STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS GA _A 8 o o .RI E. 2 b r2 19q9-c2000 Oo 000000 0 1776 I FANNIN COUNTY BOARD OF EDUCATION BLUE RIDGE, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 Russell W. Hinton State Auditor FANNIN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- Page SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDITIONAL FINANCIAL INFORMATION COMBINING AND INDNIDUAL FUND STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 23 I FIDUCIARY FUND TYPE STATEMENT OF CHANGES IN ASSETS AND LIABILil'IES AGENCY FUND 24 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 25 2 SCHEDULE OF STATE REVENUE 27 FANNIN COUNfY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL ADDillONAL FINANCIAL INFORMATION SCHEDULES ANALYSIS OF '"'' EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 3 OVERALL 4 BYPROGRAM Page 29 30 SECTION II COMPLIANCE AND INTERNAL CONfROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONfROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDfl'ING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONfROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 SECTION ID AUDfl'EE'S RESf'ONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS .LL ....--.... Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL oY...P ~ ~. -\Cl w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 March 2, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Fannin County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general purpose financial statements ofthe Fannin 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 ofthe Fannin County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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-13 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 ofthe 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 conforn1 to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. The aggregate effects on the general purpose financial statements of these variances or omissions have not been detern1ined, 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 deterrnined 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 on the general purpose financial statements ofthe matters refei1ed to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Fannin County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in confor1nity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated March 2, 200l, on our consideration ofthe Fannin County Board ofEducation'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 performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was perforrned for the purpose of furn1ing an opinion on the general purpose financial statements of the Fannin County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 4), which includes the Schedule ofExpenditures ofFederal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements. Such inforr11ation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been deterrnined 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 of the matters referred to in the fourth paragraph, such infor111ation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. 2000ARL-13 A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. Respectfully submitted, RWH:jb 2000ARL-13 Ru sell W. Hinton State Auditor FANNIN COUNTY BOARD OF EDUCATION FANNIN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000 ASSETS Cash and Cash Equivalents Accounts Receivable Due from Other Funds Inventories Food Donated Commodities Purchased Food Amount to be Provided in Future Years For Payment of: Capital Lease Agreements Compensated Absences Total Assets GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND $ 1,952,376.40 $ 19,056.34 $ 146,106.10 1,882,239.59 248,628.35 18,685.74 29,200.96 14,179.97 $ 3,834,615.99 $ 329,751.36 $ ==1=4=6-1,...,0..6..==1o= LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds Funds Held for Others Capital Lease Agreements Compensated Absences Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 506,752.85 $ 1,643,791.83 18,685.74 58,844.11 158,164.76 8,645.02 $ 21169,230.42 $ --=22::;:5;.,.;6,c;:;5-=..;3-=..;89;;_ $ 500.00 $ 1,665,385.57 $ 1,665,385.57 $ 29,200.96 14,179.97 60,216.54 $ _ _.:._14:.:::6..1:,..::.06;::.:-...:.;10~ 104,097.47 $ _ _.:._14:.:::6..1:,..::.0;::.:6-...:.;10~ Total Liabilities and Fund Equity $ 3,834,615.99 $ 329,751 .36 $ -===1m4=6,!,,;1,.0..6._.,.;.;10..., The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT "A" FIDUCIARY FUND TYPE AGENCY FUND $ 91.88 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2000 JUNE 30, 1999 $ 2,117,630.72 $ 1,772,441.00 2,130,867.94 1,830, 119.50 18,685.74 29,200.96 14,179.97 19,996.50 14,462.02 $ 406,370.44 370,890.55 406,370.44 370,890.55 298,325.35 360,111.66 91.88 $ 777,260.99 $ 5,087,826.32 ---------~- - . - $ 4,295,456.03 $ 565,596.96 $ 555,352.33 1,801,956.59 1,759,076.81 8,645.02 2,867.74 18,685.74 $ 91.88 91.88 $ 406,370.44 406,370.44 298,325.35 370,890.55 370,890.55 360,111.66 $ 91.88 $ 777,260.99 $ 3,172,237.18 $ 2,975,733.89 $ _ _ _ _=.,0:,:.00=$ _ _ _ _=.,0-:.:.00=- $ 91.88 $ - - - - - - . ---- -- ---- $ 500.00 $ 3,886.53 29,200.96 14,179.97 19,996.50 14,462.02 1,871,708.21 1,281,377.09 $ 1,915,589.14 $ 1,319,722.14 777,260.99 $ -3- 4,295,456.03 FANNIN 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 Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES {USES) Capital Leases Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 12,325,973.40 $ 8,496.14 5,470,153.25 720,399.00 236,053.20 1,850,100.37 388,548.60 $ 18,525,021.79 $ _...;;2c.i.,4.;.;.7...;.4""7-,-"'02=..;.;17~ $ 11,668,822.82 $ 1,279,643.97 802,954.89 358,389.50 479,473.91 312,751.22 1,401,213.61 141,613.15 1,468,039.26 1,179,358.99 38,839.57 19,867.14 10,000.00 21,039.41 42,581.94 20,004.20 1,260,072.11 175,510.91 16 158.77 $ 18,072,993.74 $ 2,623,341.63 $ 452,028.05 $ _ _-1_4_8_'_-"-,6-'--39'-_.4_6'-- $ 283,556.00 $ -117 ,006.45 114,406.45 $ 166,549.55 $ _ _ _11_4..._,4_0_6_.4_5_ _ $ 618,577.60 $ 1,046,807.97 -34,233.01 129,408.07 9,204.46 -282.05 FUND BALANCE JUNE 30 ===--======== 1,665,385.57 $ ------- - ------- ---- - -- $ 104,097.47 The notes to the general purpose financial statements are an integral part of this statement. -4- EXHIBIT "B" CAPITAL PROJECTS FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ $ ----=o-=oo;a... $ 12,562,026.60 $ 1,858,596.51 5,470,153.25 1,108,947.60 20,999,723.96 $ 11,543,021.93 1,602,421.00 4,690,396.78 855,198.20 18,691,037.91 $ 0.00 $ 12,948,466.79 $ 11,770,012.58 823,994.30 400,971.44 479,473.91 332,755.42 1,401,213.61 141,613.15 1,468,039.26 1, 179,358.99 38,839.57 1,279,939.25 10,000.00 904,948.03 341,798.72 452,360.82 359,779.57 1,293,087.33 141,631.70 1,385,529.74 1,200,433.31 42,047.67 1,221,715.93 107,412.90 175,510.91 16,158.77 157,317.21 13,914.27 $ _ _ _ _=o.;;;..oo;a... $ 20,696,335.37 $ 19,391,989.78 $ 0.00 $ 303,388.59 $ -700,951.87 $ 283,556.00 $ 218,984.00 $ 2,600.00 117,006.45 112,020.16 -117,006.45 -112,020.16 $ 2,600.00 $ 283,556.oo $ _ _2_1_8_,_,__9_8_4_ _.o__o_ _ $ 2,600.00 $ 586,944.59 $ -481,967.87 143,506.10 1,319,722.14 1,807,794.96 9,204.46 -282.05 -6,289.43 184.48 $ 146,106.10 $ 1,915,589.14 $ 1,319,722.14 -5- FANNIN 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 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 Food Services Operation Capital Outlay Debt Service Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES !USES) Other Sources Other Uses Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1. 1999 Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) $ 11,744,656.00 $ 12,325,973.40 371,691.00 8,496.14 5,521,254.00 5,470, 153.25 76,000.00 720,399.00 $ 12,009,746.00 $ 11,668,822.82 800,504.00 370,373.00 492,944.00 300,938.00 1,407,909.00 146,528.00 1,539,152.00 1,110,486.00 50,000.00 3,000.00 7,500.00 802,954.89 358,389.50 479,473.91 312,751.22 1,401,213.61 141,613.15 1,468,039.26 1,179,358.99 38,839.57 19,867.14 10,000.00 191,669.68 $ -525,479.00 $ 452,028.05 $ 130,000.00 $ 283,556.00 -406,000.00 -117 006.45 $ -276,000.00 $ _ _1-6=6~,54~9~-=55~ $ -801,479.00 $ 618,577.60 1,442,074.80 1,046,807.97 3,013.45 FUND BALANCE JUNE 30, 2000 $ s _ _ 643,609.25 1..,,6._6_5.,3.,...85._...,57.,. SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 146,713.00 $ 1,440,192.49 236,053.20 1,850,100.37 $ $ 779,178.56 $ 1,279,643.97 67,445.00 14, 183,60 1,000.00 14,182.62 21,039.41 42,581.94 20,004.20 1,242,000.00 1,260,072.11 $ $ -203,084.29 $ ___1~48~,=6~39~._46~ $ 112,000.00 $ 114,406.45 $ 112,000.00 $ --~1~1~4~4~06~.4~5~ $ -91,084.29 $ 130,049.03 4,759.08 -34,233.01 129,408.07 9,204.46 -282.05 $ s _ _ _ 43,123.s2 1..,04_0_9_1..,.4_1 The notes to the general purpose financial statements are an integral part of this statement. 7 - FANNIN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Fannin County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confonn 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 confu1111 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 of a 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. -8- FANNIN COUNfY 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. FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP -A financial reporting device used to account for accrued compensated absences and capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is dete11nined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities whichare 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-Te11n Debt Account Group. Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be determined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. -9- FANNIN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: S Y OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund liability is incurred. A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically 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 ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. BUDGET The Fannin County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. - 10 - FANNIN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info1n1ation 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 Fannin County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 20, 1999 (levy date). Taxes were due on December 20, 1999. 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 Fannin County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5o/o 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 Fannin County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 13.23 mills 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 iterns 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. COMPENSATED ABSENCES Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. - 11 - FANNIN COUNTY BOARD OF EDUCATION EXHIBIT ''D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS nJNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 confurn1ity 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) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: ( 1) Surety bond signed by a surety company duly qualified and authorized to transact business . within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, - 12 - FANNIN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11n~diate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $3,133,024.17. 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 fmancial 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 $ 101,215.97 2 3,031,808.20 3 0.00 Total Note 3: NON-MONETARY TRANSACTIONS $3,133,024.17 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 - 13 - FANNIN COUNTY BOARD OF EDUCATION EXHIBIT "D'' NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 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 has obtained commercial insurance for risk ofloss associated with assets (vehicles). The Board has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. 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 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. During the year under review, the Board ofEducation settled on a sexual harassment lawsuit. The Board of Education paid $32,000.00 in excess of insurance coverage to settle the dispute and for back pay to the plaintiff. The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: Beginning of Year Liability Claims and Changes in Estimates Claims Paid End ofYear Liability 1999 2000 $ 0.00 $ 9,909.00 $ 9,909.oo $_ _ _"""'0-=.o=o $ 0.00 $ 1,155.42 $ 1,155.42 $_ _ _"""'0-=.0=0 The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July l, 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 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. - 14 - FANNIN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 4: RISK MANAGEMENT The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent All Other Employees $ 150,000.00 $ 100,000.00 Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Fannin County Board of Education has entered into various lease agreements as lessee for buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. GENERAL OBLIGATION DEBT OUTSTANDING The 'changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as follows: Capital Leases Compensated Absences Total Balance July 1, 1999 $ 298,325.35 $ 360,111.66 $ 658,437.01 Additions Capital Leases Annual Leave Earned and Utilized (Net) 283,556.00 10,778.89 283,556.00 10,778.89 Deductions Payments 175,510.91 175,510.91 Balance June 30, 2000 $ 406,370.44 $ 370,890.55 $ 777 260,99 At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: - 15 - FANNIN 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 Total Principal and Interest Deduct: Imputed Interest Capital Leases $ 147,801.40 135,874.77 111,954.77 63,617.73 $ 459,248.67 52,878.23 Net Present Value of Future Minimum Lease Payments $ 406,370.44 Note6: ON-BEHALFPAYMENTS The Board has recognized revenues and expenditures in the amount of $356,270.29 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 $271,755.47 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $32,442.82 Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $52,072.00 Note 7: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant te1ms. 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 perfo11nance of routine Board operations. The ultimate disposition of these proceedings is not presently dete1111inable, but is not believed to be material to the general pmpose financial statements. - 16 - FANNIN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 8: ACCUMULATED EMPLOYEES' LEAVE The employees ofthe Fannin County School system earn 1 1/4 working days ofsick leave for each completed school month of service up to a maximum accumul~tion of 120 days. At retirement, employees are paid for all unused sick leave, up to the maximum accumulation at the rate ofone-half the amount paid to substitute personnel. When the Superintendent terminates employment, he may be paid at his daily rate for all unused sick leave up to a maximum of 40 days. See Note 1 - Compensated Absences 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% anJ ernployer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year 2000 1999 1998 Percentage Contributed 100% 100% 100% Required Contribution $ 1,299,514.25 $ 1,280,731.97 $ 1,183,960.81 - 17 - FANNIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Accounts Receivable Due from Other Funds Inventories Food Donated Commodities Purchased Food SCHOOL FOOD SERVICES LOTTERY FUND PROGRAMS $ 142,751.11 $ 718.16 9,207.00 18,685.74 29,200.96 14,179.97 Total Assets $ 214,024.78 $ ====7=1=8.=16= 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 Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 31,254.69 79,172.62 - - - - - - $ _ _ ____;_71.;.;8;.;..1.;.;6;_ $ 110,427.31 $ _ _ _....;7...;.1.;;;.8.;..;.16~ $ 29,200.96 14,179.97 60,216.54 $ 0.00 _ _ _ _....;;;.;..;;c.;;._ $ 103,597.47 $ _ _ _ _....;0:..:,.0::.;0;,_ Total Liabilities and Fund Equity See notes to the general purpose financial statements. - 18 - $ 214,024.78 $ ===..,;7,:,;,1,;;;,;8,.;,.16= EXHIBIT "E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ 143,469.27 $ 185,010.82 $ 239,421.35 248,628.35 114,765.76 18,685.74 29,200.96 14 179.97 19,996.50 14,462.02 $ 239,421.35 $ 0.00 $ 454,164.29 $ ==3=3=4=,2=35==1o= $ 124,412.93 27,589.42 78,992.14 7,926.86 $ _ _2_3_8.._,9_2_1._35_ $ 124,412.93 $ 11,763.70 58,844.11 158,164.76 51,316.59 138',879.00 8,645.02 2,867.74 $ 350,066.82 $ _ ____,;2;;;;.;0;...;.4.,;;;,8=27'--'.=03c.... $ 500.00 $ 500.00 $ 3,886.53 29,200.96 14,179.97 19,996.50 14,462.02 o.oo $ _ _ _ _.;.o...;..oo_ 60,216.54 91,063.02 $ 500.00 $ 0.00 $ 104,097.47 $ _ _1.;.;;2=9..,_;,4..;;.08=.;;..07~ $ 239,421.35 $ 0.00 $ 454,164.29 $ ===33=4,= 235=.1=0 - 19 - FANNIN 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 General Administration 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 {under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 78,968.00 $ 670,805.71 388,548.60 85,177.20 $ 1,138,322.31 $ _ _....;8:;.;:5-'-1',..:..7.;..;7=20~ $ 23,225.87 $ 85,177.20 1,260,072.11 $ 1,283,297.98 $ _ _....;:8:.-=5.t..1:,..:..7.:..:7.=20~ $ -144,975.67 $ 0.00 114,129.19 $ -30,846.48 $ 0.00 125,521.54 0.00 9,204.46 -282.05 FUND BALANCE JUNE 30 $ 103,597.47 $ ====0==00= See notes to the general purpose financial statements. - 20- EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ $ 1,179,294.66 $ 1,179,294.66 $ 71,908.00 $ 71,908.00 $ 236,053.20 $ 1,850,100.37 388,548.60 2,474,702.17 $ 145,138.52 1,582,896.14 374,266.38 2,102,301.04 $ 1,101,113.38 $ 19,187.96 42,581.94 20,004.20 $ 1,182,887.48 $ $ -3,592.82 $ 70,127.52 $ 1,851.45 71,978.97 $ -70.97 $ 1,279,643.97 $ 21,039.41 42,581.94 20,004.20 1,260,072.11 2,623,341.63 $ -148,639.46 $ 887,166.92 90,380.78 25,620.37 11,643.87 1,219,146.42 2,233,958.36 -131,657.32 206.29 $ -3,386.53 $ 3,886.53 70.97 114,406.45 111,925.16 0.00 $ 0.00 -34,233.01 $ 129,408.07 -19,732.16 155,245.18 9,204.46 -282.05 -6,289.43 184.48 $ 500.00 $ 0.00 $ 104,097.47 $ ===12=9=,4=0=8..0...7= - 21 - FANNIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000 EXHIBIT "G" ASSETS Cash and Cash Equivalents REGULAR LOTTERY PROJECT TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 146,106.10 $ 0.00 $ 146106.10 $ =====1=4=6=,=1=0=6=.=1=0= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft FUND EQUITY Fund Balances Unreserved Deficit Undesignated $ Total Fund Equity $ 146,106.10 $ 146,106.10 $ s _____2""",6~00.c.....o..o.__ $ 0.00 $ _ __;1....;.4.;:.J6'"'-10"-'6;;.:..1..:..;0'- -2,600.00 146,106.10 0.00 $ s _ 146,106.1o __;1....;.4.=..3,c::.s""o6;;.:...:..;1o'- Total Liabilities and Fund Equity $ 146 106.10 $ 0.00 $ 146106.10 $ ....,.....,14_6=1=0=6.=10== See notes to the general purpose financial statements. -22- FANNIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 EXHIBIT "H" REVENUES REGULAR LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 None Recorded $ 0.00 $ 0.00 $ o.oo $ _ _ _ _o::.:.:.:oo=-- EXPENDITURES Capital Outlay Building and Building Improvements Equipment $ 0.00 $ 0.00 $ 0.00 $ 87,300.42 11,587.43 Total Expenditures $ 0.00 $ 0.00 $ Excess of Revenues over (under) Expenditures $ 0.00 $ 0.00 $ OTHER FINANCING SOURCES (USES) 0.00 $ _........:9:.:8:,.::,8c::8.:..:7.""85=-0.00 $ _ _c,:;98::.z.,8::::8:.:.7.:.::.8:.:.5 Operating Transfers In Operating Transfers Out $ 2,600.00 $ 2,600.00 $ 134,176.42 -134,081.42 Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ $ 2,600.00 $ 0.00 $ 2,600.00 $ 2,600.00 $ ----=-95::..:.:..:oo=-2,600.00 $ -98,792.85 FUND BALANCE JULY 1 146,106.10 -2,600.00 143,506.10 242,298.95 FUND BALANCE JUNE 30 $ 146,106.10 $ 0.00 $ 146,106.1 o $ ___14_3_,5_0_6._1o... See notes to the general purpose financial statements. -23- FANNIN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2000 EXHIBIT "I" RETIREE HEALTH INSURANCE FUND ASSETS Cash and Cash Equivalents BALANCE JULY 11 1999 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2000 $ 0.00 $ 13,402.89 $ 13,311.01 $ _ _ _ _9_1._aa.... - -- - - - ---- - - -- LIABILITIES Funds Held for Others $ 0.00 $ 13,402.89 $ 13,311.01 $ _ _ _ _9..,1.a...a... See notes to the general purpose financial statements. -24- FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT 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 Total Child Nutrition Cluster CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10.553 10.555 N/A $ NIA $ 225,391.69 381,406.01 $ 606,797.70 $ (2) 1,219,620.64 (3) 1,219,620.64 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 Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds Total U. S. Department of Agriculture 10.550 10.558 10.665 N/A N/A NIA $ 63,677.34 63,677.34 330.67 (2) 8 496.14 (4) 679,301.85 $ _.....:..1,.::.28::::3:,:,2::::9:.:.7::::.9,::..8 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 Flow Through Preschool Total Special Education Cluster 84.173 84.027 84.173 NIA $ NIA NIA $ 8,081.92 $ 212,976.44 5,207.04 226,265.40 $ 8,081.92 212,976.44 5,207.04 226,265.40 Other Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title 11 Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants Title VI Class Size Reduction Innovative Education Program Strategies Safe and Drug-Free Schools Vocational Education - Basic Grants to States High School Program Basic Grant Tech-Prep Education Total U. S. Department of Education 84.332a 84.010 84.281 84.318 84.340 84.298 84.186 84.048 84.243 N/A 225,154.14 225,154.14 NIA 465,294.95 465,294.95 N/A 14,423.60 18,191.61 N/A 115,010.TT 114,629.29 N/A 65,052.10 65,052.10 N/A 17,990.74 17,990.74 NIA 9,432.63 9,432.63 NIA N/A $ 30,343.93 2 584.07 30,550.22 (3) 2 584.07 1,171,552.33 $ _--!.1...:.1,.:.:75:::,,.,1.:.:4:.::5::..:.1~5 Labor, U. S. Department of Pass-Through From Coosa Valley Regional Development Center Job Training Partnership Act 17.250 NIA $ 7,742.33 $ _ ___:7_,,;7,:.;:4~2::::.3,::..3 Total Federal Financial Assistance NIA= Not Available -25- $ 1,858,596.51 $ 2,466,185.46 FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" 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 and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Funds earned 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 Fannin 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. -26- FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL GRANTS 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 Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Applied Technology Labs Computers in the Classroom $ 7,716,217.00 1,336,275.00 138,648.00 316,515.00 79,751.00 1,958, 124.00 435,256.00 144,270.00 291,058.00 343,719.00 75,134.00 32,777.00 35,071.00 57,685.00 -1,809,495.00 -1,498,264.00 1,640,796.00 595,464.00 $ 16,287.90 2,000.00 7,108.18 271,755.47 2,916.00 39,737.00. 2,653.03 32,442.82 $ 7,716,217.00 1,336,275.00 138,648.00 316,515.00 79,751.00 1,958,124.00 78,968.00 435,256.00 144,270.00 291,058.00 343,719.00 75,134.00 32,777.00 35,071.00 57,685.00 -1,809,495.00 -1,498,264.00 1,640,796.00 595,464.00 78,968.00 16,287.90 2,000.00 7,108.18 271,755.47 2,916.00 39,737.00 2,653.03 32,442.82 15,646.20 69,531.00 15,646.20 69,531.00 Georgia Department of Community Affairs Renovation of the Epworth Community Center 10,000.00 10,000.00 Office of Treasury and Fiscal Services Public School Employees Retirement 52,072.00 52,072.00 CONTRACT Education, Georgia Department of Implementation and operation of one or more quality after school programs for students in grades 4 - 8 with opportunities to improve reading skills and enhance their interest in reading in accordance with Georgia's Reading Challenge. 71,908.00 71,908.00 $ 12,325,973.40 $ 236,053.20 $ 12,562,026.60 See notes to the general purpose financial statements. - 27 - FANNIN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "3" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries (1) (2) Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 9,540,304.00 $ _ __;2=.;:6;;:9.l.0::,..::.0.::..:0-~00~ $ 10,277,032.17 458, 173.82 $ _ __.;;..;39;;..;;8..:..1,;.;;;.2_1._97_ $ 10,735,205.99 -104,141.02 $ _ _1.;.;0;.:.6,;;..;;3_1"""",0_64..;..;.;;.97.;_ Amount of Underexpenditure for Total Allotment $ o.oo $ =======o..o..o= Note: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. (2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. See notes to the general purpose financial statements. - 29 - FANNIN 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(*) Category V (*) Sub-Total - Regular Category VI (Gifted) (*) Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*l Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 745,195.00 $ 670,675.50 $ 1,140.00 2,019,634.00 1,817,670.60 $ 2,764,829.00 90 $ 2,488,346.10 $ 1,140.00 1,044,097.00 90 939,687.30 1,752,727.00 90 1,577,454.30 912,889.00 90 821,600.10 31,509.00 673,080.00 90 605,772.00 568,595.00 90 511,735.50 $ 7,716,217.00 $ 6,944,595.30 $ _ _.,:3=2::.::,64=9,.::.00~ $ 1,259,554.00 $ 1,133,598.60 $ 0.00 $ .1,259,554.00 90 $ 1,133,598.60 $ 0.00 76,721.00 90 69,048.90 $ 1,336,275.00 s_ _ _ _ $ 1,202,647.50 ..;;,o-=.o"""o $ 138,648.00 90 $ 124,783.20 $ _ _ _ _..:o.:.:.o"'"o $ 9,191,140.00 $ 8,272,026.00 $ ___3:::2:i;,6~4:.::9.:,:,0;,;;,.0 $ 257,700.00 90 $ 231,930.00 $ 0.00 58,815.00 100 58,815.00 $ 316,515.00 $ 290,745.00 $ _ _ _ _.::,0:.::,0.::..0 Total Fourteen Weighted and Media Center Programs $ 9,507,655.00 $ 8,562,771.00 $ _ _..;;;3,:;:2,,;;;64;,;;9;;,;;.0_,0 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development $ 25,897.00 53,854.00 $ 25,897.00 $ 53,854.00 128.00 0.00 Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. See notes to the general purpose financial statements. $ 79,751.00 100 $ 79,751.00 $ _ _ _ _12.s_.o_o (2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. - 30 - SCHEDULE "4" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 671,815.50 $ 1,817,670.60 $ 2,489,486.10 $ 939,687.30 1,577,454.30 853,109.10 605,772.00 511,735.50 $ 6,977,244.30 $ 826,782.40 $ 2,064,742.42 2,891,524.82 $ 1,275,686.28 1,850,066.68 1,222,965.11 670,600.19 603,180.50 8,514,023.58 $ 13,241.40 $ 67,200.13 80,441.53 $ 39,530.25 58,549.12 87,389.81 13,499.48 83,466.82 362,877.01 $ 840,023.80 2,131,942.55 2,971,966.35 $ 1,315,216.53 1,908,615.80 1,310,354.92 684,099.67 686,647.32 8,876,900.59 0.00 0.00 0.00 0.00 0.00 0.00 $ 1, 133,598.60 $ 285,794.15 772,152.59 $ 73,363.79 20,113.45 $ 31,647.28 285,794.15 803,799.87 73,363.79 20,113.45 $ 1, 133,598.60 $ 1,151,423.98 $ 31,647.28 $ 1,183,071.26 0.00 69,048.90 . 126,008.15 3,403.13 129,411.28 0.00 $ 1,202,647.50 $ 1,277,432.13 $ 35,050.41 $ 1,312,482.54 $ 124,783.20 $ 124,972.29 $ 194.55 $ _ ___;1~2.;;.i5,.;.;16;.;;6.;.8;;.4-'- 0.00 $ 8,304,675.00 $ 9,916,428.00 $ 398, 121.97 $ 10,314,549.97 $ 231,930.00 $ 360,604.17 $ 360,604.17 0.00 58,815.00 - - - - - - $ _ _.;;;60.;.:.;;.;05;;.,'1.;.;;.8.,;;..5 60,051.85 0.00 $ 290,745.00 $ 360,604.17 $ 60,051.85 $ _ ___,4.;;;,20;.:.,6;.;;56;,;;.;,;;.02;;.. $ 8,595,420.00 $ 10,277,032.17 $ s 458,173.82 10,735,205.99 s_ _ _ _ _ _ _o_.o_o $ 26,025.00 53,854.00 s_ _ _1_9.s.1._9_.o_o $ 82,059.48 $ 82,059.48 329.52 329.52 $ 82,389.00 $ 82,389.oo s_ _ _ _ _ _ _o_.o_o 31 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 17-1b DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 2 I4 RussELL W. HtNTON STATE AUDITOR (404) 656-2174 Atlanta, Gec>rgia 30334-8400 March 2, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Fannin 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 ofFannin County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated March 2, 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We did not observe the taking ofeither the Federal donated commodities inventory or the 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. Compliance As part of obtaining reasonable assurance about whether Fannin County Board of Education's financial statements are free of material misstatement, we perfu1n1~d tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete11nination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 2000YB-40 Internal Control Over Financial Reporting In planning and perfotming our audit, we considered Fannin County Board of Education's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Fannin 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-6551-00-01. 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 no11nal course of perfotming their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition noted above is considered to be a material weakness. This report is intended solely for the info1111ation and use ofinanagement, members of the Fannin 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:jb 2000YB-40 Ru sell W. Hinton State Auditor w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 2 I4 Atlanta, Georgia 30334-8400 March 2, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Fannin 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 ofFannin County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Fannin County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofFannin County Board ofEducation's management. Our responsibility is to express an opinion on Fannin County Board of Education's compliance based on our audit, We conducted our audit ofcompliance 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 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, Those standards and 0MB Circular A-133 require that we plan and perfo1111 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Fannin County Board ofEducation's compliance with those requirements and perfo1nring 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 detemrination on Fannin County Board of Education's compliance with those requirements. 2000SA-10 In our opinion, the Fannin County Board of Education 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 Fannin 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 perfo11ning our audit, we considered Fannin County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance 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 nu1n1al course ofperfo11ning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the info11nation and use of management, members of the Fannin 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, Q L