AUDIT REPORT EMANUEL COUNTY BOARD OF EDUCAnON 
SWAINSBORO, GEORGIA YEAR ENDED JUNE 30, 1998 
 
 EMANUEL COUNTY BOARD OF EDUCATION - TABLE OF CONlENTS- 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
6 
 
D NOTES TO lHE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
7 
 
ADDmONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
18 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
20 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
22 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
23 
 
DEBT SERVICE FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
24 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDTIURES 
 
AND CHANGES IN FUND BALANCES 
 
25 
 
SCHEDULES 
 
I SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 
 
26 
 
2 SCHEDULE OF EXPENDTIURES OF FEDERAL AWARDS 
 
27 
 
3 SCHEDULE OF STATE REVENUE 
 
29 
 
4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
30 
 
 EMANUEL COUNTY BOARD OF EDUCATION - TABLE OF CONJENTS- 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
5 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
31 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
6 
 
OVERALL 
 
33 
 
7 
 
BY PROGRAM 
 
34 
 
SECTIONll 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAIOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 
 
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RUSSELL W. HINTON 
SrATf: AUDITOR 
(404) B56-2174 
 
~.<.l"'_ i~ Tn' 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 303348400 
April 26, 1999 
 
Honorable Roy E. Bames, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe Emanuel County Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general purpose financial statements ofthe Emanuel County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Emanuel County Board ofEducation's management Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
Except as discussed in the following paragraph, we conducted oW' audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assW'ance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that oW' audit provides a reasonable basis for our opinion. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1998, nor could we satisfy ourselves as to the ac=y of the amounts stated as inventories through alternative procedures. 
As described in the notes to the general pmpose financial statements, the Board's fmancial statements have been prepared using certain accounting practices and policies which, in oW' opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
 
98ARL-13B 
 
  The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
 School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
 The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries and the corresponding employer'S cost of related benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects ofsuch adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfY ourselves as to the accuracy of the food service inventories as discussed in the third paragraph and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Emanuel County Board ofEducation as ofJune 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. 
In accordance with Government Auditing Standards, we have also issued our report dated April 26, 1999, on our consideration of the Emanuel County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. 
The year 2000 supplementary information on Schedule "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Emanuel County Board of Education is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Emanuel County Board of Education does business are or will become year 2000 compliant. 
Our audit was performed for the purpose offorming an opinion on the general purpose financial statements of the Emanuel County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 2 through 7), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-l33, 
98ARL-l3B 
 
 Audits o/States, Local Govemments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing pros:edures applied in the audit ofthe general purpose financial statements and in 
our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfY ourselves as to the accuracy of the food service inventories as discussed in the third paragraph and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose fmanciaJ 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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
 
RWH:jb 98ARL13B 
 
Respectfully submitted, 
~o~.qj* State Auditor 
 
 EMANUEL COUNTY BOARD OF EPUCATION 
 
 EMANUEL CQUNn BOARD OF EPUCATION COMBINED BALANCE SHEET 
ALL FUND WES AND ACCOUNT GROUp JUNE 3D, 1998 
 
cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated CommOdijie. Purchesed Food 
Amount Available In Debt Servlos Fund 
Amount to be Provided In Future Vea", For Peyment of: BOnd Debt Capital L....e Agreements 
 
GENERAL FUND 
 
GOVERNMENTAL FUNDWES 
 
SPEC~ 
 
CAP~AL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
2,689,954.49 $ 
 
330,833.87 $ 3,907,161.93 
 
211,546.61 
 
688,200.48 
 
169.872.36 
 
79,035.33 25,082.91 
 
Total Assets LIABILITIES AND FUND EQUITY 
 
$ 2,901,501.10 $ 1,023,152.59 $ 4,077,024.29 
 
Accounts Payable Salaries Payable Expired Grant Balance. Payable Claims Payable Contract. Payable Retalnagas Payable Capbl Lease Ag_mants General Obligation Bond. Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserwd For Bus Replacement Fund. For ContlnuaUon of Federel Programs For Debt Service For Explnsd Grant BalanceslQu""tioned eoets For Inventorie. Food Donated CommOdijie. Purchased Food For Purpo... of Bond Ie For State Capbl Outlay Proj.cts Unreserved De.lgnated for S.lf-ln.uranos Deficit Undesl9nated 
Total Fund Equity 
 
126,799.23 $ 11.277.07 
5.841.00 
 
271,981.60 $ 356,637,97 
9.52 
 
1,698,70 
327,884.44 65,384.76 
 
$ 
 
143,917.30 $ 
 
628,529.09 $ 
 
394,967.90 
 
$ 
 
204,191.92 
 
$ 
 
1.434.48 
 
1,286.75 
 
71,982.81 2.479.974.61 2.757,5113.60 $ 
 
79,035.33 25,082.91 
$ 
 
3,637,795.63 15.842.76 
 
289,218.51 364,623,50 
 
28416.00 3,662,056.39 
 
Total Liabiliji and Fund Equity 
 
$ 2,901,501.10 
 
TIle not to the general purpooe finanelal.tatements a... an integral part of this .tatement. 
 
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1,023,152.59 $ 4,077,024.29 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
ACCOUNT GROUP 
GENERAL LONGTERM 
DEBT 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 1998 
 
JUNE 30, 1997 
 
$ 1,023,894,97 
 
$ 7,951,835,28 
 
4,194,061.26 
 
283,948,85 
 
1,253,468,30 
 
1,239,669.33 
 
$ 
 
1,307,743,82 
 
79,035,33 25,082,91 
1,307,743,82 
 
66,123,43 22,503,22 
130,664,85 
 
9,877,258,18 
 
9,877,256,18 
 
4,774,315,35 171908.06 
 
$ U07,743,82 $ 11,185:000,00 
 
20.494,421,80 $ 10,599,285,30 
 
$ 
 
400,479.53 
 
367,815.04 
 
9,52 
 
5,641,00 
 
327,884,44 
 
65,364,76 
 
11,185,000,00 
 
11,185,000,00 
 
$ 11,185,000,00 
 
12,352.414,29 
 
721,191,40 394,397,73 
854,02 405,00 573,859,51 312,393.11 171,908,08 4,905,000,00 
7,080,008,83 
 
$ 1,307,743,82 
0.00 $ 1,307,743,82 
 
$ 
 
204,191,92 $ 
 
1,286.75 
 
1,307,743,82 
 
1.434.48 
 
83,820,71 1,305,33 
130,664,65 1,434,48 
 
79,035,33 25,08.2.91 3,637,795,83 15,842,78 
71,982,81 
2,797,611.12 
8,142,007,51 $ 
 
88,123.43 22,503,22 
115,431.35 
76,708,98 -90,803,48 3,112,247,82 
3,519,256.47 
 
$ 1,307,743,82 
 
11,185,000,00 
 
20:494,421,80 $ 10,599,285,30 
 
3- 
 
 EMANUEL COUNTY BOARP OF EDUCATION 
COMBINED STATEMENT OF RElIENUS EXPENPITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAl fUND mES 
YEAR ENDED JUNE 30 1998 
 
~ 
Slate Fund. Federal Fund. Taxes Other Fund. 
Total Revenue. 
EXpENDITURES 
Current Instruction Support Services Pupil Servloas Improvement of Instructional Service. Educational Media Sarvioas General Admini.tratlon School Administration Bu.in.... Administration Maintenance and Operation of Plant Student Tran.ponation sarvices Central Support Servloa. Other Support Services Food sarvioas Operation Enterprtse Operation. Community 5ervloea Operation. 
Capilal Outlay Debt Service 
Prtnclpel tntera.t Payin9 Agent Fee. 
Total Expenditures 
Excess of Revenue. over (under) expenditures 
OTHER FINANCING SOURCES fUSES) 
P",mium. on Bond. Sold Prooeeds from General Obligation Bond. 
Par Value Operating Trensfers In Operatin9 Transfers Out 
Tolal Other Financing Souroes (Uses) 
Excess of Revenues end Other financing Souroes over (under) Expenditure. and Other Financing U.... 
FUND BAlANCE JULy 1 
Food Inventory Net Change In Pertod Donated Commodities Purcha.ed Food 
 
GENERAl FUND 
 
SPECiAl REVENUE 
FUNO 
 
$ 18,616,443.83 $ 80,077.56 
2,890,588.85 480,452.30 
$ 22,087,582.34 
 
1,268,306.39 3,890,142.08 
437,419,77 
5,395.868.24 
 
$ 14,590,879.79 $ 
878,642.73 702,948.88 592,987.34 405,726.22 1,527,244.33 127,454.60 1,531,286.85 915,752.58 103,621.48 110,174.82 
38,135.28 53,535.44 42,350.28 
9,173.51 
171,908.08 14,933.31 
 
2,304,164.30 
323,667.67 231,213.85 
84,548.77 46,528.73 
114,277.35 45,089.01 
12,482.42 2,355,571.83 
 
$ 21,814,535.46 $ 
 
$ 
 
253,026.88 $ 
 
5,517,503.93 -121.835.89 
 
$ 
 
-358,819.41 
 
$ 
 
-358.819.41 
 
$ 
 
-105,592.53 $ 
 
2,883,178.33 
 
-121,635.89 500,787,80 
 
12,911,90 2,579.89 
 
FUND BALANCE JUNE 30 
Tha nole. to the general purpose financial .tatements are an Integral part of this .latement. 
-4- 
 
$ 2.757.583.80 $ 
 
394,823.50 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 1998 
 
JUNE 30, 1997 
 
$ 
 
223,062,36 
 
228,176,35 
 
1,674,349,07 48,321.95 
 
20,107,812,68 $ 3,770,219.64 4,664,937,72 
1,194,372,37 
 
22,829,458.63 3,874,062,83 3,291,066,16 976,192.52 
 
$ 
 
451,240,71 $ 1,722,671,02 $ 29,637,342,31 $ 30,670,770,04 
 
$ 
 
136,237,39 
 
3,412,293.63 $ 
$ 3,548,531,22 $ $ -3,097,290,61 $ 
 
$ 
110,000.00 433,869,17 
1,722,86 546,611.85 $ 1,177,059,17 $ 
 
16,894,844,09 $ 
1,202,310.40 934,162,53 592,987.34 490,274,99 
1,573,773,06 263,692.19 
1,645,544.20 960,621,57 103,621,46 122,637,24 
2,391,707,11 53,535.44 42,350,26 
3,421,467,34 
281,906,06 448,822.46 
1,722.68 
31.426,182,46 $ 
-1,788,840.16 $ 
 
16,229,899,94 
1,076,079,96 963,764.44 516,327,57 274,610.02 
1,334,582,60 111,460,91 
1,623,269,82 1,096,399,86 
95,953.06 168,126.08 2,342,101,20 
8,205,632,25 
230,549.66 262,469,90 
766,51 
34,451,042.82 
~,660,272, 7 6 
 
$ 
 
6,099,60 
 
6,390,000,00 368,619.41 
 
$ 6,754,719,01 
 
$ 
 
8,099.60 
 
6,390,000.00 
356,619,41 $ -358,619.41 
 
1,054,392,63 -1,054,392,63 
 
$ 6,396,099,60 
 
0,00 
 
$ 3,657,428.50 $ 1,177,059.17 $ 4,607,259,46 
 
24,627,69 
 
130,884,65 
 
3,519,256.47 
 
~,880,272,78 7,404,906.11 
 
12,911,90 2,579.69 
 
~,596,20 
-779,00 
 
$ 3,682,066.39 $ 1,307,743,62 $ 6,142,007,51 $ 3,519,256.47 -6- 
 
 The note. to the general purpose financial statements are an Integral part of this .tatement. -6- 
 
 EMANUEL COUNTY BOARD OF EDUCAnON 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Emanuel County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available fmancial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial sbtements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives. 
-7- 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30,1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTIN'G POLICIES 
CAPITAL PROJECTS FUND - the fund used to account for fmancial resources to be used for the acquisition or construction ofmajor capital facilities, 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e" when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. 
E:s:penditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this emploYment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As of June 30, 1998, compensation under these employment 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
contracts had been eamed, but two ofthe twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion ofthe compensation paid in July and August 1998 was received and recOrded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
BUDGET 
The Emanuel County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This fmal budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State ehartered building and loan associations. 
RECEIVABLES 
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recoguition criteria has been met. Receivables recorded on the general purpose fmancial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
- 9- 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 3D. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
PROPERTY TAXES 
 
The Emanuel County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on September 18,1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January I, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Emanuel County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board. 
 
The tax millage rate levied for the 1997 tax year (calendar year) for the Emanuel County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
~mills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,652,469.72 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $8,947,530.28 has been collected or on June 30, 2002 whichever occurs first. 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
GENERAL OBLIGAnON BONDS 
 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
 
- 10 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30,1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INTERFUND TRANSACTIONS 
The Board has the following types ofinterfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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 ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of anyone of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities of the State of Georgia, 
 
 II . 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL PURPOSE FINANCIAL srATEMENIS 
 
JUNE 30. 1998 
 
Note 2: DEPOSITS 
 
(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States govenunent, which are fully guaranteed by the United States government both as to principal and interest and 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, 1998, the bank balances were $9,750,829.33. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1998, as follows: 
 
Risk Category 
 
Bank Balance 
 
I 
 
$ 1,323,894.97 
 
2 
 
8,426,934.36 
 
3 
 
0.00 
 
Total 
 
$ 9 750 829.33 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board 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 1 - Inventories 
 
- 12- 
 
 EMANUEL COUNTy BOARD OF EDUCATION 
 
EXmBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
The Board participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994 to develop and administer a plan to reduce risk of loss on account ofgeneral liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abnse) and automobile risks. Payment ofexcess insurance for the system varies by line ofcoverage. 
 
The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
1997 1998 
 
Beginning 
of Year 
Liability 
 
Claims and 
Changes in Estimates 
 
$ 
 
0.00 $ 
 
2.422.00 $ 
 
$ 
 
405.00 $ 
 
6.255.00 $ 
 
Claims Paid 
 
End ofYear 
Liability 
 
2.017.00 $ 819.00 $ 
 
405.00 5,841.00 
 
The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July I, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of$350,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $350,000.00 aggregate to more than seventy-five percent (75%) of the standard experience rated premium during the policy term, the policy with the United States Fidelity and Guaranty Company will ,pay the next $1,000,000.00 of loss. 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
- 13- 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note 4: RISK MANAGEMENT 
 
Position Covered 
 
Superintendent All Others 
Note 5: GENERAL LONG-TERM DEBT 
 
$ 100,000.00 $ 100,000.00 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follow;s: 
 
Purpose 
General Government Series 1995 General Government Series 1997 
 
Interest Rates 
3.90% - 5.65% 3.90% - 4.75% 
 
Amount 
$ 4,795,000.00 6,390.000.00 
 
$!! 185000,00 
 
The changes in General Long-Tenn Debt during the fiscal year ended June 30, 1998, were as follows: 
 
Balance July 1, 1997 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total 
 
$ 171,908.06 $ 4,905,000.00 $ 5,076,908.06 
 
Additions 
 
6,390,000.00 6,390,000.00 
 
Deductions Payments 
 
171.908.06 
 
110,000,00 
 
281,908.06 
 
Balance June 30, 1998 
 
$ 
 
000 $1 I.! 8500000 $!! 185000,00 
 
At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
14 - 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIDIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Fiscal Year Ended June 30 
1999 2000 2001 2002 2003 2004 -2008 20092013 20142017 
Total Principal and IntereSt 
Note 6: ON-BEHALF PAYMENTS 
 
General Obligation 
Bonds 
$ 1,626,607.50 1,762,705.00 1,832,028.75 1,909,882.50 1,974,051.25 2,256,567.50 2,361,467.50 977.122.50 
$]4 700.432.50 
 
The Board has recognized revenues and expenditures in the amount of $463,719.27 for health insurance and retirement contributions paid on the Board's behaifby the following State Agencies. 
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $370,966.00 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$21,024.27 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $71,729.00 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1998, together with funding available: 
 
- 15 - 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30,1998 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
653-001 653-002 653-003 
 
$ 166,078.67 2,074,420.00 3,044.470.84 
 
$ 917,082.00 835,818.64 
 
$ 5 284 969 51 $175290064 
 
The amounts described in this note are not reflected in the general purpose fmancial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal govermnent are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. 
 
Note 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
1RS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (lRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
1RS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by 1RS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
- 16- 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 9: RETIREMENT PLANS 
Fiscal Year 
1998 1997 1996 
 
Percentage Contributed 
100% 100% 100% 
 
Required Contribution 
$ 1,809,598.51 $ 1,705,924.78 $ 1,556,558.79 
 
- 17- 
 
 EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30.1998 
 
Cash and Cash Equivalants 
Accounts Receivabla 
Inventorias Food Donated Commodities Purchased Food 
Total Assets 
LIABILITIES AND FUND EQUITY LIABILITIES 
Cash Overdraft Accounts Payabla Salarias Payable Expired Grant Balances Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undasignated 
Total Fund Equity 
Total liabilities and Fund Equity 
See notas to tha general purpose financial statements. -18 - 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOITERY PROGRAMS 
 
$ 
 
374,179.22 $ 
 
116,789.91 
 
54,946.61 
 
9,961.23 
 
79,035.33 25,082.91 
 
$ 
 
533,244.07 $_-.:1~26:::,7,:.:5;;.:1.;.:.1:.;;.4 
 
$ 
 
43,546.25 $ 
 
44,153.59 
 
96,361.07 
 
82,588.55 
 
9.00 
 
$ 
 
139.907.32 $_---=1=26~,.:.:75::..:1..:.:.1c::..4 
 
$ 
 
79,035.33 
 
25,082.91 
 
289,218.51 $ 
 
$ 
 
393,336.75 $ 
 
--!'O:.:::.O~O ~O"".O:::-O 
 
$ 
 
533.244.07 $ _.....:1.:.26~,.:.:75::.:1.:.:.1:.;:.4 
 
 EXHIBIT"E" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAM 
 
TOTALS JUNE 30,1998 JUNE 30,1997 
 
$ 490,969.13 $ 649,895.21 
 
$ 495,348.85 $ 
 
27,945.79 
 
588,200.48 
 
739,540.75 
 
79,035.33 25,082.91 
 
66,123.43 22,503.22 
 
$ 
 
495,346.85 $ 
 
27,945.79 $ 1.183,287.85 $ 1,478,062.61 
 
$ 138,227.n $ 178,243.51 177,588.35 0.52 
 
$ 
 
494,060.10 $ 
 
21,907.54 $ 6,038.25 
27,945.79 $ 
 
160,135.26 $ 271,981.60 356,537.97 
9.52 
788,664.35 $ 
 
129,409.67 471,064.34 376,501.42 
319.58 
977.295.01 
 
$ 
 
1,286.75 
 
0.00 $ 
 
$ 
 
1,286.75 $ 
 
$ 
 
1,286.75 $ 
 
1,305.33 
 
0.00 0.00 $ 
 
79,035.33 25,082.91 
289,218.51 
394,623.50 $ 
 
66,123.43 22,503.22 
410,835.62 
500,767.60 
 
$ 
 
495,346.85 $ 
 
27.945.79 $ 1,183,287.85 $ 1,478,062.81 
 
-19 - 
 
 EMANUEL COUNTY BOARP OF EpUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1998 
 
REveNUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration SchOOl Administration Maintenance and Operation of Plant Student Transportation Services other Support Services Food Services Operation 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory - Net Change In Period Donated CommOdities PurchaSed Food 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
149,506.00 $ 1,068,800.39 
 
1,847,028.95 
 
437,419.77 
 
$ 2,233,954.72 $ 1,068,800.39 
 
$ $ 2,355,571.83 
 
842,799.84 
48,059.40 548.06 
39,478.74 113,954.36 23,959.99 
 
$ 2,355,571.83 $ 1,068.800.39 
 
$ -121,617.11 $ 
 
0.00 
 
499,462.27 
 
0.00 
 
12,911.90 2,579.69 
 
$ 393,336.75 $ 
 
0.00 
 
See notes to the general purpose financial statements. ~ 20- 
 
 EXHIBIT"F" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAM 
 
TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30,1997 
 
$ $ 2,043,113.13 
$ 2,043,113.13 $ 
 
50,000.00 $ 50,000.00 $ 
 
1,288,306.39 $ 3,690,142.08 
437,419.77 
5,395,868.24 $ 
 
1,558,449.21 3,588,403.47 
436,768.61 
5,583,621.29 
 
$ 1,461,364.46 
253,858.88 $ 211,037.68 64,548.77 
7,049.99 322.99 
12,486.52 12,462.42 
 
$ 2,043,131.71 $ 
 
$ 
 
-18.58 $ 
 
1,305.33 
 
$ 2,304,164.30 $ 2,629,328.66 
 
21,749.39 19,628.11 
8,622.50 
 
323,667.67 231,213.85 84,548.77 46,528.73 114,277.35 45,069.01 
12,462.42 2,355,571.83 
 
360,895.75 87,093.19 89,518.08 36,403.74 67,047.16 38,365.54 52,768.97 
2,301,670.20 499.00 
 
50,000.00 $ 5,517,503.93 $ 5,663,790.29 
 
0.00 $ -121,635.69 $ 
 
-80,169.00 
 
0.00 
 
500,767.60 
 
588,312.46 
 
12,911.90 2,579.69 
 
-4,596.20 -779.66 
 
$ 
 
1,286.75 $ 
 
0.00 $ 394,623.50 $ 500,767.60 
 
- 21 - 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
COMBINING BALANCE SHiEl CAPITAL PROJECTS FUND 
JUNE 30 1998 
 
EXHIBIT "a- 
 
ASSETS 
cash and Cash Equivalents 
Accounts Receivable DIIe from Other Funds 
Tolal_ots 
 
REGULAR 
 
BOND PROCEEDS 
 
GEORGIA STATE FINANCING AND 
INvESTMENT CQMMISSION 
 
27,418,00 $ 3,709,183.44 $ 
 
170,880.49 
 
159,872.36 
 
1 000.00 
 
70,357,81 
 
TOTALS 
 
JUNE 30 1999 
 
JUNE 30, W9? 
 
3,907,151.93 $ 
 
689,826,29 
 
159,872,36 
 
358,952,00 
 
71,357,81 
 
28418.00 $ 3,729, lij3 44 $ 
 
41p,810,6!! 
 
4,148,382,10 $ 1,048,778.29 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
8e<:ounlS Pey_ Contracts Payable Retalnagi!ll!'i Payable Cue to Other Fund$: 
Tolal Liabillti.. 
FUND EQUITY 
Fund Balances Re.erved For Purpose of Bend Issue For 5 _ Capital DuBay Pr$OIS Unreserved Deficit Undesignat8d 
Tolal Fund Equity 
Toral L1ablllti.. end Fund Equity 
 
71,357,81 
 
$ 
 
71,357,01 
 
1,895.70 327,864.44 55,364.75 
394,967,90 
 
1,595,70 327,554,44 65,354.75 71357.61 
_,325,71 
 
137,597,75 573,859,51 312,393,11 
1,024150.40 
 
$ 3,631,795,63 
 
26,410,00 29418 OP $ 
 
0,00 M3?,795,63 $ 
 
15,642,76 
 
3,637,795,63 15,542.76 
 
0.00 18,642,76 $ 
 
29419.00 3 682,056,39 $ 
 
115,431.35 
-90,503,45 0.00 
24627.69 
 
28"18,00 S 3,709,153,44 
 
410,810,66 $ 4146382.10 $ 1948778'29 
 
See notes to the general purpoSe financial statemMlts. 
 
-22- 
 
 EMANUE' CQUNTY BOARD OF EDUCATION COMalNING STATEMENT Of REVENUES EXPENDITURES ANp CHANGES IN FUNp BAlANCES 
CAPITAL pROJECTS FUND YEAR ENpEp JUNE 30 1998 
 
EXHI8fT"H" 
 
~ 
State Funds otIler FunCb. 
TobIl Revenues 
EXPENDITURES 
Cunent Support ServICll!ls Buslneu Adrninlstrlltion 
C8pitoiOutIaY Salaries EmplO.... 86"",,10 Land lind Land Impl"CMM'nents Building and Building Imprmrernents 
TOlllI Expondltul'1lS 
Excels of RlIV8nues CMIIr (under) Expenclltunls 
OTHER FINANCING SOURCES (USES> 
Premiums on Bondi Sold pt'OCll!ll8ds from ~1!Jf'B1 Obligation Bonds 
PilrValue Operating Tn!lnsfera In Opeliltlng Tl1IInsfers Out 
Total Otngo F=lnanclng Sources (US8Ii) 
Exce$$ Of RevenUM an(! Other AMnCing SouI'C8& over (under) Expencllturu and other Flnlllndng Uses 
FUND BALANCE JULY 1 
 
REGULAR 
 
IlOND PROCEEDS 
 
GEORGIA STATE FINANCING AND 
INllESThlENT COMMISSION 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, lOllS 
 
JUNE 30, 1997 
 
3815.18 3,616,18 
 
221495.27 221 ,~06,27 S 
 
223,062,36 S 3087.90 
226,130,26 S 
 
223,062,36 228178.35 
~61,240,71 
 
3,033,660,56 83117.00 
3,116,677,56 
 
13B,237.39 
 
8,~5HO 2481233.83 
2,~8M21.33 S 
-2,4Q!!,078,16 S 
 
76,681,71 
216,112,10 8,378,17 
 
21M28,00 833292.79 
~3,720,78 S 
-!!17,620,63 S 
 
138,237.39 
287,767,21 3114528.62 3,646,631,22 S -3,087,220,61 
 
5,580.62 
~2~,~8 408,992.~7 7734 786.48 
Q,142,7~4,26 
-6,033,088,68 
 
2,805,297.81 2805297.81 
 
!!,OOO,SO 6,380.000,00 -2,764,830,14 3831419.48 
 
110.221,~ S 3,837.786,83 
 
-lIO,803.~ 
 
0.00 
 
S 618.CK)1.94 518001.94 $ 
 
6,028.80 
M90,OOO,OO a.12:3.295f.6& $ 
-2,7~,6QO,1~ 
6754 719.01  
 
4,7.360,77 3,6QUll.14 
1,054,382,83 
 
-lIG,686,60 S . 116,431,36 
 
3,867.~2!!.50 S 24,827,88 
 
-3,078.674,06 
~,003,301.G6 
 
FUND BAlANCE JUNE: 3D 
 
28,418,00 S 3,837.786,83 S 
 
16,842,78 S 3,882.068,30 S 
 
24.827,8g 
 
23~ 
 
 EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUNO JUNE 30 1998 
 
EXHIBIT "I" 
 
~ Cash and Cash EqUivalents Accounts Receivable 
 
DEBT SERVICE 
FUND 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 1998 
 
JUNE 30,1997 
 
$ 
 
6,684.40 $ 1,017,210.57 $ 1,023,894.97 $ 
 
124,787.35 
 
351.68 
 
283,497.17 
 
283,848.85 
 
5.897.30 
 
Total Assets 
 
$ 
 
7,036.08 $ 1,300,707.74 $ 1.307.743.82 $ 
 
130,684.65 
 
FUND EQUITY 
 
Fund Balences 
 
Reserved 
 
For Debt Service 
 
$ 
 
Unreserved 
 
Undesignated 
 
7,036.08 $ 0.00 
 
1,300,707.74 $ 0.00 
 
1,307,743.82 $ 0.00 
 
130,684.65 0.00 
 
Total Fund Equity $ 
 
7,036.08 $ 1,300.707.74 $ 1,307,743.82 $ 
 
130,684.65 
 
Sea notes to the general purpose financial statements. -24- 
 
 EMANUEL COUNTY BOARP OF EDUCATION COMBINING STATeMENT OF REVENUES EXpENDUVRes ANp CHANGeS IN FUNp BALANCeS 
PEBT SERVICE FUND yEAR ENpEp JUNE 30, 1998 
 
EXHIBIT"J" 
 
REVENUES 
 
Taxes 
 
$ 
 
OlherFunds 
 
Total Revenu,," 
 
$ 
 
EXPENDITURES 
 
Debt Service 
 
Principal 
 
Interest 
 
$ 
 
Paying Agent Fees 
 
Total ExpenditulU 
 
$ 
 
Excess of Revenues over (under) ExpendriulU $ 
 
FUNp BALANCE JULY 1 
 
DEBT SERVICE 
FUND 
 
SPECIAL PURPOSE lOCAl OPTION SAlE8TAX 
 
TOTALS 
 
JUNE 30, 1998 
 
JUNE 30,1997 
 
21,879,35 $ 639.36 
22.518.71 $ 
 
1,652,469.72 $ 47.682.59 
1,700.152.31 $ 
 
1,674,349.07 $ 4S.321.95 
1.722.871.02 $ 
 
344,906.41 2.053.85 
346.960.26 
 
$ 145,336.25 
831.03 
146,167.28 $ 
-123,648.57 $ 
130,684.65 
 
110,000.00 $ 288,552.92 
891.65 
399,444.57 $ 
1,300,707.74 $ 
0.00 
 
110,000.00 $ 433,889.17 
1.722.68 
545.611.85 $ 
1,177,059.17 $ 
130.684.65 
 
95,000.00 254,357.50 
785.51 
350,143.01 
-3,182.75 
133.867.40 
 
FUNp BALANCE JUNE 30 
 
$ 
 
7.036.08 $ 1.300,707.74 $ 1,307,743.82 $ 
 
130.684.65 
 
See notes to the general purpose financial statements. 
 
-25- 
 
 EMANUEL COUNTY BOARD OF EDUCATION 
 
SCHEDULE "1" 
 
SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION 
 
YEAR 2000 DISCLOSURES 
 
YEAR ENDED JUNE 30, 1998 
 
At June 30, 1998, the Emanuel County Board ofEducation had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concem for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. 
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. 
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. 
Remediation Stage When changes are made to systems and equipment. 
ValidationfTesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. 
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected.. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage. 
The Board's fmancial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department of Education). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software. 
 
See notes to the general purpose financial statements. - 26- 
 
 EMANUEL COUNTY BOARP OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDeRAL AWARDS 
YEAR ENDED JUNE 30 1998 
 
SCHEDULE "2" 
 
FUNDING AGENCY PROGRAMiGRANT 
 
CFDA NUMBER 
 
Agricuijure, U. S. Department of Direct Food and Nutrition Pnogrsm Summar Food Service Pr09ram 1997 Grsnt Pass-Through ftorn Georgia Department of Education Food and Nutrition Pnogram Food Services SchOOl Breakfast Program 1998 Grant National School lunch Program 1998 Grant Food Disbibution Program (1) Pass-Through from Office of School Readiness Food and Nutrition Program Summer Food Service Program 1998 Grant 
 
 10.559 
 10.553 
 10.555 10.550 
 10.559 
 
Total U. S. Department of Agriculture 
 
Education, U. S. Department of Pass-Through from First Disbid Regiohal Educational Service Agency d/b/a live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1997 Grant 1998 Grant Pa....Through ftorn Georgia Departmant of Education Safe and Drug-Free Schools 1998 Grant Elementary and Secondary Education Act Tijlel 
Grants to Local Educational Agencies 
1998 Grant Even Start 
1998 Grant Title II 
Eisenhower Professional Development 1998 Grsnt 
TltleVl Innovative Education Program Strategies 1998 Grant 
Goals 2000 State and local Education Systemic Improvement Grant 1998 Grant 
Individual. with Di.abilities Education Act Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grent 
 
84.011 84.011 84.186 
84.010 84.213 84.281 84.298 
84.276 
84.027 84.173 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
$ 
NlA NlA NlA 
NIA $ 
NIA N/A $ N/A 
N/A N/A N/A N/A 
NIA 
N/A N/A 
 
FEDERAl REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
55,617.96 
 
(2) 
 
349,104.41 
1,091,361.64 $ 135,802.28 
 
(2) 
2,219,769.55 (3) 135,802.28 
 
15.142.66 1,647.028.95 $ 
 
(2) 2,355,571.83 
 
$ 17,490.82 
25,334.52 
 
1,305.33 17,490.82 
25,334.62 
 
1,187,485.47 208,720.64 22,060.48 34,703.00 
 
1,187,486.47 208,720.84 20,n3.73 34,703.00 
 
162,000.33 
 
162,000.33 
 
263,106.25 44,287.64 
 
283,106.25 44,287.64 
 
-27- 
 
 EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF EXpENDITURES OF FEDERAL AWARDS 
yEAR ENDED JUNE 30. 1998 
 
SCHEDULE ''2" 
 
FUNDING AGENCY pROGRAMIGRANT 
Education, U. S. Depertment of Pess-Through from Georgia Department of Education Stawart B. McKinney Homeless Assistance Act Education for Homeless Children end Youth 1998Grant VocatiDnal EducatiDn - Basic Grants tD States High SChDDI Program Basic Grant 1998 Grant 
Total U. S. Department of EducatiDn 
Justice, U.S. Department of Pass-Through from Office of the GovemDr Children end Youth Coordinating Council YDuth Enrichment 96H)2-9604-0034 
OTHER FEDERAL ASSISTANCE 
Defense, U. S. Department of Direct Department of the Army 8.0.T.C. Program 1998 Grant PL 102-484 1998 Grant 
TDtal U.S. Department of Defense 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
84.196 
 
NIA $ 
 
11,185.86 $ 
 
11,185.86 
 
84.048 
 
N/A 
 
88,738.22 
 
66,738.22 
 
$ 2,043,113.13 $_-,2""04=3,,,,,13:::.:1.:.:,.7.:..1 
 
16.540 
 
NIA 
 
$ 
 
6,512.31 $ _ _---'6"',5:::.:1"'2"'.3-'-1 
 
$ 
 
88,085.25 $ 
 
86,085.25 
 
7,500.00 
 
7,500.00 
 
$ 
 
73,585.25 $ 
 
73,565.25 
 
Total Federal Financial Assistance 
 
$ 3,770,219.84 $ 'M78,781.10 
 
N/A- NDt Available 
 
Notes to the Schedule of Expenditures gf Federal Awards 
 
(1) The amDUnts shown for the FDod Distribution Program reprasent the Federally assigned value of nDnmDnllbl'Y assistance for donated commodities ..calved andlor consumed by the systam during the current fiscal year. 
(2) Expenditures for the Summer FDod Service Program, and the SChDDI Breakfast Program were not 
maintained separataly and are included in the 1998 NatiDnal SchDoI Lunch Program. (3) Expenditures fDr this program include State, and/Dr Other Funds. 
Expendlturas ara not maintained by fund SDUrce. 
n Major Pro9rams ere identified by an asterisk in front of the CFDA number. 
 
The Board did not provide Federal Assistance to any SUbrec::ipient. 
 
The accompanying schedule of expenditures 01 Federal awards includes the Federal grant activity of the Emanuel County Board of EducatiDn and is presented on the modified accrual basis 01 accounting which is the aame basis of eccounting used In the presentation of the general purpose financlal sta1ements. 
 
See notes to the general purpose financial statements. 
 
-28- 
 
 EMANL IEL COUftmi BOARD OF EpUCATION 
CHED1JLE OF STATE A~VENUE 
YEAR ENDER JUNE 30 'U8 
 
SCHEDULE"" 
 
AGENcyJEUNplN9 
GRANTS EdUClltOn, GeorgIa DePflrtmenl of QuoillyBooIeEdu_ 
GerM!!lntllind CIl"ef Edl,lcsliDn Pmgramlil SpeclBI Ed~n Prng~ FlerTM;!dIBl Ed~ Pqram Media Conte!' PJog~m, Std' Development Progl'8rns IndiMC:tCOtrt PupiTranlilportsliDn 
~I.ltar 
Bus RepilOemerM Middle SOI'Ioot Inotr'Ittve Prog~ SpeciBllr'lBtructicnBl AMiItanCle In-School SI,l~p~HUllon Counlelol'l Graclos" .nd S Tee:nnology Tl'llnlng I.ooaIFllrSnare 
Educatlon" EqUlIlZlllon Fundktu a.-.nt 
FoooSoIViOU VocaIiOnl1ll EducatiOn othIIrstatt!l PrnglBma 
AdVakII1!!ImTsxAdjU8lmllnl: AltllmstivlllPmglBm Appn!!lntic8Bhlp P'rngram At-RiBk Summer SdmQI Pr1)gmm 
m. Health Inlul"'nee 
I"_ _ ~.. Montor TeaehOl' PfOGI'IIm Ne)d Gener.ltlon smoot. Pay for Pefformaneo Pl'OGfIIm Pretd'lool Handicapped Program Memeclllll Summer SChOOl Progl'llm 
Teac:hI!lr'B' Ra!Jti~mBnl LctlIIryPmgrama 
AltemBtiye School Program InstruclionBi. Technology 
AaIIistiveTlIChoolDgy C!a8BJtX)m TechnOlogy 
C'3eorgYi State Financing and I~ CommisBiDn R.~mbul'Mm.nt on ConltrUCtlon PI'OJoc:tI 
0ftiCe Of Sd'tOOI RMcIlneu pnt-Klndilrglrten Progl'llm 
Otr\c:e fJf TntB81,lfy and FiBCBI 8efYiCt& Public SehooI Emp\oyel:la RslDmant 
CONTRACTS HUmin Re"OI..nce,-, Goorgia Dllpill'tr'MnI Of F.mIy ConnllClXJn 
 
GOVERNMENTAL "-UNO lYPES 
 
SF'ECIAL 
 
CAPITAl 
 
GENERAl- 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAl 
 
9.699,393.110 2,259,7$9.00 
413,449.00 '13.326.00 132,. . . . 00 2,784,330.00 
604,094.00 163,652.00 299,701.00 419,186,00 123.223.00 4D.SSO.OO 43.2&3.00 -1.184.!&4.oo 1.483.152.00 
3MS7.oo 
87,839.00 103,500.00 50,000.00 37,279 1 370 00 
s.oOO,oo 2.069.00 'S.'SO.oo 28.000.00 SO.066.62 8.876.33 21.024.27 
 
1"'9.506.00 
4,123.00 9,961,23 131,681,00 
 
71.729.00 
 
923,03!i.1fi 
 
50000.00 
 
188115 "3.83' 1 288,308.31 
 
9,699.393.00 2,259,759.00 
.'3,"9.00 .'3,326.00 132.....00 2.7".330.00 
1504,094.00 1B3,1I52.00 299,701.00 '19.19S.00 123.223.00 40,860.00 43,28a.OO -'.184.fi64.00 ' ....83.1fi2.00 1-4i,508.00 3B,957.00 
$7,9:39.00 103.S00.00 
tiO,OOO.(I(1 37,2113.41 370,H6.00 
5,000.00 2,061.00 45,450.00 211,000.00 !lO,OSS.82 11,975.33 21,02ot.27 
4.123.00 
8.861.23 131,681.00 
 
223.062.36 
 
U:3,062.36 923,035.115 
71,729.00 
 
so 000.00 
 
223062.36 S 20,107,812.58 
 
s.. notes to 1he gerM!IIrBI purpoe IinandillUtementJJ,. 
 
 EMANUEL COUNTy BOARD OF EDUCATION 
SCHEDULE OF APPROlIED SPECIAL LOCAL OPTION SAlES TAX PROJECTS 
YEAR ENDED JUNE 30 199B 
 
SCHEDULE "4" 
 
Acqul~ng, con'truCltng, and oquipping tho following copllol outloy projOClll: Adrian School; new TwIn City Elemontary SchOOl; Renovation of the existing gymnasium at the exI'ting Adrian School RanovaUons, addltlons. end Improvements to Em8nuel County Inslltulo and Swaln,boro Hlgn SchOOl, Now schOOl maintenance and transportation fadlltIN, SIlo p8rpotration for a now Twin City E1ernllnlary School; pavomant, aqulpmant, end she preparation for school bus loading llInd unlDadlng areas at the &Chaols loealedln the City of Swalnoboro 
Rallramont of Debt 
 
ESTIMATED COST (1) 
 
CURRENT ESTIMATED 
COST (21 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) (4) 
 
AMOUNT EXPENDED IN PRIOR 
YEARS 
 
8,705,000,00 $ 1,895,000.00 
 
9,948,284.00 $ 1,895,000.00 
 
10,600,000.00 $ 
 
11:843,284.00 $ 
 
2,847,918.81 $ 21S,316.28 
3,163,233.06 $ 
 
0.00 0.00 
..:0:;:.00:::; 
 
(1) Tn. Board', o~glnal cost o'Umate as spocltlod In the re,olution calling for the Impoaltion of the ~ Option Sal., Ta. 
(2) Tn. Board', cumant astlmale of lolal cost lor tho proJoet. Includes all oost from projoct InCllpUOn to completion. 
(3) Tho vota.. 01 EmanUBI County approvod the Imposition of a 1% ,alo, tal< to fund the abovo pro)o"", and retire a_tad dalll AmouMs .xpended lor lnl, proJact may InClude ..los tal< procaods. ,tata, locol property _ and/or Othor fund, over tho life of the projoct. 
(4) In oddltlon to tho oxpendlture' 'Ilown above, ttl. Board InC\lmBd ""JAlnt year Inlaresloxpendlture, In tlle omount 01 $183,236.67 to oarvi"" Ille debt 1..U41d 10 provtdo Bdvancad funding of lila abovo projeC\1l. 
 
See notes to the genslliIl purpoe finanCial statements. 
 
-30- 
 
 EMANUEL COUNTY BOARD OF EPUCATION SCHEDUbE OF EXPENDITURES LOtTERY pROGRAMS YEAR ENDER JUNE 30 '999 
 
SCHEDULE "5" 
 
EXPENPITURES 
Current Instr1.ldlon Support Services Pupil SANICfI!i Improvemmn Of Instrualonal Services S(:/\(N)l AdminlsbittiOn Maintenance and Opetatlon of Plant S~udl!lnllran$PQfb)uon ServlCfls 
 
ALTERNATIVE SCHOOL PROGRAM 
 
INSTRUCTIONAl TECHNOLOGY 
 
ASSISTIVE 
 
CLASSROOM 
 
TECHNOLOGY TECHNOLOGY 
 
PRE-KINDERGARTEN PROGRAM 
 
4,123.00 
 
9,061.23 
 
131,661,00 
 
697.034.81 
48.069.40 648.06 
39.476.74 113,964.38 23,969.99 
 
TOTAL 
642,799,64 
46,069.40 646.06 
39.478.74 113,964.38 23,969.99 
 
Total Expenditure. 
 
4.'23.00 
 
9,981.23 
 
13',8B1.00 
 
823 035.1. $ 1008600.39 
 
RECAP' Salar1es and Benefits Pre-Kindergarten Program other Expenditures AltefNltive School Program Il1stn.JetiOne.1 Technology A$.,"~"" TechnOlOgy CI..."""" Technology Pre.Kindergarten ProglWl1 
 
766,303,24 
4,123,00 
9,9.'.23 131,661.00 164,731.02 
 
',01513.1300.39 
 
See notes to U'le general purpose fine.ncial .statements. 
 
-31- 
 
  EMANUEL COUNTY BOARD OF EDUCATION ANALVSIS OF MINIMUM EXpENDITURE REQUIREMENTS OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION pROGRAMS YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "6" 
 
Minimum Expenditure Requirements (Total Allotment) Expend~ures on Combined Program Basis 
Salaries Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expend~ures per Audit 
Amount of Underexpenditure for Total Allotment 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
1000!o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
12,785,927.00 $ 
 
345,291.00 
 
$ 
 
12,718,427.47 
 
781,656.56 $ 
 
$ 
 
13,500,084.03 
 
663,422.95 
 
.167,001.24 
 
$ 
 
13,333,082.79 
 
$ 
 
0.00 $ 
 
0.00 
 
See notes to the general purpose financial statements. - 33 - 
 
 EMANUEL COUNTY BOARD OF EpUCATION 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND' QUAlITY BASIC EPUCATION PROGRAMS YEAR ENDED JUNE 30 1998 
 
GENERAL AND CAREER EPUCATION PROGRAMS Klndergerten (") Gred.. l-3(") 
S~I>-TQt;lI- K-3 
Grede.4-8("J Grade.8-8("J 
rJ Gredos 9-12 
HIg~ SChOOl Loboreton.. ("J VocaO.nel EduceD.n Loboretorles (') 
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS 
Regular Programs Cotog.ry I ("J Colog.ry II ("J Cotog.ry III ("J Cotogory IV ("J 
SuI>-Totel Regular Category VI (GIfIad) ("J 
Totel Special Educetion Program. REMEDiAl EDUCATION PROGRAM c") 
Totel Fou-.. W_iglrted Progrem. MEDIA CENTER PROGRAMS 
Sele~M 
OperaS.n. Totel MedI_ Center Progrem. 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
ORIGINAl .....!.... 
 
REQUIRED ORIGINAL 
 
Mlo.TERM 
 
1,022.234.00 
 
920.010.60 
 
0.00 
 
2,822,479.00 
 
2,380,231.10 
 
3,644,713.00 90 
 
3.280,241.70 
 
0,00 
 
1.218,438.00 90 
 
1,096.894.20 
 
2.139,194.00 90 
 
1,928.274.80 
 
1.379.701.00 90 
 
1.241.730.90 
 
838.567.00 90 
 
754.710.30 
 
478.780.00 90 
 
430,902.00 
 
9,899,393.00 
 
8,729,453.70 
 
0.00 
 
2.147.798.00 
 
1.933.018.20 $ 
 
0.00 
 
2,147,798.00 90 $ 1.933,018.20 
 
0.00 
 
111,961.00 90 
 
100.764.90 
 
2,259,759.00 
 
2,033,783.10 
 
0.00 
 
$ 
 
413,449.00 90 
 
372,104,10 
 
0.00 
 
$ 12,372.801.00 
 
11,138,340.90 
 
0,00 
 
$ 
 
338.329.00 90 
 
301.796,10 $ 
 
0,00 
 
77.997.00 90 
 
70.197.30 
 
413.326.00 
 
371.993.40 $ 
 
0.00 
 
Totel Fou-.. Welglrted end Modle Comer Progrems 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Proto..l.nol Development 
 
121788,927.00 
 
11 1507,334.30 
 
0.00 
 
38,405,00 94,081.00 
 
38,408.00 
 
0.00 
 
94,081.00 
 
0,00 
 
TQt;l1 Stoll Development Programs ("J IdenllflM Fourteen Weighted Progroms. 
see notes to tl>e generel p""",.. ~nonclol.ta..mell1B. 
 
1321488.00 100 $ 
 
132:466.00 
 
0.00 
 
-34- 
 
 SCHEDULE "7" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
920,010,60 
 
693,621.11 
 
24,292,05 
 
918,113,16 
 
2,360,231.10 
 
2,259,782,86 
 
104,228,00 
 
2,384,010.86 
 
3,280,241.70 $ 3,153,603,97 
 
128,520,05 
 
3,282,124.02 
 
0.00 
 
1,096,584,20 
 
1,484,520,05 
 
84,562,31 
 
1,579,172,35 
 
0,00 
 
1,925,274,60 
 
2,129,584.58 
 
63,389,41 
 
2,192,954,09 
 
0,00 
 
1,241,730,90 
 
1,846,514,84 
 
124,049.89 
 
1.770,584,83 
 
0.00 
 
754,710,30 
 
779,355,62 
 
41,099,86 
 
820.465.38 
 
0,00 
 
430.902.00 
 
684,486.74 
 
128.038.96 
 
812.525.70 
 
0.00 
 
8.729,453.70 
 
9,895.186,20. 
 
569,650.18 
 
10,457,806.38 
 
1,933,018.20 
 
1,098,958,82 806,713.49 31.738.81 
 
1,043.99 21,737,99 11.843.58 
1.084.74 
 
1,043.99 1,120,696.81 
818,357.07 32,833,55 
 
1,933,018.20 
 
1,937.411,12 
 
35,520,30 
 
1,972,931.42 
 
0,00 
 
100,784.90 
 
112,734,60 
 
4,005,92 
 
116,740,52 
 
0,00 
 
2,033.783,10 
 
2,05D,145.72 
 
39,626,22 
 
2,089.671,84 
 
372.104,10 S 
 
318,031.92 $ 
 
54.246,55 
 
372,278,47 
 
0.00 
 
11,135.340,90 
 
12,256,333.84 
 
863,422,95 
 
12.919,756.79 
 
301,796.10 
 
462,093,63 
 
462,093,63 
 
0,00 
 
70.197,30 
 
116,233,61 
 
118,233.61 
 
0,00 
 
371,993.40 S 
 
462,093.63 
 
118,233,81 
 
580,327.24 
 
11.507:334.30 S 12.718,427.47 
 
781,8511.56 
 
13.500.084.03 $ 
 
0,00 
 
38.405.00 94,091.00 
132,466.00 
 
56,832.23 
 
1EI,523.52 56,832,23 
 
133,355,75 $ _....:;13~3j;:l,3~55:.:,7.;:.5 
 
0.00 
 
 35  
 
 SECTION II COMPLIANCE AND INIERNAL CONTROL REPORTS 
 
 RUSSELL W. HINTON 
srATE AUDITOR 
(4()4)f156-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 26, 1999 
 
Honorable Roy E. Bames, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Emanuel County Board of Education 
REPORT ON COMPLIANCE AND ON INTERNAL CONJROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements ofEmanuel County Board ofEducation as ofand for the year ended June 30, 1998, and have issued our report thereon dated April 26, 1999. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the United States. 
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1998, nor could we satisfY ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
Compliance 
As part of obtaining reasonable assurance about whether Emanuel County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. 
 
98YB-40 
 
 Internal Control Over Financial Reporting 
In planning and perfonning our audit, we considered Emanuel COWlty Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over fmancial reporting that, in our judgement, could adversely affect Emanuel COWlty Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6531-98-01. 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amoWlts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above, is considered to be a material weakness. 
This report is intended for the informatiOli ofmanagement, the Federal cognivmt agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. 
Respectfully submitted, 
~~.~ Rnssell W. Hinton State Auditor 
RWH:jb 98YB-40 
 
 RUSSELL W, HINTON 
STATE AUDITOR (404) e564174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Allanta, Georgia 30334-8400 
April 26, 1999 
 
Honorable Roy E. Bames, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe Emanuel County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MNOR PRQGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I 33 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Emanuel County Board of Education with the types of compliance 
requirements described in the u.s. Office 0/Management and Budget (OMB) Circular A-133 Compliance 
Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Emanuel County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Emanuel County Board of Education's management. Our responsibility is to express an opinion on Emanuel County Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-l33, Audits a/States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 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 Emanuel 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 Emanuel County Board ofEducation's compliance with those requirements. 
 
98SA-1O 
 
 In our opinion, the Emanuel 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, 1998. 
Internal Control Over Compliance 
The management of Emanuel County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements oflaws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Emanuel County Board ofEducation's intemal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the intema1 control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being andited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the intema1 control over compliance and its operation that we consider to be material weaknesses. 
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. 
Respectfully submitted, 
7,u..-,(1Q W.~ 
Russell W. Hinton State Auditor 
RWH:jb 98SA-1O 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 EMANUEL COUNTY BOARD OF EDUCATION AUDlTEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 1998 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
6531-93-02 65319304 65319401 6531-96-01 FS653197-01 FS-6531-97-02 
 
Previously Reported Corrective Action Implemented Further Action Not Warranted Unresolved - See Corrective ActionlResponses Unresolved See Corrective ActionlResponses Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses 
 
CORRECTIVE ACTIONJRESPONSES 
 
EMPLOYEE COMPENSATION Salary Overpayments Amount: $2,649.44 Finding Control Number: 6531-94-01 
 
Written requests to the employee for repayment were made. No response from employee at this time. 
 
EXPENDlTURESILIABILITIESlDlSBURSEMENTS Failure to Meet Expenditure Requirements Amount: $1,434.46 Finding Control Number: 653196-01 
 
The underexpenditure ofQuality Basic Education (QBE) funds for the Category V - Gifted, Special Education Program will be returned to the Georgia Department of Education. 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-653l-97-02 
 
Due to current budgetary constraints and staffing limitations, we are prohibited from hiring additional personnel. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1998 
SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Emanuel County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles. 
2. Reportable Conditions in Internal ContrQI Disclosed bv the Audit ofthe Financial Statements The audit report for the Emanuel County Board of Education disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements The audit ofthe Emanuel County Board of Education disclosed no instances of noncompliance that were deemed to be material to the fmancial statements. 
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Emanuel County Board of Education did not disclose any reportable conditions in internal control over major programs. 
5. Type of Report Issued on ComPliance for Major Programs The auditor's opinion on the Emanuel County Board of Education's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Required to be Reported by Section .51O(a) orOMB Circular A-B3 The Emanuel County Board of Education's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-133. 
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program Summer Food Service Program 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Flow Through 84. I73 Individuals with Disabilities Education Act Part B  Special Education - Preschool 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Emanuel County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. 
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 EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1998 
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6531-98-01 The Emanuel County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but not be limited to date acquired, acquisition costs, estimated replacement cost, location and depreciation. Detailed records should be maintained ofall addition and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
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