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

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

G-,A

A200



RI

l G:,
ES\99q-o2000

'

00 0000 00
oo :IIT(J ooo

0

~;

O

0

0

0

0

0 00

~

=

~;

;

;

;

-

0 0

r-:0

"""""'

0 a?'1:(

,,u.

0 0 0 .....
0

0
Oo 00000 o
1776



I
EMANUEL COUNTY BOARD OF EDUCATION

SWAINSBORO, GEORGIA
-



REPORT ON AUDIT



OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

EMANUEL COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION


COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

.

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
2
4
6 7
18
20
22
24
26
27
28
30 31

E
-TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF M

EXPENDITTJRE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

Page
33 34

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

SECTION ill
AUDfI'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS ......,-,,._ Y 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
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Emanuel County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Emanuel County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Emanuel County Board of Education'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 our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo1n1 the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial staternent presentation. We believe that our 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, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2000ARL-13A

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to conforrn to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confo11n to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo11n 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 dete11nined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as
might have been dete11nined 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 ofthe 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 of Education as of June 30, 2000, and the results of its operations for the year then ended, in confo111rity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2001, on our consideration of the Emanuel County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfo11ned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.


2000ARL-13A

Our audit was perfurmed for the purpose of for111ing 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 1 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 of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect ofadjustments, 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 ofthe 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 stated, in all material respects, in relation to the general purpose financial statements taken as a whole.

A copy ofthis report has been filed as a pem1anent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.

RWH:gp
2000ARL-13A

Respectfully submitted,

-

A.I~ C OQ_ ~.



Russell W. Hinton

State Auditor








E

L COUNTY BOARD OF EDUCATION



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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,616,307.00 $ 499,453.67 $

13,275.18

237,179.94

335,941.23

119,661.20

77,127.87 26,058.28

Total Assets

$ 2,853.486.94 $ 938,581.05 $ ====-===-1...,3,..2.,9...,.36=.3=8=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Lottery Program For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

170,395.86 $ 166,204.10

415,632.91

829.51

.

.

$

170,395.86 $ 582,666.52



$

168,763.06

$

12,583.52

n,121.a1
26,058.28 $

74,528.38 2,439,799.64
.
$ 2,683,091.08 $

240,144.86 355,914.53 $

11,320.47 2.90
121,613.01 132,936.38

Total Liabilities and Fund Equity

$ 2,853,486.94 $ 938,581.05 $ -=-==1.,.3,_2,_,93..,6..,.3.8.,.

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

EXHIBIT "A"

DEBT SERVICE
FUND
$ 1,476,751.67
323,155.64

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$ 4,605,787.52 $ 6,566,481.98

1,015,938.01

1,374,481.90

1,776.00

$ 1,799,907.31 6,950,092.69

77,127.87

26,058.28 1,799,907.31
6,950,092.69

86,507.18 26,029.80 1,557,529.18
8,502,470.82

$ 1,799,907.31 $ 8,750,000.00 $ 14,474,911.68 $ 18,115,276.86

$

336,599.96 $

595,686.46

415,632.91

376,396.44

829.51

618.46

437,201.87

459,651.49

$ 8,750,000.00

8,750,000.00

10,060,000.00

$ 8,750,000.00 $ 9,503,062.38 $ 11,929,554.72

$ 1,799,907.31 $ 1,799,907.31

$

168,763.06 $

153,790.89

12,583.52

1,799,907.31

1,557,529.18

77,127.87 26,058.28 11,320.47
2.90

86,507.18 26,029.80 1,355,997.58 10,765.60

74,528.38 2,801,557.51

73,843.76 2,921,258.15

$ 4,971,849.30 $ 6,185,722.14

$ 1,799,907.31 $ a 11so1000.oo $ 14,4741911.68 $ 18111s1216.86

-3-

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

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues

EXPENDITURES



Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

Total Other Financing Sources (Uses)

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

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 20,878,350.14 $ 310,908.78
3,112,624.39 443,542.53
$ 24,745,425.84 $

1,382,512.15 4,136,562.60
451,409.51
5,970,484.26

$ 16,605,669.70 $
1,058,496.79 705,593.54 628,005.53 424,080.32
1,685,893.46 132,316.39
1,758,757.24 1,156,780.54
101,472.59 24,999.72 38,574.87

2,808,951.99
414,684.60 78,604.20 41,046.00 106,154.41 92,433.79
72,156.02 86,816.11
61,142.95 2,271,663.48

53,653.00

12,658.20



$ 24,374,293.69 $ 6,046,311.75

$

371,132.15 $ _ _..:-7..:::5;,.::,8:::2.:..:7.~49:::..

$ _ _ _5=O;..;;O.,_,O..;;;.OO==oo;;;...

$ _ _-5:..;0a..;::O.,_,O=O=O..;;..oo;;;...



$ -128,867.85 $

-75,827.49

2,811,958.93

441,092.85

-9,379.31 28.48

FUND BALANCE JUNE 30

s___ $ 2,683,091.08

3~55~19_1~4-~53~

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

-4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only}

YEAR ENDED

JUNE 301 2000

JUNE 30, 1999

$

2.90

$ 22,260,865.19 $ 22,964,545.45

4,447,471.38

4,338,510.98

$ 1,969,519.88

5,082,144.27

4,873,847.76

11,192.95

35,563.25

941,708.24

1,098,823.96

$

11,195.85 $ 2,005,083.13 $ 32,732,189.08 $ 33,275,728.15


$ 1,753,400.65
$
$ 1,753,400.65 $ $ -1,742,204.80 $

$ 19,414,621.69 $ 18,181,931.39

1,473,181.39 784,197.74 669,051.53 530,234.73
1,778,327.25 132,316.39
1,830,913.26 1,243,596.65
101,472.59 86,142.67 2,310,238.35
1,819,711.85

1,386,816.62 947,593.91 586,920.73 540,160.11
1,562,181.70 131,361.57
1,740,435.83 1,194,575.43
101,624.95 83,494.41 2,291,120.09
156.36 42,706.21 4,821,905.45

1,310,000.00 452,705.00

1,310,000.00 452,705.00.

1,125,000.00 501,607.50 840.00

1,762,705.00 $ 33,936,711.09 $ 35,240,432.26

242,378.13 $ -1,204,522.01 $ -1,964,704.11

$

500,000.00

$ _ _5""'0;..;;0..,0..=0=0._o__o___

$

500,000.00 $

-500,000.00

444,897.23 444,897.23

$

0.00 $ _ _ _--=0.=00;;...

$ -1,242,204.80 $ 1,375,141.18

242,378.13 $ 1,557,529.18

-1,204,522.01 $ 6,185,722.14

-1,964,704.11 8,142,007.51

-9,379.31 28.48

7,471.85 946.89

$

132,936.38 $ 1,799,907.31 $ 4,971,849.30 $ 6,185,722.14

-5-

EMANUEL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - {NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 20,257,883.23 287,661.00
2,840,000.00 239,752.00

$ 20,878,350.14 310,908.78
3,112,624.39 443,542.53

Total Revenues

$ 23,625,296.23 $ 24,745,425.84

EXPENDITURES

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

$ 16, 128,806.02 $ 16,605,669.70

1,073,982.00 662,467.23 601,237.00 423,465.00
1,612,135.00 124,814.00
1,787,903.00 1,117,160.00
103,636.00 25,000.00
150,000.00

1,058,496.79 705,593.54 628,005.53 424,080.32
1,685,893.46 132,316.39
1,758,757.24 1,156,780.54
101,472.59 24,999.72 38,574.87 53,653.00

Total Expenditures

$ 23,810,605.25 $ 24,374,293.69

Excess of Revenues over (under) Expenditures $ -185,309.02 $ 371,132.15

OTHER FINANCING USES

Other Uses

-500,000.00

-500,000.00

Excess of Revenues over (under) Expenditures

and Other Financing Uses

$ -685,309.02 $ -128,867.85

FUND BALANCE JULY 1, 1999

2,709,613.54

2,811,958.93

Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30. 2000

$ 2,024,304.52 $ 216831091 .08

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,127,120.20 $ 1,382,512.15
4,252,343.00 4,136,562.60

491,800.00

451,409.51

$ 5,871,263.20 $ 5,970,484.26

$ 2,778,492.20 $ 2,808,951.99

352,043.00 97,056.00 41,436.00
105,565.00

414,684.60 78,604.20 41,046.00
106,154.41 92,433.79

21,860.00 64,811.00 2,387,500.00

72,156.02 86,816.11
61,142.95 2,271,663.48
12,658.20

$ 5,848,763.20 $ 6,046,311.75

$ 22,500.00 $ -75,827.49

. $ 22,500.00 $ -75,827.49

443,873.78

441,092.85

-9,379.31 28.48

$ 4661373.78 $ 3551914.53

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

EMA~'. ... L COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THI ,ENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Emanuel County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A
fund is a separate accounting entity with a self-balancing set of accounts. An account group is a
financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confonn to generally accepted accounting principles, a Genercrl 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 confo11n to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
.
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

EMANUEL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities..
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-terrn 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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Te1n1 Debt Account Group .

Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day
-8-

EMANUEL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
period beginning in early August 1999 and ending in late May 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Emanuel County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revi~ions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info1n1ation available. Receivables
-9-

E

L COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Emanuel County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 13, 1999 (levy date). Taxes were due on January 20, 2000. The lien date. for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The 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 of taxes collected to the Board.

The tax millage rate levied for the 1999 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
SALES TAXES

10.50 mills

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,969,188.97 and was recorded in the Debt Service Fund. The State will te11ninate collection of this tax once an additional $5,131,118.68 has been collected or on June 30, 2002, whichever occurs first.
INVENTORIES

FOOD INVENTORIES
Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct

- 10 -

EMANUEL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

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

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confo1mity 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 of Georgia Annotated (OCGA) Sec~ion 45-8-12 provides that there shall not be on

deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not

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

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

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

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

securities pledged to secure a pool ofpublic funds shall be not less than _l lOpercentofthedailypool

balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,

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

accounts.



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

(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,

- 11 -

EMANUEL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS

(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 athorities created by the laws ofthe State of Georgia, and

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

CATEGORIZATION OF DEPOSITS
At June 30, 2000, the bank balances were $6,471,035.35. Theamountsofthetotal bank balances are
classified into three categories of credit risk:

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

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

Risk Category

Bank Balance

1

$ 1,773,733.23

2

4,697,302.12

3

0.00

Total

$6,471,035.35



- 12 -

E

L COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board 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 of general 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 abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage.

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 ofthe percentage ofthat 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:

1999 2000

Beginning ofYear Liability

Claims and Changes in Estimates

$

5,841.00 $

1,791.00 $

$

0.00 $ 2,046.00 $

Claims Paid

End ofYear Liability

7,632.00 $._ _ _...,,O~.O=O 2.046.oo $_ _ _"""o"""'.o"""o

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' 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

- 13 -

EMANUEL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 4: RISK MANAGEMENT

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.

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

Position Covered

Amount

Superintendent All Others

$ 100,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1995 General Government - Series 1997

3.90% - 5.65% 3.90% - 4.75%

$ 4,530,000.00 4,220,000.00



$ 8,750,000.00

The changes in General Long-Te1m Debt during the fiscal year ended June 30, 2000, were as
follows:
--



General

Obligation

Bonds

Balance July 1, 1999

$10,060,000.00

Deductions Debt Retired

1,310,000.00

Balance June 30, 2000

$ 8,750,000.00

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

- 14-

EMANUEL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

2001

2002

2003

2004

2005



2006 - 2010

2011 - 2015

Total Principal and Interest

Note 6: ON-BEHALF PAYMENTS

General Obligation
Bonds
$ 1,832,028.75 1,909,882.50 1,974,051.25 427,107.50 452,217.50 2,309,232.50 2,406,600.00
$11,311.120.00

The Board has recognized revenues and expenditures in the amount of $461,510.20 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $359,217.00
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System {TRS) Employer's Cost In the amount of $24,459.20
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$77,834.00
Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000:

- 15 -

EMANUEL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 7: SIGNIFICANT COMMITMENTS
Project 653-001 653-002 653-003

Unearned Executed Contracts
$ 11,879.74 2,791.82 2,707.62
$ 17,379.18

The amounts described in this note are not reflected in the general purpose financial statements.

Note 8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terrns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the perforrnance of routine Board operations. The ultimate disposition of these proceedings is not presently det1::1n1inable, but is not believed to be material to the general purpose financial statements.

Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

- 16 -

'

E

L COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 9: RETIREMENT PLANS
Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$1,940,790.17 $ 1,923,879.44 $1,809,598.51




- 17 -

EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 2000

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

SCHOOL FOOD
SERVICES FUND


LOTTERY PROGRAMS

$

346,748.21 $

163,664.09

19,707.37

3,223.50

77,127.87 26,058.28

Total Assets

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

Salaries Payable



Expired Grant Balances Payable

-

Total Liabilities

FUND EQUITY

Fund Balances Reserved For Continuation of Lottery Program For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated

Total Fund Equity

$

469,641.73 $=.......:1~66~,.a..a...7.,;.;,.5~9

--

$

29,138.38 $

48,675.17

97,172.34

105,628.90

$

126,31 0.72 $ _ _1.a.;:54;..:.,.;;,3.;:;.04.;.:.0=7-,.:-_.

$

12,583.52

. .

$

77,127.87

26,058.28



240,144.86

0.00

$

343,331.01 $ _ __;1:.::2=,5=83:..:..5:::;.:2=-

Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
-18-

$ --

469,6~1.73 $

---

--------

---

1-6-6-,-8-8-7-.5-

9
.

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

510,412.30 $

580,382.91

$

303,743.10 $

9,267.26

335,941.23

386,246.26

77,127.87 26,058.28

86,507.18 26,029.80

$

303,743.10 $

9,267.26 $

949,539.68 $ 1,079,166.15

$

7,665.44 $

83,333.15

211,915.00

829.51

$

303,743.10 $

3,293.19 $ 5,057.40
916.67
9,267.26 $

10,958.63 $ 166,204.10 415,632.91
829.51

46,912.77 214,145.63 376,396.44
618.46

593,625.15 $ _ _6.:.:3:.:8.:,0;.:..7.:.:3=30"-

$

12,583.52

77,127.87 $ 26,058.28

86,507.18 26,029.80

$

0.00 $ _ _ _ _.:a.;0.=00"-

240,144.86

328,555.87

$

0.00 $

0.00 $

355,914.53 $ _ _44....;..;.1..a,O..a..92=.--8_5__

$

303,743.10 $
-------- -----

9,267.26 $

949,539.68 $ 1,079,166.15

----------- -- - -

- - - - - - - - - - "-

-

- 19 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
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

$

160,838.00 $

1,570,971.96

451,409.51

1,122,742.15

$ 2,183,219.47 $ __1;.i.,1=2=2"-'7-.,.:.42=.;.15;:;.,.


$

919,800.59

44,569.30 1,510.98

$ 2,271,630.48

59,611.17 51,907.15 32,726.44
33.00

$ 2,271,630.48 $ 1,110,158.63

$

-88,411.01 $

12,583.52

441,092.85

0.00

-9,379.31 28.48

$

343,331.01 $

12,583.52

See notes to the general purpose financial statements.
-20-

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$
$ 2,565,590.64
-------
$ 2,565,590.64 $

98,932.00 $

1,382,512.15 $ 4,136,562.60
451,409.51


98,932.00 $ 5,970,484.26 $

1,299,784.87 4,055,637.60
469,109.70
5,824,532.17

$ 1,840,219.40 $

341,059.59 68,048.93 41,046.00
106,154.41 32,822.62 20,248.87 42,189.67 61,142.95

12,658.20

$ 2,565,590.64 $

$

0.00 . $

0.00

48,932.00 $
29,055.71 9,044.29
11,900.00
98,932.00 $
0.00 $ 0.00

2,808,951.99 $
414,684.60 78,604.20 41,046.00
106,154.41 92,433.79 72,156.02 86,816.11 61,142.95 2,271,663.48" 12,658.20
6,046,311.75 $
-75,827.49 $
441,092.85

2,662,088.30
318,747.12 251,790.82
89,770.79 44,505.71 36,253.63 60,489.32 56,500.89 2,252,675.11 13,659.87
5,786,481.56
38,050.61
394,623.50

-9,379.31 28.48

7,471.85 946.89

$

0.00 $ - .

--- - -

-

-----

---- -

0.00 - -----

$

355,914.53

441,092.85 $ - -- --- -

----- - ---



- 21 -

EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 2000

ASSETS Cash and Cash Equivalents Accounts Receivable

Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

121,613.01 $

11,320.47

$

121,613.01 $ ===1.1..=3=20..,.4=7=

$

11,320.47

$ _ _1.:.:2:.:.1.i.:6:;,.:.13:::.:~o1~

0.00

$

121,613.01 $ ___1"-"1=3=20.a...;~4_7_

$

121,613.01 $

11,320.47

See notes to the general purpose financial statements. -22-

EXHIBIT "G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

132,933.48 $ 2,139,951.89

$ _ _ _1;..;.1.;;.9'-'-66.;;;_1~.2=0'-

119,661.20

224,596.30

$

119,661.20 $

252,594.68 $ 2,364,548.19

$

119,658.30 $

119,658.30

$

92,553.65

437,201.87

459,651.49

$

119,658.30 $

119,658.30 $ _ _9_8_9_,4_07_._01_



$

11,320.47 $ - 1,355,997.58

$

2.90

2.90

10,765.60



0.00

121,613.01

8,378.00

$

2.90 $

132,936.38 $ 1,375,141.18

$

119,661.20 $

252,594.68 $ 2,364,548.19




-23-

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

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out

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

FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

4 159.36 $ _ _.....;..7'-,;;,0=33Co"-.5~9;.....

$

4,159.36 $ _ _ _7_,0_33_.5_9_

$

1,411.20

3,340.00 $ _ _ _4_3_3_11_.o_o_

$

4 751.20 $ _ _ _4_3__,_3_17_.o_o_

$

-591.84 $ _ _ _-3_6.._,2_8_3._4_1

$

228,329.57

-114,502.72 $ -1,308,393.70

$

113,826.85 $ -1,308,393.70

$

113,235.01 $ -1,344,677.11

8,378.00

1,355,997.58

$

121,613.01 $===1=1=,3=20=.4=7=

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

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

2.90 $

$

2.90 $

1,752,897.74 146,271.66

$

152,342.08 $

153,753.28 $

47,686.89

1,552,990.37

1,599,647.37

4,603,294.95

$

1,705,332.45 $

$

4,650,981.84


$

1,694,566.85 $ 1,922,896.42 $ 2,823,706.19

-1,422,896.42

-2,378,808.96

$

-
$

-10,762.70 $ -1,242,204.80 $ -2,306,915.21

10,765.60

1,375,141.18

$

--------

2.90
----

$

132,936.38 $ 1,375,141.18



-25-

EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

DEBT SERVICE
FUND

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

1,378.12 $

1,475,373.55 $ 1,476,751.67 $ 1,255,144.92

8.82

323,146.82

323,155.64

302,384.26

Total Assets

$

1,386.94 $

1,798,520.37 $ 1,799,907.31 $ 1,557,529.18

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$

1,386.94 $

1,798,520.37 $ 1,799,907.31 $ 1,557,529.18

0.00

0.00

0.00

0.00

Total Fund Equity

$

1,386.94 $ 1,798,520.37 $ 1,799,907.31 $ 1,557,529.18

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

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

EXHIBIT "J"

DEBT SERVICE
FUND

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

$

330.91 $ 1,969,188.97 $ 1,969,519.88 $ 1,848,493.62

67.00

35,496.25

35,563.25

28,739.24

Total Revenues

$

397.91 $ 2,004,685.22 $ 2,005,083.13 $ 1,877,232.86

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees

$ 140,000.00 $ 241,127.50

1,170,000.00 $ 211,577.50

1,310,000.00 $ 452,705.00

1,125,000.00 501,607.50 840.00

Total Expenditures

$ 381,127.50 $ 1,381,577.50 $ 1,762,705.00 $ 1,627,447.50

Excess of Revenues over (under) Expenditures

$ -380,729.59 $ 623,107.72 $ 242,378.13 $ 249,785.36

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


$ 380,563.75
_____ $

$
-380,563.75

380,563.75 -380,563.75

Total Other Financing Sources (Uses)

$ 380,563.75 $ -380,563.75 $ _ _ _=0-=00=-

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

-165.84 $ 242,543.97 $ 242,378.13 $ 249,785.36

FUND BALANCE JULY 1

1,552.78

1,555,976.40

1,557,529.18

1,307,743.82


FUND BALANCE JUNE 30


$ 1,386.94 $ 1,798,520.37 $ 1,799,907.31 $ 1,557,529.18



See notes to the general purpose financial statements.

-27-

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


SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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

10.553 10.555
10.559

Total Child Nutrition Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program

10.550 10.558

Total U. S. Department of Agriculture

Education, U. S. Department of

Special Education Cluster

Pass-Through From Georgia Department of Education

Individuals with Disabilities Education Act

Part B - Special Education

Capacity Building Improvement Grant

-

Flow Through Preschool


84.173 84.027 84.173

Total Special-Education Cluster

Other Programs Pass-Through From Board of Regents of the University System of Georgia Title II Teacher Quality Enhancement Grant Pass-Through From First District Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Even Start Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction

84.336A

84.011 84.332
84.213
84.010
84.281 84.298 84.340

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$ 361,899.54

(2)

NIA

1,043,235.84 $

2,159,917.10 (3)

NIA

37,285.75

(2)

$ 1,442,421.13 $

2,159,917.10

NIA

111,713.38

111,713.38

NIA

16,837.45

(2)

$ 1,570,971.96 $ 2,271,630.48

NIA

$ 15,200.00 $

NIA

427,379.78

NIA

29,785.23

$ 472,365.01 $

15,200.00 427,379.78
29,785.23 .
472,365.01

NIA

40,000.00

29,385.72

NIA

17,914.00

17,914.00

N/A

192,372.31

192,372.31

NIA

141,337.54

141,337.54

NIA

1,187,550.67

1,187,550.67

NIA

32,507.00

32,507.00

NIA

41,536.00

41,536.00

NIA

152,788.00

152,788.00

-28-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Georgia Department of Education Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education
Defense, U.S. Department of Direct Department of the Army R.O.T.C. Program
Health and Human Services, U.S. Department of Direct Early Head Start Program
Justice, U. S. Department of Pass-Through From Office of the Governor Children and Youth Coordinating Council Youth Enrichment

CFDA NUMBER
84.276 84.186 84.196 84.048
OFA * 93.600
16.540

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$ 50,955.00 $

N/A

20,339.00

N/A

10,136.00

50,955.00 20,339.00
10,136.00

N/A

74,205.52

74,205.52

$ 2,434,006.05 $ --=2z...:.,4::;23,a:.,3::;.:9;..:.1.:..;7...;_7

$ 64,776.13 $ _ _.....;6::..;4:.,.7:,;..:.7..::.6;.:.1=-3 $ 363,956.90 $ _ _.:::;36::::3:.,:,9::.::5::::.6:.::;9=..0

NIA

$ 13,760.34 $ _ _....:,:13::,;,7:..::6:.::0:::.3:.:.4

Total Federal Financial Assistance

$ 4,447,471.38 $ ___5,;,,;.1;;,;37~,5;,;1_,5,_.6_,2

N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program, Summer Food Service Program for Children and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

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

The Board did not provide Federal Assistance to any Subrecipient.

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

See notes to the general purpose financial statements.

29

EMANUEL COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) Local Assistance Grant
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Migrant Education Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Mentor Teachers Next Generation Schools PayforPertormance Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Distant Leaming
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program
Human Resources, Georgia Department of Family Connection
Office of the Governor Georgia Council for the Arts Georgia Challenge Grant

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

25,000.00

10,000.00

$

25,000.00

10,000.00

10,556,137.00 2,942,214.00 362,260.00 456,125.00 130,968.00 2,870,736.00
646,248.00 186,266.00 371,748.00 449,239.00 103,068.00
512.00 42,960.00 57,685.00 -1,283,059.00 1,966,579.00
$
47,174.68
87,975.00 35,000.00 20,997.95 359,217.00
972.00 75,000.00 144,000.00 54,894.00
6,687.00 24,459.20

160,838.00
.
25,284.20 108,270.00
3,223.50

77,834.00

$ 985,964.45

10,556,137.00 2,942,214.00 362,260.00 456,125.00 130,968.00 2,870,736.00
646,248.00 186,266.00 371,748.00 449,239.00 103,068.00
512.00 42,960.00 57,685.00 -1,283,059.00 1,966,579.00 160,838.00 47,174.68
87,975.00 35,000.00 20,997.95 359,217.00
972.00 75,000.00 144,000.00 54,894.00
6,687.00 24,459.20
25,284.20 108,270.00
3,223.50



2.90

2.90

985,964.45

77,834.00

34,453.31

48,932.00 50,000.00

34,453.31 48,932.00
50,000.00

15,000.00

15,000.00

$ 20,878,350.14 $

(1) The purpose of the funds are to assist with STAR Program Expenses.

See notes to the general purpose financial statements.

-30-

s_ _ _.... s 1,382,s12.1s

2_.9_0_

22.2eo,ee5.19

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

Acquiring, constructing and equipping the

following capital outlay projects:

Adrian School; new Twin City Elementary School;

renovation of the gymnasium at the existing

Adrian School; renovations, additions and

improvements to Emanuel County Institute and

Swainsboro High School; new school

maintenance and transportation facilities;

site preparation for a new Twin City



Elementary School; pavement, equipment

and site preparation for school bus loading and

unloading areas at the schools located in the

City of Swainsboro

$

8,705,000.00 $


8,936,699.00

$ 1,748,649.45 $ 7,604,784.85

Retirement of Debt

1,895,000.00

1,895,000.00

381,127.50

580,442.50

$ 10,600,000.00 $ 10,831,699.00 $ 2,129,776.95 $ 8,185,227.35

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

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

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

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

Prior Years

$ 438,591.67

Current Year

211,577.50

Total

$ 650,169.17

See notes to the general purpose financial statements.

- 31 -

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

SCHEDULE "4"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

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

$

14,316,736.oo $ _ _ _41-'7...,_,4_1_1;.;;.o_o

$

14,244,203.50

526,270.57 $ _ ___:_;43~4:.l.:,6:.=8:.;:.6.~5.:...7

$

14,770,474.07

-145,112.00 $ _ _1-'--4'-'-'6,;;.;;;2=5"-",3.;;;.62=.;;.07.;_

$

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

See notes to the general purpose financial statements.
- 33 -

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category II (*) Category Ill (*) Category IV (*) Sub-Total - Regular Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM(*) Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,066, 120.00

$

2,855,522.00

$ 3,921,642.00 90 $

1,281,728.00 90

2,370,017.00 90

1,619,062.00 90

635,503.00 90

728, 185.00 90

$ 10,556,137.00

$

959,508.00 $

0.00

2,569,969.80

3,529,477.80 $

0.00

1, 153,555.20

2,133,015.30

1,457, 155.80

571,952.70

655,366.50

- - - - - 9,500,523.30 $

0.00



$ 2,821,145.00

$ 2,539,030.50 $

0.00

$ 2,821,145.00 90 $ 2,539,030.50 $

0.00

121,069.00 90

108,962.10

$ 2,942,214.oo

$ 2,647,992.60 $ _ _ ____..;;o.;.;;.o..;...o

$

362,260.00 90 $

326,034.00 $ _ _ __;;0.;.;;.0..;...0

$ 13,aso,611.00

$ 12.474,549.90 $ _ _ ____;:;o.;.;;.o..;;..o

$

364,541.00 90 $

328,086.90 $

0.00

91,584.00 100

91,584.00

$

456,125.00

$

419,670.90 $ _ _ ____..;;o.;.;;.o..;...o

Total Fourteen Weighted and Media Center Programs $ 14,316,736.00
--- ----- ----

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

42,467.00

88,501.00

$

--

.

12,894,220.80
-- - - - - -- - - -

$

--

--

0.00
-----

$

42,467.00 $

0.00

88,501.00

0.00

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

$

130,968.00

--- - - . ------- -

100 $

130,968.00 $

-----

-- - ---

-

0.00

--

---- -- -

See notes to the general purpose financial statements.

- 34 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

959,508.00 $

920,774.00 $

16,017.00 $

936,791.00

2,569,969.80

2,603,634.50

53,914.07

2,657,548.57

$ 3,529,477.80 $ 3,524,408.50 $

69,931.07 $ 3,594,339.57 $

0.00

1, 153,555.20

1,766,665.00

26,947.00

1,793,612.00

0.00

2,133,015.30

2,333,226.00

52,494.00

2,385,720.00

0.00

1,457, 155.80

1,723,355.00

151,653.00

1,875,008.00

0.00

571,952.70

720,629.00

39,276.00

759,905.00

0.00

655,366.50

732,065.00

31,599.00

763,664.00

0.00

$ 9,500,523.30 $ 10,800,348.50 $

371,900.07 $ 11,172,248.57

$ 2,539,030.50
$

1,472,097.00 $ 988,465.00 28,332.00

49,808.00 $ 5,909.00 2,060.00

1,521,905.00 994,374.00 30,392.00

$ 2,539,030.50 $ 2,488,894.00 $

57,777.00 $ 2,546,671.00

0.00

108,962.10

122,167.00

2,068.50

124,235.50

0.00

$ 2,647,992.60 $ 2,611,061.00 $


59,845.50 $ 2,670,906.50

$

326,034.00 $

323,141.00 $

2,941.00 $ _......;3;;;2;.;;.s,:.;;.oa.;;;.;;2;;;.;.o;.;;.o

0.00

$ 12,474,549.90 $ 13,734,550.50 $


434,686.-57 $ 14,169,237.07

$

328,086.90 $

509,653.00

$

509,653.00

0.00

91,584.oo _ _ _ _ _ _ $ _ _.;;;9"""1,"'"584;;.;.;.;.o;.;;.o

91,584.00

0.00

$

419,670.90 $

509,653.00 $

91,584.oo $ _--'so"'-"1,""23;.;.1.a.a.o;.;;..o

$ 12,894,220.80 $

14,244,203.50 $ ~---5-2-6-,-2--7- 0- -.5--7 $

14,770,474.07

$

---------------- ----

0.00
----

$

42,467.00

88,501.00

$

130,968.00

- - - ------- -

$

55,742.00 $

55,742.00

75,226.00

75,226.00

$

130,968.00 $

s 13o,96a.oo ------

0.00 - - - - -

-- --

35

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS





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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 14, 2001

Honorable Roy E. Barnes, 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 AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Ladies and Gentlemen:
We have audited the financial statements ofEmanuel County Board ofEducation as of and for the year ended June 30, 2000, and have issued our report thereon dated June 14, 2001. 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 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.

We did not observe the talcing ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe 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 of material misstatement, we perfo1n1ed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete1mination offinancial state1nent 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2000YB-40A

Internal Control Over Financial Reporting
In planning and perforrning our audit, we considered Emanuel County Board ofEducation'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 intern: .:ontrol over financial reporting and its operation that we consider to be a reportable condition. R ..,t ()rtable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Emanuel County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6531-00-01.
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the norrnal course of perfo11ning 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 solely for the information and use ofmanagement, members ofthe Emanuel County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,


RWH:gp
2000YB-40A

ell W. Hinton State Auditor

w. RUSSELL HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
June 14, 2001

Honorable Roy E. Barnes, 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 WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Emanuel County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Emanuel County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Emanuel County Board of Education's management. Our responsibility is to express an opi111on on Emanuel County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo11n the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements refetted 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 perfu1n1ing 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 dete11nination on Emanuel County Board ofEducation's compliance with those requirements.
2000SA-10A

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

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 of laws, regulations, contracts and grants applicable to Federal programs. In planning and perforrning our audit, we considered Emanuel County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to dete11ni11e our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.

Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the no1n1al course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.

This report is intended solely for the info1mation and use ofmanagement, members ofthe Emanuel
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,







Lo.

Ru sell W. Hinton State Auditor

RWH:gp
2000SA-10A



SECTION ill
AUDfl'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS


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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6531-98-01 FS-6531-99-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6531-99-01

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




-






SECTION IV FINDINGS AND QUESTIONED COSTS

-





EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the 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 Control Disclosed by the Audit of the Financial Statements The audit report for the Emanuel County Board ofEducation 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 of the Emanuel County Board o( Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Emanuel County Board ofEducation 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 .510(a) of 0MB Circular A-133 The Emanuel County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs

Federal awards audited as major programs are as follows:

84.010 Ele1nentary and Secondary Education Act - Title I - Grants to Local Educational

Agencies



93.600 Early Head Start Program

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 of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.

- 1-

EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6531-00-01 The Emanuel County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo1n1al 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 may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-