Audit report, Grady County Board of Education, Cairo, Georgia, year ended June 30, 1999

G,A
A 800
o Ri
1b
C:n1
\998-99

AUDIT REPORT GRADY COUNTY BOARD OF EDUCATION
CAIRO, GEORGIA YEAR ENDED JUNE 30, 1999

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

GRADY 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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

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

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

11

ADDITTONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVE1'.TUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

28

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

30

GRADY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

32

2 SCHEDULE OF STATE REVENUE

34

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

35

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

37

5

BYPROGRAM

38

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 AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION ill AUDITEE'S RESPONSE TO PRJOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

w. RLJSSELL

HINTOI\

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
June 22, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Grady 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 Grady County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Grady 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 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

99ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, 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, 1998, were improperly recorded in the year ended June 30, 1999. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Grady County Board of Education as of June 30, 1999, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2000, on our consideration of the Grady County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Grady County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments. and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
99ARL-13

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

RWH:gp 99ARL-13

State Auditor

GRADY COUNTY BOARD OF EDUCATION

GRADY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1999

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 1,550,449.84 $

729,794.58

264,349.99

230,990.48

27,959.29 16,890.68

Total Assets

$ 1,814,799.83 $ 1,005,635.03

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 Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects Unreserved Deficit Undesignated
Total Fund Equity

$

595,843.41 $

214,083.30

265,546.13

5,501.38

8 764.76

$

601,344.79 $

488,394.19

$

44,308.81

$

282.68

27,959.29 16,890.68

1,213,172.36
$ 1,213,455.04 $

428,082.06 517,240.84

Total Liabilities and Fund Equity

$ 1,814,799.83 $ 1,005,635.03

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

EXHIBIT"A"

TYPES CAPITAL
PROJECTS FUND

FIDUCIARY FUND TYPES TRUST FUNDS

TOTALS

(Memorandum Only)

JUNE 30, 1999

JUNE 30, 1998

$

210,000.00 $

18,220.81 $ 2,508,465.23 $ 1,595,598.97

75,883.76

75,883.76

74,500.00

495,340.47

475,121.10

19,350.25

27,959.29 16 890.68

16,264.64 14 302.73

$

210,000.00 $

94,104.57 $ 3,124,539.43 $ 2,195,137.69

$

809,926.71 $

424,200.71

265,546.13

248,310.58

14 266.14

82,029.96

$ 1,089,738.98 $ _ _7;_;:54;...;...;;,54--'-'-'1.=25c....

$

$

11,982.00

198,018.00

$

210,000.00 $

$
7,500.00

44,308.81 $
7,500.00 282.68

64,940.48 7,500.00 282.68

86 604.57
94 104.57 $

27,959.29 16,890.68 11,982.00
1,925,876.99 2,034,800.45 $

16,264.64 14,302.73
-180.78 1,337,486.69 1,440,596.44

$

210,000.00 $

94,104.57 $ 3,124,539.43 $ 2,195,137.69

-3-

GRADY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1999

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 18,704,019.85 $

709,682.71 $

0.00

3,522,976.36

5,184,574.70

126,141.68

412,793.88

Total Revenues

$ 24,014?36.23 $ 4,645,452.95 $

0.00

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 Community Services Operations
Capital Outlay
Total Expenditures
"
Excess of Revenues over (under) Expenditures

$ 15,320,332.84 $
1,145,579.28 1,155,677.96
748,311.19 233,447.29 1,394,023.77 204,884.96 2,052,417.12 927,147.40 238,411.34
1,752.07 20,670.24
5,515.25

2,264,680.21 $
67,440.73 291,746.94
8,416.11 113,636.54
15,167.36 36,523.97
182,918.12 1,606,088.88
49,345.01

$ 23,448.170.71 $

$

566,565.52 $

4.635,963.87 $ 9,489.08 $

0.00
0.00 0.00

OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

$

$

-204,827.93

$

-204,827.93 $

241.17 $

204,586.76

241.17 $

204,586.76

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

$

361,737.59 $

9,730.25 $

204,586.76

851,717.45

493,227.99

5,413.24

Food Inventory - Net Change in Period Donated Commodities Purchased Food

11,694.65 2,587.95

FUND BALANCE JUNE 30

$ 1,213,455.04 $

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

517,240.84 $ ___21..o.=,0=0.0....0..0=

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)
YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$ 19,413,702.56 3,522,976.36 5,184,574.70 538,935.56 $
$ 28,660,189.18 $

$ 8 163.80

19,413,702.56 $ 3,522,976.36 5,184,574.70
547,099.36

17,784,938.24 3,069,878.43 4,153,370.79
523,485.83

8 163.80 $ 28,668,352.98 $ 25,531,673.29

$ 17,585,013.05
1,213,020.01 1,447,424.90
756,727.30 347,083.83 1,394,023.77 204,884.96 2,067,584.48 963,671.37 238,411.34 $ 184,670.19 1,626,759.12
54,860.26

$ 28,084,134.58 $

$

576,054.60 $

$ 17,585,013.05 $ 16,119,036.23

4,608.00 92.59

1,213,020.01 1,447,424.90
756,727.30 347,083.83 1,394,023.77 204,884.96 2,067,584.48 963,671.37 243,019.34 184,670.19 1,626,759.12
54,952.85

1,105,080.18 1,176,812.66
751,306.02 352,782.14 1 ,243,205.41 175,249.39 1,780,468.27 907,688.42 118,667.18 179,231.50 1,686,652.15
63,113.48 76,115.00

4 700.59 $ 28,088,835.17 $ 25,735,408.03

3,463.21 $

579,517.81 $ -203,734.74

$

204,827.93

-204,827.93

$

0.00

$

576,054.60 $

1,350,358.68

11,694.65 2,587.95

$

204,827.93 $

-204,827.93

$

0.00 $

2,317.22 -2,317.22
0.00

3,463.21 $ 82,918.54

579,517.81 $ 1,433,277.22

-203,734.74 1,636,433.48

11,694.65 2;587.95

-3,618.32 4196.80

$ 1,940,695.88 $

86,381.75 $ 2,027,077.63 $ 1.433,277.22 -5-

GRADY 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. 1999

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 Other Support Services Food Services Operation Community Services Operations
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. 1998

GENERAL FUND

ACTUAL

{BUDGET

BUDGET

BASIS)

$ 17,460,544.00 $ 18,704,019.85

5,065,143.00 37,643.00

5,184,574.70 126,141.68

$ 22,563,330.00 $ 24,014,736.23

$ 14,943,984.00 $ 15,320,332.84

1,070,925.00 918,141.00 740,018.00 216,600.00
1,290,662.00 177,825.00
1,823,833.00 902,005.00 274,750.00

1,145,579.28 1,155,677.96
748,311.19 233,447.29 1,394,023.77 204,884.96 2,052,417.12 927,147.40 238,411.34
1,752.07 20,670.24
5,515.25

$ 22,358,743.00 $ 23,448,170.71

$ 204,587.00 $ 566,565.52

$

413.00

-205,000.00 $ -204,827.93

$ -204,587.00 $ -204,827.93

$

0.00 $

722,331.06

361,737.59 851,717.45

FUND BALANCE JUNE 30. 1999

$ 722,331.06 $ 1,213,45.04

SPECIAL REVENUE FUND

ACTUAL

{BUDGET

BUDGET

BASIS)

$ 540,693.60 $ 709,682.71 2,679,449.00 3,522,976.36

401,411.00

412,793.88

$ 3,621,553.60 $ 4,645,452.95

$ 1,587,428.60 $ 2,264,680.21

74,471.00 127,063.00
117,443.00

67,440.73 291,746.94
8,416.11 113,636.54

3,500.00 30,095.00

15,167.36 36,523.97

190,548.00 1,499,892.00

182,918.12 1,606,088.88
49,345.01

$ 3,630,440.60 $ 4,635,963.87

$ -8,887.00 $

9,489.08

$

241.17

$

241.17

$ -8,887.00 $

9,730.25

541,284.26

462,660.62

$ 532,397.26 $ 472,390.87

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

GRADY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Net Income
FUND BALANCE JULY 1

MILDRED PELHAM SCHOLARSHIP
FUND

TOTALS (Memorandum Onll'.}
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

403.60

403.60

327.87

$

403.60 $

403.60 $

327.87

7,319.22

7,319.22

6,991.35

FUND BALANCE JUNE 30

$

7,722.82 $

7,722.82 $ ====7,=31=9.=22=

The notes to the general purpose financial statements are an integral part of this statement. -8-

GRADY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1999

EXHIBIT"E"

Cash Flows from Investing Activities: Interest Received on Investments Purchase of Investments
Net Cash Provided (Used) by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

MILDRED PELHAM SCHOLARSHIP
FUND

TOTALS {Memorandum Onl:z'.)
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$

403.60 $

403.60 $

327.87

-383.76

-383.76

-6,500.00

$

19.84 $

19.84 $

-6,172.13

$

19.84 $

19.84 $

-6,172.13

819.22

819.22

6,991.35

Cash and Cash Equivalents - June 30

$

839.06 $

839.06 $ --=-==-==8-=1=9.-2-=2=

The notes to the general purpose financial statements are an integral part of this statement. -9-

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Grady 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 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.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.

- 11 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPES - 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. These funds include:
NONEXPENDABLETRUSTFUND Mildred Pelham Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide college scholarships.
EXPENDABLE TRUST FUNDS Eleanor Kelley Scholarship Fund - the fund used to account for principal and earnings which may be expended to provide college scholarships.
Kenridge Fund - the fund used to account for the principal and earnings which may be expended to provide drug education programs.
Martin Lincoln Beller Trust Fund - the fund used to account for the principal and earnings which may be expended to provide deserving and/or needy children assistance in treatment of eye diseases and blindness.
Wight Nurseries Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships to graduating seniors.
BASIS OF ACCOUNTING
The accounting and financial reponing treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
- 12 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount 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.
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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. 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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Grady 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 of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

- 13 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting 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 ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the 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, 1998

$ 493,227.99

Adjustments Inventories - July 1, 1998 Food Donated Commodities Purchased Foods

-16,264.64 -14,302.73

Fund Balance July 1, 1998 (Budget Basis)

$ 462,660.62

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

9,730.25

FUND BALANCE JUNE 30, 1999 (Budget Basis)

$ 472.390.87

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

- 14 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments 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 ln\'estment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services.
(7) Repurchase agreements. and
(8) Obligations of other poht1cal 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
Tue Grady County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on January 29, 1999 (levy date). Taxes were due on April 10, 1999. The lien date for property taxes was
- 15 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Grady County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1998 tax year (calendar year) for the Grady County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations INVENTORIES

=13.50 mills

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

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/ expenses 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, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of
this data.

- 16 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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 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 of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating 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 ofthe counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the 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 Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $4,331,057.13. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by t~e Board or by the Board's agent in the Board's name.
- 17 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS

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, 1999, as follows:

Risk Category

Bank Balance

1

$ 201,647.61

2

999,825.00

3

3,129,584.52

Total

$ 4.331.057.13

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 natural disaster. 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 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:

- 18 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 4: RISK MANAGEMENT

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1998

$

0.00 $

2 944.00 $

2 944.00 $

0.00

1999

$

0.00 $

3 136.00 $

3 136.00 $

0.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.

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

Position Covered

Amount

Superintendent All Other Employees

$ 15,000.00 $ 100,000.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$415,224.75 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $347,854.75

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 $67,370.00

- 19 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 6: 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 7: SUBSEQUENT EVENTS
On March 7, 2000, the voters of Grady County voted in favor of a Special Purpose Local Option Sales Tax referendum for education purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot Grady County, is as follows:
"Shall a special 1 percent sales and use tax be imposed in Grady County for a period of time not to exceed 5 years and for the raising of not more than 12 million dollars for the purpose of construction of additional classrooms at the various schools within Grady County excepting Cairo High School and the renovation of existing facilities at each of the schools within Grady County and to provide furnishings, equipment and fixtures to be used in the above-described renovated and expanded facilities.
If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of the Grady County School District in an amount not to exceed $6,000,000.00 for the purpose of financing the cost of the capital outlay projects of the Grady County School District described above."
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA {TRS)
IRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

-20-

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 8: RETIREMENT PLANS
Fiscal Year
1999 1998 1997

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,940,267.05 $ 1,787,732.75 $ 1,646,912.39

- 21 -

GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1999

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

511,696.21 $

171,873.18

4,764.88

27,959.29 16,890.68
$ 561,311.06 $ 171,873.18

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

Total Liabilities and Fund Equity

$

28,788.91 $

122,989.32

71,493.63

48,742.16

141.70

$

100,282.54 $

171,873.18

$

27,959.29

16,890.68

416,178.55 $

0.00

$ 461,028.52 $

0.00

$ 561,311.06 $ _ _11_1_,a_73_._1a_

See notes to the general purpose financial statements.

-22-

EXHIBIT"G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS
JUNE 30, 1999 JUNE 30, 1998

$

33,069.82 $

13,155.37 $ 729,794.58 $ 638,868.44

226,225.60

230,990.48

240,293.51

$ 259,295.42 $

27,959.29 16,890.68

16,264.64 14,302.73

13,155.37 $ 1,005,635,03 $ 909,729.32

$

61,053.21 $

145,310.34

8,623.06

$ 214,986.61 $

1,251.86 $ 1,251.86 $

214,083.30 $ 265,546.13
8,764.76
488,394.19 $

86,454.46 248,310.58
81,736.29
416,501.33

$

44,308.81

$

44,308.81 $

64,940.48

27,959.29 16,890.68

16,264.64 14,302.73

0.00 $

11,903.51

428,082.06

397,720.14

$

44,308.81 $

11,903.51 $ 517,240.84 $ 493,227.99

$ 259,295.42 $

13,155.37 $ 1,005,635.03 $ 909,729.32

-23-

GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1999

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations
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
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 114,764.00 $
1,155,466.08 363,354.88
$ 1,633,584.96 $

572,435.71 572,435.71

$ $ 1,606,088.88

495,908.84
42,183.42 10,297.81
804.94 10,765.62 12,170.14
305.00

$ 1,606,088.88 $

$

27,496.08 $

572,435.77 -0.06

$

27,496.08 $

419,249.84

11,694.65 2,587.95

0.06
0.00 0.00

--=---= $ 461,028.52 $

0.00

See notes to the general purpose financial statements.

- 24-

EXHIBIT "H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED
JUNE 30, 1999 JUNE 30, 1998

$

22,483.00

$

2,367,510.28

- - - - - $ _ _4_9~,4_3_9._00_

709,682.71 $ 3,522,976.36
412,793.88

740,939.17 3,019,131.43
416,255.73

$ 2,389,993.28 $

49,439.00 $ 4,645,452.95 $ 4,176,326.33

$ 1,768,771.37
25,257.31 281,449.13
8,416.11 112,831.60
4,401.74 24,353.83 182,613.12
2,771.85 $
$ 2,410,866.06 $
$ -20,872.78 $

$ 2,264,680.21 $ 1,862,458.76

46,573.16

67,440.73 291,746.94
8,416.11 113,636.54
15,167.36 36,523.97 182,918.12 1,606,088.88 49,345.01

53,295.85 147,142.37
6,495.30 108,219.50
9,100.83 45,214.97 178,866.77 1,665,600.68 58,987.63

46,573.16 $ 4,635,963.87 $ 4,135,382.66

2,865.84 $

9,489.08 $

40,943.67

241.11

$

-20,631.67 $

64,940.48

241.17

162.88

2,865.84 $ 9,037.67

9,730.25 $ 493,227.99

41,106.55 451,542.96

11,694.65 2,587.95

-3,618.32 4,196.80

$

44,308.81 $

11,903.51 $ 517,240.84 $ 493,227.99

-25-

GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1999

EXHIBIT"!"

ASSETS Cash and Cash Equivalents

REGULAR

LOTTERY PROJECT

TOTALS JUNE 30, 1999 JUNE 30, 1998

$ 198 018.00 $

11,982.00 $

210,000.00 $====5=4=13=.2=4=

FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ $ _ _..:.;19::..:::8;.z.a0,:..:.1.:.:8=00~

11,982.00 $ 0.00

11,982.00 198,018.00 $ _ _-=5-'-'4...;..13;;;.;;.2;;;..4'--

Total Fund Equity

$ 198,018.00 $

11,982.00 $ 210,000.00 $ ===5=,4=13=.2=4=

See notes to the general purpose fir:iancial statements.

-26-

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "J"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30, 1999

REGULAR

LOTTERY PROJECT

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

REVENUES

State Funds

$

0.00 $

0.00 $

0.00 $ _ _ _5_99_.-'-66'"--

EXPENDITURES

Capital Outlay Building and Building Improvements

$

0.00 $

0.00 $

o.oo $ _ _7_6~1,_15_.o_o_

Excess of Revenues over (under) Expenditures

$

0.00 $

0.00 $

0.00 $ _ _-7..a..5,=5_15'--'-.3"-4'-

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 192,604.76 $ 11,982.00 $ 204,586.76 $

2,754.00 -599.66

Total Other Financing Sources (Uses)

$ 192,604.76 $ 11,982.00 $ 204,586.76 $

2 154.34

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 192,604.76 $ 11,982.00 $

204,586.76 $

-73,361.00

FUND BALANCE JULY 1

5,413.24

0.00

5,413.24

78 774.24

FUND BALANCE JUNE 30

$ 198,018.00 $ 11,982.00 $ 210,000.00 $ ====5=,4=1=3.=24=

See notes to the general purpose financial statements.

-27-

ASSETS Cash and Cash Equivalents Investments
Total Assets
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Deficit Undesignated
Total Fund Equity

GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1999

NONEXPENDABLE TRUST FUND MILDRED PELHAM SCHOLARSHIP FUND

ELEANOR KELLEY
SCHOLARSHIP FUND

EXPENDABLE
KENRIDGE FUND

$

839.06 $

2,264.69 $

7,328.01

6 883.76

23,500.00

$

7,722.82 $

25,764.69 $ ===7=,3=28==01=

$

7,500.00

222.82 $

25,764.69 $ ______7..._,3-'-28"-'._01_

$

7,722.82 $

25,764.69 $ =====7,.,.,3=28..,.=01=

See notes to the general purpose financial statements.

-28-

-EXHIBIT "K"

TRUST FUNDS MARTIN LINCOLN BELLER
TRUST FUND

WIGHT NURSERIES SCHOLARSHIP
FUND

TOTALS

JUNE 30, 1999

JUNE 30, 1998

$

3,910.49 $

3,878.56 $

18,220.81 $

15,737.76

45 500.00

75 883.76

74 500.00

$

49410.49 $

3 878.56 $

94 104.57 $ ===9=0=,2=37==76.,..

$

7,500.00 $

7,500.00

$

49 410.49 $ _ _ _3~8_78_._56_

86 604.57

-180.78 82,918.54

$

49 410.49 $

3 878.56 $

94 104.57 $ ===9=0,2=37=.76=

- 29 -

GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1999

REVENUES
Other Funds
EXPENDITURES
Current Support Services Central Support Services Community Service Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

ELEANOR KELLEY
SCHOLARSHIP FUND

KENRIDGE FUND

$

1 388.42 $

2,000.00

$

500.00

$

$

500.00 $

$

888.42 $

24 876.27

92.59 92.59 1,907.41 5,420.60

FUND BALANCE JUNE 30

$

25,764.69 $ ===7=3=28==01=

See notes to the general purpose financial statements.

-30-

EXHIBIT"L"

MARTIN LINCOLN BELLER TRUST FUND

WIGHT NURSERIES SCHOLARSHIP
FUND

TOTALS YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$

2 715.52 $

2 059.86 $

8 163.80 $ _ __.:;.9"-'1-=-99==58:;_

$

2,108.00 $

$

2 108.00 $

$

607.52 $

48,802.97

2,000.00 $
2,000.00 $ 59.86 $
3 818.70

4,608.00 $
92.59
4 700.59 $ 3,463.21 $
82,918.54

5,733.07 4,125.85 9,858.92
-659.34 83,577.88

$

49 410.49 $

3 878.56 $

86,381.75 $ ===8=2=,9=18=.54==

- 31 -

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

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 1999 Grant National School Lunch Program 1999 Grant
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Summer Food Service Program for Children 1998 Contract 1999 Contract
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement 1999 Grant Flow Through 1999 Grant Preschool 1999 Grant
Total Special Education Cluster
Other Programs Pass-Through From Chattahoochee-Flint Regional Educational Service Agency dlbla Two Rivers Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1998 Summer 1999 Grant 1999 Summer Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1998 Summer 1999 Grant Title II Eisenhower Professional Development 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant

CFDA NUMBER

PASS-
THROUGH ENTITY ID NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 . 10.555

N/A $ NIA
$

244,081.47 733,671.65 $ 977,753.12 $

(2) 1,430,760.80 (3) 1,430,760.80

10.550
. 10.559 . 10.559

NIA

102,689.96

102,689.96

N/A

31,930.00

41,214.65 (3)

NIA

43,093.00

31,423.47

$ 1,155,466.08 $ 1,606,088.88

. 84.173 . 84.027
84.173

NIA $ NIA NIA
$

10,669.78 $ 259,110.38
40 376.55 310,156.71 $

10,669.78 259,110.38
40,376.55 310,156.71

84.011

NIA

84.011

NIA

84.011

NIA

84.010

NIA

84.010

NIA

84.281

N/A

84.298

N/A

- 32-

24,243.81 28,677.12 34,081.24

24,243.81 28,677.12 34,081.24

-1,101.12 991,324.59
26,799.64
32,927.00

1,170.23 991,324.59
26,799.64
32,927.00

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Georgia Department of Education Goals 2000 State and Local Education Systemic Improvement Grants 1998 Grant 1999 Grant Technology Literacy Challenge Fund Grants 1999 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant
Total U. S. Department of Education
Labor, U. S. Department of Pass-Through From Georgia Department of Labor Job Training Partnership Act 98-8-90 Pass-Through From SOWEGA Council on Aging, Incorporated Senior Community Services Employment Program - Title V 1999 Grant
Total U.S. Department of Labor

CFDA NUMBER

PASSTHROUGH .ENTITY
ID NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.276 84.276 84.318
84.048 84.243

NIA $ NIA
NIA

83,332.00 $ 150,000.00
292,500.00

146,179.32 (3) 130,535.77
267,655.42

NIA

50,285.17

50,310.43 (3)

NIA

2,026.35

2,026.35

$ 2,025,252.51 $ 2,046,087.63

17.250

N/A

$

2,771.85 $

2,771.85

17.235

NIA $

339,485.92

339,485.92

342,257.77 $ _ _..=c34..;.;2::.:;,2=.:5;.;..7.;.;..7..;_7

Total Federal Financial Assistance
NIA= Not Available

$

3,522,976.36 $ =====3,=9=94=,4=34==.2=8

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 1999 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 Grady 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.

- 33-

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999

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 Middle School Incentive Program Special Instructional Assistance lr"i-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Next Generation Schools Pay for Performance Program Preschool Handicapped Program PSAT Exam Remedial Summer School Program Student Record Year 2000 Project Lottery Programs Assistive Technology Computers in the Classroom
Georgia Department of Medical Assistance Children Intervention Services Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Service.s Public School Employees Retirement
CONTRACT Education, Georgia Department of Reading First Program for Grades K-3
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 10,528,211.00 1,759,430.00 300,571.00 438,382.00 116,997.00 2,741,598.00
498,052.00 142,490.00 283,469.00 449,133.00
90,540.00 210,839.00
43,604.00 57,685.00 -1,520,085.00 1,415,521.00
$ 224,948.66
57,195.00 48,321.68 14,737.74
499.86 347,854.75
5,000.00 5,821.73 53,367.48 167,901.41 54,308.00
398.25 4,670.77 3,409.50 54,986.00

$ 10,528,211.00 1,759,430.00 300,571.00 438,382.00 116,997.00 2,741,598.00

114,764.00

498,052.00 142,490.00 283,469.00 449,133.00
90,540.00 210,839.00
43,604.00 57,685.00 -1,520,085.00 1,415,521.00 114,764.00 224,948.66

57,195.00 48,321.68 14,737.74
499.86 347,854.75
5,000.00 5,821.73 53,367.48 167,901.41 54,308.00
398.25 4,670.77 3,409.50 54,986.00

7,544.75 89,538.55

7,544.75 89,538.55

36,792.02

36,792.02

475,352.41

475,352.41

67,370.00

67,370.00

22,483.00

22,483.00

$ 18,704,019.85 $

709,682.71 $ 19,413,702.56

-34-

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1999

SCHEDULE "3"

EXPENDITURES

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

TOTAL

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

General Administration

Business Administration

Maintenance and Operation of Plant

Other Support Services

7,544.75 $ 89,538.55 $

398,825.54 $ 495,908.84

42,183.42 10,297.81
804.94 10,765.62 12,170.14
305.00

42,183.42 10,297.81
804.94 10,765.62 12,170.14
305.00

Total Expenditures

$

7,544.75 $ 89,538.55 $ _ _ _ _4..,75...,,3..,5=2=.4-==7 $ 572,435.TT

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program

$ 373,234.45
7,544.75 89,538.55 102,118.02

$ 572,435.77

See notes to the general purpose financial statements.

- 35-

GRADY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND -QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

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

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

13,236,649.00 $

409,343.00

$

13,588,991.94

672,283.78 $ _ ___.:;_54..:..;7...,_1,.;..;;8""-9.;.;;..0..c...5

$

14,261,275.72

-204,570.08 $ _ _1-'--4""-,0;;..;5'-"6-'-7',..;;.0_5....;.6_4

$

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

See notes to the general purpose financial statements. - 37 -

GRADY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

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(*) Category IV (*) Category V (*) 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
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,070,060.00

$

2,961,395.00

$ 4,031,455.00 90 $

1,317,603.00 90

2,272,596.00 90

1,072,710.00 90

893,919.00 90

939,928.00 90

$ 10,528,211.00

$

963,054.00 $ 2,665,255.50 3,628,309.50 $ 1,185,842.70 2,045,336.40
965,439.00 804,527.10 845,935.20 9,475,389.90 $

0.00 0.00 210,055.00
210,055.00

$ 1,708,620.00

$ 1,537,758.00 $

0.00

$ 1,708,620.00 90 $ 1,537,758.00 $

50,810.00 90

45,729.00

$ 1,759,430.00

$ 1,583,487.00 $

$

300,571.00 90 $

270,513.90 $

$ 12,588,212.00

$ 11,329,390.80 $

0.00
0.00 0.00 210,055.00

$

351,376.00 90 $

316,238.40 $

87,006.00 100

87,006.00

$

438,382.00

$

403,244.40 $

0.00 0.00

$ 13,026,594.00

$ 11,732,635.20 $

210,055.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

$

36,914.00

80,083.00

$

36,914.00 $

80,083.00

784.00

$

116,997.00 100 $

116,997.oo $====784=.o=o

- 38 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

963,054.00 $ 1,178,503.00 $

22,352.41 $ 1,200,855.41

2,665,255.50

2,757,854.71

106,647.93

2,864,502.64

$ 3,628,309.50 $ 3,936,357.71 $

129,000.34 $ 4,065,358.05 $

0.00

1,395,897.70

1,470,439.25

59,108.45

1,529,547.70

0.00

2,045,336.40

2,450,991.27

93,891.03

2,544,882.30

0.00

965,439.00

1,082,475.57

138,029.22

1,220,504.79

0.00

804,527.10

1,237,154.26

30,897.54

1,268,051.80

0.00

845,935.20

863,025.74

77,427.68

940,453.42

0.00

$ 9,685,444.90 $ 11,040,443.80 $

528,354.26 $ 11,568,798.06

$ 1,537,758.00 $

17,471.46 $ 570,776.70 832,819.15 116,903.25 31,587.44

376.34 $ 5,123.74 3,918.00
962.75

17,847.80 575,900.44 836,737.15 117,866.00
31,587.44

$ 1,537,758.00 $ 1,569,558.00 $

10,380.83 $ 1,579,938.83

0.00

45,729.00

73,389.59

2,178.21

75,567.80

0.00

$ 1,583,487.00 $ 1,642,947.59 $

12,559.04 $ 1,655,506.63

$

270,513.90 $

387,743.20 $

6,275.75 $

394,018.95

0.00

$ 11,539,445.80 $ 13,071,134.59 $

547,189.05 $ 13,618,323.64

$

316,238.40 $

517,857.35

$

517,857.35

0.00

87,006.00

$

125,094.73

125,094.73

0.00

$

403,244.40 $

517,857.35 $

125,094.73 $

642,952.08

$ 11,942,690.20 $ 13,588,991.94 $

672,283.78 $ 14,261,275.72 $

0.00

$

37,698.00

80,083.00

$ ==1=17.,.,7=a=1=.o=o

$

75,899.41 $

75,899.41

51,684.53

51,684.53

$

127,583.94 $

127,583.94 $=======o=.o=o

- 39

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RussELL \V. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
June 22, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Grady 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 Grady County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated June 22, 2000. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards app!Icahle 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 Grady County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants. noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Grady County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation
99YB-40

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 of the internal control over financial reporting that, in our judgement, could adversely affect Grady County Board of Education'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 of Findings and Questioned Costs as item FS-6651-99-02..
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 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 normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Grady 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.

RWH:gp 99YB-40

State Auditor

RussELL W. HrNTON
STATE AUDITOR (404\ 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
June 22, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Grady County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Grady County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. Grady County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Grady County Board of Education's management. Our responsibility is to express an opinion on Grady County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Grady County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Grady County Board of Education's compliance with those requirements.

99SA-10

In our opinion, the Grady County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1999.
Internal Control Over Compliance
The management of Grady County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Grady County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration of the 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 of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Grady County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 99SA-10

~W-~

Ru sell W. Hinton

.

State Auditor

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

GRADY COUNTY BOARD OF EDUCATION
AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6651-93-04 FS-6651-97-01 FS-6651-97-03 FS-6651-97-04 FS-6651-98-01

Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EMPLOYEE COMPENSATION Salary Overpayment Amount: $2,772.94 Finding Control Number: 6651-93-04

The Board will continue collection efforts of the overpayment for deposit into the General Fund.

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $282.68 Finding Control Number: FS-6651-97-01

The required corrective action plan is currently in place, to be completed during Fiscal Year 2000.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6651-98-01

The Board has reviewed the feasibility ofmaintaining General Fixed Assets Account Group, and has decided not to pursue it at this time.

SECTIONN FINDINGS AND QUESTIONED COSTS

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Grady County Board of Education'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 Grady County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Grady County Board ofEducation disclos~d no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Grady County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Grady 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 .5 lO(a) of 0MB Circular A-133
The Grady County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Summer Food Service Program for Children 84.173 Individuals with Disabilities Education Act - Part B - Special Education - Capacity Building Improvement 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education - Preschool
8. Type "A'' Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
- 1-

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Grady County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Nonmaterial Noncompliance Finding Control Number: FS-6651-99-01
The Grady County Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section... 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 of the public funds being secured after the deduction of the amount of deposit insurance".
This noncompliance occurred because ofmanagement's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.
Management's Response:
We concur with this finding. We will contact the financial institutions involved, as well as intensify monitoring procedures, in an attempt to insure that appropriate collateralization is provided for all Board deposits in the future.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6651-99-02
The Grady County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group.
-2-

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
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-6651-99-02 These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff the Board, following evaluation, has decided not to pursue the recording of general fixed assets on the financial statements. III FEDERAL AWARD FINDINGS M1D QUESTIONED COSTS No matters were reported.
-3-