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

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS
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GLASCOCK COUNTY BOARD OF EDUCATION
GIBSON, GEORGIA
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

GLASCOCK COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

K

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

Page
2
4 7
8
20
22
24 25
26
27
28

GLASCOCK COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF M uv.1.,Ji' EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

Page
29
31 32 33 34

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

SECTION ill AUDfIEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS ....r>,__<, Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTIONN FINDINGS AND QUESTIONED COSTS .
SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I FINANCIAL




W. RussELl,

H1NTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wasl1ington Street. S.W.. Suite 2 I4 Atlanta. Gccirgia 3()334-84()()
May 7, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Glascock 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 Glascock County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Glascock County Board of Education'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 audi!ing standards generally accepted in the United

States ofAmerica and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General ofthe United States. Those standards require that we

plan and perform the audit to obtain reasonable assurance about whether the financial statements are

free 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

op1 n1 on.



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:

2000ARL- l 3A

* The general purpose financial statements of the Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to confotm to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confo11n to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo11n to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been det1::11nined, 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 financial statements referred to above present fairly, in all material respects, the financial position of the Glascock County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo1mity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing_Standards, we have also issued our report dated May 7, 2001, on our consideration of the Glascock County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfor1ned 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 perfor1ned for the purpose of fo11ning an opinion on the general purpose financial statements of the Glascock County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through K) and the financial schedules (Schedules 1 through 5), 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 infor111ation has been subjected to the auditing procedures applied in the audit of the general p~rpose financial statements and in our
2000ARL-13A

opinion, except for the effects of the matters referred to in the third paragraph, such info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a per1nanent 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-13A

R ssell W. Hinton State Auditor




GLASCOCK COUNTY BOARD OF EDUCATION

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

154,274.50 $

97,267.39 $

18,779.32

1,839,725.30

5,648.01

23,299.67

5,675.00

32,496.70

2,652.17 1,332.52

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Funds Held for Others
G-eneral Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$ 2,017,299.47 $

106,927.08 $ ...............,;5;;,;;;6~,9=24===03_


$

65,357.18 $

7,653.96 $

11,209.85

26,319.12

6,610.02



$

65,357.18 $

40,583.10 $

11,209.85

$

2,161.27

$

89.37


1,949,781.02 $ 1,951,942.29 $

2,652.17 1,332.52
$

39,309.05

62,269.92

6,405.13

66,343.98 $ _ ___:4~5i.:.7.:.:14:.:..1.:.:8:..

Total Liabilities and Fund Equity

$ 2,017,299.47 $

106,927.08 $ _ _ _5_6i.;;;,9;;;,2.4...0=3==

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUND

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

99.00 $

42,564.14

$

312,984.35 $

146,009.08

145,160.63

1,990,533.94

2,068,971.18

61,471.37

76,577.00

$

145,259.63

29 740.37

2,652.17 1,332.52 145,259.63
29 740.37

3,326.93 882.82
203,186.71
26,813.29

$

145,259.63 $

42,564.14 $

175,000.00 $ 2,543,974.35 $ 2,525,767.01

$

84,220.99 $

93,469.94

26,319.12

23,388.32

6,610.02

2,428.69

$

42,564.14

$

175,000.00

42,564.14 175,000.00

230,000.00

$

42 564.14 $

175,000.00 $

334,714.27 $ _ ___.;3;c..;4c.;:;.9=,2=86"-'-.9;;..:5;....

$

145,259.63

0.00 $ _ _ _1:....;4=5=,2=59;;.;..6.;;.;3;....

$

145,259.63 $

$

2,161.27 $

13,437.27

89.37

21,268.44

145,259.63

203,186.71

3,664.73

2,652.17 1,332.52 39,309.05

3,326.93 882.82
105,145.45

2,018,456.07

1,825,567.71

$ 2,209,260.08 $ 2,176,480.06

42,564.14 $

175,000.00 $ 2,543,974.35 $ 2,525,767.01

-3-

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



GENERAL FUND

SPECIAL REVENUE
FUND

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues



EXPENDITURES

$ 2,335,985.44 $
751,802.65 117,994.20

198,667.40 532,266.86
65,494.66

$ 3,205,782.29 $ _ _7'--'9'-"6"-',4=2=8=92=--


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

$ 1,821,421.91 $
136,143.98 83,642.06 76,516.23 229,025.04 84,090.42
575.00 230,720.87 177,700.32
1,906.00

467,030.21 24,585.38 116,170.65
17,931.48 4,602.07
197,362.99



Total Expenditures

-

$ 2,M1,~1.83 $ _ _8=2'-7-,6=82=-78~

Excess of Revenues over (under) Expenditures OTHER FINANCING SOU.RCES {USES) .

$

364,040.46 $ _ __;;-3;..:.1=,2=53==86"-



Operating Transfers In Operating Transfers Out

$ _ _-..;..:18'-"1=,9=08=..;;..04..;_

Total Other Financing Sources (Uses)

$ _ _-1.;..;:8;.:.1=9=08=.0=-4'-

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

$

182, 132.42 $

-31,253.86

FUND BALANCE JULY 1

1,769,809.87

97,822.90

Food Inventory - Net Change in Period Donated Commodities Purchased Food


-674.76 449.70

FUND BALANCE JUNE 30

$ 1,951,942.29 $ ___6_6,.,,,3_43_._98_

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

-4-

EXHIBIT "B"


CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 2000

JUNE 30, 1999

$

157,635.88 $

9 200.70

$

166,836.58 $

$
99.00 11 197.58
11,296.58 $

2,534,652.84 $ 532,266.86 909,537.53 203,887.14
4, 180,344.37 $

2,118,368.61 376,439.65 916,592.00 174,693.50
3,586,093.76


$ 2,288,452.12 $


1,985,098.89



$

408,691.02

160,729.36 199,812.71
76,516.23 229,025.04
84,090.42 575.00
248,652.35 182,302.39
1,906.00 197,362.99
408,691.02

142,267.10 120,955.18
67,640.80 182,135.99
92,082.35 1,373.00
222,333.92 163,515.07
26,944.50 2,716.00
177,170.31 267.16
53,239.97

$

55,000.00

13,190.00

1,033.66

55,000.00 13,190.00
1,033.66

50,000.00 15,815.00 . 1 074.04

$

408,691.02 $

69,223.66 $ 4,147,339.29 $ 3,304,629.28

$

-241 854.44 $

-57,927.08 $

33z005.08 $ _ _2=8:..:1.,_4,;.::;64...:.;..;.48=-

$

181,908.04

$ _ _.:.:81~1.i.:9:,~0.:::.:8-~04~

$

-59,946.40 $

105,660.58

$

181,908.04

-181,908.04

$ _ _ _ _0~-.:::.:00:_

-57,927.08 $ 203,186.71

33,005.08 $ 2, 176,480.06

281,464.48 1,893,959.27

-674.76 449.70

722.22 334.09

$

45,714.18 $

145,259.63 $ 2,209,260.08 $ 2,176,480.06

-5-

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


EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 2,567,993.00 $ 2,335,985.44

46,500.00

721,894.00

751,802.65

38 400.00

117 994.20

$. 3,374,787.00 $ 3,205,782.29

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 1,858,646.91 $ 1,821,421.91

133,894.91 79,227.33 75,182.25 193,681.90 102,728.85. 2,905.00
234,951.56 180,600.29
14,275.00 8,500.00

136,143.98 83,642.06 76,516.23
229,025.04 84,090.42 575.00
230,720.87 177,700.32
1,906.00

$ 2,884,594.00 $. 2,841,741.83 $ 490,193.00 $ 364,040.46

OTHER FINANCING USES Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1999 Adjustments

-181,908.04

$ 490,193.00 $ 182,132.42

1,740,086.23

1,769,809.87

83.56

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

97,557.93 $ 198,667.40

586,702.00

532,266.86

73,900.00

65,494.66

$ 758,159.93 $ 796,428.92

$ 405,964.35 $ 467,030.21

41,600.00 103,870.00

24,585.38 116,170.65

1,960.00

15,000.00 6,000.00

17,931.48 4,602.07

213,444.00

197,362.99

$ 787,838.35 $ 827,682.78

$ -29,678.42 $ -31,253.86

$ -29,678.42 $ -31,253.86

91,830.91

93,613.15

FUND BALANCE JUNE 30, 2000

$ 2,230,362.79 $ 1,951,942.29

$

62,152.49 $ =....;;6~2.;;,3,;;;:59;;;,.2;;;9;;.,

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

GLASCOCK 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 Glascock 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 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 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 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 confo11n to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Fui:i,ds 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.

-8-

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the funds 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 general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Tern1 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:

-9-

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 deter1nined and ''available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in early August 1999 and ending in late May 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June '30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Glascock County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure 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 fund 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


- 10 -

-
GLASCOCK COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2000

EXHIBIT "D"

Note 1: SUMMARY OF SI-GNIFICANT ACCOUNTING POLICIES
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.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for th-~ General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit ''B'' of this report:

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 97,822.90

Adjustments



Inventories - July 1, 1999

Food

Donated Commodities

Purchased Foods

Fund Balance July 1, 1999 (Budget Basis)

Excess of Revenues and Other Financing Sources over (under) Expenditures and Otper Financing
Uses
.
FUND BALANCE JUNE 30, 2000 (Budget Basis)

-3,326.93 -882.82
$ 93,613.15

-31,253.86 $ 62,359.29

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.

INVESTMENTS
COMPOSITION 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 ofone year or less are reported at amortized

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GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
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 Glascock County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on November 15, 1999 (levy date). Taxes were due on February 10, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Glascock 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.

- 12 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 1999 tax year (calendar year) for the Glascock County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.21 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $157,635.88 and was recorded in the Capital Projects Fund. The State will te11ninate collection of this tax once an additional $512,817.81 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

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

GENERAL OBLIGATION BONDS -

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another

fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the

fund that is reimbursed.



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

- 13 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 confor1nity 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 AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 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,
(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 ofdevelopment authorities created by the laws of the State of Georgia, and

- 14 -

GLASCOCK COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

(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 lntt:rmediate 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 $532,230.17. The amounts ofthe 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, 2000, as follows:

Risk Category

Bank Balance

1

2



3

$ 100,000.00 432,230.17 0.00

Total

$ 532,230.17

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $1,990,533.94 which is materially the same as fair value. This investment consisted entirely of_funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not

- 15 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


Note 2: DEPOSITS AND INVESTMENTS
registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are repqrted at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-tt:tm instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned
value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks 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 ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. 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. The Board accounts for claims within the General Fund with expenditure and liaoility being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

- 16 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

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

1999
2000.

Beginning of Year Liability

Claims and Changes in Estimates

$

2,240.00 $

$

0.00 $

0.00 $ 0.00 $

Claims Paid

End of Year Liability

2,240.00 $_ ____,o=.o=o
0.00 $_ _ _-"'0..:.0.0'-"-0

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

Position Covered

Amount

Superintendent Principal

$ 25,000.00 $ 5,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose



Interest Rates

Amount

General Government - Series 1992

3.8%- 6.0% $ 175,000.00

The changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as follows:

General Obligation
Bonds

Balance July 1, 1999

$ 230,000.00

Deductions Debt Retired

55,000.00

Balance June 30, 2000

$ 175,000.00

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

- 17 -



GLASCOCK 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



Total Principal and Interest

General Obligation
Bonds
$ 65,220.00 67,140.00 63,600.00
$ 195,960.00

Note 6: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $42,199.26 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 $31,236.26

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 $10,963.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Glascock County Schools K-12 Additions and Modifications

$ 356,017.49

The amount described in this note is not reflected in the general purpose financial statements.

- 18 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998 -

100% 100% 100%

$ 206,279.35 $ 204,807.99 $ 185,324.98

- 19 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

73,335.45 $

12,549.26

2,652.17 1,332.52

Total Assets

LIABILITIES AND FUND EQUITY

LIABILITIES

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

$


77,320.14 $ ===1=2=,5=4=9=26=

$

2,237.73 $

2,834.15

8,827.80

9,713.82

1.29

$

11,065.53 $ _ ___;.;12=.i.,5;:;...4.:..:9;..;:.2~6c...



$


2,652.17 1,332.52
62,269.92 $ _ _ _ _o==oo=-

$

66,254.61 $ _ _ _ _0.::.,:.=.;00=-

Total Liabilities and Fund Equity
. See notes to the general purpose financial statements. - 20 -

$

77,320.14 $ ===1=2=,5=4=9.=26=

EXHIBIT "E"


FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

11,382.68 $

97,267.39 $

105,285.46

5,675.00

5,675.00

23,466.71

2,652.17 1,332.52

3,326.93 882.82

$

17,057.68 $

106,927.08 $ ==1=3=2=,9=61=.9=2=



$

2,582.08 $

7,653.96 $

9,599.23

7,777.50

26,319.12

23,388.32

6,608.73

6,610.02

2,151.47

$

16,968.31 $

40,583.10 $ _ _...;3;.;;;.5.,_1;.,;;.39;;.;.0.;;;.;;2~



$

89.37 $

89.37 $

21,268.44

2,652.17 1,332.52

3,326.93
882.82


0.00

62,269.92

72,344.71

$

89.37 $

66,343.98 $ _ __:9::..:.7.i.::,8=22::.:=:.;90~

$

17,057.68 $

106,927.08 $ ==1=3=2=,9=61=.9=2=

- 21 -

GLASCOCK 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 Maintenance and Operation of Plant Student Transportation Services Food Services Operation Community Services Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
-
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30 ,

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

15,566.00 $

155,312.40

111,572.50

65,494.66

$

192,633.16 $ _ _.;.;15:;.;5;.,_3;,:....;.1=2:..:.40.:...

$

160,657.36

$

197,362.99

$

197,362.99 $ _ _....;.1..;;;.60.;;..,...;;.65-'-7_.3;;..;6c....

$

-4,729.83 $

71,209.50

-5,344.96

5,344.96

-674.76 449.70

$

66,254.61 $ =====O=.O=O=

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

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

27,789.00 $

198,667.40 $

98,987.25

420,694.36

532,266.86

376,517.96

65,494.66

59,019.09

$

448,483.36 $

796,428.92 $ _ _5.:.;3c..c4.,_;,5=24..;..;.:;...30;._

$

306,372.85 $

467,030.21 $

284,276.42

24,585.38 116,170.65
17,931.48 4,602.07

24,585.38 116,170.65
17,931.48 4,602.07
197,362.99

33,877.35 47,800.25
710.50 177,170.31
267.16

$

469,662.43 $

827,682.78 $ - - -54~ 4,10-1.9-9

$

-21,179.07 $

-31,253.86 $

-9,577.69

21,268.44

97,822.90

-
106,344.28



-674.76 449.70

722.22 334.09

$

89.37 $

66,343.98 $ ===9=7=,8=22=.9=0=

- 23 -

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

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2000 JUNE 30, 1999

$

6,405.13 $

12,374.19 $

18,779.32 $

69.74

5,648.01

5,648.01

86,377.11

32,496.70

32,496.70

19,213.73

$

6 405.13 $

50,518.90 $

56,924.03 $ 105,660.58

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

$

FUND EQUITY

Fund Balances Reserved For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

$ _ _.:;6,i..:,40:,:5:.:...1.:..::3:....

$

6 405.13 $

11,209.85 $ ---'1..,;.;1,=20=9=.8=5:...

39,309.05 $ 0.00
39,309.05 $

39,309.05 $ 6,405.13
45 714.18 $

105,145.45 515.13
105,660.58

Total Liabilities and Fund Equity $

6 405.13 $

50,518.90 $

56,924.03 $ 105,660.58

(

See notes to the general purpose financial statements.

- 24-

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30, 2000

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

Total Revenues

$


EXPENDITURES

Capital Outlay



Building and Building Improvements

$

Equipment

Total Expenditures

$

Excess of Revenues over (under) Expenditures

$

OTHER FINANCING SOURCES

Operating Transfers In

$

157,635.88 $ 157,635.88 $

119,403.93

3 310.70

9,200.70

4 487.06

166,836.58 $ __1.:..:2=3,:8:.:,:.:90:.:,;9.::..::9:....

0.00 $

408,691.02 $

408,691.02 $

0.00 $ 5,890.00 $

-247,744.44 $

-241,854.44 $

36,116.00 17 123.97
70,651.02

181,908.04

181 908.04

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

FUND BALANCE JULY 1

5,890.00 $ 515.13

-65,836.40 $ 105 145.45

-59,946.40 $

70,651.02

FUND BALANCE JUNE 30



$

6 405.13 $

45 714.18 $ ==1=0=5-=,6=60==58=

-



See notes to the general purpose financial statements.

- 25-

.
GLASCOCK COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND
JUNE 30. 2000

EXHIBIT "I"


ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS
JUNE 30, 2000 JUNE 30, 1999

$

0.00 $

99.00 $

99.00 $

199.99

145,160.63

145,160.63

202,986.82

5.43


$

0.00 $

145,259.63 $ 145,259.63 $ ===20=3='1=9=2.=2=4

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft FUND EQUITY

Fund Balances Reserved For Debt Service Unreserved Undesignated
Total Fund Equity

$

145,259.63 $

$ _ _ _.:.:0-~00=-
s
$ _ _ _~0=.o'-"o_

0.00 145,259.63 $

$ -----=5-...:.;43=-

145,259.63 $ 203,186.71

0.00

0.00

145,259.63 $ __2:.:0:.:3.1.1-'.,.::;86:..:..7'-''1C...

Total Liabilities and Fund Equity $

0.00 $

145,259.63 $ 145,259.63 $ ==2=0=3.!:,1=9=2.=14=

See notes to the general purpose financial statements.

- 26-

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "J"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30. 2000

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$

99.00

$

- - - - - $ _ _ _11~19~7~.5~8-

$

99.00 $

11197.58 $

99.00 $ 11197.58

45,215.66 13,357.35

11,296.58 $ --'5~8=,5_73'-.0'-1_

$

$ --~99==00'-

$

99.00 $

$

0.00 $

0.00

55,000.00 $ 13,190.00
934.66
69,124.66 $
-57,927.08 $
203,186.71

55,000.00 $ 13,190.00
1,033.66

50,000.00 15,815.00
1 074.04

69,223.66 $ --'6'"-"6-'-",8-"-89=."--04-'--

-57,927.08 $

-8,316.03

203,186.71

211,502.74

FUND BALANCE JUNE 30

$

0.00 $

145,259.63 $

145,259.63 $ ==2=0=3=1,=86==71.,.

,



See notes to the general purpose financial statements.

- 27 -

GLASCOCK COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "K"

GLASCOCK COUNTY LIBRARY
ASSETS Cash and Cash Equivalents

BALANCE JULY 1, 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

$

0.00 $

43 191.00 $

626.86 $ =~-4~2.;;;,5~64_.,;,,14;,,.

LIABILITIES Funds Held for Others

$

0.00 $

43 191.00 $

626.86 $ ~~=4==2=5=64===1.4...

See notes to the general purpose financial statements.

-28-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.555

NIA

$

N/A

18,711.04 83,529.10 $

(2)
188,030.63 (3)

Total Child Nutrition Cluster

$

102,240.14 $

188,030.63

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)

10.550

NIA

9,332.36

9,332.36

Total U.S. Department of Agriculture

$

111 ,572.50 $ _ _.:.,:19:.:7.<:,3::.:6;.:2:;g.:c.=...g

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

84.173 84.027 84.173

N/A

$

NIA

NIA

2,700.00 $ 39,226.66
3,084.88

2,700.00 39,226.66
3,084.88

Total Special Education Cluster

$

45,011.54 $

45,011.54

Other Programs

Pass-Through From Board of Regents of University System of

Georgia

Title II

Teacher Quality Enhancement Program

84.336

N/A

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I



Grants to Local Educational Agencies

84.010

N/A

Title II

Eisenhower Professional Development

84.281

NIA

Title Ill Technology Literacy Challenge Fund Grants

84.318

N/A

Title VI

Innovative Education Program Strategies

84.298

N/A

Class Size Reduction

84.340

N/A

Goals 2000

State and Local Education Systemic Improvement Grants

84.276

NIA

Safe and Drug-Free Schools and Communities

84.186

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.048

N/A

Tech-Prep Education

84.243

N/A

20,000.00

20.000.00

62,590.87 16,000.00 122,915.14 2,833.00 7,501.81 92,205.00 2,070.00
8,317.00 28,750.00

62,590.87



16,000.00

144,183.58

2,833.00 7,501.81

92,115.63 2,070.00

8,317.00 28,750.00

Total U. S. Department of Education

$

408,194.36 $ _ _4.:.:2::.:9"",3:.:7.;:;3.;.;.4"'--3

Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Family Connection Program

93.778

N/A $

12,500.00 $ ___1:;.:2:,:,5::.:0c::0:;.:.0c=..,O

Total Federal Financial Assistance
N/A = Not Available

-29-

$

532,266.86 $ _....,6..,39_,2_3_6_.4_2

GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000
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 School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk () in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Glascock 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.

SCHEDULE "1"

-
-



See notes to the general purpose financial statements.

- 30 -

GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING
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 Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom
Human Resources, Georgia Department of Family Connection Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of To provide funding for one or more quality after-school programs for students in grades 4-8. To provide funds for implementing the Reading First Program.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 1,096,401.00
334,430.00 46,083.00 48,943.00 14,081.00
370,398.00
111,063.00 35,564.00 47,187.00 34,085.00 90,066.00 4,929.00 28,842.00 -231,224.00 149,799.00
$
50,253.00 2,000.00 1,325.58
31,236.26 13,631.92
1,531.18 2,847.50

$
15,566.00 8,026.64 52,999.32

1,096,401.00 334,430.00 46,083.00 48,943.00 14,081.00 370,398.00
111,063.00 35,564.00 47,187.00 34,085.00 90,066.00 4,929.00 28,842.00
-231,224.00 149,799.00
15,566.00
50,253.00 2,000.00 1,325.58
31,236.26 13,631.92
1,531.18 2,847.50
8,026.64 52,999.32

12,500.00

12,500.00

94,286.44

94,286.44

10,963.00

10,963.00

41,550.00

15,289.00

41,550.00 15,289.00

$ 2,335,985.44 $

198,667.40 $ 2,534,652.84

See notes to the general purpose financial statements.

- 31 -

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

SCHEDULE "3"


PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

Construction of additional classrooms, instructional and support space at Glascock Consolidated School, as well as remodeling and renovating existing classrooms, recreational fields and grounds and to provide furnishings, equipment and fixtures for such areas $


695,000.00 $

695,000.00 $

408,691.02 $

14,840.00

Payments of principal and interest due
on 1992 bonds

305,000.00

305,000.00

69,223.66

136,322.52

$

1,000,000.00 $

1,000,000.00 $

477,914.68 $ ===1=51=,1=6=2=.5=2

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Glascock County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.




-

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "4"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis

Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

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

$

1,615,923.oo $ _ _ _4""""8-'-,2.;..;.3.;.6.;.;.o.c..o

$

1,570,773.48

122,330.62 $ _ ___;_11:.::0..?.=,2:.=.3.=.:5.;:.93~

$

1,693,104.10

-6,348.14 $ _ _ _1..,_6,;.;8..;.6.:.7.,..;..55_._96_

$

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



See notes to the general purpose financial statements.

- 33 -

GLASCOCK 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 I (*) Category II (*) Category Ill (*)
Sub-Total - Regular

Category VI (Gifted) (*) Total Special Education Programs

REMEDIAL EDUCATION PROGRAM(*}

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

133,009.00

$

279,929.00

$

412,938.00 90 $

147,089.00 90

230,261.00 90

124,109.00 90

63,323.00 90

118,681.00 90

$ 1,096,401.00

$

119,708.10

251,936.10 $ _ _____;;5;.:..;,0:..:0..::.0;.:;.0..::..0

371,644.20 $ 132,380.10

5,000.00 20,000.00

207,234.90

20,000.00

111,698.10

56,990.70

106,812.90

10,000.00

986,760.90 $ _ _...:.5::.::5;.:..0;,::.::0..::.0..::..0..::..0

$

245,296.00

$

220,766.40 $

0.00

,

$

245,296.00 90 $

220,766.40 $

0.00

89,134.00 90

80,220.60

15,000.00

$

334,430.00

$

300,987.00 $ _ _ _1:.::5.:..;:,0:.::0..::.0.:.0.:.0

$

46,083.00 90 $

41,474.70 $ _ _ _ _..::.0.:..:.0..::..0

$ 1,476,914:00

$ 1,329,222.60 $ ___7:.;:0;.,_;0,:..:0..::.0.:..:-0..::..0

$

39,114.00 90 $ 9,829.00 100

35,202.60 $ 9,829.00

20,066.00


$

48,943.00

$

45,031 .60 $ _ _....:2:.:0;.,.;,0::.::6..::.6.:.0.:..::..0

Total Fourteen Weighted and Media Center Programs $ 1,525,857.00

$ 1,374,254.20 $ ==,.,;9;;,;0;.,;,0;;,;6;,;;6;,,;;-0=0

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

4,566.00

$

4,566.00 $

0.00

9,515.00

9,515.00

0.00

$

-14,081.00 100 $

14.081.00 s=====o=.o=o

See notes to the general purpose financial statements.

34


SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

119,708.10 $

87,267.14 $

8,707.57 $

95,974.71

256,936.10

257,448.07

24,317.94

281,766.01

$

376,644.20 $

344,715.21 $

33,025.51 $

377,740.72 $

0.00

152,380.10

179,929.94

4,056.14

183,986.08

0.00



227,234.90

266,184.96

9,198.39

275,383.35

0.00

111,698.10

173,816.93

4,524.52

178,341.45

0.00

56,990.70

78,051.66

1,018.82

79,070.48

0.00

116,812.90

137,307.33

8,499.63

145,806.96

0.00

$ 1,041,760.90 $

1,180,006.03 $

60,323.01 $ 1,240,329.04

$

220,766.40

$

1,056.74

$

58,158.07

136,626.67 $ ___2....;5..,.2.....;5_2._2_7

1,056.74 58,158.07 161,878.94

$

220,766.40 $

195,841.48 $

25,252.27 $

221,093.75

0.00

95,220.60

80,428.41

24,637.31

105,065.72

0.00

$

315,987.00 $

276,269.89 $

-------- 49,889.58 $

326,159.47



$

41,474.70 $

51,235.11 $

23.34 $

51,258.45

-----'-'~---""-

0.00

$ 1,399,222.60 $

1,507,511.03 $

110,235.93 $ 1,617,746.96

$

55,268.60 $

63,262.45

$

63,262.45

0.00

9,829.00 - - - - - - $ _ _ _1_2~,0_9_4._69_

12,094.69

0.00

$

65,097.60 $

63,262.45 $

- - - - - - 12,094.69 $

75,357.14

$ 1,464,320.20 $

1,570,773.48 $

122,330.62 $ 1,693,104.10 s=========o=.o=o

$

4,566.00

9,515.00

$ ====1=4=,08=1=.0=0

$

16,975.21 $

16,975.21

$

16,975.21 $

16,975.21 $ =======0.=00



35

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

oY!!. t


,_.'If:_.

-. Cl
: -

RussELL, W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wasl1ingtc)11 Street, S.W.. Suite 214 Atlanta, Gec,rgia 3()334-84()()
May 7, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly



Members o'fthe State Board of Education

and

Superintendent and Members of the

Glascock 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 of Glascock County Board ofEducation as of and for the

year ended June 30, 2000, and have issued our report thereon dated May 7, 2001. 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 auditing standards generally accepted in the United States of America and the standards



applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States.





Compliance

As part of obtaining reasonable assurance about whether Glascock County Board of Education's financial statements are free of material misstatement, we perfo11ned 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 ofour.tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Glascock County Board ofEducation's internal control over financial reporting in order to dett:1n1ine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal

2000YB-40A



control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 Glascock County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6621-00-01, FS-6621-00-02 and FS-6621-00-03.
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 financial statements being audited may occur and not be detected within a timely period by employees in the nor1nal course of perfor1ning 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, ofthe reportable conditions described above, we consider items FS-6621-0001 and FS-6621-00-03 to be material weaknesses.
This report is intended solely for the infor1nation and use ofmanagement, members ofthe Glascock 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-40A

R ssell W. Hinton State Auditor



RussELI, W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingto11 Street. S.W., Suite 214 Atlanta. Gctirgia 30334-84()()
May 7, 2001

.
Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

md



Superintendent and Members of the

Glascock 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 md Gentlemen:

Compliance

We have audited the compliance of Glascock County Board of Education with the types of
compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year
ended June 30, 2000. Glascock County Board ofEducation's major Federal programs are identified in the' accompanying Schedule ofFindings md Questioned Costs. Complimce with the requirement~ of laws, regulations, contracts md grmts applicable to each of its major Federal programs is the responsibility of Glascock County Board of Education's management. Our responsibility is to express an opinion on Glascock County Board of Education's complimce based on our audit.

We conducted our audit ofcomplimce in accordmce with auditing stmdards generally accepted in the United States of America; the stmdards applicable to finmcial audi~s contained in Government Auditing Standards, issued by the Comptroller General ofthe 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 plm md perform the audit to obtain reasonable assurmce about whether noncompliance with the types ofcomplimce requirements referred to above that could have a direct md material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Glascock County Board of Education's complimce with those requirements md perforrning such other procedures as we considered necessary in the circumstmces. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal deterrnination on Glascock County Board ofEducation's complimce with those requirements.

2000SA-40A

In our opinion, the Glascock County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Glascock County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and perforrning our audit, we considered Glascock 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 dete11nine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
We noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Glascock County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6621-00-01 and FA-6621-00-02.
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 of risk that noncompliance with the applicable requirements oflaws, 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 nonnal course of perfo11ning their assigned functions. Our consideration of the internal control over compliance 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 l!laterial weaknesses. However, we believe none of the reportable conditions described above is a material weakness.
This report is intended solely for the info1111ation and use ofmanagement, members ofthe Glascock 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 2000SA-40A

sell W. Hinton State Auditor


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


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


PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6621-97-01 FS-6621-98-01 FS-6621-98-02 FS-6621-99-01 FS-6621-99-02

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

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUNALENTS Inadequate Internal Control Procedures Finding Control Number: FS-6621-99-01

The bank reconciliation function finding will not be resolved due to the fact that the central office staff is small. The petty cash issue will be resolved by discontinuing the fund.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6621-99-02

.

This finding will be resolved through contracting with an agency to fo1n1ulate a General



Fixed Asset Account Group. The finding will be resolved by FY 2003.



PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6621-98-01 FA-6621-99-01

Further Action Not Warranted Previously Reported Corrective Action Implemented



,
SECTION IV FINDINGS AND QUESTIONED COSTS


GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
'

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Glascock 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 Glascock County Board ofEducation disclosed financial statement

reportable conditions related to the following control categories.


Cash and Cash Equivalents
Employee Compensation
General Fixed Assets

Expenditures/Liabilities/Disbursements General Ledger

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

3. Noncompliance Material to the Financial Statements The audit of the Glascock County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

.
4. Reportable Conditions in Internal Control Over Major Programs . The audit report for the Glascock County Board ofEducation disclosed reportable conditions
in internal control over major programs for the following compliance requirements.

Activities Allowed or Unallowed

Allowable Costs/Cost Principles

Program Income

Reporting

-

None ofthe reportable conditions described above are considered to be material weaknesses.

5. Type ofR5'port Issued on Compliance for Major Programs The auditor's opinion on the Glascock County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Glascock County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.318 Elementary and Secondary Education Act - Title III - Technology Literacy Challenge Fund Grants
- 1-

GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS
8. Type "A'' Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee The Glascock County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133 .

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition - Material Weakness Finding Control Number: FS-6621-00-01
A review ofthe Board's internal control policies and procedures noted deficiencies in providing for adequate internal control over the control categories as noted below:
CASH AND CASH EQUNALENTS
The bank reconciliation function was not separated from the record keeping, check preparation, and deposit functions.
Outstanding check lists were not maintained for the operating account for the months of February, March, and June, 2000. -
The operating account bank statement was not reconciled to the General Ledger cash balance for the month of June, 2000.
The September 1999, operating account bank statement, canceled checks, and bank reconciliation were not available for audit.
Checks written to reimburse the petty cash fund were made payable to an employee. A reconciliation of the petty cash fund was not perfo11ned during the current year.
EMPLOYEE COMPENSATION The Board did not maintain subsidiary leave records for employees of the Board documenting
balances carried forward, amounts earned and ending balances.
-2-

GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition - Material Weakness Finding Control Number: FS-6621-00-01
EXPENDITURES/LIABILITIES/DISBURSEMENTS
From a sample size of 77 items, 2 items were noted that did not include original supporting documentation.
Documentation was not available to confitm that an official, independent of the check preparation and record keeping function, approved operating expenditures.
Four checks were issued to reimburse petty cash during the year with no supporting documentation available to verify the expenditure.
Travel payments in the amount of $266.42 were made to an employee with no supporting documentation. A duplicate travel payment in the amount of $186.00 was also made to an employee. These amounts were recovered by the Board in October 2000.
A signature stamp designated to be used only in cases of an emergency was used to sign checks made payable to an employee with no prior approval for payment.
GENERAL LEDGER
-
Journal entries were not supported by adequate documentation or explanation. '
Documentation was not available to verify that journal entries were reviewed or approved by someone independent of the general ledger function.
These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for the accounting functions and their failure to institute proper internal controls. The Board should review the accounting procedures in place;design procedures that would enhance segregation of duties and proper internal controls relative to the above control category and implement those procedures to strengthen the internal control over the accounting functions.
-3-

GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition - Material Weakness Finding Control Number: FS-6621-00-01
Management's Response:
EXPENDITURES/LIABILITIES/DISBURSEMENTS
The procedure for maintaining original supporting documentation for all operating expenditures was in place. The bookkeeper failed to follow the procedure and is no longer a Glascock County Board of Education employee.
The procedure was in place for an official (the superintendent) to approve all operating expenditures. The forrner bookkeeper lost requisitions signed by the superintendent and stamped checks without permission from the superintendent.
The former bookkeeper did not follow the protocol regarding petty cash. She did not keep receipts as she had in years past and she did not keep a journal for petty cash as she had in years past. She stamped petty cash checks, which was strictly against established procedure in the Glascock County Board of Education office.
The forrner bookkeeper wrote the travel checks without documentation to herself as well as the duplicate travel check. In addition, the duplicate travel payment check was stamped, which is against established procedures in the Board of Education office. The Employee Reimbursement for Travel furr11s related to the cited reimbursements were not approved by the superintendent which is also against established Glascock County Board of Education procedures.
The forrner bookkeeper stamped checks without approval from the superintendent deliberately ignoring an established procedure.
GENERAL LEDGER
The forn1er bookkeeper failed to retain her journal entry records. The established procedure was to have the superintendent approve all journal entries on a forrn constructed for that purpose. During FY 2000, the superintendent requested and approved a number ofjournal entries, but the records were not turned over to the superintendent or the new bookkeeper by the former bookkeeper.
Journal entries were reviewed and approved by the superintendent, but the records of approval and other records regarding journal entries were not turned over to the superintendent and new bookkeeper by the forrner bookkeeper.
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GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Payroll Reporting Reportable Condition Finding Control Number: FS-6621-00-02

A sample of 10 employee compensation payments was examined to test the accuracy of the Board's payroll procedures. The results of this examination disclosed that deductions for excessive leave were made to an employee's salary, but no documentation was available to support the amount of the deduction.


This deficiency was a result of management's failure to institute proper internal controls over the payroll deductions. The Board should implement procedures to ensure that leave records are adequately maintained and all adjustments to employee compensation are adequately documented.

Management's Response:

The fo11ner bookkeeper did not follow the established procedure, which included documentation ofexcessive leave taken by employees. Procedures have been implemented to document leave, but the fo11ner bookkeeper failed to follow these procedures.

GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group

Reportable Condition - Material Weakness

Repeated From Prior Year

Finding Control Number: FS-6621-00-03



The Glascock County Board of Education did not maintain a system-wide General Fixed Assets

Account Group within the forrnal accounting records as required by generally accepted accounting

principles. This condition results in the general purpose financial statements of the Board being

incomplete and not in accordance with generally accepted accounting principles. Appropriate action

should be taken by the Board to establish accounting controls and procedures to provide for the

maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an

inventory

o

f

land,

buildings,

and

equipment

owned

b

y .

the

Board

and

should

include,

but
.

m

a

y

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.



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GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6621-00-03

Management's Response:
CSRA RESA will hire an employee to maintain General Fixed Assets Account for each of the member school districts requesting participation. The Glascock County Board of Education will participate; therefore, this finding will be corrected during Fiscal Year 2002.

ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ACTNITIES ALLOWED/UNALLOWED

ALLOWABLE COST/COST PRINCIPLES



REPORTING Inadequate Internal Control Procedures

Reportable Condition

Nonmaterial Noncompliance

U.S. Department of Education

Through Georgia Department of Education

Finding Control Number: FA-6621-00-01


A review ofthe Board's internal control policies and procedures noted deficiencies in internal control over the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund
Grants (CFDA 84.318) for the following compliance requirements:

ACTNITIES ALLOWED/UNALLOWED ALLOWABLE COST/COST PRINCIPLES
A test ofexpenditures revealed that the official knowledgeable ofallowable activities and cost for this program did not approve program expenditures.
'
REPORTING
A comparison of the completion reports to the accounting records for grant years 1999 and 2000 revealed that the project completion reports were not supported by the total expenditures recorded for the program in the accounting records in the amount of $2,084.86.

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GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
ACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COST/COST PRINCIPLES REPORTING Inadequate Internal Control Procedures
'
Reportable Condition Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-6621-00-01
The instructions provided by the Georgia Department of Education mandate that financial management systems provide for accurate, complete and current disclosure of the financial results of each grant program.
These conditions were a result ofmanagement's failure to implement internal controls for monitoring compliance with Federal guidelines. The Board should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and implement proper internal controls relative to the above Federal compliance requirements to strengthen the internal control over Federal programs.
Management's Response: None
PROGRAM INCOME Inadequate Internal Control Procedures Reportable Condition U.S. Department ofAgriculture Through Georgia Department of Education Finding Control Number: FA-6621-00-02
A review ofthe Board's internal control policies and procedures noted deficiencies in providing for adequate internal control over Program Income for the Child Nutrition Cluster (Food and Nutrition Program - Food Services - School Breakfast Program (CFDA 10.553) and National School Lunch Program (CFDA 10.555)). A review of Program Income disclosed that there were not any procedures in place to reconcile cash receipts recorded in the accounting records to supporting documentation. This condition was a result of management's failure to implement appropriate internal control procedures for monitoring compliance with Federal guidelines. The Board should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and implernent proper internal controls relative to the above Federal compliance requirement to strengthen the internal control over Federal programs.
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GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
PROGRAM INCOME Inadequate Internal Control Procedures Reportable Condition U. S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-6621-00-0'.?
Management's Response:
Procedures have been revised additional internal control over Program Income ofthe Child Nutrition Cluster and National School Lunch Program to that cash receipts recorded in the accounting record will reconcile to supporting documentation by personnel independent of the cash receipt function.










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