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AUDIT REPORT JACKSON COUNTY BOARD OF EDUCATION
JEFFERSON, GEORGIA YEAR ENDED JUNE 30, 1999
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

JACKSON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

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 ACTIJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDffiONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

30

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

31

JACKSON 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 APPROVED LOCAL OPTION SALES TAX PROJECTS

35

4 SCHEDULEOFEXPENDITURES

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

37

6

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 III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta, Georgia 30334-8400
February 25, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jackson 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 Jackson 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 Jackson 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 of related 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 Jackson County Board of Education as of June 30, 1999, 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 25, 2000, on our consideration of the Jackson County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Jackson County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits 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,
uj.~

RWH:gp 99ARL-13

State Auditor

JACKSON COUNTY BOARD OF EDUCATION

JACKSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1999

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Consumable Supplies Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

792,148.68

$

381,373.61

3,464,007.53

666,599.77

692,313.95 $

568,479.87

662,490.44

14,777.50

37,859.66 12,789.41

Total Assets

$ 4,963,247.66 $

619,128.94 $ 1,710,463.82

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Inventories Consumable Supplies
Food
Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Deficit Undesignated
Total Fund Equity

$

28,854.67

$

848,802.69

220,101.79

220,780.43

703.32 $

$

848,802.69 $

470,440.21 $

5,300.00 5,300.00

$

43,392.00

14,777.50
$

37,859.66 12,789.41
$

1,695,384.70 1,729.00

4,056,275.47
$ 4114 444.97 $

98,039.66
148,688.73 $

8,050.12 1,705, 163.82

Total Liabilities and Fund Equity

$

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

4!963,247.66 $

2

6191128.94 $ 1?101463.82

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES EXPENDABLE TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum Onl:t) JUNE 30, 1999 JUNE 30, 1998

$

3,098.05 $

575.94

$ 1,177,196.28 $ 1,509,844.65

1,408.42

4,132,015.72

5,777,444.59

30,490.75

1,953,775.01

1,342,738.99

9,733.14

$

34,997.22

14,777.50
37,859.66 12,789.41
34,997.22

23,437.12 12,434.06
33,946.58

18,650,002.78 282,917.06

18,650,002.78 282,917.06

18,391,053.42 592,201.41

$

34 997.22 $

575.94 $

18,967,917.06 $ 26,296,330.64 $ 27,692,833.96

$

28,854.67 $

89,063.34

1,068,904.48

1,080,211.69

220,780.43

199,145.12

4,995,000.00

703.32

3,411.48

5,300.00

15,300.00

$

282,917.06

282,917.06

592,201.41

18,685,000.00

18,685,000.00

18,425,000.00

$

18,967,917.06 $ 20,292,459.96 $ 25,399,333.04

$

34,997.22

0.00 $

$

34,997.22 $

$

34,997.22 $

575.94 575.94

$

43,392.00

$

3,281.13

34,997.22

33,946.58

14,777.50

37,859.66 12,789.41
1,695,384.70 1,729.00

23,437.12 12,434.06 2,895.28
729.00

4,162,941.19

-10,107.59 2,226,885.34

$ 6,003,870.68 $ 2,293,500.92

575.94 $

18,967,917.06 $ 26,296,330.64 $ 27,692,833.96

-3-

JACKSON 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

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
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Discount on Bonds Sold Payments to Bond Escrow Agent 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

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 18,203,660.80 $
9,898,413.06 603,457.99
$ 28,705,531.85 $

787,878.61 2,459,466.56
$ 845,058.43
4,092,403.60 $

2,408,801.25 84,328.80
2,493,130.05

$ 16,775,589.10 $
1,255,361.74 665,852.03 704,987.09 309,533.36
1,939,800.97 381,937.68
1,968,658.44 1,427,318.86
472,195.03 24,875.34 72,151.96
209,294.52 88,616.28
309,284.35 35,497.62 1,350.90
$ 26,642,305.27 $
$ 2,063,226.58 $

1,401,802.05 228,761.55 210,942.19 39,708.79 34,217.92 $ 7,799.99 34,163.64 145,876.72
1,859,152.84 25,381.65
3,987,807.34 $ 104,596.26 $

96,461.31
870,196.26 966,657.57 1,526,472.48

$

$

-104,737.93

$

-104,737.93 $

$ 1,958,488.65 $ 2,155,956.32

269.86 $

104,468.07

269.86 $

104,468.07

104,866.12 $ 29,044.72

1,630,940.55 74,223.27

14,422.54 355.35

FUND BALANCE JUNE 30

$ 4114 444.97 $

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

-4-

148,688.73 $ 1,705,163.82

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY
FUND TYPES EXPENDABLE TRUST FUNDS

TOTALS (Memorandum Onl:t)
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ 18,991,539.41

2,459,466.56

$ 1,774,727.02

14,081,941.33

7,887.71

1,540,732.93 $

$ 1,782,614.73 $ 37,073,680.23 $

$ 245.91

18,991,539.41 $ 2,459,466.56 14,081,941.33 1,540,978.84

17,546,292.21 2,282,454.33 11,648,223.00 1,378,748.67

245.91 $ 37,073,926.14 $ 32,855,718.21

$ 18,177,391.15 $

1,484,123.29 876,794.22 744,695.88 343,751.28
1,939,800.97 478,398.99
1,976,458.43 1,461,482.50
472,195.03 170,752.06 1,931,304.80 234,676.17 958,812.54

$ 1,005,000.00 830,717.92 2,549.95

1,314,284.35 866,215.54 3,900.85

$ 1,838,267.87 $ 33,435,038.05 $

$

-55,653.14 $ 3,638,642.18 $

$

56,703.78 $

56,703.78

-176,829.76

-176,829.76

12,320,000.00 -12,095.70
-12,131,074.54

12,320,000.00 -12,095.70
-12, 131,074.54

104,737.93 -104,737.93

$

56,703.78 $

56,703.78

$

1,050.64 $ 3,695,345.96 $

33,946.58

2,293,170.89

14,422.54 355.35

$

34,997.22 $ 6,003,294.74 $

0.00 $ 18,177,391.15 $ 16,522,184.26

1,484,123.29 876,794.22 744,695.88 343,751.28
1,939,800.97 478,398.99
1,976,458.43 1,461,482.50
472,195.03 170,752.06 1,931,304.80 234,676.17 958,812.54

1,279,288.19 837,467.50 676,757.11 264,930.51
1,858,507.61 305,313.85
1,737,100.48 1,512,552.17
452,603.93 167,970.07 1,790,153.93 213,205.54 1,947,020.15

1,314,284.35 866,215.54 3,900.85

1,032,620.69 1,106,784.84
3175.66

0.00 $ 33,435,038.05 $ 31,707,636.49

245.91 $ 3,638,888.09 $ 1,148,081.72

$

56,703.78

-176,829.76

12,320,000.00 -12,095.70
-12, 131,074.54 $
104,737.93 -104,737.93

$

56,703.78 $

29,315.00 29,315.00

245.91 $ 330.03

3,695,591.87 $ 2,293,500.92

1,177,396.72 1,119,030.93

14,422.54 355.35

-3,291.22 364.49

575.94 $ 6,003,870.68 $ 2,293,500.92

-5-

JACKSON 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"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 17,466,285.77 $ 18,203,660.80

9,300,000.00 416,000.00

9,898,413.06 603,457.99

Total Revenues

$ 27,182,285.77 $ 28,705,531.85

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 Debt Service

$ 17,533,114.99 $ 16,775,589.10

996,133.98 357,396.17 795,654.17 308,563.33 1,850,586.91 296,909.34 1,923,564.66 1,608, 163.40 626,814.18
69,426.09
550,000.00 264,567.74

1,255,361.74 665,852.03 704,987.09 309,533.36
1,939,800.97 381,937.68
1,968,658.44 1,427,318.86
472,195.03 24,875.34 72,151.96 209,294.52 88,616.28 346,132.87

Total Expenditures

$ 27,180,894.96 $ 26,642,305.27

Excess of Revenues over (under) Expenditures

$

1,390.81 $ 2,063,226.58

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -104,737.93

Total Other Financing Sources (Uses)

$ -104,737.93

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

1,390.81 $ 1,958,488.65

FUND BALANCE JULY 1. 1998

2,100,000.00

2,155,956.32

Food Inventory - Net Change in Period Donated Commodities Purchased Foods

FUND BALANCE JUNE 30. 1999

$ 2,101,390.81 $ 4,114,444.97

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 481,882.43 $ 787,878.61 2,516,572.13 2,459,466.56

502,444.00

845,058.43

$ 3,500,898.56 $ 4,092,403.60

$ 1,391,497.56 $ 1,401,802.05

240,758.00 211,969.00
42,303.00 24,390.00

228,761.55 210,942.19
39,708.79 34,217.92

21,648.00
132,291.00 1,431,242.00
4,800.00

7,799.99 34,163.64
145,876.72 1,859,152.84
25,381.65

$ 3,500,898.56 $ 3,987,807.34

$

0.00 $ 104,596.26

$

269.86

$

269.86

$

0.00 $ 104,866.12

0.00

29,044.72

14,422.54 355.35

$=====0.=00== $ 148,688.73

The notes to the general purpose financial statements are an integral part of this statement. -6-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Jackson County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To 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 ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
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.
-7-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

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.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND 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:
EXPENDABLE TRUST FUNDS Student Achievement Recognition Fund - the fund used to account for donations which may be expended to provide awards made at the discretion of the Board.
Staff Vending Account - the fund used to account for commissions earned from vending machines located in the Jackson County Board of Education Central Office to be used for miscellaneous expenditures and for central office improvement.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting 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 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-Term Debt Account Group.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:

- 8-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe 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, 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 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.
BUDGET
The Jackson 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 of this 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 ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
-9-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(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 ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant 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
- 10-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Jackson County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 15, 1998 (levy date). Taxes were due on January 15, 1999. The lien date for property taxes was 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 Jackson 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.

Tax millage rates levied for the 1998 tax year (calendar year) for the Jackson County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

18.38 mills 1.00 mills

19.38 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 $3,590,954.68 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $10,497,344.10 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time 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.

- 11 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CONSUMABLE SUPPLIES INVENTORIES Inventories of consumable supplies are reported on the Combined Balance Sheet at cost (weighted average). Consumable supplies are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for consumable supplies are equally offset by a reservation of fund balance which indicates that this amount does not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position
- 12 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
or results of operations 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.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-1 l(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 of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use 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.

- 13 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $2,130,245.40. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1999, as follows:

Risk Category

Bank Balance

1

$ 203,598.37

2

1,663,499.06

3

263,147.97

Total

$2,130,245.40

CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value of the Board's total investments was $4,132,015.72 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating

- 14-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS

and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and 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:

1998 1999

Beginning ofYear Liability

Claims and Changes in Estimates

$

0.00 $

390.00 $

$

0.00 $

4 341.00 $

Claims Paid

End ofYear Liability

390.00 $

0.00

4 341.00 $

0.00

- 15 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 4: RISK MANAGEMENT

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

Position Covered

Amount

Superintendent All Employees

$ 50,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Jackson County Board ofEducation entered into an agreement on April 1, 1991, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease of various school facilities. Under the terms ofthe lease agreement, the Board will make semi-annual payments through July 1, 2001. The lease includes an annual renewal clause. In addition, the Jackson County Board of Education has entered into lease agreements as lessee for computer equipment and a vehicle.

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.

ADVANCE REFUNDING During fiscal year 1999, the Jackson County Board ofEducation issued $12,320,000.00 in General Obligation Refunding Bonds to advance refund $11,055,000.00 ofoutstanding bonds. The bond issue of$12,320,000.00 less original issue discount of$12,095.70 and underwriters and bond issue cost of$176,829.76 provided net proceeds of$12,131,074.54. The total net proceeds were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on a portion ofthe 1994 Bond issue. As a result, a portion of the 1994 Series Bonds are considered defeased, and the liability for this portion has been removed from the General Long-Term Debt Account Group. The Jackson County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over 14 years beginning subsequent to fiscal year 1999 by $416,000.00 and to obtain an economic gain (difference between the present values oftotal debt service payments and the old and new debt) of $311,000.00.

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

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1993 General Government - Series 1994 General Government - Refunding - Series 1998

3.00% - 5.50% 3.70%- 6.00% 3.50%-4.75%

$ 4,970,000.00 1,615,000.00 12,100,000.00

$18,685.000.00

- 16 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows:

Balance July I, 1998
Additions G.O. Bonds
Deductions Debt Defeased Debt Retired Payments
Balance June 30, 1999

CaQital Leases

GSBA

Other

General Obligation
Bonds

Total

$ 510,298.87 $ 81,902.54 $ I 8,425,000.00 $19,017,201.41

12,320,000.00 12,320,000.00

240,000.00 $ 270,298.87 $

69,284.35

11,055,000.00 1,005,000.00

11,055,000.00 1,005,000.00 309,284.35

12,618.19 $ 18,685,000.00 $ 18,967,917.06

At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
2000 2001 2002 2003 2004 2005 - 2009 2010 - 2014 2015 -2019
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments

CaQital Leases

GSBA

Other

General Obligation
Bonds

Total Debt

$

8,850.27 $

280,663.75

10,610.40 $ 439,787.50 $ 459,248.17 2,497.93 1,758,923.75 2,042,085.43
1,756, I 00.00 1,756,100.00 1,750,202.50 1,750,202.50 1,746,057.50 I,746,057.50 8,683,802.50 8,683,802.50 8,562,262.50 8,562,262.50 1,684,068.75 1,684,068.75

$ 289,514.02 $ 13,108.33 $ 26,381,205.00 $ 26,683,827.35

19,215.15

490.14

$ 270,298.87 $ 12,618.19

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$388,769.79 for health insurance and retirement contributions paid on the Board's behalfby 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$293,352.16

- 17 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 6: ON-BEHALF PAYMENTS
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $21,819.63
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 $73,598.00
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter 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 8: ACCUMULATED EMPLOYEES' LEAVE
The Board's administrative staff and certain other full-time employees earn .84 days per month of annual leave. Annual leave may be accumulated to a maximum of twenty days, and an amount based on unused leave, up to the maximum accumulation, is paid to employees, at their current rate of pay, upon retirement or termination of employment. See Note 1 - Compensated Absences
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System 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% oftheir 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:
- 18 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 9: RETIREMENT PLANS
Fiscal Year
1999 1998 1997

Percentage Contributed
100% 100% 100%

Required Contribution
$1,915,269.10 $ 1,727,894.25 $ 1,545,110.86

- 19 -

JACKSON 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
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 Deficit Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 227,596.95 $

65,652.21

116,679.30

5,374.35

37,859.66 12,789.41

$

394,925.32 $ ====71=,0=2=6.=56=

$ 155,144.05 $ 91,092.54

20,122.04 50,904.52

$ 246,236.59 $

71,026.56

$

37,859.66

12,789.41

98,039.66 $

0.00

$ 148,688.73 $

0.00

$ 394,925.32 $ =====7=1=,0=2=6=.5=6=

See notes to the general purpose financial statements.

-20-

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS
JUNE 30, 1999 JUNE 30, 1998

$

0.00 $ 293,249.16 $

60,620.54

$ 446,426.22

568,479.87

395,645.22

37,859.66 12,789.41

23,437.12 12,434.06

$ 446,426.22 $

0.00 $ 912,378.10 $ 492,136.94

$ 322,103.83 44,835.70 78,783.37 703.32
$ 446,426.22

$ 322,103.83 $ 149,683.88

220,101.79

113,479.97

220;780.43

199,145.12

703.32

783.25

$ 763,689.37 $ 463,092.22

$

0.00 $

$

0.00 $

$ 446,426.22 $

$

3,281.13

$
0.00 0.00 $

37,859.66 12,789.41
98,039.66 148,688.73 $

23,437.12 12,434.06
-10,107.59 0.00
29,044.72

0.00 $ 912,378.10 $ 492,136.94

- 21 -

JACKSON 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

$ 126,244.00 $ 1,003,797.65 845,058.43
$ 1,975,100.08 $

538,573.61 538,573.61

$

$

7,799.99

1,859,152.84

416,191.45
103,876.18 1,080.00
14,794.84
2,631.14

$ 1,866,952.83 $

$

108,147.25 $

538,573.61 0.00

$ 108,147.25 $

0.00

25,763.59

0.00

14,422.54 355.35

$ 148,688.73 $ ======-=0.=00=

See notes to the general purpose financial statements.

-22-

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ $ 1,455,668.91
$ 1,455,668.91 $

123,061.00 $

787,878.61 $ 2,459,466.56
845,058.43

623,407.08 2,282,454.33
729,968.45

123,061.00 $ 4,092,403.60 $ 3,635,829.86

$ 876,612.67 $

124,885.37 195,799.12 39,708.79
19,423.08

31,532.50 145,876.72

25,381.65

$ 1,459,219.90 $

$

-3,550.99 $

108,997.93 $ 1,401,802.05 $ 1,281,389.93

14,063.07

228,761.55 210,942.19
39,708.79 34,217.92
7,799.99 34,163.64 145,876.72 1,859,152.84 25,381.65

204,181.62 188,651.29 23,677.71
11,218.98 4,061.83 15,307.42 125,553.79 1,718,155.93 13,736.12

123,061.00 $ 3,987,807.34 $ 3,585,934.62

0.00 $ 104,596.26 $

49,895.24

269.86

$

-3,281.13 $

3,281.13

269.86

0.00 $ 0.00

104,866.12 $ 29,044.72

49,895.24 -17,923.79

14,422.54 355.35

-3,291.22 364.49

$

0.00 $====0.=00= $ 148,688.73 $

29,044.72

-23-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

8,050.12 $

0.00 $

1,729.00

Total Assets

$

8,050.12 $

o.oo $ ===1=,1=29=.o=o=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Notes Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

1,729.00

$

8,050.12 $ _ _ _ _.;;.;0=00;;_

0.00

$

8,050.12 $

0.00 $ ------1',7-2~9.0-0-

$

8,050.12 $

o.oo $ ===...,1,=12=9=0=0=

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

371,594.49 $

666,599.77

662,490.44

LOTTERY PROJECT

TOTALS

JUNE 30, 1999

JUNE 30, 1998

0.00 $

381,373.61 $

332,944.04

666,599.77

1,268,400.84

662,490.44

505,963.39

$ 1,700,684.70 $

0.00 $ 1,710,463.82 $ 2,107,308.27

$ _ _ _5....3..._oo_.o_o_ $ _ ___;.5..:..;;,3....;.0..;..;0...;;..00~

$

$ .___ _5.,_,3_oo_._oo_

$

5,300.00 $

17,785.00 2,000,000.00
15,300.00
2,033,085.00

$ 1,695,384.70 0.00 $
$ 1,695,384.70 $
$ 1,700,684.70 $

$
0.00 0.00 $

$ 1,695,384.70
1,729.00
8,050.12
1,7051163.82 $

2,895.28 729.00
70,598.99 74,223.27

0.00 $ 1,710,463.82 $ 2,107,308.27

-25-

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1999

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
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

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

638.42 $

0.00 $

0.00

$

638.42 $

0.00 $

0.00

$

104,468.07

$

$

104,468.07 $

$ -103,829.65 $

$ 2,895.28

142,289.00

2,895.28 $ -2,895.28 $

142,289.00 -142,289.00

$

104,468.07

$

104,468.07

$

638.42 $

7 411.70

$ $ -2,895.28 $ 2,895.28

143,289.00 143,289.00
1,000.00 729.00

FUND BALANCE JUNE 30

$

8,050.12 $

0.00 $ ====1=7=' 29=:0=0==

See notes to the general purpose financial statements.

-26-

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$ 2,408,801.25 $ 83,690.38

0.00 $

2,408,801.25 $ 84,328.80

2,472,271.68 82,140.75

$ 2,492A91.63 $ _ _ _ _0._00_ $ 2,493,130.05 $ 2,554,412.43

$

96,461.31

481,988.91 $

$

578,450.22 $

$ 1914041.41 $

$ 138,555.00
138,555.00 $ -138,555.00 $

96,461.31 $ 867,300.98
2,895.28
966,657.57 $ 1,526,472.48 $

52,126.72
6,385.00 1,840,224.77
33,965.40
1,932,701.89
621,710.54

$ $ -281,844.00
$ -281,844.00 $

138,555.00 $ 138,555.00 $

386,312.07 $ -281 ,844.00
104,468.07 $

272,133.50 -272, 133 .50
0.00

$ 1,632,197.41 $ 63,187.29

0.00 $ 0.00

1,630,940.55 $ 74,223.27

621,710.54 -547,487.27

$ 1,695,384.70 $====0====00= $ 1,705,163.82 $===7=4=,2=23=.2=7=

-27-

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 1999

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 1999

JUNE 30, 1998

$

3,098.05 $

0.00 $

3,098.05 $

4,316.01

1,408.42

1,408.42

4,154.69

30,490.75

30,490.75

251475.88

Total Assets
FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$

34,997.22 $

0.00 $

34,997.22 $ ====3=3,=94=6.=58=

$

34,997.22

$

34,997.22 $

33,946.58

0.00 $ _ _ _ _0:;..;..0,;;;..;0~

0.00

0.00

Total Fund Equity

$

341997.22 $

0.00 $

34,997.22 $ ====3=31=94=6.=58=

See notes to the general purpose financial statements.

- 28-

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30. 1999

EXHIBIT"J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

REVENUES

Taxes Other Funds

$

592,573.59 $ 1,182,153.43 $ 1,774,727.02 $

836,959.99

7 887.71

7 887.71

51 473.91

Total Revenues

$

600,461.30 $ 1,182,153.43 $ 1,782,614.73 $

888,433.90

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees

$

285,000.00 $

720,000.00 $ 1,005,000.00 $

755,000.00

368,564.49

462,153.43

830,717.92

1,053,857.50

2,549.95

2,549.95

1 824.76

Total Expenditures

$

656114.44 $ 1,182,153.43 $ 1,838,267.87 $ 1,810,682.26

Excess of Revenues over (under) Expenditures

$

-55,653.14 $

0.00 $

-55,653.14 $

-922,248.36

OTHER FINANCING SOURCES {USES)

Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Discount on Bonds Sold Payments to Bond Escrow Agent

$

56,703.78

-176,829.76

12,320,000.00 -12,095.70
-12,131,074.54

$

56,703.78

-176,829.76

12,320,000.00 -12,095.70
-12,131,074.54

Total Other Financing Sources (Uses)

$

56,703.78

$

56,703.78

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

1,050.64 $

0.00 $

1,050.64 $

-922,248.36

FUND BALANCE JULY 1

33,946.58

0.00

33,946.58

956,194.94

FUND BALANCE JUNE 30

$

34,997.22 $

0.00 $

34,997.22 $ ===3=3.!:,94=6==58=

See notes to the general purpose financial statements.

- 29-

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

EXHIBIT "K"

ASSETS Cash and Cash Equivalents

EXPENDABLE TRUST FUNDS

STUDENT

STAFF

ACHIEVEMENT

VENDING

RECOGNITION

ACCOUNT

FUND

TOTALS JUNE 30, 1999 JUNE 30, 1998

$

508.85 $

67.09 $

575.94 $

330.03

FUND EQUITY
Fund Balances Unreserved Undesignated

$

508.85 $

67.09 $

575.94 $ ===3=3=0=.0===3

See notes to the general purpose financial statements. - 30 -

JACKSON 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

EXHIBIT "L"

REVENUES
Other Funds
EXPENDITURES
Current Support Services General Administration
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

STAFF VENDING ACCOUNT

STUDENT ACHIEVEMENT RECOGNITION
FUND

TOTALS

YEAR ENDED

JUNE 301 1999

JUNE 30, 1998

$

245.91 $

0.00 $

245.91 $

597.30

$

0.00 $

$

245.91 $

262.94

0.00 $ 0.00 $ 67.09

0.00 $ 245.91 $ 330.03

209.35 387.95 -57.92

FUND BALANCE JUNE 30

$

508.85 $

67.09 $

575.94 $ ======33=0=.0=3

See notes to the general purpose financial statements.

- 31 -

JACKSON 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)
Total U. S. Department of Agriculture
Appalachian Regional Commission Direct Appalachian Regional Development Act of 1995 1999 Grant
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1999 Grant Preschool 1999 Grant
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1999 Grant Title II Eisenhower Professional Development 1998 Grant 1999 Grant Title Ill Technology Literacy Challenge Fund Grants 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant Goals2000 State and Local Education Systemic Improvement Grants 1999 Grant

CFDA NUMBER

PASS-
THROUGH ENTITY ID NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 .
10.555

N/A $ NIA
$

206,906.81 694,546.32 $ 901,453.13 $

(2) 1,764,608.31 (3) 1,764,608.31

10.550

NIA

102,344.52

102,344.52

$

1,003,797.65 $

1,866,952.83

23.002

$

42,984.50 $

42,984.50

84.027 84.173

NIA $ NIA
$

393,609.33 $
85,518.80
479,128.13 $

393,609.33 85,519.72 (3)
479,129.05

* 84.010

NIA

84.281

N/A

84.281

NIA

84.318

NIA

84.298

NIA

84.276

NIA

545,762.27 28,642.22 66,670.54 25,863.00 166,009.41

545,762.27 1,085.45
28,911.16 (3) 66,670.54 25,863.00
166,009.41

-32-

JACKSON 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 Safe and Drug-Free Schools 1999 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1998 Grant 1999 Grant
Total U. S. Department of Education

CFDA NUMBER

PASS-
THROUGH ENTITY ID NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.186
84.048 84.243

N/A $

23,372.00 $

23,372.00

N/A

58,097.00

58,097.00

N/A

5,000.00

5,000.00

84.011 84.011

N/A

2,195.68

N/A

14,139.84

14,139.84

$ 1,412,684.41 $ 1,416,235.40

Total Federal Financial Assistance NIA= Not Available

$ 2,459,466.56 $ =====3,=32=6=,1=7=2=.7=3

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 Jackson 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-

JACKSON 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 In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair 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 Joint Evening Program Mentor Teacher Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
Regents, Board of Pass -Through from University of Georgia Industry Certification Grant - Health Occupations P-16 Grant
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 9,950,886.00 2,684,387.00 379,318.00 438,566.00 129,174.00 2,786,739.00
816,732.00 223,587.00 341,110.00 683,148.00 128,576.00 567,355.00
40,256.00 86,527.00 -2,787,642.00 664,067.00
$ 117,040.24
110,350.00 40,000.00 14,534.01
1,000.00 293,352.16
5,000.00 111,976.00
4,125.00 84,000.00 47,357.00
4,087.76 21,819.63

$ 9,950,886.00 2,684,387.00 379,318.00 438,566.00 129,174.00 2,786,739.00

126,244.00

816,732.00 223,587.00 341,110.00 683,148.00 128,576.00 567,355.00
40,256.00 86,527.00 -2,787,642.00 664,067.00 126,244.00 117,040.24

110,350.00 40,000.00 14,534.01 1,000.00
293,352.16 5,000.00
111,976.00 4,125.00
84,000.00 47,357.00
4,087.76 21,819.63

10,149.03 94,068.00

10,149.03 94,068.00

434,356.58

434,356.58

73,598.00

73,598.00

2,000.00

2,000.00

140,635.00

123,061.00

140,635.00 123,061.00

$ 18,203,660.80 $

787,878.61 $ 18,991,539.41

See notes to the general purpose financial statements.

- 34-

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 1999

SCHEDULE "3"

PROJECT
Payment of portion of payments, including principal and interest due on Series 1993 and 1994 Bonds
Construction of two new elementary schools, parking area and grounds, including acquisition of real estate, furnishings, equipment and fixtures
Construction of additional classrooms, instructional and support space, remodeling and renovating existing classrooms, instructional and support space, recreational fields and grounds and furnishings, equipment and fixtures for such areas at North Jackson, South Jackson, Jackson County and Maysville Elementary Schools, East and West Jackson Middle Schools, Jackson County Comprehensive High School and Gordon Street School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 9,024,203.00 $ 9,024,203.00 $ 1,182,153.43 $ 276,929.54

12,000,000.00 12,000,000.00

762,832.91

6,385.00

9,000,000.00

9,000,000.00

1,000.00 2,417,614.79

$ 30,024,203.00 $ 30,024,203.00 $ 1,945,986.34 $ 2,700,929.33

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Jackson County approved the imposition of a 1% sales tax to fund the above projects and retire
associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the Board has incurred interest expense to provide advance funding for the above projects as follows:

Prior Year

$

52,126.72

Current Year

96,461.31

Total

$ 148,588.03

See notes to the general purpose financial statements.

- 35-

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

SCHEDULE "4"

EXPENDITURES

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

TOTAL

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

General Administration

Student Transportation Services

10,149.03 $

94,068.00 $

311,974.42 $ 416,191.45

103,876.18 1,080.00
14,794.84 2,631.14

103,876.18 1,080.00
14,794.84 2,631.14

Total Expenditures

$

10,149.03 $

94,068.00 $ ====4...,34..,.,3=5=6=.5=8 $ 538,573.61

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

$

420,543.06

10,149.03 94,068.00 13,813.52

$

538,573.61

See notes to the general purpose financial statements.

-36-

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

SCHEDULE "5"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

14,020,512.00 $

438,925.00

$

14,282,408.17

653,074.60 $ - - - -561~,754-.0-1

$

14,935,482.77

-249,414.55 $ _ _ _14~,6_8_6~,0_6_8_.2_2

$

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

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

JACKSON 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

$ 1,195,805.00

$ 1,076,224.50 $

2,947,231.00

2,652,507.90

$ 4,143,036.00 90 $ 3,728,732.40 $

1,201,657.00 90

1,081,491.30

2,049,372.00 90

1,844,434.80

1,315,643.00 90

1,184,078.70

631,228.00 90

568,105.20

609,950.00 90

548,955.00

$ 9,950,886.00

$ 8,955,797.40 $

0.00
0.00 300,000.00 144,355.00
114,500.00 558,855.00

$ 2,563,785.00

$ 2,307,406.50 $

0.00

$ 2,563,785.00 90 $ 2,307,406.50 $

120,602.00 90

108,541.80

$ 2,684,387.00

$ 2,415,948.30 $

$

379,318.00 90 $

341,386.20 $

$ 13,014,591.00

$ 11,713,131.90 $

0.00 8,500.00 8,500.00
0.00 567,355.00

$

347,247.00 90 $

312,522.30 $

0.00

91,319.00 100

91,319.00

$

438,566.00

$

403,841.30 $

0.00

$ 13,453,157.00

$ 12,116,973.20 $

567,355.00

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

$

40,702.00

$

40,702.00 $

0.00

88,472.00

88,472.00

0.00

$

129,174.00 100 $

129,174.oo $=======o=.o=o

- 38 -

SCHEDULE "6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,076,224.50 $ 1,164,161.08 $

33,616.36 $ 1,197,777.44

2,652,507.90

2,822,203.07

60,496.26

2,882,699.33

$ 3,728,732.40 $ 3,986,364.15 $

94,112.62 $ 4,080,476.77 $

0.00

1,381,491.30

1,566,705.11

23,404.25

1,590,109.36

0.00

1,988,789.80

2,210,275.98

50,946.14

2,261,222.12

0.00

1,184,078.70

1,672,770.42

185,571.87

1,858,342.29

0.00

568,105.20

558,811.60

29,535.34

588,346.94

0.00

663,455.00

801,131.29

81,835.65

882,966.94

0.00

$ 9,514,652.40 $ 10,796,058.55 $

465,405.87 $ 11,261,464.42

$ 2,307,406.50 $

59,149.11 $ 397,526.11 1,818,423.88 60,554.48 20,815.95

319.97 $ 10,574.46 71,234.24 2,249.70

59,469.08 408,100.57 1,889,658.12
62,804.18 20,815.95

$ 2,307,406.50 $ 2,356,469.53 $

84,378.37 $ 2,440,847.90

0.00

117,041.80

184,576.34

10,321.42

194,897.76

0.00

$ 2,424,448.30 $ 2,541,045.87 $

94,699.79 $ 2,635,745.66

$

341,386.20 $

348,643.79 $

1,648.35 $

350,292.14

0.00

$ 12,280,486.90 $ 13,685,748.21 $

561,754.01 $ 14,247,502.22

$

312,522.30 $

596,659.96

$

596,659.96

0.00

91,319.00

$

91,320.59

91,320.59

0.00

$

403,841.30 $

596,659.96 $

91,320.59 $

687,980.55

$ 12,684,328.20 $ 14,282,408.17 $

653,074.60 $ 14,935,482.77 $

0.00

$

40,702.00

88,472.00

$ ===12=9=,1=7=4.=00=

$

93,575.31 $

93,575.31

48,339.94

48,339.94

$ 141,915.25 $ 141,915.25 $=======o=.o=o

39 -

SECTION TI COMPLIANCE AND INTERNAL CONTROL REPORTS

RussELL W. H_1NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
February 25, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jackson 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 Jackson County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated February 25, 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 applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Jackson 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 Jackson 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
99YB-40

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 ourjudgement, could adversely affect Jackson County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6781-99-01.
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 Jackson 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 99YB-40

State Auditor

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S .W., Suite 214 Atlanta, Georgia 30334-8400
February 25, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jackson County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE 1N ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Jackson County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. Jackson County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Jackson County Board of Education's management. Our responsibility is to express an opinion on Jackson County Board ofEducation'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 Jackson 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 Jackson County Board of Education's compliance with those requirements.

99SA-10

In our opinion, the Jackson County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1999.
Internal Control Over Compliance
The management of Jackson 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 Jackson County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose 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 Jackson County Board of Education, 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

~LJ.~A~
Russell W. Hinton State Auditor

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

JACKSON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEARENDEDJUNE30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6781-93-02 FS-6781-97-01 FS-6781-97-02 FS-6781-98-01 FS-6781-98-02 FS-6781-98-03

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

CORRECTIVE ACTION/RESPONSES

REVENUES/RECENABLE/RECEIPTS Theft of Funds Amount: $4,035.00 Finding Control Number: 6781-93-02

The Board continues to work with the Superior Court of Jackson County through garnishment proceedings to recover theft of funds as reported. The Social Security Administration has no record of reportable wages for Ms. Dennis and her whereabouts are unknown. We continue to be in contact with the District Attorney's Office and will make every effort to recover the balance due.

GENERAL FIXED ASSETS Failure to Maintain a General Fixed Assets Account Group Finding Control Number: FS-6781-98-03

The Board chooses at the present time not to establish a General Fixed Assets Account Group due to the financial and personal resources required to establish this account.

SECTION IV FINDINGS AND QUESTIONED COSTS

JACKSON 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 Jackson 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 Jackson 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 Jackson County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Jackson County Board ofEducation 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 Jackson County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Reg,uired to be Reported by Section .5 lO(a) of 0MB Circular A-133
The Jackson County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB 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 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 Jackson County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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JACKSON 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-6781-99-01 The Jackson County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements 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 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 not be liprited 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. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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