Audit report, Evans County Board of Education, Claxton, Georgia, year ended June 30, 1998

EyANS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE 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

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

20

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

21

3 SCHEDULEOFSTATEREVENUE

23

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

24

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

25

6

BY PROGRAM

26

EVANS COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -
SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FlNANCIAL REPORTING BASED ON AN AUDIT OF FlNANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANPARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND lNTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FlNDlNGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FlNDINGS AND QUESTIONED COSTS
SECTION IV FlNDlNGS AND QUESTIONED COSTS SCHEDULE OF FlNDlNGS 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 17, 1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Evans 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 Evans 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 ofthe Evans County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in GoYernment Auditin~ Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose fmancial 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,

98ARL-13B

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 ofrelated benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department of Education for the State's share ofthese 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 on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose fmancial statements referred to above present fairly, in all material respects, the financial position of the Evans County Board ofEducation as of June 30, 1998, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Audjtinlil Standards we have also issued our report dated June 17, 1999, on
our consideration ofthe Evans 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.
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 ofmanagement regarding the methods ofmeasurement 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 Evans County Board ofEducation 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 Evans County Board of Education does bnsiness 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 Evans County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 2 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits o/States, Local Governments, andNon-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 procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
98ARL-13B

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

RWH:jb 98ARL-13B

Respectfully submitted,

w. --=:>~/l;r

~

Russell W. Hinton State Auditor

EVANS COUNTY BOARD OF EDUCATION

EVANS COUNTY BOARp OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1998

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Cap~al Lease Agreements

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

1,290,344.26 $

255,728.33

250,000.00

185,648.15

118,517.85

23,897.01 6,756.97

Total Assets

$

1,475,992.41 $

654,900,16

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Cap~al Lease Agreements

Total Liabil~ies

FUND EgUITY

Fund Balances

Reserved

For Expired Grant Balances/Questioned Costs

For Inventories

.

Food

Donated Commod~ies

Purchased Food

For State Capital Outlay Projects

Unreserved

Designated for Self-I nsurance

Undesignated

Total Fund EqUity

$

61,72 $

31,536.56

4,700,00

132,704.86

15.16

2,063.90

$

4,776.88 $

186,305.32

.. ~, ,

$

3,768.49

$

23,897.01

6,756.97

1,622.74 1,465,824,30

$

1,471,215.53 $

457,940,86 488,594,84

Total Liabilities and Fund Equity

$

1,475,992.41 $

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

-2-

654,900.16

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 1998

JUNE 30, 1997

$

0.00

$ 1,546,072.59 $ 1,273,834.65 .

250,000.00

304,166.00

848,200.25

$

297,360.26

23,897.01 6,756.97
297,360.26

16,952.42 8,633.90
334,902.95

$

0.00 $

297,360.26 $ 2.428,252.83 $ 2.482,524.17

$

31,598.28 $

22,662.76

137,404.86

118,544.58

2,079.06

3,214.07

307,161.78

34,129.20

$

297,360.26

297,360.26

334,902.95

$

297,360.26 $

-468.442.46 $

820,615.34

$

0.00

$

0.00

$

3,768.49 $

1,570.68

23,897.01 6,756.97

16,952.42 8,633.90 324,015.02

1,622.74 1,923/65.16

1,622.74 1,309,114.07

$ 1,959,810.37 $ 1,661.908.83

$

0.00 $

297,360.26 $ 2.428,252.83 $ 2.482,524.17

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EVANS COUNTY BOARD OF epUCATION
COMBINED STATEMENT OF REVENUES EXpENQIDJReS AND CHANGES IN FUND BALANCeS
ALL GOVERNMENTAL FUNp mes YEAR ENDED JUNE ag 1998

EXHIBIT"B"

~
State Funds federal Funds Taxes Other Funds
Total Revenu8$
eXPENQlTUBES
Current Instruction Support Servtces PupllServie:ea Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Opelation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Opelation
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess 01 Revenues over (under) Expenditures
OTHER F!NANCING SOURCES nJSES>
OpeIating Tran","",ln OpeIating Tran","", Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other financing USMo
FUND BALANCE JULy 1
Food Inventory - Net Change In Period Donetlld Commodities Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum OnM
YEAR ENDED JUNEJO 1998 JUNEJO 1997

6.916,425.77 $ 3.963.58
1.780.430.26 64.270.70

529.730.10 $ 1.318.704.66
167.645.13

8 785 090.31 $ 2.016079.89 $

565.705.64 $

8.011.861.71 $ 1.322.668.24 1.780.430.26
251915.83

7.383.685.85 1.094.086.40 1.310,220.45
215.664.40

565.705.64 $ 11 366 876.04 $ 10.003.677.10

5.382.678.98 $ 766.055.28

6.148.734.26 $ 5.764.212.87

260.838.91 266.451.87 212.834.83 260.831.53 586.881.10
35.885.93 508.530.97 341.393.35
9.000.55 71.802.26
79.083.53

110.509.20 111.560.64
13.772.87 29.825.71
1.794.57

7.494.17 10.724.24
145.68 117,258.52 815,478.99
$

1.014.384.52

371.348.11 378.012.51 226.407.70 290.657.24 586.475.67 35.885.93 516.025.14 352.117.59
9.14623 189.060.78 815.478.99 1.093,468.05

313.789.44 368.065.36 210.165.92 282,565.64 542.14526
46,953.86 608.151.71 325.037.53
9.060.38 295.650.65 897.607.94 406.770.98

37.542.89 21 ,681.27

37.542.89 21.881.27

35.074.41 24149.55

8075037.77 $ 1964619.87 $ 1.014.384.52 $ 11074042.16 $ 9929381.50

710052.54 $

31460.02 $ -448.678.68 $

292833.88 $

74.295.60

$ 128491.91
-128491.91 $

3,828.25 $ 3,828.25 $

124.683.66 $ 124683.68 $

128.491.91 $ 128491.91
0.00 $

351.898.80 -351898.80
0.00

581.580.63 $ 889.854.90

35,288.27 $ 448,238.91

-324.015.02 $ 324.015.02

292.833.88 $ 1.661.908.83

74,295.60 1.589.892.39

6,944.59 -1876.93

6.944.59 1876.93

.1.722.48 -558.70

1,471215.53 $ 488594.84 $

0.00 $ 1:959810.37 $ 1.661,908.83

The notes to the general purpose financial statements .re an integral part of this statement. 4

EVANS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-MAP BASIS> GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 1998

EXHIBII"C

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

~

State Funds Federal Funds Taxes Other Funds

$ 6,471 ,822.02 $ 6,916,425.n

1,500.00

3,963.58

1,540,000.00

1,780,430.26

42,212.00

84,270.70

Total Revenues

$ 8,055,534.02 $ 8.785,090.31

EXPENDITURES

Current Instruction Support 5eIvIces Pupil Services Improvement of Instructional Services Educational Media. Services General Administration School Administration Business Adminlslrallon
Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation capital Outlay Debt Service

5,519,711.22 $ 5,382,678.98

239,612.00 335,552.18 210,784.00 244,379.00 553,n6.00 43,282.00 718,705.84 392,963.46
9,000.00 49,400.00

250,838.91 266,451.87 212,634.83 260,831.53 586,681.10 35,885.93 508,530.97 341,393.35
9,000.55 71,802.26

90,000.00

79,083.53 59,223.96

Total Expenditures Excess of Revenues over (under) Expenditures

$ 8.407,185.70 $ 8.075.037.n

$ -351,651.88 $

710.052.54

OTHER FINANCING SOURCES (USES>

Other Sources Other Uses

$

-73.2n.00 $ -128.491.91

Total Other Anancing Sources (Uses)

$

-73,2n.00 $ -128,491.91

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

-424,928.88 $

581,560.83

FUND BALANCE JULY 1 1997

845,106.38

889,654.90

Adjustments Food Inventory - Net Change In Period
Donated Commodftles Purchased Food

46,280.36

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

513,987.02 $

529,730.10

1,218,658.12

1,318,704.66

146.804.50

167.845.13

1,879,449.64 $ 2,016,079.89

$

767,436.00 $

766,055.28

96,628.00 124,719.00 13,692.00 36,941.00
1,225.00

110,509.20 111,560.84
13,n2.87 29,825.71
1,794.57

2,000.00 4,650.00
124,393.00 714,755.45

7,494.17 10,724.24
145.68 117,258.52 815,478.99

$ 1,886,439.45

$

-6,989.81

1.984,619.87 31.460.02

3,828.25

$

3,828.25

$

-6,989.81 $

35,288.27

441,789.55

448,238.91

5,921.81

6,944.59 -1.876.93

FUND BALANCE JUNE 30 1998

468,458.06 $ 1,471 ,215.53

440,721.55

488,594.84

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

EVANS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1998

Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Evans 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 of all 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To 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 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.
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 of Education and from the Federal government to accomplish specific educational objectives.
- 6-

EYANS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note l' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and fmancial 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 (Le., revenues and other fmancing sources) and decreases (Le., 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 fmanced 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 ofaccounting 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, 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 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 J 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 of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two of the 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 of the 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
-7-

EVANS COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

J!JNE30 1998

Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Evans County Board of Education's budget is a complete fmancial 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 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 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 final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, 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
COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits in authorized fmancial 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 chartered building and loan associations.
INVESTMENTS
COMPOSmON OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market , investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating . interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
- 8-

EVANS COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

1UNE30 1998

Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The Evans County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on December 29, 1997 (levy date). Taxes were due on March 10, 1998. 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 Evans 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 1997 tax year (calendar year) for the Evans County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.0 mills

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EVANS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
ruNE 30 1998

Note l' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net
current assets.
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 e1iminations 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 110percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretioI\, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
- 10 -

EVANS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANQAL STATEMENTS

JUNE 30 1998

Note 2' DEPOSITS
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(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 ofGeorgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, 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 $2,474,972.55. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 -" Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 1998, as follows:

- 11 -

EVANS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 2' DEPOSITS

Risk CateilOly
1 2 3
Total
Note 3' NON-MONETARY TRANSACTIONS

Bank Balance $ 146,861.86
2,328,110.69 0.00
$ 2.474.972 55

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

Note 4: RISK MANAGEMENT

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

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

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

The Board is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the Board. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

Beginning of Year Ljabjljty

Claims and Changes in Estimates

Claims Pajd

End ofYear Uability

1997

$

000 $

0.00 $

0.00 $

000

1998

$

0.00 $

336126 $

387.84 $

2973.42

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1,1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general

- 12-

EVANS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 4' RISK MANAGEMENT

insurance coverage, Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered Superintendent Each Principal
Note 5' GENERAL LONG-TERM DEBT

AmQlllli $ 50,000.00 $ 5,000:00

CAPITAL LEASES The Evans County Board of Education has entered into a lease agreement as lessee for energy management equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

Balance July I, 1997 Deductions
Payments Balance June 30, 1998

Capital Leases $ 334,902.95
37542,69 $ 297 36026

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year
Ended June 30
1999 2000 2001 2002 2003 2004 -2007 Total Principal and Interest Deduct: Imputed Interest Net Present Value ofFuture
Minimum Lease Payments

-13 -

Capital Leases $ 59,223.96 59,223.96 59,223.96 59,223,96 59,223,96 68943,20 $ 365,063.00 6770274
$ 297.36026

EYANS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1998

Note 6' ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $125,663.88 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$96,845.11
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$7,978.77
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 $20,840.00
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:

Unearned Executed Contracts

Claxton Middle School Kitchen Renovations

$ 327 636 89

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 terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 9' SUBSEQUENT EYENTS

On November 3, 1998, the voters of Evans County voted in favor ofa Special Purpose Local Option Sales
Tax referendum for education purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot of Evans County, is as follows:

- 14-

EVANS COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1998

Note 9 SUBSEOUENT EVENTS

"ShaH a special one percent sales and use tax for educational purposes be imposed in Evans County for
a period not to exceed five (5) years or 20 calendar quarters, beginning April I, 1999, and for the purpose of raising not more than $6,260,000.00 of net proceeds by said tax to be used to finance the
construction, furnishing and equipping of additional classrooms, instructional and support space, including construction of new athletic and physical education facilities, as well as expanding, remodeling and renovating existing classrooms, instructional and support space, athletic and physical education facilities and grounds at all school district facilities and to provide furnishings, equipment and fixtures, including technology equipment and retrofitting to accommodate such equipment, at existing facilities; and the payment ofexpenses incident thereto, at an estimated cost of $6,200,000 to be financed from funds raised by this tax?

If the imposition of the tax is approved by the voters, such vote shall also constitute approval ofthe issuance ofgeneral obligation debt ofthe Evans County School District in the principal amount ofup to $4,000,000 for the purpose set forth in the above question."
Note I0; RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered
by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defmed 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% oftheir 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 foHows;

Fjscal Year

Percentage Contributed

Required Contribution

1998 1997 1996

100% 100% 100%

$ 689,738.20 $ 635,782.53 $ 593,849.02

- 15 -

EVANS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1998

Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Uabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Uabilities and Fund Equity
See notes to the general purpose financial statements. -16 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

247,775.95 $

41,297.98

250,000.00

4,570.46

5,768.00

23,897.01 6,756.97

$

533,000.39 $ _ _..;,47,,',;,;06;,;;5~.9_8

$

7,060.05 $

8,473.10

37.345.50

38,592.88

$

44,405.55 $ _ _.:.;47:.<;,O;::6:::,5:::,.9=.8

$

23.897.01

6,756.97

457,940.86 $

0.00

$

488,594.84 $

0.00

$

533,000.39 $

47,065.98

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS JUNE 30,1998 JUNE 30, 1997

$ 289,073.93 $ 491,116.66

250,000.00

$

98,319.56 $

9,859.83

118,517.85

238,087.91

23,897.01 6,756.97

16,952.42 8,633.90

$

98,319.56 $

9,859.83 $

688,245.76 $

754,790.89

$

27,251.68 $

12,237.50

56,766.48

2,063.90

$

98,319.56 $

6,093.92 $ 3,765.91
9,859.83 $

33,345.60 $ 31,536.56 132,704.86 2,063.90
199,650.92 $

162,131.21 22,662.76 118,544.58
3,213.43
306,551.98

$

23,897.01 $

16,952.42

6,756.97

8,633.90

$

0.00 $

0.00

457,940.86

422,652.59

$

0.00 $

0.00 $

488,594.84 $

448,238.91

$

98,319.56 $

9,859.83 $

688,245.76 $

754?90.89

17 -

EVANS COUNTY BOARD OF EDUCATION 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 Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (undeQ Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general purpose financial statements.
-18 -

SCHOOL FOOD
SERVICES FUND

LOITERY PROGRAMS

$

52,130.00 $

407,661.21

629,251.18

167,645.13

$

849,026.31 $

407,661.21

$

315,061.78

65,761.25 12,723.76

21.35 565.03 7,494.17 6,795.06

$

813,738.04

1,319.20 1,740.95

$

813,738.04 $

411,482.55

$

35,288.27 $

-3,821.34

$

35,288.27 $

448,238.91

6,944.59 -1,876.93

3,821.34
0.00 0.00

$

488,594.84 $

0.00

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30,1998 JUNE 30, 1997

$

$

689,453.48

$

689,453.48 $

69,938.89 $ 69,938.89 $

529,730.10 $ 1,318,704.66
167,645.13
2,016,079.89 $

710,238.88 1,077,027.96
146,474.35
1,933,741.19

$

436,113.55 $

44,660.22 98,818.38 13,772.87 29,804.36
1,229.54

3,929.18 145.68
60,986.61

$

689,460.39 $

$

-6.91 $

14,879.95 $ 87.73 18.50
54,952.71 69,938.89 $
0.00 $

766,055.28 $
110,509.20 111,560.64
13,772.87 29,825.71
1,794.57 7,494.17 10,724.24
145.68 117,258.52 815,478.99
1,984,619.87 $
31,460.02 $

738,389.50
71,379.20 101,512.77
13,260.23 38,122.11 3,242.99 8,210.25 11,909.98
220,620.54 697,607.94
1,904,255.51
29,485.68

6.91

3,828.25

183.80

$

0.00 $

0.00 $

35,288.27 $

29,669.48

0.00

0.00

448,238.91

420,848.59

6,944.59 -1,876.93

-1,722.46 -556.70

$

0.00 $

0.00 $ 488,594.84 $ 448,238.91

- 19-

EVANS COUNTY BOARD OF EDUCATION

SCHEDULE" I"

SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION
YEAR 2000 DISCLOSURES YEAR ENDED JUNE 30 ! 998

At June 30, 1998, the Evans County Board ofEducation had no outstanding contractual commitments for the purpose of making 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 concern for the Board's financial accounting system. The following stages have been identified as necessary to implement year 2000 compliant systems.
Awareness Stage Encompasses establishing a budg~ 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.
Validationffesting 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 of June 30, 1998, the financial accounting system was determined to be at the Awareness Stage.
The Board's financial accounting software (GENESIS) and hardware (Wang VS) are 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 of June 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 of December 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. - 20-

EVANS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENPED JUNE 30 1998

SCHEDULE "2"

FUNDING AGENCY pROGRAMtGRANT
AgriCtJllure, U. S. Deparbnent of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1)
Total U. S. Department of AgriCtJlture
Education, U. S. Deparbnent of Direct Impact Aid 1992 Grant 1998 Grant Pass-Through From First District Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act TIUel Migrant Education 1997 Grant 1998 Grant Pass-Through From Georgia Deparbnent of Education Elementary and Secondary Educetion Act Tille I Grants to Local Educational Agencies 1998 Grant TlUell Eisenhower Professional Development 1997 Grant 1998 Grant T1UeVI Innovative Education Program Strategies 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 10.555 10.550

NtA

154,112.77

NlA

420,878.49 $

NlA

54,259.92

$

629,251.18 $

(2)
759,478.12 (3) 54,259.92
813,738.04

84.041 84.041

$

562.88

(4)

985.00

(4)

84.011

NtA

84.011

NlA

2,412.70 $ 12,562.61

2,412.70 12,562.61

84.010

NtA

84.281

NtA

84.281

NtA

84.298

NlA

455,285.76
5,120.75 10,920.06
14,167.00

84.027

NtA

84.173

NtA

122,773.38 23,918.18

84.048 84243

NtA

24,858.50

NtA

19,884.24

$ 693,417.06

455,285.76 5,120.75
10,920.06 14,169.37 (3)
122,773.38 23,916.18
24,853.04 (3) 19,864.24 691,873.09

Total Federal Financial Assistance
NtA = Not Available

-21-

$ 1.322,668.24 $

1.505,611.13

EVANS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1998

SCHEDULE "2"

Notes to the Schedule of Exoenditures 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) Expendilures for the School Breakfast Program were not maintained separately and are included in the 1998 National School Lunch Program.
(3) Expenditures for this program include State, and/or O1her Funds. Expenditures are not maintained by fund source.
(4) Funds eamed on this program do not require reporting of expenditures.
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 Evans County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

-22-

EVANS COUNTY BOARp OF EDUCATION SCHEDULE OF STATE RE\lENUE YEAR ENpED JUNE 30 1998

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Community Affairs, Department of Local Assistance Grant
Education, Georgia Department 01 Quality Basic Education General snd 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 Midterm Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training LocaJ Fair Shere Educational EqualiZlltion Funding Grant Food Servlces other State Programs Ad Valorem Tax Adjustment Alternative Program At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teecher Program Preschool Handicapped Program Remedial Summer School Program Special Education LOW' Incidence Grant Teachers' Retirement
l~Programs
Alta_ School Program
Instructional Technology Asslstive Tachnology Classroom Technology
Georgla State Financing and Investment Commission Reimbursement on Construction Projects
0IIlca 01 School Roadi.... Pre-Klndorgaltan Program
ames ~ Treasury and Fiscal Services Public Sehool EmpJoyees Retirement
CONTRACTS Human Resources, Georgia Department of Family Connection
OTHER Education, Georgia Department of Reimbursement for Substitute Teacher Cost
See notes to the general purpose financial statements.

GO\IERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

4,500.00

TOTAL 4,500.00

3.683,358.00 794,981.00 133,623,00 154,928.00 49,141.00
1,067,448.00
199,765.00 54,n6.00 133,642.00 79,396.00 82,417.00 216.517.00 2.217.00 14,650.00 28,642.00 -541,366.00 489,23B.OO
48,750.00 48,757.00
9,304.66 96,645.11
8,861.37 3,008.00
3,963.02 17,856.64 7,978.n

52,130.00
20,925.00
4,132.00 5,786.00 .53,000.00

3,683,358.00 794,981.00 133,623.00 154,928.00 49,141.00
1,067,448.00
199,765.00 54,n6.00 133,642.00 79,396.00 82,417.00 218,517.00 2,217.00 14,850.00 28,642.00 -541,366.00 489,236.00 52,130.00
48,750.00 48,757.00
9,304.66 96,645.11
8,861.37 3,008.00 20,925.00 3,963.02 17,856.64 7,grs.n
4,132.00
5,768.00 53,000.00

20,640.00
40.00 6.916,425.77

344,781.21 49,013.99
529.730.10

565,705.64

565,705.64 344,761.21
20,640.00

49,013.99

40.00

565,705.64

8.011,861.71

-23-

E\lANS COUNTy BOARD OF EpUCATION
SCHEPULE OF eXPENplTURES
LOTTERY PROGRAMS
YEAR ENDEn JUNE 30 1998

SCHEDULE "4"

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

ALTERNATNE SCHOOL PROGRAM

INSTRUCTIONAL TECHNOLOGY

ASSISTNE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PRE"KlNDERGARTEN PROGRAM

3,582.00 $

5,797.59 $

54,923.65 $

565.03

250,759.54
65,761.25 12,723.76
21.35
7,494.17 8,795.06 1,319.20 1740.95

TOTAL
315,061.78
65,761.25 12,723.76
21.35 565.03 7,494.17 6,795.06 1,319.20 1740.95

TotaJ Expenditures

4.147.03

54,923.65

346614.28 $ _ _.;4"1,,,,1;;;482=.5:::.5

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Alternative SChool Program Instructional Technology Asslstlve TecI1no1ogy C1aSS/OCl11 Technology Pre-Kindergarten Program

$ 2ll9,258.51
4,147.03
5,797.59 54,923.65 47,355.n

411.482.55

See notes to the general purpose financial statements.

-24-

EVANS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1998

SCHEDULE "5"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

4,958,902,00 $

151,488,00

$

4,837,215,90

241,921.52 $

$

5,079,137.42

213,126.76

-49,343.68

$

5,029,793,74

$

0.00 $

0.00

See notes to the general purpose financial statements. - 25 -

EVANS COUNTY BOARD OF EDUCATION
BY ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS. PROGRAM
GENERAL FUND qUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNpO 1998

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (")
Gradesl3(")
Sub-Totti K-3 Gradas45(")
Gradas 6 8 (")
Gradas 9 -12 (") High School Laboratories M
Vocational Education Laboratories M
Total General and Career Education Programs SPEC~EDUCA~ONPROGRAMS
Regular Programs Catagoryl (") Catagory II (") Catagorylll (") Catagory IV (")
Sub-TOIaI ReguJar Calagory VI (Gifted) (")
Tolal Special Education Programs REMED!AI. EpUCATION PROGRAM r>
Total Fourteen Weighted Programs ME[)lA CENTER Pf!OGBAMS
Salaries Operations
Total Madia Canter Programs

Total Fa....." Weightecland Media Center Programs

STAFF pEVELOpMENT PROGRAMS Cost of instruction Professional Development

Tolal Stat! Daveloprnant Programs
n Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

- 26 -

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ..1L

ORIGINAL

MIDTERM

417.496.00 1.058,045.00 1,475,541.00 90
436,830.00 90 809,831.00 90 316,733.00 90 293,824.00 90 350,799.00 90 3,683.358.00

375.746.40 952,240.50 1.327,986.90 393,147.00 728,847.90 285.059.70 264,261.60 315,719.10 3,315,022.20

1.030.00 2,827.00 3,857.00 28,312.00 10,117.00 140,540.00 -129,987.00 12,533.00 85,372.00

735,310.00

661,n9.oo $

137.131.00

735,310.00 90 59,671.00 90
794,981.00 133,823.00 90 4,611,982.00

661,779.00 53,703.90 715,482.90 120,260.70 4,150,765.80

137,131.00
137,131.00 14,805.00 187,698.00

126,112.00 90 28,816.00 90
154,928.00

113,500.80 25,934.40
139,435.20

3,126.00 1.188.00
4,314.00

4,766,890.00

4,290,201.00 $

192,012.00

14,247.00 34,894.00

14,247.00 34,894.00

49,141.00 '00 $

49,141.00 $

0.00 0.00
0.00

SCHEDULE "6"

TOTAL REQUIRED

ACTUAL EXPENDrTURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDrrURE
FOR REQUIRED ALLOTMENT

376,776.40

373,456.60

7,612.59

361,069.49

955,067.50

944,12120

47,517.30

991,738.50

1,331,843.90

1,317.578.00

55,229.99

1,372.807.99

0.00

421.459.00

418.448.95

23.559.47

442,108.42

0.00

738,964.90

884.517.73

35,572.07

920,289.60

000

425,599.70

453,090.57

14,406.45

467,497.02

0.00

134,274.60

191,035.32

11,911.07

202,947.39

0.00

328,252.10

373.007.40

43,280.52

415,287.92

0.00

3.360.39420

3.637,778.97

194,159.57

3.821,936.54

798,910.00
798.910.00 53.703.90 552,613.90 105.455.70
4.336.463.60

6.621.03 152.555.69 618,132.73 39,582.02
817.001.47
49.544.94
865,645.41
152,999.60
4.557,424.98

1,335.00 4,372.34 20.713.55
530.87
25,952.76
420.20
27,372.95
1.59423
213.125.75

7,957.03 157,036.03 636,846.28 40.112.89
843,954.23
50.055.14
894,019.37
154.593.83
4,870,551.74

0.00 3,636.75
0.00

115.625.60 $

179,790.92

179.790.92

0.00

27,122.40

28,794.75

28.794.76

0.00

143,749,20

179,790.92

28.794.76

208,555.58

4,482,213.00 $ 4.837,215.90 $

241,921.52 $ 5.079,137A2 $

3.636.75

14,247.00 34,894.00
49,141.00

27.98725 22,374.74

27,887.25 22,374.74

50,241.99 $

50,241.99 $

0;;;.00;;,

27

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

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 17, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Evans 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 ofEvans County Board ofEducation as of and for the year ended June 30, 1998, and have issued our report thereon dated June 17, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Goyemment Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Evans County Board of Education's financial statements are free of material misstatement, we performed 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 determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Oyer Financial &;porting
In planning and performing our audit, we considered Evans County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation
98YB-40

that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Evans County Board of Education's ability to record, process, summarize and report fmancial data consistent with assertions of management in the fmancial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-654l-98-01, FS-654l-98-03 and FS-6541-98-04.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, all ofthe reportable conditions noted above are also considered 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,
~w.~ Russell W. Hinton State Auditor
RWH:jb 98YB-40

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 17, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Evans County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND INTERNAL CQNTROL QYER COMPLIANCE lNACCORDANCE WITH OMB CIRC! JLAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Evans County Board of Education with the types of compliance
u.s. requirements described in the Office ofManagement and Budget (OME) Circular A-133 Compliance
Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Evans 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 ofits major Federal programs is the responsibility of Evans County Board of Education's management. Our responsibility is to express an opinion on Evans 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-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Evans 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 Evans County Board of Education's compliance with those requirements.

98SA-IO

In our opinion, the Evans 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 Evans County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Evans 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 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 of the intemal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level ofrisk 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 normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended 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,
~w.~~ Russell W. Hinton State Auditor
RWH:jb 98SA-IO

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

EVANS COUNTY BOARD OF EDUCATION
AUDIIEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND ffiJESTIQNED COSTS YEAR ENDED nJNE 30 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6541-93-01 6541-93-02 6541-95-01 FS-654l-97-0l FS-654l-97-02 FS-654l-97-03 FS-654l-97-04

Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action hnplemented Previously Reported Corrective Action hnplemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESlLIABlllTIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $129.73 Finding Control Number: FS-654l-97-02

The underexpenditure of Quality Basic Education (QBE) funds of$129.73 for the Operational Costs portion of the Media Center Programs will be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

EXPENDITURESlLIABlllTIESIDISBURSEMENTS Inadequate Documentation ofExpenditures Finding Control Number: FS-654l-97-03

The Board has addressed the finding for inadequate documentation ofexpenditures ofthe Family Connection program by hiring a new Family Connection Coordinator and by hiring a new Financial Director to serve as the Fiscal Agent for the Family Connection program. In addition to hiring new personnel to address the finding, the Board has implemented new procedures for the purchase order process, the receiving report process and the payment ofinvoices process. The Family Connection Coordinator must submit a purchase order for any purchase to the Financial Director for approval and then to the Superintendent for final approval. Once the purchase order is approved and the ordered goods have arrived, the Family Connection Coordinator must sign and date the pink copy of the purchase order (the receiving report) verifying that all goods have been received. The Financial Director must receive the receiving report from the Family Connection Coordinator before paying the original invoice. This purchase order process and the receiving report process prevent the Financial Director from paying from memorandums afid copies ofinvoices, from paying without receiving signatures, and from paying without the program coordinators approval.

- 1-

EVANS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1998
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6541-97-04 Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staffthe Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements.
-2-

SECTION IV FINDINGS AND QUESTIONED COSTS

EYANS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEARENDEDJl1NE30 1998

SUMMARY OF AUDITOR'S RESULTS

I. Type of RtWort Issued on the Financial Statements The auditor's opinion on the Evans County Board ofEducation's fInancial statements was qualifIed for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Evans County Board of Education disclosed fInancial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents General Fixed Assets

Expenditures/Liabilities/Disbursements

All of the reportable conditions described above are considered to be materia! weaknesses.

3. Noncompliance Material to the Financial Statements The audit ofthe Evans County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the fInancial statements.

4. Rt:portable Conditions in Internal Control Over Major Proarams The audit report for the Evans County Board of Education did not disclose any reportable conditions in internal control over major programs.

5. fue of Report Issued on Compliance for Major Programs The auditor's opinion on the Evans County Board of Education's report on compliance with requirements applicable to major programs was unqualifIed.

6. Audit FindjniS Reqyjred to be B.t:ported by Section 51O(a) ofOMB Circular A-133
The Evans County Board of Education's audit did not disclose audit fIndings required to be reported by sectioa.-i10..(a) ofOMB Circular A-B3.

7. Miljor 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

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee The Evans County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department ofEducation.

- 1-

EVANS COUNTY BOARD OF EIDJCATION
SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30 1998
IT FiNANCIAL STATEMENT FINDINGS AND QtJESTIONEP COSTS
CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Reportable Condition - Material Weakness Finding Control Number: FS-6541-98-01
An examination of the control procedures relative to cash and cash equivalents revealed weaknesses in the following areas:
Check writing, check signing and the general ledger posting functions are not separated.
These conditions were a result of management's decision to limit the number of administrative staff made responsible for accounting functions. The Board should review the accounting procedures in place, design procedures which would enhance segregation ofduties relative to the above control category and implement those procedures to strengthen the internal control over the accounting functions.
Management's Response:
We concur with this finding. We have reviewed the accounting procedures in place, designed procedures which would enhance segregation of duties relative to the above control categories and implemented those procedures to strengthen the internal control over the accounting functions. The Superintendent's Secretary has control over the check signing machine and the Financial Director and SchoolFood Service Bookkeeper have responsibility over the general ledger posting function.
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Nomnaterial Noncompliance Amount: $3,638.76 Finding Control Number: FS-6541-98-02
The Evans CountyBoard ofEducation reported an underexpenditure ofQualityBasic Education (QBE) funds of $3,638.76 for the Special Education - Category VI (Gifted) Program. The underexpenditure of funds occurred because the Board did not expend the minimmn required amount for this QBE Program. The underexpenditure of $3,638.76 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
Management's Response:
We concur with this finding. This finding will be resolved by the Georgia Department ofEducation through a future increase in the Board's local fair share portion ofQBE allotments.
-2-

EYANS COUNTY BOARD OF Em rcATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30 1998
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EXPENDITURES/LlABlllTIESIDISBURSEMENTS Inadequate Documentation of Expenditures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6541-98-03
A review of twenty-five Family Connection program vouchers revealed the following deficiencies:
(I) Eleven instances were noted where original invoices were missing. In seven of these instances, memorandums from the Family Connection coordinator were the only supporting documentation. In one instance, a copy of the original invoice was utilized as supporting documentation. In one instance, a handwritten note was utilized as supporting documentation. In two instances, no supporting documentation was available.
(2) Evidence of the receipt of goods was not available on four vouchers.
(3) Eleven vouchers did not include documentation of the program coordinator's approval.
These deficiencies occurred because the Board did not have adequate control procedures over the voucher preparation and approval for the Family Connection program. The Board should only pay Family Connection program expenditures when appropriate supporting documentation is presented including original invoices, coordinator's approvals and documental ofreceipt of goods or services.
Management's Response:
We concur with this finding. The Board has addressed the finding for inadequate documentation of expenditures of the Family Connection program by hiring a new Family Connection Coordinator and by hiring a new Financial Director to serve as the Fiscal Agent for the Family Connection program. In addition to hiring new personnel to address the finding, the Board has implemented new procedures for the purchase order process, the receiving report process and the payment of invoices process. The Family Connection Coordinator must submit a purchase order for any purchase to the Financial Director for approval and then to the Superintendent for fina1 approval. Once the purchase order is approved and the ordered goods have arrived, the Family Connection Coordinator must sign and date the pink copy of the purchase order (the receiving report) verifying that all goods have been received. The Financial Director must receive the . receiving report from the Family Connection Coordinator before paying the original invoice. This purchase " order process and the receiving report process prevent the Financial Director from paying from memorandums and copies of invoices, from paying without receiving signatures, and from paying without the program coordinator's approval.
-3-

EVANS COUNTy BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED flJNE 30 1998
n FINANOAL 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-6541-98-04 The Evans 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 ofthe 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. Management's Response: We concur with this finding. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staffthe Board has decided not to pursue the recording of general fixed assets on the financial statements. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-4-