioned Cost: NIA

Information:

Through interviews with various personnel, the auditor determined that many of the employees of the School District do not fall under any type of salary scale. Specifically, we identified that Central Office clerical staff and bookkeepers, bus shop mechanics, school bookkeepers, the transportation director, maintenance director, Title I director, SFS bookkeeper, and LPN employees do not have salary scales established by the School District. Additionally, salary supplements are being paid to principals and the SFS bookkeeper without any base scale. Federal finding FA-6521-07-02 1s directly related to information reported in this finding.

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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

EMPLOYEE COMPENSATION Insufficient Documentation for Basis of Employee Salaries Significant Deficiency Finding Control Number: FS-6521-07-02

Cause:

Management has failed to establish salary schedules for all non-certified positions and salary supplements.

Effect:

Employees could be paid incorrect amounts or amounts that are inconsistent with assigned job duties or other employees performing the same or similar duties. Without adequate justification or documentation for amounts paid to employees, the system could be placed in the position of having to legally defend and justify amounts paid to employees.

Recommendation:

Management should develop salary and supplement schedules for each employee or employee class for the entire school district. Each employee's personnel folder should retain adequate documentation to identify the current status of the employee which qualifies that employee for the type of supplement paid.

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ALLOWABLE COSTS/COST PRINCIPLES ACTIVITIES ALLOWED/UNALLOWED Failure to Properly Charge/Document Employee Compensation Expenditures Material Weakness Material Noncompliance U.S. Department of Education Through Georgia Department of Education Title I - Grants to Local Educational Agencies (CFDA 84.010) Finding Control Number: FA-6521-07-01

Condition:

A review of employee compensation expenditures charged to Title I Grants to Local Educational Agencies (Title I) revealed that employee timesheets did not properly document time performed on Federal activity and employee services provided to all students at schools participating in the schoolwide program were charged directly to Title I.

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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ALLOWABLE COSTS/COST PRINCIPLES ACTIVITIES ALLOWED/UNALLOWED Failure to Properly Charge/Document Employee Compensation Expenditures Material Weakness Material Noncompliance U. S. Department of Education Through Georgia Department of Education Title I - Grants to Local Educational Agencies (CFDA 84.010) Finding Control Number: FA-6521-07-01

Criteria:

0MB Circular A-87 requires that "Personal activity reports or equivalent documentation must reflect an after the fact distribution ofthe actual activity of each employee and must account for the total activity for which each employee is compensated."

The 0MB Compliance Supplement states that "funds available under Part A may be used only for programs that are designed to help participating children meet the State's student academic achievement standards expected of all children."

Questioned Cost: $45,616.40

Information:

An examination of expenditures charged to the Title I, Grants to Local Educational Agencies Program (CFDA 84.010) identified the following problems:

Although required, two split-funded employees' timesheets did not adequately document their time devoted to all activities carried out at the Board. These two employees were being paid 50% from the General Fund and 50% from Title I. However, their timesheets only documented a portion of the time charged to the Title I program but did not include actual time that was performed on other Board activities.

Another instance was noted where an employee's total salary was charged directly to Title I, with no documentation to support that this employee was providing services only to Title I eligible students. This employee's job description included providing services to all schools and all students participating in the schoolwide program.

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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ALLOWABLE COSTS/COST PRINCIPLES ACTIVITIES ALLOWED/UNALLOWED Failure to Properly Charge/Document Employee Compensation Expenditures Material Weakness Material Noncompliance U.S. Department of Education Through Georgia Department of Education Title I - Grants to Local Educational Agencies (CFDA 84.010) Finding Control Number: FA-6521-07-01

Cause:

Management failed to implement procedures to require sufficient time and attendance documentation from employees working on Federal programs. Management failed to properly classify personal services and charge them to the appropriate fund.

Effect:

Failure to properly document expenditures charged to this program can result in material noncompliance with the requirements of the Federal grant.

Recommendation:

The School District should implement procedures necessary to ensure that all expenditures charged to this program are allowable within the Federal guidelines and are properly and sufficiently documented.

ALLOWABLE COSTS/COST PRINCIPLES ACTIVITIES ALLOWED/UNALLOWED Insufficient Documentation for Basis of Employee Salary Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6521-07-02

Condition:

Employee testing for the school food services (SFS) program has indicated that the SFS Bookkeeper's salary is not based on a documented salary schedule. Additionally, the SFS Bookkeeper receives an $8,000.00 per year supplement that is not supported by any type of supplement schedule.

Criteria:

Provisions of 0MB Circular A-87 indicate that personal service charges should be supported by time and attendance records, personal activity reports, salary distribution working papers, etc. Additionally, individual's total wage or salary should be reasonable for the service rendered.

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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ALLOWABLE COSTS/COST PRINCIPLES ACTIVITIES ALLOWED/UNALLOWED Insufficient Documentation for Basis of Employee Salary Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6521-07-02

Questioned Cost: $8,000.00

Information:

The school food service bookkeeper received an additional supplement of $8,000.00 per year for performing duties that relate to the duties of the SFS Director, while the SFS Director position was vacant. Once the director position was filled, the supplement continued to be paid to the bookkeeper. See Financial Finding FS-6521-07-02 for additional information.

Cause:

Management has not implemented adequate controls over salary and salary supplements. Management has failed to ensure that each position within the Central Office and each school have proper and accurate salary schedules. Additionally, positions within the School District that qualify for pay supplements are not documented. The personnel files of each person that qualifies for a supplement are not up to date as to whether the person remains eligible to receive the supplement.

Effect:

The school food service bookkeeper receives a salary and an additional salary supplement that is not supported by a salary or supplement schedule.

Recommendation:

Management should develop salary and supplement schedules for each employee or employee class for the entire school district. Each employee's personnel folder should retain adequate documentation to identify the current status of the employee which qualifies that employee for the type of supplement paid.

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SECTIONV MANAGEMENT'S RESPONSES

ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2007
Finding Control Number: FS-6521-07-01
We concur with this finding. The District Finance Officer has communicated the audit deficiencies to all school principals and bookkeepers. The Finance Officer is currently working on updating procedures to be applied at the various schools. These procedures will be communicated to both principals and bookkeepers.
Finding Control Number: FS-6521-07-02
We concur with this finding. In prior years, the Superintendent has examined all compensation not directly determined by a salary schedule, and with the recommendation ofthe administrative staff, established what he felt was reasonable compensation for the duties provided.
Finding Control Number: FA-6521-07-01
We concur with this finding. During the school year 2006-2007, the Title I Director and her assistant were both new to those positions. Although they did keep time sheets, they were not aware that they should have included time spent on phone calls, emails, meetings and after hours spent on the Title I program. They have modified their procedures and are presently keeping more detailed records oftheir time.
In prior years, the School District considered adding a technology specialist to work exclusively in our elementary schools (all Title I) to aid the students and staff with computer and technology matters. The School District contacted the State office and was advised that it was a reasonable addition. The rules have changed since that time and the School District did not get them in place. The School District has moved the cost of that person to the general operating account in the fiscal year 2009 budget.
Finding Control Number: FA-6521-07-02
We partially concur with the findings. The employee in question never assumed the duties ofFood Services Director. Those duties were taken by Mr. Wallace Edwards. During that time, it was recognized that the employee involved would have additional duties beyond those ofbookkeeping. Those duties required more involvement with the actual program and the additional dollars were allocated for this coordinating function. When Mr. Edwards was elevated to the Superintendent's position, the new Food Services Director performed services beyond that provided by Mr. Edwards. The employee in question has continued to do the coordinating function.
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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2007 Finding Control Number: FA-6521-07-02 The School District did not appropriately document the additional duties required of the Food Services Coordinator. A detailed listing ofthe required duties has been compiled and is now part of the Coordinator's position. They are also considered in the annual evaluation of the coordinator. Contact Person: Philip L. Pitts, Chief Financial Officer, Associate Superintendent Phone: (706) 213-4052 Fax: (706) 283-6674 E-mail: ppitts@elbert.kl2.ga.us
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