Audit report, Jeff Davis County Board of Education, Hazlehurst, Georgia, year ended June 30, 1999

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AUDIT REPORT

JEFF DAVIS COUNTY BOARD OF EDUCATION

HAZLEHURST,GEORGIA

l

YEAR ENDED JUNE 30, 1999

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

JEFF DAVIS 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

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

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

23

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

27

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

28

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

29

6

BYPROGRAM

30

JEFF DAVIS 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 INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RussELL W. H1NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 20, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Jeff Davis County Board ofEducation
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 Jeff Davis 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 Jeff Davis County Board of Education's management. Our responsibility is to express an opinion on these general pmpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
99ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department of Education for the State's share ofthese 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 ofthe JeffDavis County Board of Education as ofJune 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
fu accordance with Government Auditing Standards, we have also issued our report dated June 20, 2000, on our consideration of the JeffDavis County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Jeff Davis County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) 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,
~~... CO L<J.~ ~)!en W. Hinton State Auditor
RWH:jb 99ARL-13

JEFF DAVIS COUNTY BOARD OF EDUCATION

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

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 Compensated Absences

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

265,373.02 $

119,730.81

1,404,436.03

301,926.08

306,442.47

17,736.03 10,267.68

Total Assets

$ 1,971,735.13 $

454,176.99

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of State Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food Unreserved Designated for Equipment Purchases Undesignated
Total Fund Equity

$

210,789.99 $

29,330.96

6,100.00

131,467.76

170.00

$

216,889.99 $

160,968.72

$

9,919.32

$

14,098.92

6,171.90

12,662.17 1,726,091.75
$ 1.754,845.14 $

17,736.03 10,267.68
251,105.64 293,208.27

Total Liabilities and Fund Equity
The notes to the general purpose financial statements are an integral part of this statement. -2-

$ 1,971,735.13 $

454,176.99

EXHIBIT"A"

TYPES CAPITAL
PROJECTS FUND

$

355,142.92

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30, 1999 JUNE 30, 1998

$

740,246.75 $

464,766.59

1,404,436.03

1,989,993.19

608,368.55

729,959.94

17,736.03 10,267.68

17,458.47 11,535.98

$

31,965.20

208,007.12

31,965.20 208,007.12

52,287.00 218,945.41

$

355,142.92 $

239,972.32 $ 3,021,027.36 $ 3,484,946.58

$

134,168.09

95,391.64 125,583.19
$

$

355,142.92 $

$
31,965.20 208,007.12 239,972.32 $

$ 374,289.04 137,567.76
170.00 95,391.64 125,583.19 31,965.20 208,007.12
972,973.95 $

26,084.10 233,567.64 100,536.65
8,774.00 383,495.07 220,796.59 52,287.00 218,945.41
1,244,486.46

$

0.00

$

0.00

$

355,142.92 $

$

9,919.32

14,098.92

$

6,171.90

1,369.34 3,093.94

17,736.03 10,267.68

17,458.47 11,535.98

12,662.17 1,977,197.39

6,052.77 2,200,949.62

$ 2,048,053.41 $ 2,240,460.12

239,972.32 $ 3,021 p27.36 $ 3,484,946.58 -3-

JEFF DAVIS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1999

EXHIBIT"B"

REVENUES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Onl~l YEAR ENDED

JUNE 30 1 1999

JUNE 30 1 1998

State Funds Federal Funds Taxes Other Funds

$ 10,540,017.44 $
3,048,770.63 226,072.21

493,953.96 $ 1,769,864.79
280,543.38

0.00 $

11,033,971.40 $ 1,769,864.79 3,048,770.63 506,615.59

12,008,240.10 1,397,940.20 2,825,095.68 536,561.35

Total Revenues

$ 13,814,860.28 $ 2,544,362.13 $

0.00 $ 16,359,222.41 $ 16,767,837.33

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

$ 8,692, 114.20 $ 1,170,232.20

$ 9,862,346.40 $ 9,128,313.09

506,792.48 381,727.09 353,550.10 357,161.67 830,392.91
71,963.31 973,923.66 581,961.13
2,471.68 62,104.53
37,663.71 29,496.05

46,064.95 92,022.56 40,367.00 33,720.37
6.25 950.00 81,781.88 20,092.35
2,760.67 1,051,900.81
$ 1,105,880.37

552,857.43 473,749.65 393,917.10 390,882.04 830,399.16
72,913.31 1,055,705.54
602,053.48 2,471.68
64,865.20 1,051,900.81
37,663.71 1,135,376.42

472,022.17 525,548.47 303,297.48 351,633.36 793,579.70
65,650.49 970,966.07 583,783.98
1,227.55 48,010.30 926,097.63 36,253.38 2,616,348.64

9,529.40 1 187.05

10,792.40 2 027.60

20,321.80 3,214.65

53,385.33 2 776.76

Total Expenditures

$ 12,892,038.97 $ 2,552,719.04 $ 1,105,880.37 $ 16,550,638.38 $ 16,878,894.40

Excess of Revenues over (under) Expenditures

$

922,821.31 $

-8 356.91 $ -1,105,880.37 $ -191 415.97 $ -111 057.07

OTHER FINANCING SOURCES (USES)

Capital Leases Operating Transfers In Operating Transfers Out

$ $ -1,137,256.59

31,376.22 $

1,105,880.37 $

$ 1, 137,256.59 -1,137,256.59

75,599.36 845,275.36 -845,275.36

Total Other Financing Sources (Uses)

$ -1, 137,256.59 $

31 376.22 $ 1,105,880.37 $

0.00 $

75,599.36

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

-214,435.28 $

23,019.31 $

0.00 $ -191,415.97 $

-35,457.71

FUND BALANCE JULY 1

1,969,280.42

271,179.70

0.00

2,240,460.12

2,273,610.36

Food Inventory - Net Change in Period Donated Commodities Purchased Food

277.56 -1 268.30

277.56 -1,268.30

1,847.71 459.76

FUND BALANCE JUNE 30

$ 1754845.14 $

2931208.27 $

0.00 $ 210481053.41 $ 212401460.12

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

JEFF DAVIS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - {NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1999

EXHIBIT"C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1998
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 10,293,987.94 $ 10,540,017.44

2,747,350.65 88,100.00

3,048,770.63 226,072.21

$ 13,129,438.59 $ 13,814,860.28

$ 8,988,173.84 $ 8,692,114.20

483,215.58 351,446.90 306,707.21 347,220.66 850,895.92
72,362.31 1,063,894.91
589,464.29 4,656.48
58,543.00

506,792.48 381,727.09 353,550.10 357,161.67 830,392.91
71,963.31 973,923.66 581,961.13
2,471.68 62,104.53

36,957.49

37,663.71 29,496.05 10,716.45

$ 13,153,538.59 $ 12,892,038.97

$

-24,100.00 $ 922,821.31

$ -1, 137,256.59 $ -1,137,256.59

$

-24,100.00 $ -214,435.28

2,596,530.02

1,969,280.42

FUND BALANCE JUNE 30, 1999

$ 2,572,430.02 $ 1,754,845.14

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 325,863.61 $ 493,953.96

1,231,286.00

1,769,864.79

319,286.77

280,543.38

$ 1,876,436.38 $ 2,544,362.13

$ 828,481.63 $ 1,170,232.20

43,045.75 23,090.00
3,550.00
4,750.00

46,064.95 92,022.56 40,367.00 33,720.37
6.25 950.00 81,781.88 20,092.35

1,281.00 975,238.00

2,760.67 1,051,900.81

12,820.00

$ 1,879,436.38 $ 2,552,719.04

$

-3,000.00 $

-8,356.91

$

31,376.22

$

31,376.22

$

-3,000.00 $

23,019.31

291,548.67

271,179.70

277.56 -1,268.30

$ 288,548.67 $ 293,208.27

The notes to the general purpose financial statements are an integral part of this statement. -5-

JEFF DAVIS 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 Jeff Davis 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-

JEFF DAVIS 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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for accrued compensated absences and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is 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 of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be :financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures
- 8-

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Jeff Davis County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
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 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 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 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,
-9-

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

TIJNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Jeff Davis County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 8, 1998 (levy date). Taxes were due on December 31, 1998. 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 Jeff Davis County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

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

School Operations

12.75 mills

-10-

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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.
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 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

- 11 -

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness 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.
CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $1,655,114.04. 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.
- 12 -

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS

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

$ 100,000.00

2

1,481,925.00

3

73,189.04

Total

$ 1.655.114.04

CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value ofthe Board's total investments was $1,404,436.03 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 of the 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 of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and 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 of the shares. Participation in the pool is voluntary and deposits consist offunds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-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

-13 -

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS

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 of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster 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 $

3,382.QQ $

$

331.00 $

2,012.00 $

Claims Paid

End ofYear Liability

3,058.0Q $ 2,343.0Q $

331.00 0.00

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

- 14-

JEFF DAVIS 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 Each Principal Each Assistant Principal

$ 25,000.00 $ 10,000.00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The JeffDavis County Board ofEducation has entered into various lease agreements as lessee for 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-Term Debt during the fiscal year ended June 30, 1999, were as follows:

Capital Leases

Compensated Absences

Total

Balance July 1, 1998

$ 15,980.55 $ 218,945.41 $ 234,925.96

Retroactive Restatement ofPrior Year Balances

36,306.45

36,306.45

Balance July 1, 1998 Restated

$ 52,287.00 $ 218,945.41 $ 271,232.41

Deductions Annual Leave Earned and Utilized (Net) Payments

20,321.80

10,938.29

10,938.29 20,321.80

Balance June 30, 1999

$ 31.965.20 $ 208.007.12 $ 239,972.32

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

- 15 -

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30
2000 2001
Total Principal and Interest
Deduct: hnputed Interest
Net Present Value of Future Minimum Lease Payments
Note 6: ON-BEHALF PAYMENTS

Capital Leases $ 23,536.45 10,716.45 $ 34,252.90
2,287.70
$ 31.965.20

The Board has recognized revenues and expenditures in the amount of $217,019.25 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$163,507.76

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $9,918.49

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 $43,593.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1999, together with funding available:

Project 95/94S-680-031

Unearned Executed Contracts
$ 639.888.18

Funding Available From State
$ 516.612.20

The amounts described in this note are not reflected in the general purpose financial statements.

- 16 -

JEFF DAVIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 9: ACCUMULATED EMPLOYEES' LEAVE

The Board's professional personnel earn one and one-quarter days ofsick and personal leave each month with a maximum accumulation of forty-five days. Upon termination of employment, all sick and personal leave is forfeited. Upon retirement, employees will be paid at the substitute teacher pay rate for unused accumulated leave up to the maximum accumulation allowed. See Note 1 - Compensated Absences

Note 10: 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:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$ 1,072,700.15 $ 991,540.21 $ 912,915.38

- 17 -

JEFF DAVIS 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 Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 238,422.35 $

24,726.92

55,790.06

17,736.03 10,267.68

-----=-= $ 322,216.12 $

24,726.92

$

6,797.47 $

4,485.30

36,309.30

20,241.62

$

43,106.77 $

24,726.92

$

17,736.03

10,267.68

251,105.64 $

0.00

$ 279,109.35 $

0.00

$ 322,216.12 $ ____2_4,..,7.2..6==92=

See notes to the general purpose financial statements.

- 18 -

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS
JUNE 30, 1999 JUNE 30, 1998

$ 263,149.27 $ 286,079.55

$ 200,652.41 $

50,000.00

306,442.47

416,476.69

17,736.03 10,267.68

17,458.47 11,535.98

$ 200,652.41 $

50,000.00 $ 597,595.45 $ 731,550.69

$

93,456.94 $

18,009.71

74,916.84

170.00

$ 186,553.49 $

49,961.52 $ 38.48
50,000.00 $

143,418.46 $ 29,330.96 131,467.76
170.00
304,387.18 $

312,163.65 38,896.69 100,536.65 8,774.00
460,370.99

$

14,098.92

0.00 $

$

14,098.92 $

$

14,098.92

$

1,369.34

0.00 0.00 $

17,736.03 10,267.68
251,105.64
293,208.27 $

17,458.47 11,535.98
240,815.91
271,179.70

$ 200,652.41 $

50,000.00 $ 597,595.45 $ 731,550.69

- 19 -

JEFF DAVIS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPEC~LREVENUEFUND 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 School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Capital Leases Operating Transfers In
Total Other Financing Sources
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

$

69,546.00 $

715,930.57

279,988.38

$ 1,065,464.95 $

257,746.96 555.00
258,301.96

$

$

3,274.41

1,051,900.81

$ 1,055,175.22 $

$

10,289.73 $

167,586.73
32,359.95 1,449.19
39,882.00 1,000.00
950.00 16,356.88
1,516.32
10,792.40 2,027.60
273,921.07
-15,619.11

$ $

$

10,289.73 $

269,810.36

277.56 -1,268.30

15,619.11 15,619.11
0.00 0.00

$ 279,109.35 $ _ _ _ _o_.o_o_

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ $ 1,053,934.22
$ 1,053,934.22 $

166,661.00 $

493,953.96 $ 1,769,864.79
280,543.38

349,814.51 1,389,940.20
288,221.14

166,661.00 $ 2,544,362.13 $ 2,027,975.85

$ 894,795.91 $
13,705.00 86,182.70
485.00 32,720.37
9,512.95 2,760.67

$ 1,040,162.60 $

$

13,771.62 $

107,849.56 $ 1,170,232.20 $ 866,915.48

4,390.67
6.25 65,425.00
5,788.67

46,064.95 92,022.56 40,367.00 33,720.37
6.25 950.00 81,781.88 20,092.35 2,760.67 1,051,900.81

41,275.97 84,014.10
8,271.92 34,533.59
950.00 16,125.56
960.49 739.42 926,097.63

10,792.40 2,027.60

35,056.07 1,768.25

183,460.15 $ 2,552,719.04 $ 2,016,708.48

-16,799.15 $

-8,356.91 $

11,267.37

$

35,375.00

$

327.30 $

15,429.81 $

31,376.22

484.08

$

327.30 $

15,429.81 $

31,376.22 $

35,859.08

$

14,098.92 $

-1,369.34 $

23,019.31 $

47,126.45

0.00

1,369.34

271,179.70

221,745.78

277.56 -1,268.30

1,847.71 459.76

$

14,098.92 $ =====0=.00= $ 293,208.27 $ 271,179.70

- 21 -

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments
Total Assets

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 1999 JUNE 30, 1998

$

245,465.33 $

109,677.59 $

355,142.92

- - - - - - $ ---=-62=c9:.,.,2;;;.;7c..:5:..:.;.3a.;;;2"-

$

245,465.33 $

109,677.59 $

355, 142.92 $ ===6=2=9=,2=75=.3=2=

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

$

Contracts Payable

Retainages Payable

Total Liabilities

$

FUND EQUITY

Fund Balances Unreserved Undesignated

24,490.50 $
95,391.64 125,583.19
245,465.33 $

109,677.59 $ 109,677.59 $

134,168.09 $
95,391.64 125,583.19
355,142.92 $

24,983.66 383,495.07 220,796.59
629,275.32

0.00

0.00

0.00

0.00

Total Liabilities and Fund Equity

$

245,465.33 $

109,677.59 $

355,142.92 $ _ _6_2_9..,72_75_.3_2=

See notes to the general purpose financial statements.

-22-

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

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

REVENUES

State Funds

$

0.00 $

0.00 $

0.00 $ 1,771,557.36

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements

$

104,224.09 $ 104,224.09

$

976,231.32

25,424.96

1,001,656.28 $ 2,616,348.64

Total Expenditures

$

976,231.32 $

129,649.05 $ 1,105,880.37 $ 2,616,348.64

Excess of Revenues over (under) Expenditures

$

-976,231.32 $ -129,649.05 $ -1, 105,880.37 $ -844,791.28

OTHER FINANCING SOURCES

Operating Transfers in

976,231.32

129,649.05

1,105,880.37

844,791.28

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

0.00 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1

0.00

0.00

0.00

0.00

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

o.oo $ ____o_.o_o...

See notes to the general purpose financial statements.

-23-

JEFF DAVIS 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 Pass-Through From Office of School Readiness Summer Food Service Program for Children 1998 Grant 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
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 Capacity Building Improvement 1999 Grant
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Program 1999 Grant Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1998 Summer 1999 Grant Title II Eisenhower Professional Development 1998 Grant 1999 Grant Title Ill Technology Literacy Challenge Fund Grants Basic Grants 1999 Grant Professional Development Model 1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 10.553 * 10.555
* 10.559 * 10.559

N/A $ N/A
N/A N/A
$

119,758.26 422,572.77 $
60,809.34 51,726.98 654,867.35 $

(2) 878,710.51 (3)
60,809.34 54,592.15 (3) 994,112.00

10.550

N/A $

61,063.22 715,930.57 $

61,063.22 1,055,175.22

84.027 84.173 84.173

N/A $ N/A N/A
$

124,561.87 $ 23,940.00
8,011.00 156,512.87 $

124,561.87 23,940.00 8,011.00 156,512.87

84.332

N/A

84.010

N/A

84.010

N/A

84.281

N/A

84.281

N/A

84.318

N/A

84.318

N/A

18,477.88

18,477.88

3,343.59 421,591.34
12,001.13 11,210.25

3,343.59 421,591.34
12,001.34 (3) 11,210.25

74,559.00 46,000.00

74,559.20 (3) 46,028.42 (3)

-24-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASS-
THROUGH ENTITY ID NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title VI

Innovative Education Program Strategies

1999 Grant

84.298

Goals2000

State and Local Education Systemic Improvement Grants

1998 Grant

* 84.276

1999 Grant

* 84.276

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1999 Grant

84.048

Tech-Prep Education

1999 Grant

84.243

Pass-Through From First District Regional Educational

Service Agency

d/b/a Live Oak Migrant Education Agency

Elementary and Secondary Education Act

Title I

Migrant Education

1998 Summer

84.011

1999 Regular

84.011

1999 Summer

84.011

N/A $
NIA NIA

16,087.00 $
95,551.85 131,250.00

16,087.00
95,551.85 119,660.20

NIA

26,453.93

26,752.40 (3)

N/A

5,000.00

5,000.00

N/A

5,159.00

5,159.00

NIA

26,815.40

26,815.40

N/A

3,920.98

1,411.86

Total U. S. Department of Education

$ 1,053,934.22 $ 1,040,162.60

Total Federal Financial Assistance

$ 1,769,864.79 $

N/A = Not Available

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 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 subrecipients.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Jeff Davis County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements.

2,095,337.82

See notes to the general purpose financial statements.

- 25-

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance 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 Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Governor's Emergency Funds (1) Health Insurance Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Records Teachers' Retirement Year 2000 Project Funding 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
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

50,000.00 $

50,000.00

$ 6,108,701.00 948,286.00 389,716.00 259,804.00 67,696.00
1,653,323.00
316,432.00 100,747.00 233,012.00 134,809.00
93,916.00 23,738.00 28,842.00 -972,236.00 742,489.00
63,098.80
65,009.00 2,000.00 9,802.44 2,000.00
163,507.76 5,000.00 2,916.00
28,079.00 4,713.95 1,992.00 9,918.49 9,112.00
43,593.00

69,546.00
5,886.00 52,702.00 199,158.96

6,108,701.00 948,286.00 389,716.00 259,804.00 67,696.00
1,653,323.00
316,432.00 100,747.00 233,012.00 134,809.00
93,916.00 23,738.00 28,842.00 -972,236.00 742,489.00 69,546.00 63,098.80
65,009.00 2,000.00 9,802.44 2,000.00
163,507.76 5,000.00 2,916.00
28,079.00 4,713.95 1,992.00 9,918.49 9,112.00
5,886.00 52,702.00
199,158.96
43,593.00

85,780.00 30,881.00

85,780.00 30,881.00

$ 10,540,017.44 $

493,953.96 $ 11,033,971.40

(1) The purpose of these funds is for the 1999 School of Excellence.

See notes to the general purpose financial statements.

- 26-

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

Construction, furnishing and equipping of

additional classrooms, athletic and physical

education facilities, instructional and support

space, as well as remodeling and renovating

existing classrooms, athletic and physical

education facilities, instructional and support

space, parking areas and grounds, and to

purchase furnishings, equipment and fixtures at

existing facilities; purchasing new school buses;

and the payment of expenses incident thereto, at

a maximum cost to be funded from sales tax

proceeds of $6,700,000.00

$

6,700,000.00 $

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

6,700,000.00 $

129,649.05 $

0.00

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

See notes to the general purpose financial statements.

- 27 -

JEFF DAVIS 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

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Debt Service

Principal

Interest

5,886.00 $

$ 39,882.00
10,792.40 2,027.60

161,700.73 $
32,359.95 1,449.19
1,000.00 950.00
16,356.88 1,516.32

TOTAL
167,586.73
32,359.95 1,449.19
39,882.00 1,000.00 950.00
16,356.88 1,516.32
10,792.40 2,027.60

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

$

5,886.00 $

52,702.00 $

215,333.07 $ =====2=73=,9=2=1=.0=7

$

170,274.11

5,886.00 52,702.00 45,058.96

$ ====2=73=,9=2=1-=07=

See notes to the general purpose financial statements.

-28-

JEFF DAVIS 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

$

7,706,507.00 $

225,000.00

$

7,542,643.35

386,976.36 $ _ _ _33_7_,_9_1_4_.8_2

$

7,929,619.71

-42,018.16 $ _ _ _7....,,8_8_7__,6__0_1_.5_5

$

0.00 $

0.00

=======

See notes to the general purpose financial statements. - 29 -

JEFF DAVIS 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 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

$

644,271.00

$

579,843.90 $

1,634,398.00

1,470,958.20

$ 2,278,669.00 90 $ 2,050,802.10 $

706,904.00 90

636,213.60

1,398,982.00 90

1,259,083.80

803,960.00 90

723,564.00

542,888.00 90

488,599.20

377,298.00 90

339,568.20

$ 6,108,701.00

$ 5,497,830.90 $

0.00 0.00
0.00

$

812,433.00

$

731,189.70 $

0.00

$

812,433.00 90 $

731,189.70 $

135,853.00 90

122,267.70

$

948,286.00

$

853,457.40 $

$

389,716.00 90 $

350,744.40 $

$ 7,446,703.00

$ 6,702,032.70 $

$

208,642.00 90 $

187,777.80 $

51,162.00 100

51,162.00

$

259,804.00

$

238,939.80 $

$ 7,706,507.00

$ 6,940,972.50 $

0.00
0.00 0.00 0.00
0.00 0.00
0.00

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

$

21,362.00

46,334.00

$

21,362.00 $

46,334.00

0.00 0.00

$

67,696.00 100 $

67,696.oo $====o=.o=o

- 30 -

SCHEDULE "6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

579,843.90 $

572,396.15 $

7,839.03 $

580,235.18

1,470,958.20

1,418,307.64

61,862.24

1,480,169.88

$ 2,050,802.10 $ 1,990,703.79 $

69,701.27 $ 2,060,405.06 $

0.00

636,213.60

792,070.26

24,954.02

817,024.28

0.00

1,259,083.80

1,435,503.44

32,233.87

1,467,737.31

0.00

723,564.00

819,954.21

148,991.47

968,945.68

0.00

488,599.20

551,089.65

25,232.41

576,322.06

0.00

339,568.20

393,591.80

10,145.55

403,737.35

0.00

$ 5,497,830.90 $ 5,982,913.15 $

311,258.59 $ 6,294,171.74

$

731,189.70

$

$

731,189.70 $

122,267.70

$

853,457.40 $

$

350,744.40 $

$ 6,702,032.70 $

165,812.59 $ 579,289.65 50,121.10 20,622.00
815,845.34 $
118,331.40
934,176.74 $
372,792.84 $
7,289,882.73 $

5,223.59 $ 11,520.14
242.17 1,982.89
18,968.79 $
2,958.80
21,927.59 $
4,728.64 $
337,914.82 $

171,036.18 590,809.79
50,363.27 22,604.89
834,814.13
121,290.20
956,104.33
3TT,521.48
7,627,797.55

0.00 9TT.50
0.00

$

187,777.80 $

51,162.00

$

238,939.80 $

252,760.62 $
252,760.62 $

$ 49,061.54
49,061.54 $

252,760.62 49,061.54
301,822.16

0.00 2,100.46

$ 6,940,972.50 $ 7,542,643.35 $

386,976.36 $ 7,929,619.71 $

3,0n.96

$

21,362.00

46,334.00

$ ===67=,6=96=.o=o

$

58,716.58 $

58,716.58

9,050.00

9,050.00

$

67,766.58 $

67,766.58 $=======0..0...0..

31

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RvssELL W. HrNTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S. W., Suite 2 I4 Atlanta, Georgia 30334-8400
June 20, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the JeffDavis 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 Jeff Davis County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated June 20, 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 JeffDavis County Board ofEducation'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 JeffDavis County Board ofEducation'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 certain matters involving the internal control over financial reporting and its
99YB-40

operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Jeff Davis County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items FS-6801-99-02 and FS-6801-99-03.
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 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, of the reportable conditions described above, we consider item FS-6801-99-03 to be a material weakness.
This report is intended solely for the information and use of management, members of the Jeff Davis 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,
r:)AA-M. OQ w.4~ ~11 W. Hinton State Auditor
RWH:jb 99YB-40

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 20, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the JeffDavis County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Jeff Davis 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. Jeff Davis 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 Jeff Davis County Board of Education's management. Our responsibility is to express an opinion on Jeff Davis County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Jeff Davis 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 Jeff Davis County Board of Education's compliance with those requirements.

99SA-10

In our opinion, the Jeff Davis 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 Jeff Davis 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 Jeff Davis 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 ofthe 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 ofmanagement, members ofthe JeffDavis County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb 99SA-10

State Auditor

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6801-95-02 FS-6801-97-01 FS-6801-97-03 FS-6801-98-01 FS-6801-98-02 FS-6801-98-03

Unresolved - See Corrective Action/Responses Resolved - PreviouslyReported Corrective Action Implemented Further Action Not Warranted Resolved- PreviouslyReported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

AUDIT FOLLOW/UP RESOLUTION Failure to Meet Expenditure Requirements Amount: $3,093.94 Finding Control Number: 6801-95-02

The local Board of Education concurs that this finding, 6801-95-02, remains unresolved. The State Department of Education has not applied this expenditure deficiency to the local five mill share on the allotment ofJeffDavis County. This should have been implemented in fiscal year 1999 but was not.

GENERAL LEDGER Inadequate Documentation Of Journal Entries Finding Control Number: FS-6801-98-02

The Jeff Davis County Board of Education concurs that this finding, FS-6801-98-02, remains unresolved. Supporting documentation has been provided to some degree. Procedures will be implemented to sustain that all journal entries have documentation that support the validity of the transaction.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6801-98-03

In concurrence of finding FS-6801-98-03, we find that this is a continuation for prior year. At this time, this condition remains unresolved. The local Board of Education has not established procedures to correct this deficiency due to budgetary constraints for hiring additional personnel to maintain these records. Accountability of General Fixed Assets will be considered in the future.
'

- 1-

JEFF DAVIS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS 6801-96-01 Unresolved - See Corrective Action/Responses CORRECTIVE ACTION/RESPONSES ALLOWABLE COSTS/COST PRINCIPLES Salary Distribution Not Supported By Time Records Amount: $362.59 Finding Control Number: 6801-96-01 This finding remains unresolved. This entity concurred with the finding 6801-96-01, stating that salary expenditures were not supported by the time and attendance sheets for Federal Programs. The Georgia Department of Education was to review this matter to determine if a reclaim of funds was appropriate. A clearance letter received from the Georgia Department of Education dated November 6, 1997, stated that the GDOE would respond to the system regarding a refund. At this time, no correspondence has been received by this Board of Education.
-2-

SECTIONN FINDINGS AND QUESTIONED COSTS

JEFF DAVIS 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 Jeff Davis 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 Jeff Davis County Board of Education disclosed financial statement reportable conditions related to the following control categories.

General Ledger

General Fixed Assets

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the JeffDavis 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 Jeff Davis 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 Jeff Davis 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 Jeff Davis County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Summer Food Service Program for Children 84.276 Goals 2000 - State and Local Education Systemic hnprovement Grants

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

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

- 1-

JEFF DAVIS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $3,077.96 Finding Control Number: FS-6801-99-01
The Jeff Davis County Board of Education reported underexpenditures of Quality Basic Education (QBE) funds of$977.50 for the Special Education - Category VI, Gifted Program and $2,100.46 for the Media Center Program - Operations. These underexpenditures occurred because the Board expended less than the minimum expenditure requirements for the QBE Programs. These funds should be returned to the Georgia Office of Treasury and Fiscal Services.
GENERAL LEDGER Inadequate Documentation of Journal Entries Reportable Condition Repeated From Prior Year Finding Control Number: FS-6801-99-02
Forty journal entries were sampled to test the validity and accuracy of the journal entries. This examination revealed that all forty of the journal entries did not include adequate supporting documentation nor did they have proper authorization. Procedures should be implemented to ensure that all journal entries are supported by adequate documentation and are properly authorized.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6801-99-03
The JeffDavis County Board of Education did not maintain a General Fixed Assets Account Group within the formal accounting records. 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 of a 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.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-2-