Irwin County Board of Education, Ocilla, Georgia, report on audit of the financial statements, year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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IRWIN COUNTY BOARD OF EDUCATION
OCILLA, GEORGIA
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

IRWIN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

Page

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTIJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS .

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

29

ANALYSIS OF~....

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

31

5

BYPROGRAM

32

IRWIN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING 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
AUDfI'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I
FINANCIAL


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

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

February 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Irwin County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Irwin County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Irwin County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo11n 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 state1nents, the Board's financial state111ents have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances ate described as follows:
* The general purpose financial statements ofthe Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to confo1111 to generally accepted accounting principles.
2000ARL-13

* 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 dete1111ined, 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 ofthe Irwin County Board ofEducation as of June 30, 2000, and the results of its operations 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 February 8, 2001, on our consideration of the Irwin County Board of Education's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit perfu11ned 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 perfu1n1t:d for the purpose of fc,1111ing an opinion on the general purpose financial statements ofthe Irwin County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office ofManagement 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 info11nation 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 info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13

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

RWH:gp 2000ARL-13

Respectfully submitted,

ll.J.
Russell W. Hinton State Auditor



IRWIN COUNTY BOARD OF EDUCATION

IRWIN 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 to be Provided in Future Years For Payment of Capital Lease Agreements

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

1,398,010.97 $

141,520.49

69,749.41

45,767.28

109,365.58

3,267.73
2,843.84

Total Assets

$

1,513,527.66 $ _ _ _25..,.6.,.9..9..7_.64_

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Athletic Field Donation For Bus Replacement Funds For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Designated for Canning Plant Operations Deficit Undesignated
Total Fund Equity

$

1,711.30 $

40,355.32

159,594.73

28,974.51

$

1 711.30 $ _ _ _22_8_,9_24_.5_6_

$

69,749.41

84,487.56

$

10,172.00

3,267.73
2,843.84

2,676.53

1,354,902.86

11,789.51

$

1,511,816.36 $ ____2"""8""",0...;..73=.0=8a....

Total Liabilities and Fund Equity

$

1,513,527.66 $ _ _ _25_6,.,9..,97_,...6.4...

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

151,479.05

165,364.23

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$ 1,691,010.51 $

411,341.68

69,749.41

1,108,931.94

320,497.09

322,559.66

- - - - - - $ _ ___;;2;;.;.7...:;.6=,8""'-'15;;.;..0.a.;6;...

3,267.73 2,843.84
276,815.06

4,340.87 6,471.39
570,967.31

$

316,843.28 $

276,815.06 $ 2,364,183.64 $ 2,424,612.85

$

149,158.90

25,071.90

$

$

174,230.80 $

$
276,815.06 276,815.06 $

42,066.62 $ 159,594.73
28,974.51 149,158.90 25,071.90 276,815.06

41,658.80 132,507.70 182,225.91
5,505.26
570,967.31

681,681.72 $ _ _9.a.;3.;a2.a,8'-"64-'-'._9_8"-



$

142,512.50

99.98 $ _ _1_4_2__..._,6_12_.4_8_

$

316,843.28 $

$

69,749.41 $

65,000.00

84,487.56

84,802.17

10,172.00

86,933.13

3,267.73 2,843.84 142,512.50

4,340.87 6,471.39 90,560.94

2,676.53 1,366,792.35

4,118.01 -182,125.93 1,331,647.29

$ 1,682,501.92 $ 1,491,747.87

276,815.06 $ 2,364,183.64 $ 2,424,612.85
-3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 8,424,755.30 $
2,614,322.21 284,403.18
$ 11,323,480.69 $

523,985.40 1,594,258.63
213,518.11
2,331,762.14

$ 7,509,172.15 $ 1,160,647.71

679,278.09 354,282.40 201,046.42 242,818.85 706,207.51
36,927.34 766,792.66 579,454.04
28,213.77 21,443.99
250.00 38,979.96

204,127.25 119,507.25 29,648.74
29,676.90 113,747.95 766,494.69 10,000.00

88,350.34 19,466.19

$ 11,272,683.71 $ _...;2;;,r,,4.,:.;3:.:3=,8~50=..;.;49:;._

$

50,796.98 $ _ _-..;.;1O:a.:2:z.:,0:.:8.:.:8.~35:...

$

121,390.00

$

-132,121.36

23,300.00

$

-10,731.36 $ _____2=3=,3=00==00:;._

$

40,065.62 $

1,471,750.74

-78,788.35 111,562.12

-1,073.14 -3,627.55

FUND BALANCE JUNE 30

$ 1,511,816.36 $ ___2_a_.0_13_._o8..,

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

-4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

163,533.60 $ 9,112,274.30 $ 8,578,082.21

1,594,258.63

1,622,265.46

595,585.83

3,209,908.04

3,081,304.14

4,897.03

502,818.32

542,550.65

$

764,016.46 $ 14,419,259.29 $ 13,824,202.46

$ 8,669,819.86 $ 8,087,561.15

$

9,485.43

278,729.00

883,405.34 473,789.65 201,046.42 272,467.59 706,207.51
46,412.77 796,469.56 579,454.04 141,961.72 787,938.68
250.00 48,979.96 278,729.00

654,957.46 349,869.64 221,825.96 249,306.39 683,641.77 67,831.70 773,002.61 560,140.31 256,952.45 808,222.49
76,668.90 84,363.00

327,191.91 23,254.01

415,542.25 42,720.20

326,834.19 51,726.62

$

638,660.35 $ 14,345,194.55 $ 13,252,904.64

$

125,356.11 $

74 064.74 $

571,297.82

$

121,390.00 $

224,621.26

$

108,821.36

132, 121.36

10,680.16

-132,121.36

-10,680.16

$

108,821.36 $

121,390.00 $ _---'2=2'-"4""",6=21""".2=6'-

$

234,177.47 $

195,454.74 $

795,919.08

-91,564.99

1,491,747.87

694,939.84

-1,073.14 -3,627.55

53.58 835.37

$

142,612.48 $ 1,682,501.92 $ 1,491,747.87

-5-

IRWIN 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

$ 8,087,603.00 $ 8,424,755.30

2,253, 150.00

2,614,322.21 284,403.18

Total Revenues

$ 10,340,753.00 $ 11,323,480.69

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 Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Debt Service

$ 7,664,095.00 $ 7,509,172.15

595,283.00 315,825.00 210,915.00 300,431.00 829,155.00 41,854.00 713,564.00 468,766.00
17,131.00 2,206.00
33,000.00

679,278.09 354,282.40 201,046.42 242,818.85 706,207.51 36,927.34 766,792.66 579,454.04 28,213.77 21,443.99
250.00 38,979.96 107,816.53

Total Expenditures

$ 11,192,225.00 $ 11,272,683.71

Excess of Revenues over (under) Expenditures

$ -851,472.00 $ -----'50=7-"9=6-.:::;98::...

OTHER FINANCING SOURCES (USESl

Other Sources Other Uses

$ 258,000.00 $ 121,390.00

-45,602.00

-132,121.36

Total Other Financing Sources (Uses)

$ 212,398.00 S_ _."'"10..,,"'"73""1"'".3""'6'-

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -639,074.00 $

40,065.62

FUND BALANCE JULY 1. 1999

1,432, 179.40

1,471,750.74

Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30. 2000

$ 793,105.40 $ 1,511,816.36

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 393,157.00 $ 523,985.40 1,180,103.00 1,594,258.63

237,651.00

213,518.11

$ 1,810,911.00 $ 2,331,762.14

$ 798,070.00 $ 1,160,647.71

74,663.00 88,155.00

204,127.25 119,507.25

19,151.00

29,648.74

17,804.00
58,503.00 819,407.00

29,676.90
113,747.95 766,494.69
10,000.00

$ 1,875,753.00 $ 2,433,850.49 $ -64,842.00 $ -102,088.35

$ 45,602.00 $ 23,300.00

$ 45,602.00 $ _....,2=3=,3=00==00'-

$ -19,240.00 $ -78,788.35

118,070.45

111,562.12

-1,073.14 -3,627.55

s__ $ 98,830.45

2_01_0_1_3._00_

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

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

-8-

IRWIN 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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatn1ent 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-Te1111 Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day
period beginning in late August 1999 and ending in early June 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
-9-

IRWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D''

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Irwin County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
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 cost. Both participating interest-earning contracts and money market investments with a maturity at
- 10 -

IRWIN COUNTY BOARD OF EDUCATION

EXHIBIT ''D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthe State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation 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 11ecessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Irwin County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 16, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Irwin 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 oftaxes collected to the Board.

- 11 -

IRWIN 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 Irwin County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.69 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to
$595,585.83 and was recorded in the Capital Projects Fund. The Board has received the maximum
amount of sales tax authorized and collection of this sales tax was te11ninated.
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.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

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

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confo11nity 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. Certain reclassifications have been made to the comparative data to confo11n to the current year classifications.

- 12 -

IRWIN COUNTY BOARD OF EDUCATION

EXHIBIT ''D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

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 ofinsurance, or by collateral. The aggregate ofthe 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
(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 lntc:1n1~diate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $3,173,480.10. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 13 -

IRWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

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

$ 200,000.00

2

2,049,151.82

3

924,328.28

Total

$3,173,480.10

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school b.reakfast 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; e11ors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Board has obtained commercial insurance for risk of loss associated with torts, assets and 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. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

- 14 -

IRWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

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 i_s probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Irwin County Board ofEducation has not incurred any liabilities for unemployment compensation during the past two fiscal years.

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

Position Covered
Superintendent Each Principal

Amount
$ 100,000.00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Irwin County Board ofEducation has entered into various lease agreements as lessee for school buses and equipment. These lease agreements qualify as capital leases for accounting purposes and; therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Balance July 1, 1999
Retroactive Restatement of Prior Year Balances
Balance July 1, 1999 Restated
Additions Capital Leases
Deductions Debt Retired
Balance June 30, 2000

Capital Leases
$ 558,987.23
11,980.08
$ 570,967.31
121,390.00
415,542.25 $ 276,815.06

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

- 15 -

IRWIN 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

Capital Leases

2001 2002 2003 2004
Total Principal and Interest
Deduct: Imputed Interest

$ 122,438.30 82,908.14 72,375.60 36,494.00
$ 314,216.04
37,400.98

Net Present Value of Future Minimum Lease Payments

$ 276,815.06

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $159,695.29 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $131,192.29

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 $28,503.00

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

OOG/99S-677-046

$ 234,861.00

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

- 16 -

IRWIN 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 terrns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the perforn1ance of routine Board operations. The ultimate disposition of these proceedings is not presently dett:1111inable, but is not believed to be material to the general pwpose financial staternents.

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

$ 891,026.89 $ 880,743.49 $ 788,171.36

- 17 -

IRWIN 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

$

61,537.49 $

46,435.16

591.84

3,267.73
2,843.84

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general purpose financial statements. - 18 -

$

68,240.90 $ ====4=6,=43=5.=16=

$

10,256.78 $

9,669.94

40,083.04

36,765.22

50,339.82 $ _ _ _4;,.;;6J.,;,4""-3=5..;..16~

$

3,267.73

2,843.84

'

11,789.51 $ _ _ _ _0.;;;.;.'-=,.00~

$

17,901.08 $ ------"-'-';;.0:,:0:0._

$

68,240.90 $====4=6=,4=3=5.=16==

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

52,904.99

$

160,877.64 $

161,677.74

89,416.59 $

19,357.15

109,365.58

110,371.70

3,267.73 2,843.84

4,340.87 6,471.39

$

142,321.58 $

19,357.15 $

276,354.79 $ ====2=8=2:!::,8=6=1.=70=

$

$

20,428.60

82,746.47

28,974.51

$

132,149.58 $

19,357.15 $ 19,357.15 $

19,357.15 40,355.32 $ 159,594.73 28,974.51

33,286.62 132,507.70
5,505.26

248,281.71 $ _ _1.;.:7..:.1.z.:,2.:.:99:;.:;;::.:58~

$

10,172.00

$

10,172.00 $

. 86,933.13

3,267.73 2,843.84

4,340.87 6,471.39

0.00 $ _ _ _ _.:,:0:.::,00=--

11,789.51

13,816.73

$

10,172.00 $

0.00 $

28z073.08 $ _ _1.:.;1;.:.1.15.:.,:,:62::;;.;.:,.:12::.,_

$

142,321.58 $

19,357.15 $

276,354.79 $ ====2=8=2:!::,8=6=1=70...,

- 19 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant 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
See notes to the general purpose financial statements.
- 20 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

53,856.00 $

385,129.40

482,973.25

201,346.11

$

738,175.36 $ _ _3=-:8=5;.1,,1;,=2=9;..;.40;:;_

$

282,831.00

59,036.57

10,592.82

29,676.90

$

763,502.58

2,992.11

$

763,502.58 $ _ ___,;3=8=5,z.a.12=9:;.;..4.:.:0~

$

-25,327.22 $

0.00

23,300.00

$

-2,027.22 $

0.00

24,628.99

0.00

-1,073.14 -3,627.55

$

11,901.08 $ ========o=.o=o;...

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$
$ 1, 111,285.38 10,172.00
$ 1,121,457.38 $

85,000.00 $ 2,000.00
87,000.00 $

523,985.40 $ 1,594,258.63
213,518.11
2,331,762.14 $

412,184.22 1,622,265.46
235,119.65
2,269,569.33

$

877,816.71.

120,090.68 $ 119,507.25
19,055.92

61,747.95

$ 1,198,218.51 $

$

-76,761.13 $

$
25,000.00
52,000.00 10,000.00 87,000.00 $
0.00 $

1,160,647.71 $
204,127.25 119,507.25 29,648.74
29,676.90 113,747.95 766,494.69
10,000.00
2,433,850.49 $
-102,088.35 $

1,094,449.05
88,002.66 22,287.36 18,898.12
2,241.06 17,159.00 194,998.51 801,516.26 7 459.14
2,247,011.16
22,558.17

$

-76,761.13 $

86,933.13

23,300.00

0.00 $ 0.00

-78,788.35 $ 111,562.12

-1,073.14 -3,627.55

22,558.17 88,115.00
53.58 835.37

$

10,172.00 $

0.00 $

28,073.08 $ ===11=1=,5=6.2...=12==

- 21 -


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

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

99.98 $

47,533.67

94,978.83

Total Assets

$

99.98 $ ==1=4=2=,5=12.....5..0. =

LIABILITIES AND FUND EQUITY
LIABILITIES
Notes Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects Unreserved Deficit Undesignated
Total Fund Equity

$

142,512.50

$ _ _ _----'9"-'9-"'.9"-'8_

0.00

$

99.98 $ ___1_42~,_51_2_.5_0_

Total Liabilities and Fund Equity

$

99.98 $ ==1=4=2=,5=12.....5=0=

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

EXHIBIT "G"

LOTTERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

103;845.40 $

151,479.05 $

1,046.67

70,385.40

165,364.23

89,614.25

$

174,230.80 $

316,843.28 $ ===9=0=,6=60==92=

$

182,225.91

$

149,158.90 $

149,158.90

25,071.90

25,071.90

$

174,230.80 $

174,230.80 $ _ _1.;..;;8=2=,2=25a..;..9.a,..1;_

$

$ - - - - -0.0-0

$

0.00 $

142,512.50 $

90,560.94

99.98

-182,125.93 0.00

142,612.48 $ _ _ _-9_1..._,5_64_._99_

$

174,230.80 $

316,843.28 $ ===9=0=,6=60==92=

- 23-

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

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Building and Building Improvements Equipment
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

0.00

$

595,585.83

4,897.03

$

0.00 $ _ _6:;.;:0;.;:;0.1,.;,4~8=-=2=86=-

$

9,485.43

$

11,350.00

327,191.91 23,254.01

$

9,485.43 $ _ _3;:;,.;6;...1.i.;.,7.;;;.95==92=-

$

-9,485.43 $ _ ___:2::.:3::.:8i.:6:,;;:.86::.:.:..94.:....

$

202,391.50 $

15,656.12

-10,680.16

-202,391.50

$

191 711.34 $ _ _-1.;.;;8;.;;.6.,.;.,7=35;;.;.3;:;,.;8;..

$

182,225.91 $

-182,125.93

51,951.56 90,560.94

FUND BALANCE JUNE 30

$

99.98 $==1=4=2=,5=12=.5=0=

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

EXHIBIT "H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

163,533.60 $

163,533.60 $

74,935.00

595,585.83

541,747.35

4,897.03

9,730.78

$

163,533.60 $

764,016.46 $ _ _6;;.;;2;;.;;;.6.i.;,4.;.13=.;.;13~

$

$

267,379.00

$

267,379.00 $

$

-103,845.40 $

9,485.43 $

30,593.35

278,729.00

9,428.00 74,935.00

327,191.91 23,254.01

214,811.41 34,308.81

638,660.35 $ _ _3_64_,0_76_.5_7_

125,356.11 $ _ __,;2=6=2=,3.;;;.36=.5=6~

$

103,845.40 $

321,893.02 $

370,680.16

-213,071.66

-360,000.00

$

103,845.40 $

108,821.36 $ ___1_0.._,6_80_._16_

$

0.00 $

234,177.47 $

273,016.72

0.00

-91,564.99

-364,581.71

$

0.00 $

142,612.48 $===-9=1=,5=64==99=

- 25-

IRWIN 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
Total Child Nutrition Cluster

10.553 10.555

NIA

$

NIA

$

99,436.06 345,057.92 $
444,493.98 $

(2)
725,023.31 (3)
725,023.31

Other Programs

Direct
Agricultural Risk Management Project

OFA

Pass-Through From Georgia Department of Education

Food and Nutrition Program
Food Distribution Program (1)
Agricultural Risk Management Project

10.550

N/A

OFA

NIA

Pass-Through From USDA-RMA Regional Service Office

Agricultural Risk Management Project

OFA

NIA

9,000.00
38,479.27 -57,839.13
3,050.00

9,000.00
38,479.27 29,094.00
3,050.00

Total U. S. Department of Agriculture

$

437, 184.12 $ _ _.;a.804"-"',646~-~58"-

Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs

94.004

N/A

$

12,000.00 $ _ _ _1""'2.,o'-"o"""o.-'-00""'

Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Grant Flow Through Preschool
Total Special Education Cluster

84.173 84.027 84.173

N/A

$

NIA

NIA

$

6,300.00 $ 228,699.67 40 435.15
275,434.82 $

6,300.00 228,699.67 40,435.15
275,434.82

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I Grants to Local Educational Agencies

84.010

NIA

Title II Eisenhower Professional Development

84.281

NIA

Title VI Innovative Education Program Strategies Class Size Reduction

84.298

NIA

84.340

NIA

Goals 2000

State and Local Education Systemic Improvement Grants
Safe and Drug-Free Schools and Communities

84.276

NIA

84.186

N/A

Vocational Education - Basic Grants to States

High School Program Basic Grant

84.048

NIA

Pass-Through From Abraham Baldwin Agricultural College

Gaining Early Awareness and Readiness for Undergraduate Programs

84.334

NIA

448,762.97 16,000.00 15,968.00 58,799.00
147,273.00 7,801.00
34,860.00
99,358.89

448,762.97 16,000.00 15,968.00 58,799.00
147,273.00 7;801.00
34,860.00
99,358.89

-26-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Total U. S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Substance Abuse Prevention Program Maternal and Child Health Services Block Resource Mothers Program
Total U. S. Department of Health and Human Services

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.011

N/A

$

10,062.83 $ _ __.:.,:10:,,:,0~6:::,2,a:;:8~3

$ 1,114,320.51 $ _......:1a.;,1~1.::.4,.::3:::,20::,:,.::,5.:.1

93.959 93.994

NIA

$

NIA

$

11,400.00 $ 19,354.00

11,400.00 19,354.00

30,754.00 $ _ __;3~0:.,_:,7~54::!;~00::,_

Total Federal Financial Assistance N/A = Not Available

$

s 1,594,258.63 _~1,_9_61_,,1_2_1_.0_9

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represent 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 Irwin 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.

-27-

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

SCHEDULE 2

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Band EquipmenVUniforms Governor's Emergency Funds (1)

$ 25,000.00 10,000.00

$ 25,000.00 10,000.00

Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School
Year 2000 Project Funding
Lottery Programs Assislive Technology Computers in the Classroom Exceptional Growth-Capital Outlay

$ 4,480,092.00 911,642.00 166,962.00 187,776.00 50,775.00
1,219,129.00
287,907.00 72,455.00 163,726.00
250,182.00 71,290.00 17,283.00 28,842.00
-696,354.00 663,814.00
208,523.00
42,245.00 2,000.00 7,895.84
131,192.29 2,430.00 18,927.00 4,305.17 11,511.00

53,856.00
14,008.05 53,000.00
$ 163,533.60

4,480,092.00 911,642.00 166,962.00 187,776.00 50,775.00
1,219,129.00
287,907.00 72,455.00
163,726.00 250,182.00
71,290.00 17,283.00 28,842.00 -696,354.00 663,814.00 53,856.00 208,523.00
42,245.00 2,000.00 7,895.84
131,192.29 2,430.00 18,927.00 4,305.17 11,511.00
14,008.05 53,000.00 163,533.60

Human Resources, Georgia Department of Family Connection

50,000.00

50,000.00

Office of School Readiness Pre-Kindergarten Program

318,121.35

318,121.35

Office of Treasury and Fiscal Services Public School Employees Retirement

28,503.00

28,503.00

CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Middle School After-School/Summer Program Reading First Program

36,000.00 30,776.00 24,926.00

36,000.00 30,776.00 24,926.00


$ 8,424,755.30 $ 523,985.40 $ 163,533.60 $ 9,112,274.30
(1) The purpose of the funds are for the construction and lighting of two little league ball fields for the City of Ocilla.

See notes to the general purpose financial statements.

- 28-

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

SCHEDULE "3"

PROJECT
Roof repair of The Alternative Center for Education
Retirement of previously incurred Debt with respect to Capital Outlay Projects of the school system

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 74,000.00 $ 76,954.14 $ 11,350.00 $ 65,604.14

1,398,375.88 1,411,077.86

552,837.42

858,240.44

$ 1,472,375.88 $ 1,488,032.00 $ 564,187.42 $ 923,844.58

(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 costs from project inception to completion.
(3) The voters of Irwin County approved the imposition of a 1o/o 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. - 29 -

IRWIN 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

100/o TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

5,746,472.00 $ _ __.:.;17....:4.L6:,:...::9..:.:4-~00=-

$

6,408,286.38

341 ,951 .42 $ ----=29;;;_;8:.z.,4.;.;:9:...::0.;.5;:.""-8

$

6,750,237.80



-21,378.11 $ _ _....;6:.z.,7:..:2:.;:8.?8.:,..:5.=;.;9:...::69=-

$

0.00 $ =====O=.O=O



See notes to the general purpose financial statements.
- 31 -

IRWIN 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 (*) Category IV (*)
Sub-Total - Regular Category VI (Gifted) (*)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C*l
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

426,607.00

$

383,946.30 $

0.00

1,208,471.00

1,087,623.90

$ 1,635,078.00 90 $ 1,471,570.20 $

0.00

515,167.00 90

463,650.30

992,505.00 90

893,254.50

511,382.00 90

460,243.80

412,493.00 90

371,243.70

413,467.00 90

372,120.30

$ 4,480,092.00

$

____ 4,032,082.80 $

0.00 _..;..;..

$

798,279.00

$

718,451.10 $

0.00

$

798,279.00 90 $

718,451.10 $

0.00

113,363.00 90

102,026.70

$

911,642.00

$

820,477.80 s_____o_.o_o

$

166,962.00 90 $

1so,2ss.so s_____o_.o_o

$ 5,558,696.00

- - - - - - $ 5,002,826.40 $

0.00

$

151,002.00 90 $

135,901.80 $

0.00

36,774.00 100

36,774.00

$

187,776.00

$

s_ _ _ _ 112,s1s.so

.;;.o.""o.;;..o

Total Fourteen Weighted and Media Center Programs $ 5,746,472.00 ---- -------- ---

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

16,478.00

34,297.00

$

---

5,175,502.20

.

--------

$

0.00

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

$

16,478.00 $

0.00

34,297.00

0.00

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

$

50,775.00 100 $ ----5-0-,7- .75-.0- 0 $

0.00

See notes to the general purpose financial statements.

32

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

383,946.30 $

493,548.38 $

10,481.35 $

504,029.73

1,087,623.90

1,358,259.32

39,409.51

1,397,668.83

$ 1,471,570.20 $ 1,851,807.70 $

49,890.86 $ 1,901,698.56 $

0.00

463,650.30

578,153.85

27,825.12

605,978.97

0.00

893,254.50

925,819.34

67,666.17

993,485.51

0.00

460,243.80

727,650.09

66,391.93

794,042.02

0.00

371,243.70

495,561.04

15,947.50

511,508.54

0.00

372,120.30

498,819.53

48,454.08

547,273.61

0.00

$ 4,032,082.80 $ 5,077,811.55 $

276,175.66 $ 5,353,987.21

$

718,451.10

$

12,417.18 $ 224,576.48 529,503.84
35,317.43

182.84 $ 4,591.06 12,274.90
654.64

12,600.02 229,167.54 541,778.74
35,972.07

$

718,451.10 $

801,814.93 $

17,703.44 $

819,518.37

0.00

102,026.70

130,571.51

2,340.30

132,911.81

0.00

$

820,477.80 $

932,386.44 $

- - - ~ - - 20,043.74 $

952,430.18

$

150,265.80 $

232,395.12 $

- - - ~ - - 2,271.18 $

234,666.30

0.00

$ 5,002,826.40 $ 6,242,593.11 $

298,490.58 $ 6,541,083.69

$

135,901.80 $

165,693.27

$

165,693.27

0.00

36,774.00 - - - - - - $ _ _ _4;.;;3.,_,4;.;;6.;;.;0.;.;;84.;.

43,460.84

0.00

$

172,675.80 $

165,693.27 $

- - - - - - 43,460.84 $

209,154.11

$ 5,175,502.20 $

6,40-8-,-2-8-6-.3 8 $

341,951.42 $

6,750,237.80$ -----

0.00 - - - ---- -- ---- ---

$

16,478.00

34,297.00

$ ====5=0=,7-7=5=.0=0

$

26,413.19 $

26,413.19

24,769.38

24,769.38

$

51,182.57 $

- - - - - - - - -

51,182.57 $ - - -

0.00
- --- ------------

- 33 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS


w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-84()0
February 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Irwin 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 ofIrwin County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated February 8, 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 generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Compliance

As part ofobtaining reasonable assurance about whether Irwin County Board ofEducation's financial



statements are free of material misstatement, we perfo11ned tests of its compliance with certain

provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct

and material effect on the dete1mination of financial statement amounts. However, providing an

opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we

do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that

are required to be reported under Government Auditing Standards.

Internal Control Over Financial Reporting

In planning and perfo11ning our audit, we considered Irwin County Board of Education's internal control over financial reporting in order to dete1n1ine 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

2000YB-40

over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Irwin 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 ofFindings and Questioned Costs as item FS-6771-00-03.

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 no11nal course of perfotming their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is also considered to be a material weakness.
This report is intended solely for the info1111ation and use of management, members of the Irwin . County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp
2000YB-40

uJ.
Russell W. Hinton State Auditor

w. RUSSELi,

HtNTON

STATE AUDITOR

(404) 656-2174

..-......... I 1 7 t,
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Irwin County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Irwin County Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Irwin County Board of Education's major Federal program is identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major Federal program is the responsibility of Irwin County Board of Education's management. Our responsibility is to express an opinion on Irwin County Board of Education's compliance based on our audit.


We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo1n1 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Irwin County Board ofEducation's compliance with those requirements and perfo1n1ing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete11nination on Irwin County Board of Education's compliance with those requirements.
2000SA-10

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

Internal Control Over Compliance

The management ofIrwin County Board ofEducation is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and perfo11ning our audit, we considered Irwin County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to 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.

Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the no11nal course of perfotming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.

This report is intended solely for the info11nation and use of management, members of the Irwin 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
2000SA-10

Respectfully submitted,
N~o, a? tLJ.
Russell W. Hinton State Auditor


.1,.,0A,

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

IRWIN COUNTY BOARD OF EDUCATION

s

AUDITEE'S RESPONSE Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6771-98-01 FS-6771-99-01 FS-6771-99-02

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

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Comply With Capital Lease Requirements Nonmaterial Noncompliance Finding Control Number: FS-6771-99-01

The Irwin County Board ofEducation concurs with the finding listed in the FY 1999 audit report regarding failure to comply with capital lease agreements. However, due to limited revenue, the Board was financially unable to purchase computers/buses/copiers without lease purchase agreements. This finding should resolve itself with the FY 2001 audit.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-6771-99-02

The Irwin County Board ofEducation concurs with the finding listed in the FY 1999 audit report regarding the failure to maintain General Fixed Assets on the financial statements. However, due to budgetary constraints and being a small system, the Board is unable to hire the additional staffrequired for the recording of general fixed assets.

SECTION IV FINDINGS AND QUESTIONED COSTS

IRWIN 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 Irwin 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 Irwin 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 ofthe Irwin County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Maior Programs The audit report for the Irwin 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 Irwin County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Irwin 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: 84.010 Elementary and Secondary Education Act - Title I- Grants to Local Educational Agencies
8. Type "A'' Program Dollar Threshold
The dollar threshold for type ''A'' programs was $300,000.00.
9. Low Risk Auditee The Irwin County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.
- 1-

IRWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Comply With Capital Lease Requirements Nonmaterial Noncompliance Finding Control Number: FS-6771-00-01
The Board's capital lease payments exceeded the maximum amount prescribed by law. The Board's attention is directed to the Official Code of Georgia Annotated Section 20-2-506(b)(4), which provides, in part as follows:
''The total combined annual payments for contracts under this Code Section and contracts of such school system under Article IX Section ill, Paragraph I of the Constitution in any calendar year, excluding guaranteed energy savings contracts, shall not exceed an amount equal to 7.5 percent ofthe total local revenue collected for maintenance and operation ofthe school system in the most recently completed fiscal year...''
.
Capital lease payments exceeded this upper limitation by $186,473.34. The Board should reduce the total combined fiscal year contractual payments by selecting contracts which may be paid in full, te1minating contracts by giving the requisite notice oftt::1mination or by renegotiating a new contract with the vendor at a price which will be within the limitation established by OCGA 20-2-506(b)(4).
Management's Response:
The Irwin County Board of Education concurs with the finding listed in the FY 2000 audit report regarding failure to comply with capital lease agreements. However, due to limited revenue, the Board was financially unable to purchase computers/buses/copiers without lease purchase agreements. This finding should resolve itself with FY 2001 audit.
GENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial - Noncompliance Finding Control Number: FS-6771-00-02
The Board failed to transfer required local effort funds during fiscal year 2000 for Georgia State Financing and Investment Commission projects as required for approved State Capital Outlay Projects. Both the instructions in Chapter 41 ofthe Financial Management for Georgia Local Units of Administration handbook and the agreement signed by the Board to receive funding through Georgia State Financing and Investment Commission require that the Board transfer local matching funds by fiscal year end and designate those funds by project name and number. A correcting audit adjustment was necessary to transfer $20,189.00 from the General Fund to Lottery Exceptional Growth Project No. OOG/99S-677-046 as required. The Board should implement procedures to ensure that all required local transfers are made by the date required.
-2-

IRWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial - Noncompliance Finding Control Number: FS-6771-00-02
Management's Response:
The Irwin County Board of Education concurs with the findings listed in the FY 2000 audit report regarding the failure to maintain General Fixed Assets on the financial statements. However, due to budgetary constraints and being a small system, the Board is unable to hire the additional staff required for the recording of general fixed assets.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6771-00-03
The Irwin County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the f01111al accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory 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:
Local monies have been expended in this project since closing FY 2000.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-3-